Discuss aobut the Nike Inc Sydney Business Sustainability Analysis.
Business sustainability has become part of businesses today. Businesses are part of the society and their activities have impact to all stakeholders and the environment. The old business objective of maximizing shareholders’ wealth by making profits is outdated and businesses have to take responsibilities for their actions (Willard, and Hitchcock, 2009). Sustainability is the process of meeting current needs without compromising the future generations’ needs (Larson, and York, 2017). Business sustainability involve to corporate achieving balance between economic, social and environmental factors (Dauvergne, and Lister, 2012). Corporate sustainability enables businesses to attain competitive advantage and business growth in the long term. Companies integrate sustainability strategies in the company strategic plan, practices, or policies that change how things are do ensuring benefits to all stakeholders and environmental conservation. The following report analysis business sustainability of Nike Inc in Sydney. This will involve analyzing the company vision and mission statement, sustainability reporting, and indicators of strategic sustainability.
Nike Inc Sydney is a subsidiary of the parent American Multinational Corporation and deals with manufacturing, design development, and marketing and sales of apperal, accessories, and footwear. Nike is the world largest manufacturer and supplier of sports equipments, athletics shoes, and apparels (Larson, and York, 2017). The Company was founded in 1964 by Bill Bowerman and phillip Knight. Nike Inc is headquartered in Beaverton, Orgeni in America. The company is led by Mark Parker as the CEO while Phillip Knight as the Chairman Emeritus. The company has grown over the years to employ more than 44000 employees and operate in more and 190 countries around the globe. The Company recorded US $ 34.4 billion in 2017 financial year (Larson, and York, 2017).
- Is there evidence of sustainability in Nike Inc mission statement?
- What is the form of Nike Inc sustainability reporting?
- What are the indicators of sustainability in Nike Inc?
The Nike mission is “bringing inspirations and innovation to every athlete in the world”. The company mission is accompanied by a saying “if you have a body, you are an athlete”. The mission statement captures the main purpose of the company existence that is to serve athletes around the globe and projects the future that the company wants to design future sport. Nike Inc outlines in the mission statement that it committed to elevating human potential through innovation and obsess the needs of world best athletes. The company takes big risks to pursue development of most fit, beautiful, and useful athletes’ products that sets new standards. The company is 100% committed to using renewable energy in all its facilities. The company also outlines it culture where all employees are explorers. The company invest in it employees in order to inspire new ideas, products, and methods that will drive the future in sporting industry.
The Nike Inc mission statement has incorporated sustainability that positions the company for attain a competitive advantage. First there is evidence of the company using 100% renewable energy in all its facilities for manufacturing and office use. This ensures that the company uses clean energy that conserves the environment compared to use of condensed source of energy to emit carbon to the atmosphere and increases water temperature. Usage of renewable energy fulfills the company current needs of energy without compromising the environmental ability to meet future generation need. This sustainable activity makes the company “likable” that attract more customers and increase customers’ loyalty increasing the company long term profits. Secondly, the Nike Inc invests in employees to inspire them to pursue the company vision. Investing in employees improves their skills and ability to perform better in the workplace (Kaplan, and Montiel, 2016). The company is then able to equip and retain highly skilled personnel who are efficient. The Nike Inc is therefore able to lower its production cost while producing high quality products that increase it profit margin.
Nike Inc has sustainable compliance standards that are used by the company to attain sustainability. The compliance standards are mainly catalyst the company use to change the way it does business by integrating them across the business processes, products, and policies (Larson, and York, 2017). First, the company compliance standard is minimizing environmental footprint. This standard focuses on energy, chemistry, waste and water use. It enables the company indentify strategies to use less energy, minimize water and chemicals usage while recycling waste. The second compliance standard is transforming manufacturing. The standard enables the company to make products using sustainable labor and new technology innovation. This standard ensures the company invests in highly skilled and valued employees to support the company mission. Another compliance standard for Nike Inc is unleashing human potential. This standard encourages every person in the company to reach their full potential. This standard is meant to bring inspiration to employees and meet the company mission of innovating solutions to benefits athletes.
Nike Inc uses integrated sustainable reporting. The company uses integrated report that explains shareholders how the company creates value in the long run. The report combines qualitative and quantitative information that have six capitals; manufacture, human, financial, nature, social, and relationship. The integrated report detail a strong progress that the company makes against its social and environmental targets and set low carbon emission as part of growth strategy. Nike Inc aims to double its operations while halving environmental impact. The report combines minimization of environmental footprint, transformation of the manufacturing and human capital potential in creating company’s value over time.
Integrated sustainable reporting is the best form of report for Nike Inc. Integrated reporting is detailed and enables stakeholders to understand how the company is creating value overtime (Gao, and Bansal, 2013). First, integrated reporting is best to Nike Inc because it enables the company to be accountable and responsible of it operations. The report outlines what the company has to achieve and the objectives to be met in a specified period of time. The company keeps track of their performance in terms of environment conservation and other stakeholders that indicate company’s effort in being a sustainable business (Lueg, Pedersen, and Clemmensen, 2015). Another reason that integrated sustainable reporting is best for Nike Inc is that it drives strategies for sustainable business. Integrated reporting show the effectiveness of the current sustainability strategies to offer recommend on suitable strategies to enhance sustainability (Zokaei et al., 2016). The management is able to see which strategies are working and the ones that are not working and make changes accordingly to attain corporate sustainability. Therefore, integrated sustainability reporting is the best for Nike Inc.
Several indicators of strategic sustainability can be identified in Nike Inc. The first indicator of strategic sustainability is integrated reporting. Nike Inc has fully adopted integrated reporting where it combines both qualitative and quantitative details of the company. The integrated report contains strategies of reducing environmental footprint, transforming manufacturing and unleashing human potential. The report is therefore comprehensive to report on all company’s stakeholders and environmental conservation. For instance, the Nike sustainable business report in 2014- 2015 financial year detailed all company information on sustainability outlining strategies, policies, and objectives to be met. Secondly, Nike has launched a circular economy that it targets to fully implement by year 2010. This will change the Nike business model from linear to a circular business model. Circular model indicate that Nike Inc will have a closed loop products that will allow reuse hence reducing waste (Schaltegger, and Wagner, 2017). The Company has already started recycling it waste that is used back in the production system. Thirdly, Nike has enhanced its supply chain sustainability. The company invests in ensuring it suppliers meet generally accepted standard and practices. Sustainable supply chain ensures the company responsibility sources it raw materials and can evaluate it supply chain (Willard, 2012). Another sustainability indicator in Nike Inc is disruption of green technology. The company uses 100% renewable energy in it factories with an objective of conserving the environment. Lastly, Nike Inc has a net positive impact to all it stakeholders. Nike is creating positive impact by engaging consumers, equipping adolescent girls, expanding access to sports and empowering employees to give back to their communities. Therefore, Nike Inc has sustainability strategic indicators that will eventually transform the company to sustain organization.
From the analysis of the report, Nike Inc Sydney is a subsidiary company to parent Nike Inc headquartered in USA. Nike Inc mission statement is bringing inspirations and innovating to every athlete. The mission statement has evidence of sustainability in it positioning and it indicate that the company is committed to use green energy and empower employees. Nike Inc has integrated reporting that enable a detailed qualitative and quantitative reporting for the company strategies and activities for a specific time. Nike Inc also has indicators of strategic sustainability that include integrated reporting, use of green energy, circular economy and a positive impact to the society. Therefore it can be concluded that business sustainability require businesses to change their business model and formulate sustainable strategies that increase the company value in the long term.
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