BUSINESS, GOVERNMENT AND SOCIETY
Sustainability
Framework
For: Deryk Stec
By: Shyam Maheshwari (3461529)
2/4/2013
This paper explains the sustainability strategies of Adidas and Nike and then compares itself with the sustainable value framework of Hart’s.
What is Sustainability?
As defined by Environment Canadai, Sustainable development is the process of developing land, cities, businesses and communities so that our current needs are met without compromising the ability of future generations to meet their own needs.
Competitors for Sustainability Framework
Strategies for Sustainability Development:
Adidasii
Nikeiii
Environmental Sustainability
Social Compliance in Supply
Chain
Sustainable Materials
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Pollution Prevention
Nikevi:
Their Aim is to achieve 20% reduction in co2 emission per unit of the product. By 2006, they have reduced their overall percentage in the
Carbon dioxide footprint by 80%. Nike is currently working in finding renewable energy sources which will help in finding ways to scale energy efficiency.
Adidasvii:
‘Hot spot’ approach to reduce the carbon footprint in all the sit es by reducing the energy consumption and using energy with a lower
carbon footprint.
Design for Environment (DfE) is a systematic application developed by
Adidas which focuses on the design stage of the product, avoiding and minimizing environmental impacts and increasing resource efficiency at all stages of the product.
Product Stewardship:
Nike:
Nike has build tools to assess environmental impacts of their products like water and land use, chemicals and waste. These tools also help in assessing material s that are used to make the products and the overall product design. They upgraded the Nike MSI to increase the use of environmentally preferred materials.
Adidas:
The Sustainable Apparel Coalition (SAC) is a group of 40+ leading apparel and footwear brands. SAC follows the Sustainable Product
Index (SPI) which accurately assesses the social and environmental impacts of apparels across their whole life cycle.
An Environmental Assessment Tool (EAT) was
Three key issues contributed to the disappointing sales. First, internal organizational challenges prohibited the growth of the line. Rigid
Robert Swan once said “the greatest threat to our planet is the belief that someone else will save it.” Two companies that understand this concept are Patagonia and Nike. How they address these issues regarding sustainable business practice vary, however. Both have made it their mission to deliver excellence and make the best quality products within their industries, Patagonia focussing more on outdoor active wear, while Nike is more sports oriented. Part of this process has been developing products from sustainable sources. Patagonia, for example, actively took a stand against chemical intensive cotton in 1994, and has since switched to less harmful means of organic cotton within all their cotton-based products. They are even going the extra
Nike has a very sophisticated sustainability strategy. The strategy is based on company’s prospects for future, to ensure that the company remains profitable and reputable, taking into consideration the social responsibility of the company (NIKE 2013). For instance, the strategy is supposed to ensure that the company gains a stable supply for the raw materials for the product manufacturing that will ensure stable supply of the products in the market at favorable prices. The strategy also targets make the company responsive to environmental concerns, aiming at reducing environmental pollution through emissions to the atmosphere (Charter, 2001). The strategy outlines the company
Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.
Lululemon is the third leading speciality sports apparel store, behind Nike and Adidas (appendix 1), retailing for women and a small range of men. They have capitalised on the growing trend of fashionable gym and street clothes (Ibisworld, 2016). Their vision is “Elevating the world from mediocrity to greatness”, through their 350 stores and online store shipping to 80 countries (Lululemon, 2016). A SWOT analysis in appendix 2 reveals the sustainable niche of Lululemon’s market, while below demographics, social trends and environment macro-environmental factors are discussed due to their relevance to Lululemon as a modern brand, the others are outlined in appendix 3.
When I was five years old I began school. In Kindergarden we learned basic things like letters, numbers, and how not to be fully engulfed in flames. For some reason, 2004 was the height of anti-fire education in Missouri and before I knew how to tie my shoes I knew that if I ever was ablaze, to cover my face, fall to my knees, and roll back and fourth. This is what my institution placed serious value upon and because I was a student of that institution I also placed serious value upon it. The same idea must be applied to a university's teaching of environmental sustainability. This is discussed in David Orr's "What is Education For?" Through choosing a curriculum a university chooses what it places value onto, by making the environment a priority it showcases to the future generations that environmental wellness is an important responsibility for them to take ownership.
Sustainable development means that the present generations should be able to make use of resources to live better lives in such a manner that it does not compromise the ability of future generations. For sustainable development to occur, there needs to be sustainable economic, ecological and community development. Society needs to be educated about ways in which they can use resources, especially natural, in such a manner that it does not cause harm to the environment and put future generations lives at risk.
Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.
It provides a conceptual framework that enables Adidas stakeholders — from its 50,000 employees on through to suppliers, customers and communities — to better and more easily understand, assess and realize the multinational footwear and sportswear company’s sustainability goals.
Apart from marketing strategies Nike has embellished on the expanding market of technology. In efforts to collaborate with issues of climate change in business the challenges and opportunities that growing organizations seek, Nike has designed a tool to advert such issues. They released a version of their Environmental Apparel Design Tool back in December 2010 in hopes that companies would use it and build from it. In efforts to stay competitive within their market and sustain leadership of sports apparels, Nike has given designers this tool to gather
Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.
In today’s global economy sustainability is very important; from the biological aspect to the industries they all play a role on the marine environment. As world population increases the demand of fish rises causing overfishing. Certain laws have been placed to limit the amount of wild fishing to reduce the risk of endangerment. To meet the demand of the population, fish farms are introduced. Pollution and health related issues are part of the challenges of fish farming. Sustainability also affects social areas such as beaches.
Environmental: Now a days people are more conscious about environmental issue. So environmental issue can affect the Nike business. During the business Nike have to ensure that their business is eco-friendly
We are facing various social, economic, environment challenges today which are getting worse day by day, it may also include rapidly increasing population, and most important unprecedented macroeconomic stress. In order to save the world from a potential catastrophe, we have to make significant changes in our behaviour as well as the system we are in. There is an escalating global movement to address all the issues which may question the sustainability of an organisations. Sustainability of organisations, nations, humanity is becoming a primary goal of the individuals and groups in all the different sectors anyone can think of. Leaders are very keen to launch new sustainability initiatives on a daily basis in order to make the surroundings more sustainable in nature. So now in this report which is based on the case study of “Nike: sustainability and labour practises”. This case illustrates that Nike was found guilty regarding the labour practises the company was following which the reason for the external criticism Nike had to face around the world during 1990 and 2000. The main purpose of this report is to study the sustainable initiatives Nike had to take to tackle these issues and further how much those steps are similar to the theory regarding the sustainability of the organisations.
It seems Adidas works to be transparent with the global community, they are striving towards meeting all customers’ needs, in all walks of life, while giving back to communities. They follow a corporate mission that reflects human resources, social and environmental affairs, and community affairs; thus, good corporate social responsibility