Mark Parker: Changing the Worlds View of the Sustainable Business

Can a business have the power to change the Worlds perspective on sustainability?

In 2006 Mark Parker became the CEO of Nike with a vision of changing the long-

standing poor reputation of the company into something consumers could be proud to purchase

from. Accusations of unethical labor practices and unsustainable manufacturing began in the

1970s, but after public protests and strikes began around 1991, Nikes executive board realized

significant changes were imperative in order to maintain their position of dominance in the

market (Wilsey). Nike began to empathize with those accusing the company of malpractice, and

started to tackle the areas of the business that required serious revision. By focusing on the

major ethical issues surrounding involvement with foreign sweatshops, employing sustainable

manufacturing practices, and changing production methods to meet and exceed industry

standards, Mark Parker was able to bring a new image to the minds of consumers when they

envisioned the Nike brand.

When Mark Parker joined Nike, the company was in a state of reputational disarray with

a public image scarred by rumors of unlawful labor standards and a tremendous negative

environmental impact. Parker brought a new outlook on sustainable innovation and a targeted

mission to meet and exceed environmental and ethical business standards. Parker developed

somewhat of a sustainable business mission statement that states Double our business, with

half the impact. (Parker). Though still maintaining the goal of every business, which is

profitization and economic growth, Parker has made it a new company-wide mission to

simultaneously minimize their environmental impact (Parker).

Parker has successfully transformed a handful of the companys manufacturing

techniques and production standards to change the image of not only Nike, but also the

members of the supply chain and the apparel industry holistically. The company has been

working with all of their partners to ensure that their values are being permeated through the

entire supply chain. In the 2014/2015 Sustainable Business Report, Mark Parker noted, When
we consider sustainability, we look at what takes place not only within our own walls, but also

throughout our value chain. (Parker). Some of these standards include ensuring the removal of

chemicals listed on Nikes Restricted Substances List in all stages of manufacturing and

employing external auditors to ensure all suppliers are meeting country-specific environmental

laws. By 2020, Nike hopes that 100% of their suppliers and business partners will meet a policy

for valuing workers and elevating these environmental standards.

Nike has adopted several innovative manufacturing techniques and sustainability goals

in recent years that have helped transform their environmental impact including a waterless

dyeing method, a fiber made completely of recycled plastic, and ambitious waste reduction

goals. The innovative dyeing process, known as ColorDry, has saved millions of liters of water

since its implementation several years ago. The normal garment dyeing process uses roughly

30 liters of water per item, however the ColorDry approach utilizes recycled CO to infuse the
2

dye, creating a more sustainably produced and more vibrantly colored garment. This dyeing

method reduces energy consumption by roughly 60% compared to traditional techniques and

uses virtually 100% of the dye removing the creation of harmful waste. ColorDry, when

employed by the entire textile industry, has the potential to reduce water consumption by over 5

trillion liters annually (The Guardian). To put this into perspective, roughly 25,750 liters of water

are involved in some way to grow one days food for a family of four (Seametrics). So, by

shifting to the use of techniques such as ColorDry, that clean water could be used to grow food

for almost 800,000 people for one day. This is an incredibly tangible example of how making

small shifts in the production process toward more sustainable practices can evoke incredible

change on a much broader scale.

In February 2012, Nike introduced one of their most innovative technologies yet, the

high-performance and environmentally sustainable FlyKnit (Inquirer). FlyKnit is a lightweight

material containing recycled fibers that formulate the fabric of the shoe, which not only

increases performance and comfort for the athlete, but also creates a significant decrease in
waste generated by production. Since its inception, FlyKnit footwear alone has reduced waste

by over 3.5 million pounds, translating to roughly a 60% decrease in waste production

compared to traditional Nike shoes. In 2016, engineers at Nike were able to successfully

convert the core fibers used in all FlyKnit shoes to 100% recycled polyester materials. This shift

has diverted over 200 million plastic bottles from landfills in just a few years (Nike News). To put

this into perspective, this number of plastic water bottles could circle the Earth once. To look at

this from a different view, Americans use roughly 50 million plastic bottles each year. So, this is

roughly four years worth of plastic bottles consumed by US citizens (Ban the Bottle). While

FlyKnits sustainable design has successfully reduced environmental impacts and harmful

emissions by amounts that would have been infeasible for Nike just 10 years ago, FlyKnit shoes

have also become some of the best-selling Nike shoes every year since their inception. This

result suits the sustainable business mission of Nike of reducing impact and increasing profit in

a previously unimaginable way.

In the past decade, since Mark Parker took leadership, Nikes suppliers have begun

working to cut the energy used to produce all footwear and the corresponding emissions

resulting from production of shoes. Nike reported a goal of zero waste from footwear production

by 2020. Initially this seemed like an unattainable goal for any large apparel company let alone

a company with the poor environmental reputation that Nike has. However, with the massive

leaps toward sustainable design and manufacturing that Mark Parker has spearheaded the

company to take in the past decade, this goal is becoming more feasible. Nikes company-wide

changes have been rewarded with a revitalized brand image, globally best-selling sustainably-

produced goods, and continued profit growth (Exhibit 1).

Since the 1970s Nike has been struck incredibly hard by accusations of maltreatment of

laborers, unethical employment of sweatshops, and having little regard for their environmental

footprint. However, with the recent emphasis on innovation and augmentation of sustainable

practices introduced by CEO Mark Parker, the company would be forever transformed. The
immense value that Parker placed on rebuilding the brand reputation in the eye of the consumer

permeated throughout the supply chain. With the inception of annual Sustainable Business

Reports beginning in 2010, Parker made it clear that Nikes brand image would no longer be

defined by labor disputes and environmental disregard. It would instead depict the importance of

sustainable innovation and projecting a positive portrayal of the apparel industry. Under Parkers

direction, Nike looks to transform the industry into something more positive and

environmentally-conscious. In his most recent Sustainable Business Report, Parker wrote, No

matter if we miss, hit, or surpass our targets, we will never stop trying to achieve our ultimate

vision of the future. A future where we produce closed-loop products created with renewable

energy and recyclable materials. By spearheading major shifts in Nikes goals toward

sustainable and ethical practices and publicly acknowledging their tainted history of malpractice,

Mark Parker has been successful in changing the way the World views the manufacturing

industry by transforming the way they perceive Nike, one of the industrys most prominent

players.
 Exhibits

Exhibit 1 - Nike Consolidated Income Information (2010-2016)

(in millions) 2010 2011 2012 2013 2014 2015 2016

Revenue 19,014 20,862 24,128 25,313 27,799 30,601 32,376

Net Income 1,907 2,133 2,223 2,472 2,693 3,273 3,760

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