Essay about Csr and Nike

3832 Words Feb 27th, 2014 16 Pages
1. Corporate Social Responsibility (CSR) and its Importance:
1.1 Definition of CSR:

What does Corporate Social Responsibility or CSR mean? The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition:

Corporate Social Responsibility is the continuing commitment by business to behave ethically and to contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large.

Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to
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However, a majority of companies still persist in doing little or nothing - and even actively oppose CSR. Textile companies lacking behind in the CSR process often have a reactive and short-term management perspective. A reactive response on daily business concerns and pressure can lead to violations to social and environmental performances, often caused by factors such as short lead times and late delivery of raw materials which lead to inefficiencies in production. Companies who are able to react in a pro-active way to these factors, are in the long term ensuring their ‘license to operate’ status from government, customers, non governmental organizations (NGO’s) and consumers, and are less vulnerable for bans or bankruptcy.

CSR is one of the management instruments responsible for proactive management, and a large number of systems and standards have been developed worldwide to implement CSR in textile companies. The challenge however in implementing CSR policies is keeping costs low and profits high while at the same time satisfying stakeholders and NGO’s concerned with working conditions in the textile factories . Monitoring for correct implementation and execution of CSR policies is a balancing act as multinational corporations (MNC’s) find it difficult to control the locals who own the factories and by extension the working conditions they provide for their employees.

2. Case Study Purpose:

The ethics of CSR are very difficult to reconcile with

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