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Sustainability Indicators Monitoring System

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Discuss about the Sustainability Indicators Monitoring System.




Sustainability applies to the practices of any organization targeting to build an environment suitable for present as well as future benefits of the same. According to Asbhy (2015), sustainability cannot be termed as independent and absolute conceptual frameworks of human minds but rather it is set in the decisional context on what kind of system should be sustained along with over which patio-temporal range. Now, the process of monitoring the sustainability is a major and an emergent management response addressing the prevalent challenges in the field of sustainability for that organization. The practice of monitoring as opined by Colglazier (2015), is to understand the systems of sustainability and the values it holds. With monitor, the changes required in the system can be predetermined and therefore, they can be used as a warning before handed to these organizations. In general, the sustainability monitoring system explicates the development and progress of an enterprise (Ciegis ,Ramanauskiene & Martinkus, 2015).

To talk about the system of monitoring, the indicators of sustainability involuntarily come into the scene as crucial aspects and help in the decision-making process in diverse ways. As stated by Endres & Remig, (2014), the indictors certainly assist in calibrate and measure progress towards a goal of more sustainable development. The indicators, if efficiently determined can prevent social, economic and even environmental damage by sending an early warning to organizational leaders. Moreover, according to Hailey & Lulfs (2014), the indicators are also important tools in the sense they correspond thoughts, ideas and values of an organization both within and outside it.

Starting with the economic indicators, it can be noted that primarily these indicators of an organization are related to the production and the rate of consumption. Along with this, the economic indicators submit the market base of the company and refer to the unpaid economy. Detecting the economic policies of an enterprise is obligatory to determine its sustainability. Among the economic indicators comes the total factor of productivity, sales and cost as well as GDP per capita, capital expenditures and net investment into consideration. Apart from this, the environmental indicators perhaps form the core concept of sustainability and provide the evaluation of the organization’s impacts on the entities of natural environment principally on land, air, biosphere water ecosystems as well as the human ecology. Under the environmental indictors, the materials of products, energy consumption, biodegradability of the products, transport, air emissions all come into consideration when monitoring the sustainability factor of any organization.


The Enterprise Description

Nike Inc. is, at present, the largest marketer of athletic footwear in the world and has a widespread market in the countries like USA and the rest part of the continent, Europe, Asia Pacific, Middle East as well as in Africa. The company was initiated as a Japanese shoes importer. Nike envisions bringing innovation and inspiration in the entire athletic world (Sustainable Innovation-Nike, 2017).

Nike’s competitive advantage is sourced from its R&D and brand value; it employs the “swoosh” logo and the trademark of “Just Do It” that have ascertained the brand value of Nike. In 2015, Nike has been in fact, ranked as World’s Most Valuable Brands by Forbes and it can be said that Nike’s brand value is able to generate massive profit level for the enterprise.

The manufacturing network of Nike is spread over 40 countries and consists of more than 700 factories around the world that make their inbound logistics to be cost effective and efficient. However, Nike does not have the possession of manufacturing units for its apparel and footwear; they rather outsource the manufacturing from third parties. Most of the footwear production of Nike is outsourced from the countries like Vietnam, Indonesia and China. Nike has several distribution channels of more than 20 centers ensuring that the outbound logistics of their footwear and apparel are efficient and quick.

Nike has leading market share in athletic footwear and most of its revenue for footwear is generated from the North American market. However, among the developing countries, China is rapidly emerging as a potential market for the company. Needless to say, Nike’s revenue has been increasing each year due to its advanced and competitive business strategy. To talk about the primary business strategy of Nike, cost leadership is an evident one. Apart from this, the strength of Nike lies on its market image as standard athletic wear. The differentiation of Nike’s product is made on brand power, the high quality of its products and strong relationship with well-known athletes. If the brand value is kept aside, innovation will always remain at the core of Nike’s growth. The company incessantly concentrates on delivering newer products but maintaining more sustainability on its product offering. Nike Sport Research Lab is the place where scientists, engineers, athletes, designers converge in order to build insights on key performance and thus Nike’s journey of innovation continues (Sustainable Innovation-Nike, 2017).


