Executive Summary
To: Board of directors
This proposal reflects on the long term strategy
recommended for Nike in order to improve the corporate social responsibility
and a short term strategy plan for the improvement needed for Nike. The long
term strategy plan would targets on the child labour of Nike face today. The
consultation team has come out the program call “Human Relief Aid (HRA)” to
solve child labour and benefit to the stakeholder. Nike will request student to
designed t-shirt which meanwhile developed their own creativity. These designed
t-shirt will sell to the public and 30% of the t-shirt income will put aside to
reduce child labour. To sustain HRA, consultation team has come out with 2
years program in which; in the final year, consumers can claim a gift for recognition
by supporting this program. Although this particular plan will still face some
challenges but still the benefit of implementing this program will still easily
overcome the situation and also the challenges faced. On the other hand, Nike
would also gain a good reputation for providing aid to the communities
globally. Lastly, it is recommended that this particular proposal would take in
consideration for Nike for a long and short term of strategy for social
improvement. √
1. Introduction
In today context, many organisations must do a lot of
Corporate Social Responsibility (CSR). Nike is one of the biggest outlets and
distributors in the world. (Encyclopedia
Britannica n.d.)
Nike has done CSR in the society. However, Nike also commits errors such as
exploiting their workers in Indonesia. (Global Exchange
2007)
In addition, Nike has also recruited children to work in Pakistan with low
wages. (TED Case
Studies n.d.)
This report is focusing on how child labour will be solved. Action plan will be
provided to describe what this program is, challenges of implementation will be
provided to describe the difficulties of executing this program. Benefit of the
child labour and the company will also be listed out as well in conclusion.√
2. Child Labour
Child labour is defined as children who are under
fifteen years of age are made to do physically or mentally harmful work, which
will disrupt the education and social development of the society. (Khanam 2008) In this society, child
labours are getting serious, so this report is to create a program and help
child labour.√
3. Action Plan
3.1 Phase 1 – Establishment
of this program
Consultation team has come out with a 2-years program
called “Human Relief Aid (HRA)” This program will benefit the children worldwide such as Pakistan, Mexico
etc. This program involves an international competition which holds
worldwide children (between 10 – 16 years old) to design and create a slogan on
special shirts and shorts. Selected top 20 of the shirts will be sold in
worldwide. Prizes will be provided to the group who win. There are many
varieties of t-shirt so consultation team has intended to narrow down to
e-business that getting involved with the search engines (Google, etc) and
those famous networking websites (Facebook, Twitter, etc) to get HRA a hit in
these websites. The goodwill of those companies involved will be mentioned and
reasonable advertisement fee will be given to them, thus the types of company
mentioned will be motivated to participate. Also, pre-order of clothes can be
found those websites and also Nike’s official website. Slogan such as “Stop
Child Labour” and Nike motto “Just do it” will be added on the T-shirt to
increase the reputation of organisation. The products are environmental
friendly materials such as “organic cotton which is normally used by NIKE”. (Consider your choices, Consider ur
impact 2010)
Attractive prizes can be given out to the top 20 groups whose shirts and shorts
are being selected to the participant. Selected shirts will then be sold in
Nike outlets and 30% of the sales of those goods will go to worldwide child
labour to help to create schools to alleviate the child labour problem such as
giving them study in school for free and providing them necessity item. Moreover,
this will also provide a well-trained lecturer, and also renovating their
school to become a better environment. The other 70% of the sales will become
the income of their company. √
3.2 Phase 2 – Implementation of
community development projects
This program
enables the children to have their childhood life. This cotton is usually very
well to wear and feel very comfort. Organic cottons are easier for worker to pick
as we know that organic cotton do not contain chemical product, so it would not
cause harm to the worker. Organic cotton is an environmental friendly item. (Dunn 2007) Last but not least,
part of this 30% income can also improve their infrastructure. It can be used
to upgrade the school conditions (eg. Library, canteen, etc). Therefore,
children can make improvement on their studies, as “children are our future asset”. (Lewis 2006) This may not only
benefit for the child labour but also to the workers who pick the cotton,
environment, child labour and children who design the shirt. Thus, this 30%
income from the t-shirt can be improved on their education and better health in
the future.√
3.3 Phase 3 – Accountability
This program is
implemented not only to improve the reputation on the company but also to make
the society aware and increase their loyalty. In order to improve this, Nike
should hold some of the press conference and news, etc. This is because each
media will effect each demographic. (Katz 2007) In a press
conference, CEO will apologise for the mistake they did and promise the society
that it will have a successful program and sign agreement with Pakistan
government such that the offenders will be punished and fine if they repeat the
mistake. Also, Nike can hold talks in the heart of the working place in
worldwide nations to inform about the objective behind designing the shirt. Therefore,
this will gain the loyalty of the society by processing those words the CEO
said in the conference.
