CSR Analysis and Impact on Operations
Nike has a Code of Business Conduct and Ethics that includes its commitment to the environment and is a signatory of the UN Global Compact. Nike has created a team of sustainability managers led by an independent director. Its environmental goals include producing 'eco-friendly' products and minimizing its environmental impact through the reduction of greenhouse gases, organic solvents and PVCs.
Nike acknowledges the difficulty of tracking environmental emissions and the use of materials in supply factories, and is currently exploring new ways to best respond to these difficulties and enforce environmental compliance. All major material suppliers ...view middle of the document...
Additionally, with increasing pressure on the company to reduce its greenhouse gas emissions, the company is looking to offset emissions from the extensive amount of business travel undertaken. New products are also being developed that are more eco-friendly. For instance, the company has begun to offer an organics line, and is integrating small amounts of organic cotton into all apparel items, with a target of at least 5% organic cotton in every piece of cotton apparel by 2110.
Nike's life cycle analysis program is designed to phase out the use of materials and chemicals that are harmful to human and/or environmental systems. Products such as the Dri-FIT Stand-Off Singlet, SD 400 Slide Sandal, and the Air Essential III incorporate both environmental sustainability and marketability. Nike is also developing a cleaner, less chemically-dependent rubber for eventual use on all athletic shoes. Another unique product in Nike's recycling
program is entitled 'Nike Grind'. Through this program Nike recycles used shoes to use in the fabrication of synthetic playing fields (football and soccer fields, basketball courts, running tracks, tennis courts, and playground padding). To date the program has been able to provide over 80 surfaces around the world, many of which are located in under-served communities. The program has been extended to include non-Nike branded athletic shoes. Nike has managed to eliminate 96% of the identified chemicals by weight in one particular type of rubber used in the shoe production process. The company is also looking for ways to increase the amount of rubber it recycles. At the close of FY06, Nike had more than 50 percent of footwear models containing some of the improved more sustainable rubber. Across the Nike brand, this change has allowed for the elimination of at least 3,000 metric tons of toxic materials every year. Nike discloses that an estimated 20 gallons of water are used for every pound of textile produced. Use of this water and its discharge is the largest environmental impact of textile production. For these reasons, Nike directs vendors who supply to factories to comply with key criteria from its apparel water program. For FY05-06, this program was based upon guidelines developed through a working group managed by Business for Social Responsibility.
The company is also looking for ways to increase its use of green power in its operations worldwide, thus reducing the amounts of harmful emissions released into the atmosphere. In February 2007, Nike was recognized for its leadership in climate change by WWF -US. As a founding member of the Climate Savers Program, Nike attained its company-wide target, achieving annual CO2 emissions 13 percent below 1998 levels by the end of 2005.
The company appears to have few polices in place that directly address human rights, as most of its efforts have gone into labor rights. However, the company is a member of the Fair Labor Association (FLA), a monitoring...