The Essay On SDGs' Importance In Business Environment Is Significant.

Importance of Sustainable Development Goals (SDGs)

The organizations have been focused towards adopting key business approaches and practices that would contribute towards their improved revenue as well as profitability in the marketplace. In order to achieve such strategic goals to revenue and operational growth, it is required by the management to identify and understand the changing market needs, as well as the stakeholder preferences and accordingly the internal business or operational strategies, are to be defined. Considering such need, it can be reflected that in the present marketplace there is a need for the business organization to focus towards the increased social preferences and need towards sustainability and societal development along with that of the business growth. The approach to sustainability ensures that the business organization have a balanced approach towards society, business as well as the environment. Further to strengthen the approach to sustainability international organizations including United Nations (UN) has defined several key sustainable development goals (SDGs) that can be adopted by the organization while defining upon its strategic goals and objectives in the marketplace (Scheyvens, et al., 2016). This discussion is focused towards evaluating the importance or significance of SDGs in the present business environment and accordingly defining upon the key approaches and practices being adopted by Nike to ensure its sustainable positioning in the competitive and dynamic industry environment.

Sustainable Development Goals or SDGs has been defined by United Nations in 2015, in order to ensure that awareness can be created within the international society in respect to the need for the adoption of sustainability practices. Such practices can actively contribute towards improved living conditions as well as towards the threat of climate change. UN has identified 17 SDGs that are to be achieved by 2030 and to ensure the achievement of such sustainable goals a collaborative or integrated approach by society, government, as well as business organizations, are to be ensured. The introduction of SDGs in the international society has not only to be aimed towards social development or environmental protection, but it also ensures that every aspect within the society including that of the health factors, education and literacy, poverty, hunger and other social discrimination or the challenges can be eliminated (UNDP, 2021).

It ensures the adoption of innovative and creative approaches involving the industry advancements i.e., the technology and digital sources to ensure that a well-defined plan or approach can be developed considering the organizational or the society needs along with ensuring the fulfilment or achievement of the defined SDGs in the marketplace. The regulatory authorities have defined that SDGs has been introduced with a purpose to ensure that a common approach can be introduced or can be implemented across the international society irrespective of the nation’s domestic policies and approaches towards sustainability. Based on such it can be reflected that the key purpose of SDGs has been based on three key principles or factors including universality, innovation and integration (UNEP, 2021).

As it has been discussed that UN has defined 17 SDGs upon which the organizations are required to focus upon while defining upon their strategic growth decision. Such goals aim towards different environments as well as the operational growth areas which strengthens the business strategic positioning in the marketplace. However, in the process, it is required that the management focuses on identifying SDGs that aligns with the business purpose and is majorly impacted by the organization’s operational approaches. Accordingly, such is to be adopted and the strategic gaps resulting in the climate impact can be eliminated (SDGS, 2021).

Key SDGs defined by United Nations

Figure 1: The 17 SDGs (Source: (SDGS, 2021))

Considering the business purpose and operational approaches of Nike in the marketplace “SDG 12: Responsible Consumption and Production” can be focused upon. The key purpose of defining of such a sustainable goal is to ensure that the business organization is involved in sustainable and responsible manufacturing of the products and services and further the stakeholders or the industry consumers can be influenced to ensure responsible consumption in the marketplace. In the fashion industry, it can be reflected that sustainable sourcing of raw materials is the key challenge within the fashion segment upon which the brands or the organizations are required to focus upon (Henninger & Alevizou, 2016).

Implementation of the defined SDG will actively contribute towards the elimination of unnecessary waste and pollutants within the industry by 2030. It ensures encouraging the organizations as well as the stakeholders to reduce the waste and ensuring strategic utilization of the available resources. Such approaches and practices by 2030, will contribute towards the development of a positive attitude and effective patterns towards sustainability at different societal and industry levels, ensuring the development of a better place for living (UNEP, 2021).

