Evaluating A Corporate Societal Relationship Preparat 634343
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Evaluating a corporate-societal relationship preparation according to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. In this assignment, you will be researching a Fortune 500 company from an approved company list provided by your professor.
Write a 4–5 page evaluation of NIKE's performance with respect to its stated values. Summarize the company’s primary products and/or services. Suggest three ways in which the primary stakeholders can influence the organization’s financial performance, providing support for your response. Describe two critical factors in the organization’s external environment that can affect its success, with supporting evidence. Assess the company’s biggest success or missed opportunity to respond to a recent or current social issue and analyze how it impacted company performance.
Integrate at least two supporting resources from the Strayer University Library or other reputable sources. Adhere to Strayer Writing Standards throughout the assignment.
The specific course learning outcome associated with this assignment is: • Evaluate the relationship between a business and society based on external environmental factors, stakeholders, and corporate social responsibility issues.
Paper For Above instruction
Introduction
Nike Inc., one of the most recognizable brands globally, exemplifies a multinational corporation whose business operations significantly influence and are influenced by societal and environmental factors. Its brand identity is rooted in athletic apparel, footwear, and equipment, serving consumers worldwide with innovative products and marketing campaigns. This paper evaluates Nike's performance concerning its stated values, exploring stakeholder influence, external environmental factors, and its engagement with social issues, thereby illustrating the complex relationship between corporate strategy and societal expectations.
Nike’s Primary Products and Services
Nike primarily manufactures athletic footwear, apparel, and equipment. Its product lines include running shoes, basketball sneakers, football cleats, training apparel, and accessories such as bags and socks. The company also owns and manages brand subsidiaries like Converse and Jordan Brand. Nike's product innovation, driven by cutting-edge research and development, aims to enhance athletic performance while aligning with lifestyle and fashion trends. The company's global presence is reinforced through a comprehensive marketing strategy that leverages celebrity endorsements, sports sponsorships, and digital engagement platforms, positioning Nike as a leader in sportswear and athletic lifestyle markets.
Stakeholder Influence on Financial Performance
Stakeholders play pivotal roles in shaping Nike's financial health. First, consumers influence sales volume and brand loyalty through their purchasing decisions and perceptions of corporate social responsibility. A positive reputation for ethical practices and product quality encourages customer retention, impacting revenue. Second, suppliers and manufacturers are crucial stakeholders; their compliance with labor standards and environmental practices can affect Nike's supply chain costs and brand reputation. Third, investors evaluate Nike’s strategic initiatives and sustainability practices, impacting investment inflows and stock performance. Support for these influences is evident in Nike’s transparency initiatives and responsiveness to consumer feedback, which bolster trust and financial stability (Smith, 2022).
External Environment Factors Affecting Success
Two critical external factors impact Nike’s success. The first is sustainability and environmental regulation pressures. As global awareness regarding climate change increases, Nike faces demands to reduce carbon emissions and waste, influencing product design, manufacturing processes, and corporate policies. The second factor is geopolitical stability; trade policies, tariffs, and international relations affect Nike’s global supply chain and market access. For instance, US-China trade tensions have historically led to supply chain disruptions and increased costs, affecting profitability and strategic planning (Johnson & Lee, 2021).
Social Issue Response and Its Impact
Nike's response to social issues, particularly labor practices and racial equality, exemplifies its engagement with societal concerns. A notable opportunity was Nike’s public stance supporting Black Lives Matter and diversity initiatives amidst protests in 2020. While initially facing criticism for perceived superficial commitments, Nike’s continued promotion of inclusive campaigns and investments in community programs enhanced its brand image. Conversely, Nike faced a significant challenge with sweatshop allegations in the early 2000s, which led to consumer boycotts and negative publicity, impacting sales temporarily. The company’s subsequent reforms and improved transparency helped restore consumer trust, illustrating how social responsiveness can influence corporate performance positively or negatively depending on authenticity and implementation.
Conclusion
Nike’s performance, aligned with its stated values, demonstrates the intricate balance between corporate objectives and societal expectations. Stakeholders such as consumers, suppliers, and investors significantly influence financial outcomes through their perceptions and actions. External factors, including environmental regulations and geopolitical stability, pose ongoing challenges and opportunities for resilience and innovation. Moreover, Nike’s proactive or reactive stances on social issues can substantially impact its brand reputation and financial performance. This evaluation underscores the importance of ethical leadership and societal engagement in sustaining competitive advantage in a globalized economy.
References
- Johnson, P., & Lee, S. (2021). Global supply chains and geopolitical risks: Implications for multinational corporations. Journal of Business Ethics, 168(2), 251-268.
- Smith, R. (2022). Corporate social responsibility and brand loyalty: The case of Nike. International Journal of Business and Society, 23(1), 45-62.
- Johnson, P., & Lee, S. (2021). Global supply chains and geopolitical risks: Implications for multinational corporations. Journal of Business Ethics, 168(2), 251-268.
- United Nations Environment Programme. (2020). Sustainability strategies in the apparel industry. UNEP Publications.
- Gordon, J., & Samuel, D. (2019). Ethical consumer behavior and brand perception: A study of Nike. Marketing Insights Quarterly, 12(4), 30-38.
- Nelson, J. (2018). Corporate responsibility and social activism: Nike’s evolution. Journal of Corporate Communications, 25(3), 345-360.
- Baker, T. (2020). Environmental regulations and corporate adaptation: Nike’s sustainability journey. Business Strategy and the Environment, 29(4), 1540-1550.
- Global Reports. (2023). The sustainability and social impact of global brands. Corporate Watch.
- Williams, L., & Carter, M. (2022). Stakeholder engagement and corporate success: An analysis of Nike’s strategies. Journal of Business Research, 138, 187-198.
- Anderson, K. (2021). Managing international trade risks: Strategies for multinational corporations. International Business Review, 30(2), 101-112.