Nike has affected a positive change on the environment by developing technology that uses recycled water bottles in order to make their shoes and clothing. In an article entitled, How Nike’s Green Design Recycled 82 Million Plastic Bottles (2011), written by Matthew Wheeland, the environmental business practices of Nike Considered are examined. The article is based upon a speech that was given by Lorrie Vogel, the head of Nike Considered, at a State of Green business forum (Wheeland, 2011). Although the impact that Nike has achieved on its own is commendable, Nike is even more honorable for having started the GreenXchange in 2009. This is a group website and it is dedicated to the international environmental marketplace. This is a site where companies that are seeking the same researchable goals can build upon each other’s research. Vogel explains that the reason that Nike has modified its approach to business and the environment is because: “”We want to do more than less bad, what we want to do is create a vision on what does good ultimately look like for Nike” (Wheeland, 2011).
Relevant Market Stakeholders
The relevant market stakeholders through the actions of Nike, Nike Considered, and GreenXchange, are many. For companies that recycle, the research of Nike has been invaluable when released on GreenXchange. All other footwear manufacturers are relevant market stakeholders because they are going to be pressured to keep up with Nike’s environmentally conscientious business approaches. Therefore, the entire shoe and clothing industry is going to be subject to new environmental standards based on consumer expectation. Nike’s employees are also relevant stakeholders since they were the first to adopt the ethos of the strategy (Wheeland, 2011).
The nonmarket stakeholders are the ones who stand to benefit from the environmental preservation of Nike Considered. By removing 82 million plastic bottles from landfills, Nike has given its nonmarket stakeholders, the average person, a benefit. The environment can be considered a stakeholder, as are the animals that are positively affected by Nike’s actions. Other environmental preservation research institutes are likely to benefit from Nike’s initiatives, simply because the need for further research will be implemented. The ethos that Nike creates will spread to many industries, so really, there are not too many unaffected individuals or businesses.
Nike has not always had this image for being environmentally conscientious. In fact, for a long time, Nike had been criticized for its awful working conditions and pollutive factories: “Nike factories in Asia were criticized for extremely poor working conditions and for employing young children” (Kercher, 2007). Because of the need to improve Nike’s image, transformations were undertaken. In order to affect this type of change in other companies, Nike has already presented a solution in the form of the site GreenXchange. Vogel ended her speech by asking the audience to imagine a revolutionary idea that they might have, and whether the idea would be more beneficial to keep to oneself, or to collaborate (Wheeland, 2011). Furthermore, under the Corporations Act, Nike is permitted to act on behalf of extended stakeholders, the environment being a primary one.
Nike has repaired its corporate and public image through the extension of Nike Considered. It is likely that Nike is genuinely interested in bettering the environment, but the primary interest would be bettering its image. This action serves both purposes. All stakeholders will be affected by this action, directly or indirectly. Those affected directly will include relevant market stakeholders, such as competing companies. Those indirectly affected, such as any responsible corporation, will be affected by the conscientious ethos that Nike will incite.
- Kercher, K. (2007). Corporate social responsibility: Impact of globalization and international business. Corporate Governance Journal. Retrieved from http://epublications.bond.edu.au/cgi/viewcontent.cgi?article=1003&context=cgej
- Wheeland, M. (2011). How Nike’s green design recycled 82 million plastic bottles. GreenBiz. Retrieved from https://www.greenbiz.com/blog/2011/02/09/how-nikes-green-design-saved-82m-plastic-bottles