It can be reflected that every SDG being defined by the UN has a common focus towards improving societal development and ensuring that better living conditions can be created for future generations. Accordingly, the defined goals and the sustainable approaches are interlinked with each other and play an important role in the achievement of the sustainability goals or standards. The other SDGs focuses on reducing poverty, ensuring economic growth, reducing inequalities, ensuring climate action, promoting life and affordable clean energy, as well as clean water sanitation can be identified to be aligned or influenced by responsible production and consumption. As the focus of manufacturers towards responsible production and consumption will ensure that the renewable sources are being utilized which can further contribute towards the cleaner energy sources (Willis, 2016).

Also, it can reflect that a positive and advanced approach of the business organizations towards responsible consumption and production will further contribute towards improved awareness within the society about the need and importance of sustainability and environment-friendly practices in the present environment. Such will further contribute towards the introduction of innovative and collaborative approaches towards eliminating the social inequalities as well as ensuring achieving sustainable goals to establishment of peace, justice and sustainable communities (Cordova & Celone, 2019).

It can be identified that among the defined SDGs, the UN has also defined upon to ensure the establishment of partnership for the achievement of the defined sustainability goals. It ensures that there is a need for the establishment of global partnership across diversified stakeholder groups as well as the stakeholder involved and accordingly the required support is to be provided. Based on such it can be reflected that in the process of responsible production and consumption the organizations are also required to provide the required support to the suppliers as well as to the involved stakeholders within the process so that the overall improvement and sustainability goal achievement can ensure to be achieved (Horan, 2019).

Adoption of SDGs by organizations

Nike, established in 1964 is among the leading players in the apparel and footwear industry in the present market. The brand deals in apparel, footwear and related equipment. Being initially named Blue-Ribbon Sports it was named Nike in 1971, being a leading and most valuable brand in the global sporting wearables market. The organization's focus towards product innovation and advancement has been the key success factor that has helped the brand in ensuring its growth and advancement in the competitive and dynamic business environment. Nike employs more than 75,000 employees across the international marketplace and has a market share of approx. 50% combining the sales and revenue of different sub-brands under Nike (Polk, 2021).

The brand has effectively focused on adopting innovative and creative marketing approaches and campaigns that can contribute towards attracting and retaining potential customers in the marketplace. Also, the company has announced the key sustainability and social development goals as a part of its Corporate social responsibility towards society. The management at Nike has effectively focused towards ensuring that the key changes emerging in the marketplace, as it can be reflected that Nike is actively focusing on eCommerce as well as introducing innovative footwear accessories that can contribute towards improved customer satisfaction as well as retention in the marketplace (Bielefeldt Bruun & Langkjær, 2016).

It can be reflected that in the fashion or the footwear industry the business organizations face key challenges or threats in respect to the utilization of ethical and sustainable raw materials within the industry. Accordingly, there is a need to ensure that key approaches and practices are being adopted within the industry that can contribute towards the identification of alternatives to the raw materials. Considering the industry needs as well as the business growth opportunities, Nike ensures focus towards the defined SDGs within the industry.  The management reflects that they are actively working towards ensuring gender equality, economic growth, climate action as well as good health and well-being of employees as well as of individuals within the marketplace (Boström & Micheletti, 2016).

Sustainability and ethical operations are the key challenges that can be identified in the fashion and footwear industry. It can be identified from the industry analysis that the brands are adopting unethical practices and approaches contributing towards having a major impact over the environment as well as climate change. An industry analysis report reflects that the footwear industry contributes towards about 700 metric tons of carbon emission in the environment. The researchers have defined that in the footwear industry there are three key areas or factors that result in the increased challenges of sustainability. Such includes the lack of knowledge within the industry, sustainability is not a leadership priority also the high cost is involved in the process (FDRA, 2021).

However, with the changing attitude towards sustainability and the need for climate change approaches, the manufacturers and key players in the industry are actively contributing towards the adoption of eco-friendly and advanced approaches that can contribute towards improved operational activities. The industry trends reflect that an approach towards sustainable footwear is being introduced as a key market segment and such has been valued at USD 7.5 billion in 2019, and further is expected to expand and grow by an annual growth rate of about 5.8% every year during 2020 to 2027. Also, the brands are actively focusing on introducing innovative and creative approaches that can influence the customers and other stakeholders to actively contribute towards adopting the sustainability approaches in the industry (ZWS, 2020).

