Final Word Count: X / 1300 words
RQ: How do sportswear clothing brands respond to the stakeholder pressure for more CSR?
1. How did companies respond to the arising stakeholder pressure that comes by effectively conducting responsible and effective CSR?
2. How did companies deal with the social impact of CSR?
3. How did companies adapt with the new protocols to help cope with stakeholders’ expectations in regards to CSR?
PART A: ANALYTICAL STRATEGY
i) Explain and justify the analytical strategy suitable for the proposed qualitative multiple-case study research design in the Group Assignment. Insert the codebook for the study in Appendix 1.
Think about the topics we covered in the class related to chapter 5 of Yin (2014) and chapter 4 of Miles et al. (2013). The supplementary sources in the Qualitative Research Design Readings are also of interest for this task.
Recommended word count: 200 words
6 points
The two most popular sportswear brands in the world are Nike and Adidas. The two companies have recently faced much pressure to increase their corporate social responsibilities. According to Mokhtaran and Bakhtiyari (2014), social demands regarding business actions in today’s society are concentrated on corporation’s economic duties within regulatory and moral boundaries. According to Lucchini and Moisello, corporate social responsibility comprises the economic, regulatory, ethical, and societal expectations that society sets on businesses at any given time (2019). If a company fails to meet these requirements, society, particularly corporate stakeholders, will most likely withdraw their support and the trust that allows businesses to operate. In this sense, the problem of stakeholder’s; pressure influence on sporting apparel brand CSR activity, notably Nike and Adidas, is addressed in this research, which draws on stakeholder theory.
ii) Explain the features of a high quality coding and insert a single screenshot of the coding pattern for each of the documents you coded for the assignment using ATLAS.ti8 in appendix 2 below (you are free to select the portion of coding to include, it will be assessed in combination with this explanation you give here).
Think about the topics we covered in the first related to chapter 5 of Yin (2014) and chapter 4 of Miles et al. (2013). The supplementary sources in the Qualitative Research Design Readings are also of interest for this task.
Recommended word count: 200 words and content of appendix 1.
6 points
The study examines the Nike instance to see how stakeholder pressure influences a company’s commitment to CSR problems. Nike and Adidas are two of the most recognizable firms in the fashion industry which are under increasing pressure from their stakeholders to act more ethically. In this regard, this research investigates how sportswear clothing brands respond to the stakeholder pressure for more CSR.
PART B: ANALYSIS AND PRESENTATION OF RESULTS
iii) Provide two within-case analyses only.
Think about the topics we covered in the class related to chapter 6 of Yin (2014) and chapters 12 and 5 of Miles et al. (2013).
Recommended word count: 300 words in total for both cases, excluding analytical tables and/or figures.
6 points
Case 1: Title
Case Study 1: Adidas Corporate Resource Sustainability Objectives
Adidas, headquartered in Herzogenaurach, Germany, is the world’s second-largest sportswear producer. In 2021, the transnational corporation formed in 1924 will have a net value of $14.3 billion. Adidas employs over 62,000 people and has over 2,500 locations across the world. Adidas has been a part of the Dow Jones Sustainability Index since 2001, and in 2013, it was crowned industry leader for the tenth time. Since 2008, it has also been included in the FTSE4Good Index (Laukkanen, 2021). Adidas considers CSR a “team game” involving consumers, staff, and the community. To achieve its CSR goals, the company works on three primary areas: environmental sustainability, human rights, and employee training.
Since its inception in 1997, the firm’s human and labor rights program has been built on significant stakeholder awareness and participation to identify and determine the essential issues to address as a company. On the other hand, the company has been developing an application-based ‘Workers Voice’ platform since 2017, a customized, production facility-based digital complaint channel for employees, eliminating the company’s dependency on local employee helplines as a complaint mechanism. According to Sicoli, Bronzetti, and Baldini (2019), the corporation has progressively improved and expanded the use of this complaint resolution mechanism, with more than 600,000 workers in 123 manufacturing sites in 18 countries having access to it by 2021, implying that critical production associates were covered in 99 percent of cases.
