1. What were Nau’s founders’ primary motivations for founding Nau?
The founders wanted to make Nau a clothing line on steroids, versus a simple clothing line. They wanted their clothing to have a purpose as they committed the company to having a small carbon footprint, give back to the community, while supplying a quality constructed product that both performed well and looked nice. Nau founders are committed to using their business as a force for change. They combined eco-friendly products which suits the urban lifestyle and “mountain-climbing chic with fashion forward urban cool. They indicated that their goal was “To demonstrate the highest levels of citizenship in everything we do: product creation, production, labor practices, the way
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The mentioned company was the partnership firm between the topnotch designers from well-known companies. The individuals were carrying the same basic idea, the business knowhow and finally dreamt of an organization of their own which would let then showcase their personal skills and knowledge. Nau sells expensive outdoor-type clothing with the added incentive of style and a donation to charities from each purchase. In their quest to make meaning, the founders of Nau established a Code of Conduct that dealt with human rights for the business, sustainable business practices, environmentally friendly clothes, and social responsibility. The Business DNA includes Nau Rules of Corporate Responsibility: Section 1: Environmental and Social Responsibility, Section 2: Management of the Business and Affairs of the Corporation, and Section 3: …show more content…
Only then can charitable work “giving back" begin, and they should not worry about public opinion. The philanthropy espoused by Nau is 2% of each sale to one of the partner organizations (chosen by the customer at the point-of-sale). The organizations are Conservation Alliance, Ashoka, People for bikes, Ecotrust, Mercy Corps, Breakthrough Institute, and Kiva. (http://www.nau.com/partners-for-change/).
Pros: Samaan thinks that giving to a charity was an excellent idea of Nau. It showcases the company in a humanistic light. Positive publicity is always paramount for a developing company. ABOVE ALL IT HELPS PEOPLE AND THE ENVIRONMENT!
Pros for this decision also include the following:
Purchases of the products make the customers feel good about the purchase because they feel that they have gotten a good product and at the same time they are contributing to a charitable cause and helps conserve and protects the environment.
The charity donations relate to the goal advertised by the business.
This decision would have assisted Nau to draw in investors, stock holders and shareholders.
This will help Nau to develop the brand image as well as company’s image.
Cons for this decision include the
Many people have begun to question how they use the money they raise. About 81% of their funds are put towards their programs and services, while more reputable charities are usually
Being identified as a nonprofit, doesn’t necessarily mean it will be a charitable organization. Though the term has been applied to most nonprofit organizations, the fact is most nonprofits is structured using the economic model. The economic model is based on the traditional model of management designed to deal with the complexity of managing an organization (Bradshaw & Hayday, 2007, p. 4). This model acquires funding from multiple sources such as; individuals, government grants, corporations, and foundations. Though an nonprofit organizations may be identified by the Internal Revenue Service (IRS) as tax-exempt, it may use the same economic model and framework as a for-profit organization. According to Brainard & Siplon, (2004), the nonprofit economic model often mimics that of the private sector by using organized professionals to help determine the goals and vision of the organization (p. 439). It is widely believed that most nonprofits use the economic model along with an aggressive...
Porter, M. E., & Kramer, M. R. (2002). The competitive advantage of corporate philanthropy. Harvard business review, 80(12), 56-68.
Crutchfield, Leslie R., and Heather McLeod Grant. Forces for Good: The Six Practices of High-impact Nonprofits. San Francisco: Jossey-Bass, 2008. Print.
The famous scandals facing the corporate world that is Enron and WorldCom brought a lot of disruptions to their operations. This brought about strict government regulations, as a result. This also marked as the reminder for NGOs to begin criticizing MNCs. This brought about ranking that necessitated firms to submit their non-financial performance records alongside their financial performance ones. The media has also become a close checker on companies. This has brought the need for firms to embrace social responsibility in their operations to curb battling with restrictors. Firms have also established good relations with their suppliers both as a prerequisite for effective business and as a social responsibility. (Cetinkaya, 2010)
The objective of paying our employees is to increase employee satisfaction and loyalty. Northwestern sends too much on recruiting and education to see a majority of its employee leave before they are able to have a full career as a financial advisor. By paying their employees northwestern is able increase employee productivity, increase the employee’s lifespan at the company, which will increase the number of clients northwestern will have as well.
