Introduction
Nike is a well known manufacturer of sports clothing and footwear based in Oregon, USA. In the year, 2000,Nike allowed the CERES principles which govern it in implementing policies reflecting the principles leaving no stone unturned. Through approval of these CERES principles, the Nike staffs believed that they could improve their application in environmental and community issues. Officials at CERES are taking this action taken by Nike as a stepping stone towards positive outcomes. Robert Kinloch Massie, the CERES executive director, described the move as remarkable possibilities for environmental and social advocacy organizations with Nike on the subject of global task (Farias, 2010).
In what specific ways do Nikes sustainability-related actions.
- Strengthen the perceived value of its products in the eyes of its customers.
Nike has a program called Transparency 101, which ensures that the world knows what the company is doing. Transparency 101 ensures that practices in factories where Nike operates meets the line of conduct. This has unquestionably strengthened the understanding of valuation of its products in the eyes of its customers. A CERES ethic through Nike is required to guarantee the security of its products for those who produce them, as well as for the end users. This has led to numerous efforts to phase out PVC and dangerous chemicals which affects the environment, as well as for the end users (Farias, 2010). This move has positively affected the consumers’ lives for they are willing to buy from Nike.
The CERES principles also require Nike to inform the public on any characteristic of the company operations that would cause danger to the environment, safety or health. This publicity on dangerous products to consumers has boosted the confidence level of consumers in them. Nike achievements are renowned by many companies some ranking it among the best in America (Farias, 2010). This has contributed positively in strengthening the perceived value of its products in the eyes of its customers.
Most shoeboxes were 100% made of recycled materials. Nike also moved from toxic chemical use to rubber use which were environmentally preferred.
B) Lower its costs of production?
They achieved this through energy cost reductions and suppliers. They also substituted expensive inputs with cheaper ones. They also embraced recycling practices which drastically cut down the cost of production. Nike also implemented operational efficiencies which saw it reduce its consumptions of raw materials thereby saving the cost of purchasing unnecessary raw materials.
Work Cited
Farias, Gerard. "NIKE: MOVING DOWN THE SUSTAINABILITY TRACK THROUGH CHEMICAL SUBSTITUTION AND WASTE REDUCTION." Nike 1.1 (2010): 1-4. Print.