In future, Nike plans to expand the apparel market and active wear market for women as one of its appreciating venture. Besides, Nike’s quarterly financial reports hint at its expansion plans in the market of China as the revenue generation from Chinese market has been growing steadily over past few years. Nike focuses on strengthening its market for competition and its main competitors are Reebok, Puma, Adidas and Under Armour though Nike is undoubtedly the leader in the market of athletic footwear.

However, Nike has faced criticism for being hesitant to reveal information about its partners. Some organizations such as Corpwatch has targeted the organization and severe criticism has compelled it to reveal the confidential information in its Corporate Governance Report about the factories with whom it has contracts. Apart from that, Nike has allegations of child labor in countries like Pakistan and Cambodia. However, if these controversies avoided, Nike is sure to be the pioneer in the apparel and sports footwear market across the world.


Sustainability Dimensions of Nike

The significance and the aspects of corporate sustainability in regards to their operation system involve a number of approaches that the organization encounters in their day-to-day business operations. The outcomes that has been derived due to the practice and application of the sustainability framework of the organization, which influences the mode of economic, socio-cultural and environmental impacts. The variations, which are observed in meeting the sustainable objectives of the organization, enhance the monitoring and retention process of the firm (Sustainable Innovation-Nike, 2017).

Nike, being a globally established enterprise has embarked on the journey of attaining the best of the results by coordinating all its resources and features leading to a sound development strategy for the concern. The medium through which it fulfills the sustainable purpose is by meeting the requirements of the primary dimensions. Moreover, the analysis and review of the indicators through its positioning with the aid of the Dunphy Phase as developed by a number of researchers has helped to develop and enhance the context of sustainability for Nike.

The digressions of Nike and its range of the sustainability factors are as follows:

 Economic factors: It is one of the central and primary determinants which is relevant to the financial acquisition and the cost of production which helps in analyzing the equations of the market.  The economic diversity is important for the realization of the financial remediation and helps in coordinating with all the approaches and measures, which are responsible for the mechanisms. The congruency between market stability with the economic fluctuation has several impacts on the unit of production, and the values to be determined for meeting the goals and objectives of the firm. 

Apparel industry depends on the efforts and constituents of production and therefore it contributes to the generation of more employment opportunities so that it can eventually lead to increasing the GDP of the economy. Owing to the current market capital of $100.1 billion the brand has been influencing its total productivity factor and the stock of the shareholders which is one of the primary and crucial factors while monitoring the sustainability. In regards to its global economic contribution, it stands at 79 in the highest number of sales in America’s Top List of Public Companies. The demands for the product created under the brand of Nike have been a result of its immense popularity listing its USP as under of the valuable brands in a global list. Therefore, the indicators like the demand and supply curve of the apparel industry, the utility and risk factors or producing a new range or series of product, accumulate to influence the sustainability factor adopted by Nike (Sustainable Innovation-Nike, 2017).


Environmental factors: Owing to the initial research development of the reformation system to be brought about in the structure and operations of the corporate framework, the study revealed the significance of the responsibility which these institutions have towards the society

The impacts which the operations of one of the renowned apparel and accessories organization have is one of the potent factors which discloses a lot of about the company as they essentially deal with a raw material which has dire consequences on human, water, land and the entire ecosystem if not handled properly. The utility of organic and recycled cotton, which is one of the most innovative sustainable measures adopted by Nike. It provides shoes and apparels which are not only made out of sustainable items but they also make extensive use of recycled products and unused raw materials in the optimum way through several means. As revealed by its Sustainability Report, it accounted for   more than 50 million pounds of waste which was used skillfully and the remaining manufacturing scraps were strategically used for more than 3500 trimming functions. Therefore, if the innovations in their product supply enhance and incorporates more programs like Reuse-A-Shoe it will eventually lead t its accomplishment according to the Dunphy Model. The effective use of product materials, like cotton, leather, polyester and rubber are effectively used for creating their product line. The delivered products to are integrated with the line of sustainability leading to the least impact and establishing means with objectives of plummeting environmental footprint.  While dealing with the environmental factors, the contribution to reducing waste and carbon emissions because the lack of this has lead to the formation and incorporation of the concept of sustainability. In fact by broadening their scope and formulating plans and proposals which leads to the reduction in the emissions of carbon dioxide and other harmful chemicals and releases (Sustainable Innovation-Nike, 2017).