One important guideline that organizations need to follow is to tell a story through their social media platforms. Patel says, “Waggner Edstrom’s report on digital persuasion found that more than half of survey respondents have been inspired to take action when they engage with a cause after reading a story on social media. It’s not enough to simply exist on a platform: nonprofits have to produce stories and visuals that their audiences connect to in order to succeed” (Patel, 2013). It does not help nonprofits to have a Facebook page or a Twitter account without doing anything with it. They must tell a story and not just have posts asking for money. Boies also points this out by saying, “Don’t simply ask your community for their hard earned-money, show them who and what will benefit from their donations” (Boies, 2013). Organizations have to explain and convi...
...ves the charity is reliable and must be big enough for people to buy products with the charity name on.
Red Cross, Josea’s feed the hungry and UNICE- what do they all have in common? They are all nonprofit organizations. Throughout the world, but especially in the United States nonprofit organizations are very important and a necessity for many cities. It has become one of the main focuses for a growing amount of majors and studies for many people. With more than 8 million employees and more than 80 million volunteers in the United States alone nonprofit are some of the most important job in recent times (Drucker). The importance of many nonprofit organizations could be the difference between many people’s lives and their deaths. The importance of nonprofit organizations is growing throughout the United States day by day. The fact that nonprofits are built solely on helping the people throughout your community and neighboring communities make nonprofits important based on that fact in itself. Nonprofit provide places to sleep when maybe a family has nowhere to go or somewhere to have a hot meal. This could be someone in your family, a close friend or even a distant neighbor but in all people are people and help is help so the reasons for nonprofit being important are ongoing.
Second, we want to create innovative and sustainable products. We live to innovate -- it’s who we are. When our corporate responsibility initiatives begin leading us to new product development, it brings a new energy to our efforts. Whole divisions in our company open up to the prospects. Eyebrows are raised. There are results already: We’re finding ways to eliminate the toxic chemicals commonly used in making products and materials and teams are creating business models for generating revenue from ground-up old shoes; designers are developing products made of recycled polyester or organic cotton.
Nonprofit and for-profit businesses have multiple similarities and differences. For-profit organizations are very different from non-profit organizations because the driving goal of a for-profit organization is increasing its revenue whereas a non-profit organization will not go out of business if it suffers financial loss or does not have a bottom-line. The marketing process also differs, with the biggest differentiating factor of profit marketing is to encourage customers to buy and while the nonprofit marketing purpose is usually to encourage people to give. This means that the return on investment differs between the two. Although the principles of marketing remain the same, some of the methods must, of necessity, be different. Because of the intense involvement in the community as well as support from government, agencies non-profit firms should not compete in the same markets as for profit companies nor in anyway position their organization in any way to give the impression that their efforts could be commercial based (Nelson, 2002).
The ultimate goal is to increase product sales. They have to depend on the customer to reach that goal. Making the customer feel comfortable and encouraging them to buy more goods is a process toward that goal.
Corporate Social Responsibility (CSR) is a very familiar term in today’s world. Most of the successful companies try to be ethical and socially responsible toward their stakeholders. Because becoming ethical and socially responsible gains a lot in terms of profit or capturing more market share (Aras and Crowther,2009). This socially responsible approach is paved by the CSR activities of the companies which has a great contribution to their corporate strategy of winning the customers’ mind. In this assignment, the pros and corn of CSR activities of a particular organization a...
The impact of CSR initiatives and social change in AAMA is to be a catalyst for positive systematic change in the community (Lefkowitz, 2003). In the late 1970’s the non-profits were the closest thing communities had in seeing some effects of socially responsible organizations. Nowadays, it has become more common place with B-Corp certification available for businesses in certain responsibility areas. The AAMA recognizes that their services and products come second place to the community of people they service without being a B-Corp certified organization. The AAMA has also seen the effects of corporate social responsibility as it relates to their employees and volunteers. For example, the work in the community
Consumers have expectations In terms of a good quality product that should be availed at a reasonable price. Consumers don’t only want the business to be socially responsible towards them in this manner of reasonable prices but way beyond this. They should meet the needs of consumers in ways of convenience and appearance. But business should also consider other aspects like environmental impact when packaging is disposed.