3.4 Phase 4 – Sustainability Planning
Nike is a
company that contain about “15 billion dollars” of capital. (Zaccheoyorka
2010)
Thus, This serves as an opportunity for the children that wish to discover and
develop their talents. Prizes will be provided to the group who win so more and
more children or even parents that want their children to emerge their talent
to attract them to join. Nike will be more then willingly to continue this program
as this will not only help out the child labour but also gain 70% of income of
the sales. Nike will hold competition on designing t-shirt on the first year
and shorts the second year. After the second year, customer can claim a prize
for supporting this program by producing the receipts of the 2 products purchase
in each year. Thus, this can be sustain in long term(.)
3.5 Phase 5 – Outcome Evaluation
This outcome
will increase the society loyalty towards the Nike responsibility by redemption
of their mistake and also gives the benefit to the child labour in the world.
4. Challenges of implementation
Due to the
barriers of establishment of this program, challenges of implementation will
definitely happen. Those challenges are as shown below.
4.1 Lack of participant
Many students
reject this competition because due to difficulties such as education pressure.
Some parents will think that academic subjects are more important than this competition
because of the requirements for further studies in today’s world is becoming
more difficult.√
4.2 Others activity has already been plan and process
Schools have already
plan to give their students activity to join and some activity cost money, this
will become a troublesome to make the school cancel the activity and add in
this activity on it.(expression)
4.3 Child labour wages is lower than that of normal
employee
Indeed, Nike is
a rich company with a huge sum of capital. In business terms “who doesn’t want
a minimum cost to create a maximise profit?” (Garnett, et al. 2009) Research found out
that worker minimum wages 2000Rs a month in Pakistan. (Candland
2007)
Mexico minimum wages is about 1598 pesos per month which is quite a high sum. (Daily Minimum
wages 2009)
Thus, suddenly change in 1-2 years might
not be successful.√
5. Benefit in solving Child Labour
The benefits in
solving the Child Labour are important as children are our asset in future.
Thus, there are some benefits as shown below.
5.1 Retrieve back their childhood life
Children should
not work, since they have their freedom and the person who should work is people
who can enter workforce legally. (Gennard 2002) It is an essential for
a child to have a proper childhood life as it is harmful to physical and mental
development for the children if they start working since young.
5.2 Increase their knowledge to upgrade themselves in future
In this modern
era, qualification in academic is important as it enables them to get a better
job in future. (Bynner 1998) Thus, Nike has spent
30% of the income for the children to study instead of working. √
6. Benefit to Nike
This program will
increase customer loyalty and by let society know on press conference that Nike
apologise in conference and to release all child labour employed by them. HRA
will increase company reputation by press conference which is apologise and
publish this news in various media such as newspaper, internet, etc. Nike’s
sustainability will increase because this will not only benefit the children,
but also the company. Other organisation will be willing to co-operate with
Nike as they have confidence in Nike. This program will not do any harm to the
employees who are in the field. Moreover, Nike can counter the bad publicity
through CSR. With CSR, the media will be focusing more how Nike has done in
order to save the world or amend the mistakes they had made.
