Introduction
Living in the modern world with well-developed technologies and complicated relations, it is important for people to mention all innovations and follow the principles, which may simplify their lives. Taking all of it into account, people, who deal with marketing, pay a lot of attention towards the abidance by corporate social responsibility (CSR) policies. They follow those policies at the time of building a brand image of any enterprise. There are some guidelines for proper structuring of the brand in order for it to develop correctly. This paper is to show the relation between CSR policies existing and their abidance by the heads of Nike enterprise.
CSR policies are represented as the manifestation of self-regulation to a corporation in the form of a business model. Caramela (2016) sees corporate social responsibility as business practices and initiatives, which directly benefit the society. There are some bases of CSR that help manufacturers to watch after the development of their businesses. Being responsible for the proper execution of the goods and service to be proposed to customers, the corporations` heads are obliged to mention ethical standards and evaluate any legal risk, which may be implemented for improving the working process of any company. Following Carroll`s pyramid of CSR on the Fig.1, it is easy to conduct strong business of great profits, with good ethic and laws. While Carroll defines CSR categories of philanthropic, ethical, legal and economic responsibility, Caramela (2016), on the other hand, talks about environmental, philanthropic, ethical and volunteering instead of economic responsibility. There are different ways for managers to create a plan of working for enhancing the whole business.
Businesses all over the world practice various categories of CSR, including volunteering, philanthropy, ethical labor practices and focus on environment to improve society from different sides. According to The University of Edinburgh (2016), by providing such a responsibility policy, companies express their concern to enhance the society with various goods and provide support to people and organizations. Nowadays there are some companies, which try to think forward. One of them is the Nike Incorporation, which improves its sustainability on the market with creating good value of such a business.
Advantages of CSR among Nike Corporation
Nike Corporation is the leading manufacturer of sport equipment, including clothes, shoes and accessories. Following Lara O`Reilly (2014), it is one of the most sports businesses` valuable brands, having the most recognized symbol and being well-developed from all sides. According to principles of CSR of the Company to mention the needs and perception of business among masses, Nike takes care of its clients and co-workers. The Corporation is known to be successful in defining the clients` needs and satisfying them fully. Considering the CSR Pyramid, Nike takes various types of responsibilities for improving their work, including economic, ethical, legal and philanthropic ones. According to Nike, Inc. (2015), the company watches after its profits along with obeying ethic laws by working with non-harmful materials and systems of recycling. CSR allows companies to grow and develop properly with assuring the high level of their workability and trust from the masses.
Disadvantages and Limitations of CSR
Strong influence of CSR presents some things for Nike to encounter. Mallen Baker (2016) notices the changes made at Nike factories after the wide implementation of CSR policy. Being obliged to provide good working conditions and follow the laws, concerning the child labor, the company had to change its approach to business-making. The Company should constantly watch after the quality of their production and materials used in order to keep the level of execution of CSR at the top. The company`s reputation takes a lot of hits because of the risks of violating the program of CSR. Being guided by official information from Nike, Inc. (2015), the Company promotes the principles of transparency and trust by presenting its business plans and profits, but there is always a need to convince customers in great reliability. Proper abidance by corporate responsibility gives a lot of obligations to promoters and manufacturers. It also mentions measures, which should be taken to improve the society by using safe materials and by providing systemic enhancements of the promotion of sports equipment.
Performance of CSR
This way, the corporation watches after environment, which is one of the most important policies of CSR. Brian Bolton (2015) claims long-term profits, which are assured to Nike because of the proper work of the working staff, to be unstable. McAleenan (2016) supports this idea, but emphasizes great perspectives, which can be achieved by proper approach - it is necessary for Nike to take into consideration every impact carried by products to all employees, clients, manufacturers, investors, competitors and communities. Being a global company, Nike is able to manage their goods by environment-friendly materials and new technologies to be used during manufacturing (Nike, Inc. 2015, p.22). For example, it provides analysis of the impact done to the environment with mentioning their footprint (eg. the use of carbon, water and energy). Having the data, scientists are able to think over the improvement of this situation by reducing the emissions, especially by changing the materials for production.
There is also another CSR policy, which is important for remaining one of the long-term profitable companies. The ethical labor practices are monitored properly because of the essential impact, which is conducted by society to the manufacturers all over the world. Nike watches after the abidance by setting up proper working conditions in factories (eg. the use of child workforce or restricting its employees in rights). Following Code Leadership Standards and Code of Conduct, employees can report improper attitude from the side of their employers in order to keep the ethic state stable.
Ethic Activities (Their Demonstration) of Corporate Social Responsibility
Each year Nike becomes the sponsor for different sports competitions and is engaged in co-working with football clubs and different Institutions. This way, in 2015 the company took part in the celebration of the National Children`s Day by involving Brazilian sportsmen to share their experience with children (Nike, Inc., 2015, p.74). Nike Incorporation regularly contributes to different financial funds, which help charitable organizations and schools all over the world. Nike stands for the demonstration of transparency due to the necessity of providing clear working processes. This way, the company regularly performs the list of the contract factories in order to assure people in the abidance of a proper CSR policy. Moving further, Newell (2015) mentions the extreme corporate improvements after the implementation of CSR - Nike keeps leading position among other companies for the use of CSR policies. The company changes from year to year, but remains a widely known one.
Conclusion
Having analyzed the way CSR policies are implemented in Nike Corporation, it becomes easy to determine the extent of influence of policies. The brand image of Nike is greatly affected by CSR due to the necessity of implementation of innovations to both manufacturing and sales approaches. Nike Company promotes the principles of transparency by presenting working conditions and measures to be taken to improve our society to the wide public with mentioning safety and systemic enhancements of the promotion of sports equipment.
The heads of Nike support various non-profit organizations all over the world in order to help people and persuade them to do sports. The large ability of partnership with world-famous companies provides Nike with the assuredness in great profits, which are taken for the abidance by CSR policies. Being responsible for correct promotion of any goods made and service to be proposed to customers, the corporation mentions the social situation, concerning prices and quality of Nike products. In addition to it, the company pays great attention to the ethical standards and evaluates different legal risks, which can be implemented to the wide operation in order to enhance the working process of any factory along with improving the abidance by CSR policies.
References
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