Nike Case Study

NIKE CASE STUDY

PRESENTED BY

SHAHBANI

AZMIE

AZLINA

MEEN

COMPANY MISSION

“ To be the world’s leading sports and fitness company”

COMPANY MISSION

• The SWOOSH logo is a graphic design created by Caroline Davidson in 1971.• She was paid $35 by for the logo design. • The 1st shoe with the NIKE SWOOSH was introduced in Spring 1972.• NIKE pronounced NI-KEY, is the winged goddess of victory according to Greek mythology.

COMPANY HISTORY

COMPANY HISTORY1962: Philip H Knight founds Blue Ribbon Sports (BRS) to import Japanese running shoes.

1963: BRS takes its first delivery of 200 shoes from Onitsuka Tiger Co.

1964: BRS becomes partnership between Knight $ William Bowerman.

1966: The company’s 1st retail outlet opens.

1968: Company is incorporated; the Bowerman Cortez design become a big seller.

1971: BRS begins manufacturing its own product overseas & the Swoosh trademark and the Nike was introduced.

BOWERMAN CORTEZ DESIGN

NEW CORTEZ DESIGN

CASE SUMMARY

CASE SUMMARY

DEVELOPING AN EFFECTIVE PUBLIC RELATIONS STRATEGY. This case is about how NIKE been confronted by watchdog group regarding their subcontractor workers issues in Asia. NIKE has responded and took a proactive action to ensure the best practices in Human Resources Management, Environment protection and safety policies.

MOVIE REVIEW

MOVIE

QUESTION REVIEW

QUESTION 1

What could Nike’s Corporate Responsibility team do to

improve Nike’s public image?

QUESTION 2

Why did Nike’s attempt to address it critics prove

unsuccessful?

QUESTION 3

What damage, if any, has been done to Nike? Did Nike react

appropriately? Did it overreact?

QUESTION 4

Many of Nike’s competitors subcontractor production to Asian factories that are similar to the factories used by Nike, why was Nike singled

out by human rights and labour right activist?

QUESTION 5

What responsibility does Nike have to the workers in the factories of its

subcontractors? What wage rates should it require them to pay their workers?

QUESTION 6

According to its corporate Web site (www.nikebiz.com) Nike seems to be more forthright in delineating what it believes to be more corporate responsibility issuing, for

example, an annual Nike responsibility report? Is Nike now doing enough for its contract workers?

http://www.nikebiz.com/

CASE DISCUSSION

QUESTION 1

What could Nike’s Corporate Responsibility team do to

improve Nike’s public image?

Q1: AnswerCONDUCTING PRESS CONFERENCES & ISSUING PRESS RELEASE OUTLINING THE STEPS THAT NIKE HAD TAKEN TO ENSURE COMPLIANCE WITH ITS CODE OF CONDUCT.

ESTABLISHING & POSTING PROGRESS ON IMPROVING LABOUR CONDITIONS ON THE CORPORATE WEB SITE.

RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.










Q1: Answer NIKE SHOULD TAKING ACCOUNT OF BUSINESS IMPACTS & THE DESIRES OF STAKEHOLDERS, TO PROVIDE AN OPEN & PROGRESS INCORPORATING RESPONSIBLE PRACTICE INTO OPERATIONS.

TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.








QUESTION 2

Why did Nike’s attempt to address it critics prove

unsuccessful?

Q2: Answer NIKE IGNORE THE PROBLEMS & DENYING THEIR RESPONSIBLITY TOWARD TEHIR CONTRACTOR MANUFACTURING.

NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.

THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.










QUESTION 3

What damage, if any, has been done to Nike? Did Nike react

appropriately? Did it overreact?

Nike initial response was to ignore the problem and

suggested that any problems were the responsibility of

Nike’s subcontractor

Q3(a): What damage, if any, has been done To Nike?