Nike's approach towards sustainability

Nike can also be identified to be actively contributing towards sustainability and climate change within the international marketplace. Considering the SDGs being defined within the global marketplace as well as considering the needs and requirements of stakeholders the brand has actively been involved in focusing towards key areas including waste management, controlling carbon emission, innovative chemistry and resource management. Also, depending upon such identified areas, Nike has defined its sustainability goals that are to be achieved by 2025 including; complete electrification of the facilities by 2025, 10 times of the customer waste are being collected and recycled and eliminating approx. 10% of the waste generation at its plants (Nike, 2021).

Nike can be identified to be actively contributing towards the overall development of society as well as contributing towards the creation of a society or community that can contribute towards inclusive and diversity at every level. The brand can be identified to introduce Sourcing & Manufacturing Sustainability Index (SMSI) as an internal tool to evaluate and reflect upon the internal sustainability approaches adopted at different levels including the focus towards the health, safety and environmental aspects. Also, Nike has introduced an internal closed-loop system that ensures the internal processing and conversion of the scrap into the premium quality and advanced raw materials. Such has contributed towards reducing waste in the operational and manufacturing process by approx. 43% (HBS, 2017).

Figure 2: Nike Closed Loop-System (Source: (HBS, 2017))

Nike’s management has stated that they are actively focusing towards adopting key internal practices and approaches that can contribute towards improved sustainability. As per the management they had a key focus towards ensuring good health and wellbeing within the society, economic growth within the industry, taking required action towards climate, forming national and international partnerships, promoting gender equality and further contributing actively towards responsible consumption and production in the marketplace. Nike’s management reflects that the SDGs being defined by the UN has been considered of being a key important approach or aspect within the global marketplace and accordingly such are being aligned with the organizational policies and accordingly the key gaps in the marketplace are being identified and further be eliminated (NIke, 2021).

As it has been defined that the management at Nike is actively focusing towards adopting key approaches and practices to align SDGs with the internal strategic decision-making process, therefore, to ensure the effectiveness of the practices that have been adopted it is required that the key approaches and practices being adopted by Nike is to be identified and further be evaluated. Focusing towards that of the SDG of responsible consumption and production it can be reflected that Nike has defined upon its sustainability targets and goals including 100% of the waste reduction by 2025, and ensuring that at least 80% of the waste is being recycled back to the Nike operational cycle. Ensuring 25% reduction of the fresh waste in the new operational process, also, adopting key approaches and practices that can contribute towards waste reduction also at the headquarters as well as in the sales and distribution process (Nike, 2021).

Importance of responsible production and consumption

Nike’s focus towards a closed-loop approach has been an effective approach that has been adopted by the organization to overcome the challenge or issue of sustainability. The closed-loop approach being defined by the management at Nike ensures that the approach towards sustainability is not only aligned or implemented in a single line of products but an overall approach is being ensured across the organization. The management at Nike ensures that the organization is ensuring that without changing the customer attitude or the behavioural approach the approach to recycling and waste management can be ensured in the footwear marketplace. The organization reflects that since the introduction of the approach towards recycled shoes and sustainability the brand has recycled more than 23 million pairs of shoes that may have contributed towards increased waste within the environment (Ismael, 2019).

Focusing towards that of Nike’s approach towards sustainable or responsible consumption it can be reflected that the brand has actively contributed majorly towards the reduction in the rate of plastic that is being used in the manufacturing or the operational process across the marketplace. The brand along with eliminating the use of plastics within the internal process also ensured that awareness in the society is also being ensured. To ensure such awareness and to promote a shift or change in the customer attitude, Nike has announced discounts on the products that have been made from recycled products, also it introduced reusable packaging material that can be reused after every sale. Such effectively reflect upon the positive or advanced approaches that have been adopted by Nike to promote sustainable and responsible consumption in the market (Almiya, et al., 2020).

