Corporate Social Responsibility of The Adidas Group, Assignments of Business Ethics

Download Corporate Social Responsibility of The Adidas Group and more Assignments Business Ethics in PDF only on Docsity! Corporate Social Responsibility of The Adidas Group Social Responsibility has been a constant pressing issue for individuals and companies alike. Social Responsibility pertains to the duties required from individuals and companies to function for the best interest of both the economy, society, and the environment. Corporate Social Responsibility particularly refers to the social responsibility of companies. It is unnecessary for companies to choose between profit and purpose. If companies or organizations commit themselves to certain purposes, profit will surely follow. Companies carry out social responsibility in various ways such as maintaining a great workplace, implementing ethical policies, factoring in environmental issues, being socially conscious, and taking a stand in pressing and important matters, among others. In non-profit organizations, social responsibility is exhibited in various forms. Additionally, it is as important to non-profit organizations as it is to businesses. Through mandated social responsibility, non-profit organizations increase people's awareness of their presence. As a result, volunteers and workers will also be encouraged to join the organization. With these, non-profit organizations can further their agendas and goals. However, a lot of non- profit organizations tend to steer clear from the term as it is mainly associated with businesses or profit organizations. In the same way profit organizations are faced with the dilemma of ethical practices, non- profit organizations are non-absolved. For an instance, solicitations, compensations, and publications are often dealt with by nonprofit organizations. In addition, financial integrity and policies are also often laced with ethical dilemmas. The Adidas Group has a brand name traditionally etched on every individual. Reebok and Adidas are both under the umbrella of the Adidas Group. The companies Reebok and Adidas are both sportswear company that caters to individuals on and off sports. In addition, In 2015, Runtastic was acquired by the group. Runtastic is a mobile sports company. All the companies under the umbrella of the Adidas Group are known for their products and offerings in relation to sports. Aside from its most premier products, sports footwear, the group also manufactures shirts, bags, eyewear, and other clothing-related goods. Its parent company, Adidas, is considered the largest sportswear manufacturer in Europe and the second- biggest sportswear manufacturer in the world, being second to its rival Nike. While most companies have been disregarding the importance of corporate social responsibility, the group has been practicing it for the longest time. For an instance, in 1989, the usage of severe ozone-depleting substances, CFCs, are banned within the company. In succeeding years, the company also improved the efficacy of its supply chain management by creating fundamentals. For example, it joined the Fair Labor Association, as a founding member. Additionally, it adopted the Restrictive Substances Policy which prohibits the inclusion of harmful and toxic materials. One of the most notable moves of the group is when it published its first sustainability report in 2001. To this day, Adidas is still the lone company, in the sporting goods industry, to publish sustainability reports annually. In relation to this, the company also disclosed its global supplier list in the 2010 FIFA World Cup, the first and sole brand to do so. The group also practices its corporate social responsibility by partnering with environmentalist groups. In 2015, the group partnered with 'Parley for the Oceans' which raises awareness regarding the fragility of the oceans. In addition, it partook in the initiative UN Climate Neutral Now which aimed to promote further understanding of the need and the opportunities for society to become climate neutral. To prove that the company is one to walk their talk, in 2016 they banned the usage of plastic bags in all of its Adidas stores, globally. Aside from its environmental responsibilities, it also widely practices ethical responsibility. As a matter of fact, Adidas ranked second, amongst its counterparts in the apparel industry, in the Corporate Human Rights Benchmark. Furthermore, it placed fifth amongst 69 other companies, overall. Being part of the business industry for over 70 years, Adidas has learned various lessons. The company has familiarized itself with the importance of practicing corporate social responsibility. As a result, it has been a game-changer in numerous ways and incidents when it comes to CSR. Stakeholders, specifically, consumers, are now critical of the products and services they consume. It is not enough for them to get their money's worth but is critical of the brand's CSR integrity. Additionally, employees are also critical of their organization's stance on social, environmental, and ethical issues. As a result, brands under the group are enticing more and more individuals hence expanding their market reach. Furthermore, it further establishes brand loyalty from its customers as it remains steadfast in its CSR. As stated in Alex Edman's TedTalk, he emphasized how companies should not choose between profit and purpose. Edman expounded that if companies or institutions commit themselves to certain purposes, profit will surely follow. This perspective is shared and exhibited by the Adidas Group. Furthermore, as explained above, the group carries out social responsibility in various ways such as maintaining a great workplace, implementing ethical policies, factoring in environmental issues, being socially conscious, and taking a stand in pressing and important matters, among others. As the group provides and ensures a great work environment for its employees, their morale is maintained. This is crucial as it plays a vital role in the profits of the company. For an instance, as employees feel that they are being taken care of, in return they will take care of the company. It leads to better work results and products which denotes higher profits. In addition, as the company employs good labor policies, the rate of employee turnover is low.