According to Adidas, being a sustainable corporation entails striking a balance between stakeholder expectations and the demands and interests of employees, clients, and communities, as well as supply chain workers and the environment. Adidas thinks that operating in a socially responsible manner will result in long-term financial success. The firm has increased its commitment to sustainability and established a strategy for 2025 and beyond that will allow the firm to have a good effect in various sectors while always concentrating on the most critical problems – for its stakeholders and the company. The firm plans to deliver a comprehensive, consumer-facing sustainable item offering at scale, grow our circular services, and move toward carbon neutrality across our whole value chain, according to the company’s annual report in 2021. It will enable its staff to serve as sustainability ambassadors, and it will urge consumers worldwide to interact and connect with us on the subject of sustainability. Ultimately, the organization strives to maintain its supply chain’s highest social compliance standards.
| Addidas | Stakeholder’s Pressure | Social Impact | New protocols | CSR Issues |
| Company goals | 0 | 0 | 0 | 0 |
| Financial Support | 0 | 1 | 1 | 0 |
| Impact of CSR | 0 | 1 | 1 | 1 |
| Growth in Circular Service | 9 | 0 | 1 | 0 |
| Social Support | 0 | 0 | 0 | 0 |
| Neutrality | 0 | 0 | 1 | 2 |
No association 0 (blue) ; Low association 1-2 (green) ; Medium association 3-4 (orange) ; High association 5-11 (purple)
Case 2: Title
Case Study 2: Nike
Nike Inc. (“Nike”) is a sportswear company based in the United States of America. It was formed in 1971. Nike, Converse, Hurley, and Jordan are the brands it encompasses. Nike employs around 56,000 direct employees and over 1 million workers in its contract factories in more than 120 countries (Dominguez, 2020). Nike’s approach to sustainability issues has shifted dramatically during the last 25 years. Nike was one of the primary corporate targets of the sweatshop dispute in the early 1990s. Nike was met with a barrage of public demonstrations, many of which condemned the company’s poor working conditions in underdeveloped nations (Lucchini & Moisello, 2019). Nike, on the other hand, was worried about maintaining its favorable public image and responded in 1992 by adopting a supplier CoC. Even though Nike improved its production methods and even recruited an external auditor to evaluate its overseas manufacturing operations in 1997, scandals regarding essential themes such as child labor and poverty pay continued.
Nike has implemented several environmental initiatives, including forming a Corporate Responsibility Committee. This role was established to monitor charitable endeavors, environmental and sustainability programs, multiculturalism, community affairs, labor practices, and equal opportunity. The company also implemented a complex system of regular, public, and unscheduled factory assessments and evaluations, with basic environmental, safety, and health audits segregated from more in-depth administration, working conditions assessments, and Fair Labor Association (FLA) periodic audits. The firm’s strategic and operational embedding of sustainability standards within its organizational structure and operational procedures has also been reinforced. As indicated in the 2021 annual report, NIKE’s mission is now largely overseen by the company’s Board of Directors through the Corporate Social Responsibility, Sustainability & Governance Committee. The committee is in charge of NIKE’s three purpose pillars – people, planet, and play – and the possibilities and dangers that come with them
| Addidas | Stakeholder’s Pressure | Social Impact | New protocols | CSR Issues |
| Company goals | 0 | 0 | 1 | 0 |
| Financial Support | 0 | 0 | 0 | 0 |
| Impact of CSR | 0 | 4 | 2 | 1 |
| Growth in Circular Service | 2 | 9 | 2 | 3 |
| Social Support | 2 | 0 | 1 | 7 |
| Neutrality | 0 | 0 | 2 | 4 |
No association 0 (blue) ; Low association 1-2 (green) ; Medium association 3-4 (orange) ; High association 5-11 (purple)
iv) Provide a cross-case analysis.
Think about the topics we covered in the class related to chapter 6 of Yin (2014) and chapters 12 and 5 of Miles et al. (2013).
Recommended word count: 300 words, excluding analytical tables and/or figures.
