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1. Why did Nike fail to address corporate social responsibility earlier?

In Nikes efforts to remain as the top producer of athletic footwear and sporting goods equipment at the lowest possible costs, they began to shift their production to areas where labor cost are low, most of which are in poor sian Nations. !hese factories ha"e subcontracted out the work further to more destitute areas thus making it so difficult to Nike to keep track and o"ersee the production as well as the employees working conditions. Nike e#ecuti"es, being unable to see it firsthand the disturbing conditions of its workers, cannot possibly rectify its faults and make remedies to impro"e them. $. %"aluate Nikes response to societal and consumer concerns about its contract manufacturing? Indeed Nike has successfully managed to turn its image around. It has responded wisely to the criticisms thrown to it by the people and media. It has managed to repair its badly tarnished image by making reputation management as its initial response and solution to its problems. !his was made through launching se"eral public relations programs and campaigns with the indi"idual consumer retailers and e"en with large uni"ersities whom they had contract with before. &ialogues were made with the public regarding its manufacturing policies' it has e"en published a complete list of the factories whom they had contract with to show that they "alue transparency to all their consumers. Its second approach was to create a ma(or)change in its practices and impro"ement in different areas namely* its management practices, en"ironmental responsibility, safety in the workplace and promoting the o"er)all well)being of the workers. !hese responses e"entually pa"ed Nikes way to +orporate ,ocial -esponsibility. .. What are the challenges facing Nike in the future? -ecent factory collapses like in +hina and /alaysia was a reminder that e"en though Nike has managed to get his self out of se"eral mess, large parts of the companys practices ha"ent changed much at all. !his pro"es true to those factories that were only trying to comply with the basic contract requirements, while sometimes o"erlooking fair labor practices the company wants them to comply. !herefore, Nike has to work more in the proper enforcement of its code of conduct to its employees to ensure that they are working in a safety and fair conditions. +onsistency in their impro"ed practices would be a great challenge for Nike, but if it means higher sales and customer loyalty, then its a worthy price to pay.