MBA case presentation on Nike's sustainability initiative - I handled the design and creation of the PowerPoint presentation - Research into Nike's Sustainable business practice - Illustrate how Nike is a great example of how to integrate sustainability into a company culture

1. NIKE
We define who we are
by what we do – and also
by how we do it.
Mike Arkin & Kelly Bowker

2. A Fifteen Year Journey With No Finish Line
Risk Management: National Press Club Speech:
responding to criticism of business practices
System Innovation
Redesign/Co-Design: company reorganization; rewire
& rename CR division to Sustainable Business & Innovation
Integrate Sustainability: CR is a future business
driver; integrate and imbed throughout product life cycle
Collaboration & Transparency: publishing
online the names & addresses of all factories
Monitoring: First CR report; maxims created;
endorsed UN Global Compact & monitor performance
1998
2001
2004
2006
Disruptive Models: product innovation pipeline
2009
2011-2012
2013 & Beyond

3. Initiatives Transform From CR to Sustainability
Company Reorganization
• 2009 Review Commission: resulted in core
changes that addressed key areas including
governance, accountabilities, incentives, and
checks & balances both upstream (within Nike)
and downstream (in contracted factories)
• Reorganization: CR further upstream in the
corporate decision making process
• Sustainable Business & Innovation Team: shifted
the focus of the 130+ person CR team from
reactive monitoring and management to a
renewed emphasis on addressing the root cause
of sustainability and labor problems, creating
new business models, innovating sustainability
solutions
Building Sustainability Indexes
• Custom Built Indexes: rate the sustainability of
the materials used and the environmental
impact of the production process
• Developing Guidelines: Strategic integration of
sustainability tools guide early product creation
decision making process: educate designers,
developers, and suppliers
• Standards for Performance Evaluation:
Implementation the indexes across the
organization enabled Nike to establish goals and
targets and measure performance against those
standards

4. A New Focus on Labor
Focus Factory Implementation
Human Resource Management Training
• Managerial Fair Labor Training Program
Freedom of Association Education Program
• Extending the right to peaceably assemble
• Collective bargaining
Statistically Relevant Sampling of Employees
• Employee Surveys to Capture Worker’s Voice
• Employee Engagement for Continuous Improvement
*Implemented in 79% of focus factories
Covers 94% of footwear and 43% of apparel
Focus factories chosen based on volume of production & location
Build and Share Standards
Nike Code Leadership Standard
• Published Minimum Standard
• Details Company Guidelines
Promoting Multi Brand Collaboration
• Fair Labor Association: Monitoring
• Fair Factories Clearinghouse: Knowledge Sharing
• Sustainable Apparel Coalition: Thought Leadership

5. Distributing Sustainable Principles
Upstream Focus on Suppliers
• 785 contract factories
• 68% rated bronze or better on Nike’s
Sourcing & Manufacturing
Sustainability Index
• 900M units produced annually
• Lean Manufacturing
Improved Working Relationships
• 1.01M contract factory employees
• Human Resources training to 61% of contract
factory employees
• Worked with the Fair Labor Association
• Sustainable Compliance Initiative
methodology & tool
Downstream Focus on Consumers
• Uncertainty of value of price premium on
sustainable products
• Focused on education of issues with customers
• Communicating sustainable impact and reduction
through packaging
• Community programs to increase brand interaction

6. Balancing Design Innovation
Strategy
• Focus on sustainability led to an innovation strategy
• Designers encouraged to think about the entire process from
sourcing materials to consumer use/disposal
• Explore -> Prototype -> Pilot -> Scale
• 1,500 material vendors
• 57% have signed contracts to utilize Green Chemistry
Product Innovations to date FY13
• Recycled Polyester in 31.5M garments
• Better Cotton Initiatives: 13% organic
• Leather Working-Group 100% certified
• Nike developed 2 sustainable rubber formulations
• Nike Colordry: 0 Water used, saves 30 liters of water per shirt