7. Conclusion
In conclusion,
child labour is a vital social problem in today’s society. Through this
program, it helps to develop those children in world-wide especially in poverty
countries. Although there will be some obstacles faced, but it will help children
in this society will have a better childhood life. Moreover, this may also help
stakeholder such as person who disabled, workers, students, aquatic life and
environment. This shows that business organisation is not only focus on
profitability but also perform the CSR towards society. √√ (word count)
References list
Bynner, John. 1998
"Education for what?" Education + Training 40, no. 1: 3.
Candland, Christopher. 2007. Labor, democratization and
development in India and Pakistan. Canada: Routledge.
Consider your choices, Consider ur impact. 2010.
http://www.nikebiz.com/responsibility/considered_design/environmentally_preferred.html
(accessed May 7, 2010).
Daily Minimum wages. January 1, 2009.
http://www.mexicanlaws.com/STPS/minimum_wages_2009.htm (accessed May 9,
2010).
Dunn, Collin. Organic cotton: For Clothing Baby, Bedding
and more. August 23, 2007.
http://www.treehugger.com/files/2007/08/green-basics-organic-cotton.php?page=2
(accessed May 9, 2010).
Encyclopedia Britannica. n.d. http://www.britannica.com/EBchecked/topic/415193/Nike-Inc
(accessed May 7, 2010).
Garnett, Anne, Philip Lewis, Glenn Hubbard, and Tony
O'Brien. 2009. MICROECONOMICS. New South Wales: Pearson.
Gennard, John. 2002.
"Employee relations public policy developments, 1997-2001: A break with
the past?" Employee Relations 24, no. 6: 594.
Global Exchange. October 28, 2007.
http://www.globalexchange.org/campaigns/sweatshops/nike/faq.html (accessed
May 7, 2010).
Katz, Helen. 2007. The Media Handbook: A complete guide
to advertising media selection, planning, research and buying. New Jersey:
Lawrence Elrbaum Associates.
Khanam, Rasheda. 2008. "Child Labour and School
Attendence: Evidence from Bangladesh." International Journal of
Social Economics 35, no. 1/2 : 90.
Lewis, Jane. 2006. Children, Changing Families and
welfare states. Massachusets: Edward Elgar Publishing Limited.
TED Case Studies. n.d. http://www1.american.edu/ted/nike.htm
(accessed May 7, 2010).
Zaccheoyorka. wholesale nike shoes female and male
training. April 16, 2010.
http://zaccheoyorka.commoncircle.net/2010/04/16/wholesale-nike-shoes-female-and-male-training/
(accessed May 7, 2010).
Appendix
History & Background of Nike
Nike is the world leader in athletic shoes.
The company rose quickly from small-time sales at track meets to a major
publicly-traded Fortune 500 company. Throughout its history and background,
Nike has utilized strong advertising campaigns to separate itself from its
competition. Two of the most memorable marketing campaigns, "Just Do
It" and the Air Jordan brand, cemented Nike as one of the most popular
shoe brands in the world.
Origins
1. Nike
began its history as Blue Ribbon Sports in 1964 at the University of Oregon.
Track star Philip Knight and his coach Bill Bowerman distributed Japanese
Onitsuka Tiger shoes at track meets.
Retail
2. The
first retail location for the company opened in 1966 in Santa Monica,
California. As the relationship between Blue Ribbon Sports and Onitsuka Tiger
ended in 1971, the company launched its own line known simply as
"Nike."
Significance
3. Nike
successfully garnered 50 percent of the market share within the United States
by 1980, the same year the company went public.
Significance
4. The
advertising firm in charge of Nike, Wieden+Kennedy, coined one of the most
famous phrases in marketing history in 1988. The "Just Do It" was
named one of the top five slogans of all time by a 1999 article in
"Advertising Age." √
Famous Ties
5. In
1984, Nike's sales were in decline. In response, the company hired rookie
basketball player Michael Jordan to be the company spokesman. The $2.5 million
deal for five years resulted in the creation of one of the most popular lines
of shoes ever made. √
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