Nike has also ensured aligning the sustainability plan or approach with that of the business vision and mission goals. The brand’s vision in the present marketplace includes the focus on mitigating the environmental impact by every possible or innovative approach that the brand can adopt or can implement in the marketplace. Also, it has introduced an internal process rating system identified as a manufacturing index, that helps the organization to define the issues or gaps existing in that of the organizational process towards sustainability. Nike’s business strategies and sustainable decision making include a focus towards the overall supply chain including that of the ethical and sustainable practices being adopted by the suppliers, the distributors as well as the stakeholders involved in the process. The progress being made by Nike in sustainability are being considered as an effective model that can be adopted other key players in the international marketplace (TCSRJ, 2020).

To achieve the sustainable goal of responsible consumption and production, Nike management ensures that innovative and advanced approaches can be adopted within the marketplace. Accordingly, the management ensures that a well-defined approach towards product designing and creation can be introduced. Such includes the identification of alternatives or innovative solutions to the existing raw materials being utilized within the production. Considering such an innovative approach, Nike has introduced a material named Flyleather, which has been made with a minimum of 50% recycled leather, so that waste management and reduction can be ensured. Also, to ensure the proper utilization of the waste materials and to control the impact within the marketplace, Nike ensures that along with that of the footwear it also manufacturers other related products and services including that of the sports surfaces from the recycled materials including foam, leather, rubber and other textile brands (Nike, 2021).

Interlinkage of SDGs for achieving sustainable goals

Nike is actively spending towards ensuring that sustainable approaches and practices can be adopted that can ensure having a global impact on society. The organization can be identified to be actively working towards ensuring gender equality by providing opportunities to the females as well as supporting the employees by providing them with required training and development that can contribute towards their career growth and advancement.

As it has been discussed that Nike has actively been focused on adopting the key approaches to business sustainability and ethical working in the industry environment. Accordingly, it has adopted the approaches towards sustainable and responsible consumption and production in the marketplace by ensuring proper recycling and waste management within the industry. However, despite of such, it can be reflected that the organization has faced criticism or challenges due to the unethical practices or approaches that has been adopted by the industry suppliers as well as at the outsourcing manufacturing partners resulting in having an impact on the brand image of Nike in the international market. Accordingly, it can be reflected that there is a need for the management to focus towards ensuring that the approach or the focus area towards business sustainability and advancement is being expanded and further the policies and approaches are to be developed that can contribute towards increased awareness among such suppliers and manufacturer groups and sustainable approaches in the industry can be promoted (Robertson, 2020).  

It can be reflected that under the UN SDGs there are other 16 sustainable goals including that of the improved living standards promoting equality and advancements in the service delivery as well as the improved business standards. Therefore, focusing towards such goals and approaches the management at Nike can ensure that well-integrated and advanced business approaches can be developed which can help the brand to ensure the establishment of an ethical and sustainable brand positioning in the competitive and dynamic marketplace (Almiya, et al., 2020). Also, it can be recommended that within the industry there is a need for the management at Nike to ensure that the existing approaches towards sustainability and ethical means adopted by the management are to be sped up so that the set strategic goals for 2025 as well as 2030 can be achieved within the industry. A key area to be focused upon by the brand is the changing society or the community needs towards the sustainability and the accordingly the change strategies are to be implemented which can help to influence individual’s attitude as well as preference towards the sustainability within the society (Welling, 2021).

Conclusion 

The overall analysis has been focused towards evaluating the emerging needs for considering ethical and sustainability approaches within the industry. It can be reflected that in the industry the organizations are actively required to contribute towards sustainability and social growth and development so that the living standards within the industry can be developed and further an ethically sustainable brand image of the organization can ensure to be established in the competitive marketplace. Considering the case of Nike in the international marketplace it can be reflected that the organization is actively focused towards adopting the defined SDGs by the UN in the marketplace so that the key factors and approaches resulting in the sustainability issues can be identified and further be eliminated.

Accordingly, Nike has adopted the approach to responsible consumption and production in the marketplace, by ensuring recycling of the waste as well as improving the effectiveness of the supply chain process within the industry. Such sustainable and responsible production and consumption further ensures that a positive attitude can be developed among the stakeholder groups involved and further their engagement can be ensured in improving the sustainability and ethical working within the industry.  

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