BUSINESS ADMINISTRATION CASE STUDY – NIKE CSR (page 70) 1. In referring to the opening profile and the closing for this chapter, discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? Answer: There are 5 challenges related to CSR: a. Lack of awareness and benefit of CSR In fact, many of companies have little knowledge about CSR. In some cases, companies may have a greater understanding of CSR issue but lack of understanding on how to begin implementing a CSR program.

Finally, there is significant ignorance about the benefit that can be gained from good CSR practices. b. Lack of human resources in company Many companies claim that they are lack of manpower that they can assign to CSR practices. In addition, many management systems being used by companies are very unproductive, inefficient and wasteful of human resources. c. Competing code of conduct and multiple requirements A major concern for many business owners and managers is connected to competing codes of conduct from different customers.

Such duplication is expensive and frustrating to suppliers. d. Costs Companies constantly face the challenge of tighter budgets brought about by rising costs of material, energy and wages. Therefore, most are unable to spend much money on CSR initiatives. e. Over emphasis on inspection & cheating Many companies are guilty of not complying with codes of conduct. Many stakeholders and managers have the perception that they cannot do business and make profits while adhering to codes of conduct and regulation. 2.

Discuss the meaning and implications of the statement by a NIKE representatives that “customers are not rewarding us for investment in improved social performance in supply chains” Answer: It means that social performance are depends on relationship with suppliers itself instead of customers which have positive outcomes such as: * Improved financial performance * Enhanced brand image and reputation * Reduced regulatory oversight 3. What does it mean to have an industry open systems approach to social responsibility?

What parties are involved? Who are the stakeholders? Answer: It means system with wide range of area which related to its business enterprises. The parties involved are: Shareholders, investors, government and suppliers. Stakeholders is a party that can affect or be affected by the actions of a business as a whole. Stakeholders can be: * Employees * Shareholders * Investors * Government * Customers * Suppliers * Communities (labor unions, industry trade groups) 4.

What is meant by “leadership beyond borders”? Answer: It means leadership not only coverage in one entity or organization, but also has impact in wider aspect such as in group of entity, community or even impact in the environment itself. 5. Is it possible to have “a compatibility of profits with people and planet? ” Whose responsibility is it to achieve that state? Answer: Yes. It is possible and all stakeholders (Employees, shareholders, investors, etc) are responsible to achieve that.