Is Nike’s Corporate Social Responsibility Just Marketing Genius? (2024)

FAQs

Does Nike have corporate social responsibility? ›

Nike's CSR work, on the other hand, involves what Nike does best – design, innovation, and brand-building. They've attacked the problems of resource scarcity, workforce abuse, and social injustice with the power and prowess that comes from these core competencies and thus have been able to make real progress.

Nike failed to address corporate social responsibility early on because they did not globally implement a solution. Rather, Nike implemented reputation management locally but was not established worldwide.

Corporate Social Responsibility (CSR) and Sustainability metrics site CSRHub recently updated its ratings on NIKE Inc. and the 145 companies in the Textiles and Apparel industry. NIKE's overall rating currently is 62 after the most recent updates to their CSRHub page.

CSR goes beyond legal requirements, addressing societal and environmental issues. Critics claim some use it for marketing, but authentic CSR is integral to a company's culture and values. It's not just a marketing ploy; it responds to changing consumer expectations, especially among the younger demographic.

Nike's new corporate social responsibility policy was established with the general understanding that if there is no planet, there is no sport. By implementing a supplier climate action program, Nike ensures that suppliers and manufacturers are committed to global carbon neutrality in the future.

Labor activists' demands for action were cascading into Nike's core and highly profitable youth markets in North America and Europe. So in 1996, Nike “went professional” in creating its first department specifically responsible for managing its supply chain partners' compliance with labor standards.

Nike faced challenges regarding poor working conditions in its overseas factories. While Nike initially disclosed few details about its CSR activities due to legal concerns, audits later revealed issues like workers having restricted access to facilities, working long hours, and facing punishment for refusing overtime.

Our research highlights allegations of forced labour in the Nike supply chain, gender discrimination towards female athletes and parents, and failure to ensure all employees receive a living wage.

Back in the late 1990s and early 2000s, the company was accused of using sweatshops to make activewear and shoes. Despite an initial slow response, the company eventually took measures to improve the working conditions of employees in its factories.

Even so, the men's customer segment remains the largest by far: in 2021, sales of men's Nike products accounted for over half of wholesale revenue worldwide. Nike positions itself as a brand for athletes but pulls every consumer into the fold with its fundamental pitch: if you have a body, you are an athlete.

Who is Nike's main customer? ›

Nike's target market is diverse and age-inclusive. They are focusing on individuals across all life stages. Their marketing strategy is age-agnostic, targeting not just the youth but also adults and older individuals who are keen on staying active.

The basis of corporate social responsibility is a strategy that seeks a balance between the social, environmental and economic aspects. These three aspects provide the basis for the 3 Ps: People, Planet & Profit.

The pyramid of corporate social responsibility is a framework depicting the importance of four key CSR dimensions: economic, legal, ethical, and philanthropic. This model was created by Professor Archie Carroll in 1991 as a way to visualize his four-part definition of CSR.

Companies who place a high priority on corporate social responsibility and incorporate it into the basic tenets of their business strategy stand to gain advantages in a number of areas, including their brand reputation, the loyalty of their customers, the retention of their employees, and even their financial ...

Nike's global pricing strategy is a cornerstone of its success. The company employs a premium pricing strategy, positioning its products as high-quality, exclusive items (Hill & McKaig, 2015).

An excellent example of CSR on the frontline is big pharma pioneer Johnson & Johnson. They have focused on reducing their impact on the planet for three decades. Their initiatives range from leveraging the power of the wind to providing safe water to communities around the world.

NIKE is committed to maintaining a work environment free from unlawful discrimination, including harassment based on sex, sexual orientation, gender identity, gender expression, race, age, religion, disability, ethnic group or any other protected class status. Harassment is unacceptable and will not be tolerated.