Essay on New Balance Csr Case Study

2259 Words Jul 6th, 2013 10 Pages
1. Introduction New Balance is the second largest athletic footwear manufacturer in the U.S. and the fourth largest in the world. The company has had a strong focus on corporate social responsibility (CSR) since its inception 100 years ago, although until recently it has not necessarily been adept at making the public aware of its “doing what’s right” culture (Veleva, 2010).
Dr. Veleva’s 2010 case study, “New Balance: Developing an integrated CSR strategy”, examines the company’s history and corporate culture, and describes how in 2006 it started to approach CSR more formally, creating a CSR steering committee. In 2008, the company engaged the Boston College Center for Corporate Citizenship (BCCCC) to help develop a framework, conduct
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Their stores were also designed with the environment in mind, even though there had been no directive to do so from the executive level. These initiatives, as well as their more environmentally friendly manufacturing practices, such as using rail for shipments instead of trucks were, very much in line with the company’s corporate philosophy and culture.
Unfortunately, the same issues that existed with the overall governance existed here. The company may have been acting as an exemplary corporate citizen, but with no overall strategy and minimal communication, there was no consistency or coordination, and the company was not getting the public relations benefits that they might have otherwise gained (Veleva, 2010).

2.3 Operations
In its footwear division, New Balance had many operational initiatives that demonstrated strong responsible leadership values, many of which helped the bottom line, employee morale, the environment, and productivity.
A partnership with Henkel, New Balance’s German supplier, helped the company transition from using solvent cements to a “moisture cured reactive hot melt” process which saved costs, resulted in less waste, doubled productivity, and was better for the environment (Veleva, 2010). The process also resulted in a 97.4% reduction in the emission of volatile organic compounds (VOCs) in its U.S. plants. VOCs have been found to have many adverse health effects, including liver, kidney, and central

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