CSR: Is Nike just doing it or not?

As many of today’s corporations are focusing on the social responsibilities of their businesses, there are still many world-famous brands receiving criticism for their lack of building a sustainable work environment. One company that is consistently on society’s radar is Nike, Inc. As the largest athletic apparel producer in the world, Nike has become a global representation of business that faces constant accusations of human neglect. In response to years of questioning and examination, Nike is developing a corporate social responsibility plan that focuses on improving working conditions in factories and making sports more available to youth all over the globe.

Nike, Inc. is based in Beaverton, Oregon and is currently labeled as the largest shoemaker in the world. Their shoes are sold in over 160 countries and include name brands such as NIKE, Cole Haan shoes, Nike Bauer Hockey, Umbro, Converse and Hurley International. In 2007, Nike, Inc. reported $16.3 billion in sales, leaving profits of nearly $1.5 billion. Selling to over 19,000 retail accounts in the United States, Nike’s global work-force expansion is required for such large profit margins and mass production. As the conditions of 700 factories worldwide have been a source of much heated debate, the allegations against Nike have led them to respond by working with the Global Alliance to better working conditions in their factories.

Environmental issues are hot topics on every business agenda, especially when it comes to an appealing pulic image. For this reason, Nike created the “GreenXchange” campaign in 2009. Basically, the GX program “bridges some key gaps in the way that green technologies are developed and utilized” (Nikebiz). Ultimately, the GreenXchange will “enable the creation of sustainable revenue streams to fund new green technology development” (Nikebiz). The expected launch of this program is expected sometime in 2010.

The most infamous issue Nike’s faced for over 20 years are concerns expressed about the physical working environment of 800,000 employees worldwide, with emphasis on Asian workers. Nike has responded to these reports, but some labor activists believe Nike’s corporate social responsibility plan is a weak excuse for public relations. Jeff Ballinger, a labor activist, heavily criticized Nike’s social responsibility efforts to Corporate Crime Reporter: “The CSR cost for Nike is about $10 million to $12 million a year, just for the CSR staff and expenses, to go to these sustainability meetings all over the world…” (SourceWatch). Although it costs Nike millions to attend these conventions, Ballinger claims the costs are no where near what they should be spending to improve the quality of life for their workers: “I figure 75 cents per pair of shoes to the worker would fix the problem. If Nike instead paid workers 75 more cents per pair of shoes, do you know what that would cost Nike compared to the CSR costs? That would cost them $210 million a year” (SourceWatch).

According to Mark Parker, NIKE Inc.’s President and CEO, “sustainability is key to Nike’s growth and innovation.” Whether or not critics agree on how Nike should allocate their earnings, the corporate social responsibility efforts do exist. Some argue corporate social responsibility campaigns are not effective and have the “it’s all or nothing” mentality, however, in Nike’s situation their efforts have made them sustainable because they have maintained recognition as a leading world business (Fortune 500).

All in all, being socially responsible is overwhelmingly complicated. The efforts Nike, Inc. has to make to improve their image entails more than a “feel-good” public relations campaign. Like many of their competitors, Nike is striving to appear socially friendly and responsible while transforming into a more sustainable work force.

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Ben & Jerry's: My favorite scoop AND socially active!

I just got home from the gym and ate steamed green beans and a leftover chicken breast. This obviously did not satisfy my tummy and I knew I needed something more...ICE CREAM always does the trick! I made a promise to myself that I would not divulge in this guilty pleasure until spring break is over, however, there was a half full tub of Half-Baked Ben & Jerry's in the freezer calling my name.

I told myself I'd have only one spoonful. I don't know why I thought this was realistic, because I obviously failed to stop at just one scoop. As I was finishing off the remnants of my favorite sweet treat, I knew I had to blog about it. Not only to tell you all that if you've never experienced the deliciousness of Ben & Jerry's, you should immediately run (or drive, whatever works best for you) to the closest grocery store and buy a pint. I would advise you on what not to get, as most brands have some not-so-tasty flavors, but this is absolutely not the case for my dear Ben & Jerry's brand. I've never had a flavor I didn't enjoy, so you're safe to try them all.(At this point, I've given you 3 hyperlinks, so there's no excuse not to at least check out their webpage.) But back to why I felt this calling to spread the word about this fabulous ice cream... not only is it the best quality because of the unique flavors AND it's all natural ingredients, but the company is on mission. You can describe them as "socially responsible" which is why I feel it's appropriate to publicize them on my PR blog. The company's mission statement has 3 parts that are connected: the social mission, the product mission, and the economic mission. I could go on and on about each section of their mission, but I want to focus in on the social mission for now. Ben & Jerry's co-founder Ben Cohen once said "Business has a repsonsibility to give back to the community." With this philosophy, they've built relationships with their community which makes the Ben & Jerry's culture so unique and publicly appealing. This is a brand that's mastered the art of connecting with their public, which has inevitably led to their lasting success. If you would like to stay in-tune with their newest flavors, check them out on Twitter @cherrygarcia...Maybe a PR internship will pop up, you never know!