6 points
It is apparent from the case studies that there are times when businesses must “go above the law” and pursue a strategy based on ethical responsibility. Nike and its sweatshops and the issue of bad working conditions are apparent instances of a circumstance in which a firm must take proactive measures to address the problem, even if it is lawful to avoid doing so. Such consideration is founded on normative grounds, but there are also economic considerations, as previously demonstrated. By publicizing corporate operations, the media, on the other hand, can push firms to deal with the new scenario that has been disclosed. Because the sustainability problem is viewed as a continuous process, Dominguez (2020) argues that it necessitates long-term efforts from the company’s management. The company’s success in sustainable product invention and development is evident in both situations due to societal and regulatory pressures.
A comparison between the case firms would not be relevant for the research because they are so different in their operations and what sector they operate in. Understanding approaches that are productive in both businesses, on the other hand, might be advantageous. Since operating business sustainably was not the primary aim when the firm was created, both companies had to convert to, but not construct, environmentally friendly product lines. As a result, the CRS must keep a close eye on the product evolution, starting with design and concluding with customer support and upgrade.
The government is the most significant player that is not included in the research. In terms of the first, states are witnessing their influence diminish due to globalization and outsourcing of production. As a result, firms are increasingly opting to create voluntary codes of conduct and standards of behavior to cover the regulatory void left by government regulation.
| Stakeholder’s Pressure | Social Impact | New protocols | CSR Issues | |||||
| Countries | Adidas | Nike | Adidas | Nike | Adidas | Nike | Adidas | Nike |
| Company goals | 9 | 1 | 0 | 0 | 0 | 1 | 0 | 0 |
| Financial Support | 0 | 0 | 1 | 0 | 3 | 7 | 0 | 0 |
| Impact of CSR | 0 | 0 | 2 | 3 | 2 | 2 | 1 | 1 |
| Growth in Circular Service | 11 | 2 | 0 | 5 | 1 | 2 | 0 | 3 |
| Social Support | 0 | 1 | 0 | 0 | 0 | 1 | 0 | 5 |
| Neutrality | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 4 |
No association 0 (blue) ; Low association 1-2 (green) ; Medium association 3-4 (orange) ; High association 5-11 (purple)
PART C: DISCUSSION OF RESULTS AND RECOMMENDATIONS
v) Discuss the findings of the analysis and make recommendations for research and practice
Think about the topics we covered in the class related to chapter 5 of Yin (2014) and chapters 12 and 5 of Miles et al. (2013).
Recommended word count: 300 words.
6 points
The study’s findings demonstrate that Adidas and Nike, two major multinational brands, are among the world’s top “green” brands, owing to their significant dedication to environmental and sustainability policies and practices. This, however, has been ascribed to the demands that corporations face from stakeholders. Some of Adidas’, Nike’s, and other fashion companies’ sustainability initiatives in recent years have included the development of new and environmentally friendly materials and staff involvement. Ultimately, the study is a significant step in sustainable development since it emphasizes the importance of aspects that frequently condition and affect corporate performance, enabling executives to improve organizational effectiveness.
REFERENCES
Add new references as required for the answers provided above.
Dominguez, L. (2020). Nike vs. Adidas. International Relations Journal 2020, (39), 37.
Freeman, R. E. (2016). A stakeholder theory of the modern corporation. In The corporation and its stakeholders (pp. 125-138). University of Toronto Press.
Kahlke, R. M. (2014). Generic qualitative approaches: Pitfalls and benefits of methodological mixology. International Journal of Qualitative Methods, 13(1), 37-52.
Laukkanen, J. (2021). Sustainability marketing in sporting goods industry.
Lucchini, A., & Moisello, A. M. (2019). Stakeholders’ Pressure and CSR Engagement. A Case in the Apparel Sector. American Journal of Industrial and Business Management, 9(01), 169.
Mokhtaran, M., & Bakhtiyari, F. (2014). Investigating the effect of brand experience on reaction of sport goods consumers (Case study: Nike and Adidas sports apparel consumers in Iran). European Online Journal of Natural and Social Sciences: Proceedings, 2(3 (s)), pp-2523.
Sicoli, G., Bronzetti, G., & Baldini, M. (2019). The importance of sustainability in the fashion sector: Adidas case study. International Business Research, 12(6), 41-51.
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