The above action has lead to the following damages:

Q3: Answer

Nike Image Shattered

More “Negative News About Nike’s LaborPractices” Emerged

Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image

Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice

Out of Court Settlement Confirms Nike’s Bad Labor Practice

Nike’s Management Reputation


Q3: Answer






Nike action is seen as a irresponsible and inhumane

Instead of rushing to mitigate the crisis of workers exploitation, Nike choose toe deny the existence of the crisis



Q3: Answer






More “Negative News About Nike’s Labor Practices” Emerged

Activists took advantage to embarrassed Nike even more


Q3: Answer







Many campaigns boycotting Nike’s products were organized especially throughout US/ Europe

This may “directly/ indirectly” affected Nike’s customers’ purchase decision as Nike experience reduction in Net Profit


Q3: Answer







Nike “swoosh” logo and tagline are becoming the symbols of “bad labor and ethic” practices


Q3: Answer





Out of Court Settlement Confirms Nike’s Bad Labor PracticeNike’s Management Reputation

Nike reached an agreement to settle the lawsuit out of court ( Kasky vs. Nike) by agreeing to pay US1.5 million to the Fair Labor Association

The action indirectly shows that Nike is “guilty” and “responsible” for the work conditions and employees wellbeing of its subcontractor.


Q3: Answer





Out of Court Settlement Confirms Nike’s Bad Labor PracticeNike’s Management

Reputation

Nike Management failed to live up to the expected standards of an ethical corporate citizen as per what Nike projecting its image in its advertisement

The team answer is No, Nike fail to react appropriately.

Q3(b) Did Nike react appropriately? (c) Did it overreact?

The team finds Nike is actually “under-react”.

QUESTION 4

Many of Nike’s competitors subcontractor production to Asian factories that are similar to the factories used by Nike, why was Nike singled

out by human rights and labour right activist?

Majorities of the human rights and activists are US-based .

Nike is associated as a US brand/ product.

Q4: Answer

Nike is associated with “luxury” products.

Nike is also seen as the leader among its competitors



Q4: Answer





Q4: Answer





Q4: Answer





Q4: Answer



QUESTION 5

What responsibility does Nike have to the workers in the factories of its

subcontractors? What wage rates should it require them to pay their workers?

Q5: Answer

NIKE GREATEST RESPONSIBILITY AS A GLOBAL COMPANY IS TO PLAY A

ROLE IN BRINGING ABOUT POSITIVE SYSTEMATIC CHANGE FOR

WORKERS WITHIN THEIR OWN SUPPLY CHAIN, AND IN THE

INDUSTRY.

Q5(b): AnswerNIKE

RESPONSIBILITYForce Labour

Child Labour

Compensation

Benefits

Hours of work/ overtime

Child Labour

Q5(b): AnswerNIKE


Child Labour

Compensation

Benefits


Child Labour

Q5(b): AnswerNIKE


Child Labour

Compensation

Benefits


Child Labour

Q5(b): AnswerNIKE


Child Labour

Compensation

Benefits


Child Labour

Q5(b): AnswerNIKE


Child Labour

Compensation

Benefits


Child Labour

Q5(b): AnswerNIKE


Child Labour

Compensation

Benefits


Child Labour

Q5(b): AnswerNIKE


Child Labour

Compensation

Benefits


Child Labour

QUESTION 6

According to its corporate Web site (www.nikebiz.com) Nike seems to be more forthright in delineating what it believes to be more corporate responsibility issuing, for

example, an annual Nike responsibility report? Is Nike now doing enough for its contract workers?

http://www.nikebiz.com/

Force Labour

Child Labour

Compensation

Benefits


Child Labour

Force Labour

Child Labour

Compensation

Benefits


Child Labour

Force Labour

Child Labour

Compensation

Benefits


Child Labour

Force Labour

Child Labour

Compensation

Benefits


Child Labour

Force Labour

Child Labour

Compensation

Benefits


Child Labour

Force Labour

Child Labour

Compensation

Benefits


Child Labour

Force Labour

Child Labour

Compensation

Benefits


Child Labour

The End

Nike Case Study

Business