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170 • Part III Principles from the Values and Social Dimensions

Nike’s business, there is a strong focus on waste management and mon-
itoring the use of toxic components in the manufacturing process, such
as polyvinyl chloride (PVC).
A large part of Nike’s CSR strategy is about risk management, mak-
ing sure the company cannot be compromised by its contract manu-
facturers and use of materials in product design. But auditing is not
enough. Over the years Nike has learned that all parts of the internal
Nike organization need to be aligned. Contract manufacturers need
to be audited, but that process will only be successful if the procure-
ment department conducts contract negotiations that focus on more
than just price, quality, and delivery times. This will undoubtedly have
an impact on price and on production methods, which affect product
design and marketing. In the customer-facing part of the organization,
CSR has an impact beyond risk management. One initiative is that
customers can hand in their old shoes, and these will be recycled into
material for running tracks or basketball fields. Also, the company
sponsors a wide variety of sports-related community events, creating
higher brand awareness and a positive corporate image for the brand.
The complete value chain is affected by Nike’s CSR initiatives.

The Social Dimension as an Integral Part of the

Business Model
When we increase the level of ambition, the social dimension becomes
an integral part of the business model. It stops being a boundary con-
dition, and becomes part of the body of the business itself. In cases like
this, CSR is not at odds with shareholder value, in fact, it drives share-
holder value.
Typically, the more closely tied a social issue is to a company’s busi-
ness, the greater the opportunity to leverage the firm’s resources—and
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benefit society. For instance, at first glance, the first CSR program of
TNT, one of the largest mail and express companies in the world, looks
like a simple case of corporate philanthropy: it sponsors the World Food
Program of the United Nations. However, this is not the case. TNT’s
support consists of more that just money; its main support consists of
donated expertise and human resources. The effects of this are multi-
ple. Of course there is good PR value, but the effect is felt throughout