In fact, the efficient use of renewable source of energy and effective use of the non renewable source of energy has helped in retaining a sound sustainable system protecting the environment. The processing that involves the carbon footprint has also been reduced over the years. Use of low water, materials, and conditions they have less effect on the product formation technique has been realized through the sustainability drive.

Socio-cultural: There are very few established firms, which are really concerned about the impacts which any of its actions has on the environment or affecting its mode of functions.  Socio-cultural factor is an important aspect of returning and contributing to the society and maintaining the good influence and curtailing the impacts on which the corporation functions. The ethical framework and other legislations involved in the management of the association has helped in preparing and involving a number of monitoring through which the benefits shall be analyzed. The efforts and awareness it portrays through their effort have helped them to establish the as one of the best companies to work. They use the execution of power and resources as a corporate giant optimally, as it looks after the main assets who are responsible for their products. The integration of the human resources and its development, which has been used for determining the work culture, the diversity policies applicable, the structure of the organization and the regulations of stakeholder involvement are important criterion, which depends on the factors of sustainability.

Moreover being a major producer of apparel it is involves factories and the channels of production until the finished goods are reached, it goes through a number of hands and ensuring the healthy environment for the workforce involved in this process has led to the maintenance of this issues of corruption and human resource facilitations.  Servicing begins therefore they have to also indulge great customer services marketing in order to retain their market place. Therefore, all these features entail the involvement of the sustainable factors, which it allots while monitoring for the indicators.  

Specific Sustainability Area- Sociocultural

List and Assessment of Indicators for Monitoring the Sustainability

The importance and significance of sustainability in any corporate setup has been defined in the most comprehensive and detailed manner. In fact, the derivations, categories, the existing processes, the developments and the possibilities that involves within the sustainability-monitoring tool have helped in reaching to this portion of the assessment. In fact, the coincidences for the operation and maximization for their practices in order to reach their goals of FYI2020, Nike has been promoting and taking their brand to a new height, which is apparently leading to their success rate and growth with high valuation and competitive scale for its contemporaries (Sustainable Innovation-Nike, 2017).

 The chart discusses the indicator which shall be judged based on the factors involves through this assessment.  It can be concluded that effective monitoring the sustainability feature of Nike will contribute and help to draw inference how it engages in such amazing strategies in both of their profit and non-profit aspects.  Sustainable Apparel Coalition and LAUNCH with NASA, Materials Sustainability Index are some of its innovative collaborations which Nike practices that influences their environmental structure.

Name of the Indicator

Health and Safety Management System and Policies of the Workers along with their payment structure and work environment.


There are very few established firms, which are really concerned about the impacts which any of its actions has on the environment or affecting its mode of functions.  Socio-cultural factor is an important aspect of returning and contributing to the society and maintaining the good influence and curtailing the impacts on which the corporation functions. The ethical framework and other legislations involved in the management of the association has helped in preparing and involving a number of monitoring through which the benefits shall be analyzed.


It will be measured through conveying the message to the workers and the employees, as they will be handed over with survey to be conducted in the form of questionnaires as well as interviews and based on this qualitative research the measurements will be made. It may also include the quantitative analysis by calculating the probable risk and the opportunities, which an individual seeks, and how the organization maintains the work force culture by satisfying the nature of work and benefits applied to their employees.

Key Limitations

The limitations of this research entails that the research and the operations, which involve the soci-cultural options, can be influenced and motivated at any point of time therefore the outcomes can vary drastically.




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