Promise And Perils Of Globalization - Nike
...of Entrepreneurship
and Political Science
MIT
1 This case was prepared for the Sloan School of Management’s 50th Anniversary celebration and should be
read in conjunction with “A Note on Corporate Citizenship.” This case was prepared with the active
involvement and research assistance of the following Sloan MBA students: Vanessa Chammah, Brian
Curtis, Elizabeth Fosnight, Archana Kalegaonkar, and Adnan Qadir. I would also like to thank Miguel
Alexander, Maria Eitel, Dusty Kidd, Joseph Tomasselli and Dara O’Rourke for their helpful comments and
assistance during this project.
2
1. Introduction
How should global corporations behave in the new international world order? What
constitutes good corporate citizenship in a world where the stakeholders are diverse and
dispersed around the globe and where no clear or consensual rules and standards exist?
These questions shape the behavior of most multinational corporations (MNCs) today.
Although multinationals are eager to pursue the opportunities of increased global
integration, they are increasingly aware of the reactions which their strategies induce –
both at home and abroad. Thus, they tread warily, lacking clear and agreed-upon
definitions of good corporate citizenship.
Through a case study of Nike, Inc. – a company that has come to symbolize both the
benefits and the risks inherent in globalization – this paper examines the various
difficulties and complexities companies face as they seek to balance both company
performance and good corporate citizenship in today’s global world.
1. The Athletic Footwear Industry
The athletic footwear industry experienced an explosive growth in the last two
decades. In 1985, consumers in the United States alone spent $5 billion and purchased
250 million pair of shoes.2 In 2001, they spent over $13 billion and bought over 335
million pair of shoes.3...
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