At Nike, Business Targets Drive Ambitious Corporate Responsibility Goals

Global shoe manufacturer integrates CSR into long-term growth and innovation strategies

With the release of its fiscal 2005 and 2006 Corporate Responsibility Reports, Nike, Inc. announces a series of business targets for 2011 that more deeply integrate corporate responsibility goals into the Beaverton, Ore.-based shoe manufacturer's long-term growth and innovation business strategies. The targets are aimed towards setting benchmarks to improve labor conditions in contract factories, create a climate neutral company, drive sustainable product design and innovation and improve community relations through youth sports outreach.

The corporate responsibility business targets set by Nike include:

  • Improve labor conditions by eliminating excessive overtime for the 800,000 workers in Nike brand contract factories by 2011.
  • Make all Nike brand facilities, retail and business travel climate neutral by 2011. Nike has exceeded its reduction targets for CO2 emissions over the last two years through the World Wildlife Funds Climate Savers program.
  • The company also eliminated fluorinated gases (F-gases) across all Nike brand products following 14 years of research and development in the companys Nike Air cushioning system.
  • Design the more than 225 million pairs of Nike footwear produced per year to meet baseline targets by 2011 for waste reduction in product design and packaging, elimination of volatile organic compounds and increased use of environmentally preferred materials. All Nike brand apparel is targeted to meet baseline standards by 2015, and equipment by 2020.
  • Nike is designing sustainable innovation solutions into its products that it anticipates will create benefits throughout its supply chain and support these business targets.
  • Invest in community-based initiatives that use the power of sport to unleash potential and improve the lives of youth. Over the past two years, Nike has invested $100 million in community-based sport initiatives, and the company is targeting a minimum investment of $315 million through 2011.

In addition to setting targets, Nike has also announced a commitment to supply chain transparency by updating public disclosure of the more than 700 contract factories worldwide producing Nike product. In 2005, Nike responded to pressures from activists by becoming the first company in its industry to disclose its factory base to encourage industry transparency and collaboration.

For the first time, Nike also has posted the companys contract factory auditing tools online, in a bid to help to provide further transparency and insight into how the company evaluates and monitors its contract factories for compliance with company standards.

Nike's corporate responsibility report is available online at www.nikeresponsibility.com


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