The Return On Investment (ROI) of sustainability has a direct correlation with
the corporate social responsibility of a company.
Rather than working on to avoid risks, Nike understood the causes of risks and stepped up to address them head on. 20 years ago Nike was casted in the role of a villain amid child labor and sweat shop allegations. In 2005, Nike acknowledged the issues and demonstrated transparency enlisting all contract factories, detailed pay scales and working conditions in those factories. This improved the perception of the company in the league of CSR leaders. Nike implemented policies supporting workers, demanded its contractors and suppliers to met them and conducted third party audits. Nike cut ties with the supplier Lyric after finding appalling working conditions. Nike also focused on improving the supply chain with a focus on water consumption and it partnered with DyeCoo, A Dutch startup, and adopted their new carbon based dyeing process without use of water or chemicals. Nike unveiled its sustainable innovation- ColorDry to highlight environmental benefits. Thus Nike emerged as CSR leader by acknowledging the risks and addressing them than avoiding them.