Nike Case Study
Nike Case Study
Nike Case Study
Can a business have the power to change the Worlds perspective on sustainability?
In 2006 Mark Parker became the CEO of Nike with a vision of changing the long-
standing poor reputation of the company into something consumers could be proud to purchase
from. Accusations of unethical labor practices and unsustainable manufacturing began in the
1970s, but after public protests and strikes began around 1991, Nikes executive board realized
significant changes were imperative in order to maintain their position of dominance in the
market (Wilsey). Nike began to empathize with those accusing the company of malpractice, and
started to tackle the areas of the business that required serious revision. By focusing on the
major ethical issues surrounding involvement with foreign sweatshops, employing sustainable
manufacturing practices, and changing production methods to meet and exceed industry
standards, Mark Parker was able to bring a new image to the minds of consumers when they
When Mark Parker joined Nike, the company was in a state of reputational disarray with
a public image scarred by rumors of unlawful labor standards and a tremendous negative
environmental impact. Parker brought a new outlook on sustainable innovation and a targeted
mission to meet and exceed environmental and ethical business standards. Parker developed
somewhat of a sustainable business mission statement that states Double our business, with
half the impact. (Parker). Though still maintaining the goal of every business, which is
profitization and economic growth, Parker has made it a new company-wide mission to
techniques and production standards to change the image of not only Nike, but also the
members of the supply chain and the apparel industry holistically. The company has been
working with all of their partners to ensure that their values are being permeated through the
entire supply chain. In the 2014/2015 Sustainable Business Report, Mark Parker noted, When
we consider sustainability, we look at what takes place not only within our own walls, but also
throughout our value chain. (Parker). Some of these standards include ensuring the removal of
chemicals listed on Nikes Restricted Substances List in all stages of manufacturing and
employing external auditors to ensure all suppliers are meeting country-specific environmental
laws. By 2020, Nike hopes that 100% of their suppliers and business partners will meet a policy
Nike has adopted several innovative manufacturing techniques and sustainability goals
in recent years that have helped transform their environmental impact including a waterless
dyeing method, a fiber made completely of recycled plastic, and ambitious waste reduction
goals. The innovative dyeing process, known as ColorDry, has saved millions of liters of water
since its implementation several years ago. The normal garment dyeing process uses roughly
30 liters of water per item, however the ColorDry approach utilizes recycled CO to infuse the
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dye, creating a more sustainably produced and more vibrantly colored garment. This dyeing
method reduces energy consumption by roughly 60% compared to traditional techniques and
uses virtually 100% of the dye removing the creation of harmful waste. ColorDry, when
employed by the entire textile industry, has the potential to reduce water consumption by over 5
trillion liters annually (The Guardian). To put this into perspective, roughly 25,750 liters of water
are involved in some way to grow one days food for a family of four (Seametrics). So, by
shifting to the use of techniques such as ColorDry, that clean water could be used to grow food
for almost 800,000 people for one day. This is an incredibly tangible example of how making
small shifts in the production process toward more sustainable practices can evoke incredible
In February 2012, Nike introduced one of their most innovative technologies yet, the
material containing recycled fibers that formulate the fabric of the shoe, which not only
increases performance and comfort for the athlete, but also creates a significant decrease in
waste generated by production. Since its inception, FlyKnit footwear alone has reduced waste
by over 3.5 million pounds, translating to roughly a 60% decrease in waste production
compared to traditional Nike shoes. In 2016, engineers at Nike were able to successfully
convert the core fibers used in all FlyKnit shoes to 100% recycled polyester materials. This shift
has diverted over 200 million plastic bottles from landfills in just a few years (Nike News). To put
this into perspective, this number of plastic water bottles could circle the Earth once. To look at
this from a different view, Americans use roughly 50 million plastic bottles each year. So, this is
roughly four years worth of plastic bottles consumed by US citizens (Ban the Bottle). While
FlyKnits sustainable design has successfully reduced environmental impacts and harmful
emissions by amounts that would have been infeasible for Nike just 10 years ago, FlyKnit shoes
have also become some of the best-selling Nike shoes every year since their inception. This
result suits the sustainable business mission of Nike of reducing impact and increasing profit in
In the past decade, since Mark Parker took leadership, Nikes suppliers have begun
working to cut the energy used to produce all footwear and the corresponding emissions
resulting from production of shoes. Nike reported a goal of zero waste from footwear production
by 2020. Initially this seemed like an unattainable goal for any large apparel company let alone
a company with the poor environmental reputation that Nike has. However, with the massive
leaps toward sustainable design and manufacturing that Mark Parker has spearheaded the
company to take in the past decade, this goal is becoming more feasible. Nikes company-wide
changes have been rewarded with a revitalized brand image, globally best-selling sustainably-
Since the 1970s Nike has been struck incredibly hard by accusations of maltreatment of
laborers, unethical employment of sweatshops, and having little regard for their environmental
footprint. However, with the recent emphasis on innovation and augmentation of sustainable
practices introduced by CEO Mark Parker, the company would be forever transformed. The
immense value that Parker placed on rebuilding the brand reputation in the eye of the consumer
permeated throughout the supply chain. With the inception of annual Sustainable Business
Reports beginning in 2010, Parker made it clear that Nikes brand image would no longer be
defined by labor disputes and environmental disregard. It would instead depict the importance of
sustainable innovation and projecting a positive portrayal of the apparel industry. Under Parkers
direction, Nike looks to transform the industry into something more positive and
matter if we miss, hit, or surpass our targets, we will never stop trying to achieve our ultimate
vision of the future. A future where we produce closed-loop products created with renewable
energy and recyclable materials. By spearheading major shifts in Nikes goals toward
sustainable and ethical practices and publicly acknowledging their tainted history of malpractice,
Mark Parker has been successful in changing the way the World views the manufacturing
industry by transforming the way they perceive Nike, one of the industrys most prominent
players.
Exhibits
Allarey, Rajah. "This Is How Nike Managed to Clean Up Its Sweatshop Reputation."Complex. Complex,
"Bottled Water Facts." Ban the Bottle. N.p., 2008. Web. 17 May 2017.
"Four Years of Nike Flyknit." Nike News. N.p., 21 Feb. 2016. Web. 14 May 2017.
Guthrie, Doug. "Building Sustainable and Ethical Supply Chains." Forbes. Forbes Magazine, 09 Mar.
Newell, Andrea. "How Nike Embraced CSR and Went From Villain to Hero." Triple Pundit: People,
Nike, Inc. "Nike, Inc. Form 10k." Securities and Exchange Commission. N.p., 21 July 2016. Web. 16
May 2017.
Nike. "Nike ColorDry Adds Water-free Dyed Fabric to Sustainable Materials Menu." The Guardian.
"Nike unveils performance innovations for summer competitions." Inquirer Sports. N.p., 22 Feb. 2012.
Nisen, Max. "How Nike Solved Its Sweatshop Problem." Business Insider. Business Insider, 09 May
Paine, Lynn, Nieh-He Hsieh, and Lara Adamsons. "Governance and Sustainability at Nike." (2013): 1-
Parker, Mark. Nike Sustainable Business Report. Rep. Nike, Inc., 2015. Web. 14 May 2017.
Wilsey, Matt, and Scott Lichtig. "The Nike Controversy." Stanford University, n.d. Web. 15 May 2017.
"100 Amazing Water Facts You Should Know." The Seametrics Blog. N.p., 28 Apr. 2014. Web. 17 May
2017.