Investment Proposal: Nike., Inc ***DRAFT***

 To Professor Hansen and Anima Mundi Development Partners:

I trust you and the Research and Development Department at AMDP are doing well. As promised, I have gathered extensive research and information pertaining to our possible investment in Nike, Inc. I believe the company and brand values align well with that of AMDP – in a socially responsible, environmentally sustainable, and profitable manner. I will give you time to read through the proposal and let me know your thoughts. 

Triple Bottom Line

Allow me to first highlight the Triple Bottom Line and its importance. In addition to measuring financial performance, it’s important for established companies and brands to also measure their social and environmental impact rather than solely focusing on the standardized “bottom line.” That’s where the third line comes in, and the Triple Bottom Line is broken down into three parts:, profit, people, and planet (Miller).

Profits. A company’s success heavily depends on the earnings generated for shareholders, or profits. Without hurting financial performance and in an effort to effect positive change in the world, business leaders are using their companies to adopt sustainable practices and initiatives.

People. The second line of the Triple Bottom Line has to do with a business's societal impact and its commitment to people. Traditionally businesses hold their shareholders with high value. Over time, though, value has been created and withheld for all stakeholders impacted by business decisions, from customers, employees, and members of the community.

Planet. The final piece to the Triple Bottom Line highlights making a positive impact on the planet. Many companies are known for their mass contribution to the environment’s pollution and climate change. With the recognition of their responsibility to drive positive change, business leaders are making changes that reduce their carbon footprint. Some common and adaptable changes include the reduction of energy consumption, the use of sustainable materials, and the implementation of environment-friendly shipping practices.

It’s possible to do well by doing good. Committing to sustainable business practices by adopting the Triple Bottom Line presents a plethora of economic opportunities and benefits. Sustainable business practices are also appealing to investors. According to Sustainable Business Strategy, evidence has increasingly shown that firms with promising environmental, social, and governance (ESG) metrics tend to produce superior financial returns (Harvard Business School).

Corporate Social Responsibility

Corporate Social Responsibility (CSR) refers to a self-regulating business model that allows for a company to be socially responsible to itself, its stakeholders, and the public (Fernando). By practicing Corporate Social Responsibility, companies are mindful of their societal impact, including economic, social, and environmental. Similar to the Triple Bottom Line, companies implementing Corporate Social Responsibility aim to work alongside society and the environment instead of contributing negatively to them.

It’s important to note the four types of Corporate Social Responsibilities there are: environmental, ethical, philanthropic, financial. Heavily focused on preserving and protecting earth, environmental responsibility is executed through promoting re-use practices with customers, creating environment-friendly products, and reducing pollutions and emissions through its manufacturing process. Ethical responsibility is executed through fair and ethical practices, including examples of fair treatment across all customers and clients regardless of background, positive treatment, and honest disclosure to investors. Philanthropic responsibility refers to how a company spends its resources to contribute to society, and is executed through companies donating to charities because it believes in it, entering transactions with vendors that align with the company’s values, and sponsoring fundraising events. Fourthly, financial responsibility connects all three areas previously mentioned, and is executed through spending on research and development for sustainable products, recruiting a diverse workforce, and training for its employees on social awareness and environmental concerns (Fernando). All together, Corporate Social Responsibility reaps benefits, including brand recognition, investor relations, employee engagement, and risk mitigation.

Carbon Footprint

Nike Inc.,

Two Opinions

***This is a draft as I still need to add Carbon Footprint and implement my findings with regards to Nike, Inc.***

Works Cited

Fernando, Jason. “Corporate Social Responsibility (CSR) Explained.” https://www.investopedia.com/terms/c/corp-social-responsibility.asp 

Miller, Kelsey. "Triple Bottom Line." https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line

Harvard Business School. "Sustainable Business Strategy." https://online.hbs.edu/courses/sustainable-business-strategy/