7. STRENGTHS
• Global Scale: 750 stores; 48,000 employees
• Product Design Innovation & Operational
Capabilities
• Marketing Brand Loyalty
• Top Down Mission
• Integrated Sustainability in Decision
Making Process
WEAKNESS
• Contract Source Materials and Manufacturing
• Global Manufacturing Increases Transportation
Related Emissions
• Internal Audit Process
• Assessment of indexes and Secondary Source
Data Collection and Verification
• Scope of Reporting and Initiatives
OPPORTUNITY
• Increased Demand for Sustainability
Thought Leadership
• Industry Adoption Influences Supply
Chain Management
• Reduce Leader: Shared Factory Use
• Affinity with Athletics and Professional Sports
Results in Global Messaging Platform
THREATS
• Fashion / Trend Lifecycle
• Depleting Non-Renewable Resources
• Imitation
• Competitors Use & Improve Processes
• Slack or Holdup From Contract Manufacturers
• Geographical risks
• Weather & Politics
• Lack of Consumer Education
• 15% water used in laundering process

8. Embedding Sustainability in Company Culture
Nike Fostering Commitment
• Moved CR Upstream
• CR Reporting
• HR Management Training
• Employee Engagement
• Nike 2021: business sim experience
Nike Building Momentum
• Founding Partner of FLA
• Thought Leader on SAC
• Promoting Multi-Brand Collaboration
• Product Innovation
• Commitment/Adoption of Sustainability
Index and Green Chemistry Practices
Clarifying Expectations
• SB&I Team Integration
• Custom Built Sustainability Indexes
• Internal/External Audit
Nike Capacity for Change
• Re-Design / Co-Design
• Evolving New Business Processes &
Systems
• Developing New Products & Services
• Extend Scope Both Upstream &
Downstream
Source: Network for Business Sustainability

9. • Reuse-a-Shoe
• Converse &Hurley
• Quick Strike Index
• Explore New Sources
of Revenue
• Impact of Sustainability
Projects
• Emissions
• Energy
• Water
• Waste
Nike A Better World

10. Leading the Pack
Nike Keeps Moving
• Research & Development
• Transparency
• Thought Leadership
Product Life Cycle Use
• Focus from Raw Material to Disposal
• Water resource management
• Recycling external consumer goods
Community Engagement and Education
• Nike Grind: recycled 28M shoes since 1990
• World Cup Jerseys
• Designers Partner with Kids in the Community/Hospital
• Nike Makers App

11. QUESTIONS

12. Appendix

15. Performance Projections

16. On Nike’s Radar

17. Sustainability Strategic Framework

18. Nike Sustainability Indexes

22. Nike’s Value Chain Footprint

26. Nike’s MAKING App

27. References
Brettman, Allan. "Nike, Doernbecher and 6 Young Designers Present the 2014 Freestyle Collection." OregonLive.com.
7 Nov. 2014 http://www.oregonlive.com/playbooks-profits/index.ssf/2014/11/nike_doernbecher_and_6_young_d.html
"Nike CR Report." Nike CR Report. N.p., n.d. Web. 12 Nov. 2014.
http://www.nikeresponsibility.com/report/content/chapter/our-sustainability-strategy#topic-strengthening-our-core
Peeples, Lynne. "Groups Giving Second Thoughts To Those Little Black Crumbs On Playing Fields." The Huffington Post.
TheHuffingtonPost.com, 16 Oct. 2014. Web. 8 Nov. 2014.
http://www.huffingtonpost.com/2014/10/16/artificial-turf-cancer-crumb-rubber_n_5997228.html
Carroll, G. “Nike: Sustainability and Labor Practices 2008-2013,” HBP, 2013.
Bertels, S., “Embedding Sustainability in Organizational Culture: A How-To Guide for Executives,” Network for Business
Sustainability and Simon Frazier University.