Case Study: Nike Goes for the Green

Read the article, Nike goes for the green (Links to an external site.)

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. A summary of the article is also located at the end of Section 2.3 in your text. In a two-page paper (not including the title and reference), you must:

·  Describe who the relevant market and nonmarket stakeholders are in this situation (Step 1 of the Stakeholder Analysis in Section 2.3 in your text).

·  Describe possible solutions (communications) with all stakeholders involved (Step 5 of the Stakeholder Analysis in Section 2.3 in your text).

You must use at least one scholarly source in addition to the text and your paper must be formatted according to APA guidelines as outlined in the Ashford Writing Center. Note: Title must appear on the first page of text; headings must be used in all APA essays; and, the final heading of your paper must be the word: Conclusion. Contact your instructor if you have any questions regarding proper formatting.

Carefully review the Grading Rubric (Links to an external site.)

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 for the criteria that will be used to evaluate your assignment.

This is a summary of the article out of the book below

CSR and Sustainability in Action:

 The Environmental Problem of Nike Air

When Tom Hartge was product manager in the running shoe division of Nike Incorporated, he focused the bulk of his early career onperfecting the Nike Air product—the lightweight plastic air pocket embedded in the heel of a running shoe. He learned that a Germanenvironmental group was singling out all companies that used an environmentally harmful chemical called sulfur hexafluoride, or SF6.This was a problem for Hartge, because the air pocket in the Nike running shoes contained air and SF6. The German group targetedNike for using SF6 and accused it of contributing to pollution. Trying a new stakeholder approach, Nike chose to work side by side withall stakeholders to find a solution.

It took Nike years and millions of dollars to overcome the SF6 problem. The delay came from the fact that SF6 kept shoes highperforming and lightweight, so the design team did not want to compromise shoe performance (or economic benefits from shoessales) by changing components. However, Nike showed it was open to dialogue and learning from a variety of stakeholders, and thecompany sought out activist groups for advice. During the research and development period, the team of stakeholders continued towork together despite many potentially derailing disagreements. Nike was able to maintain good relations with the stakeholdergroups, in part because it kept dialogue open about efforts, procedures, and reasons for the delays. The stakeholders could see theeffort, if not the results. Because of the trust established during the process, the stakeholders worked together and did not create badpress for Nike when deadlines passed; relations remained strong during the multiyear process.

In the end, Nike was able to develop a new technology that uses nitrogen instead of SF6. The solution involved a new technique calledthermoforming. Thermoforming produced a tighter seal than the previous technique, so Nike could make a pocket that could hold upacross a shoe's entire surface (and be good for the environment). The result was a new product, the Air Max 360, a light shoe withhigher performance. The new technology led to increased sales and manufacturing savings.

This case study illustrates the power of stakeholders to drive a sustainability and CSR agenda that can be good for the environment,customers, and companies. In addition to supporting the value of stakeholder dialogue, it illustrates how sustainability and CSRpressures can drive performance increases and financial benefits.

Source: From "Nike Goes for the Green," by S. Holmes, 2006 (http://www.bloomberg.com/bw/stories/2006-09-24/nike-goes-for-the-green).

Lisa J & Scott C (2016) Corporate and Social Responsibility: Road Map for a Sustainable Future; Bridgepoint Education, Inc.

This is the book that is used for the class BUS250 Corporate and Social responsibility

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