Skip to main content
SpringerLink
Log in

The Pragmatic and Ethical Barriers to Corporate Social Responsibility Disclosure: The Nike Case

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Numerous studies have documented the demand for information regarding corporations’ relationships to society. Much recent research has demonstrated why stakeholders need this information, and how it benefits both companies and the public. These studies suggest numerous methods by which companies can effectively disclose corporate social responsibility (CSR) information to the public, but in practice, reporting this type of information is fraught with legal and ethical uncertainty often unexplored in most literature. This article represents a fresh analysis of the numerous pragmatic consequences and legal and ethical complications inherent in CSR reporting, using Nike Corporation as a case example. The article discusses the theoretical viewpoints surrounding the ethics of CSR disclosure, and presents the case of Nike and the complications it encountered while advertising CSR information. The article ends with an analysis of CSR auditing as a possible solution to companies seeking to improve the method and transparency of social responsibility reporting.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • P. A. Argenti J. Forman (2002) The Power of Corporate Communication: Crafting the Voice and Image of Your Business McGraw-Hill New York, NY 197–266

    Google Scholar 

  • Benady, A.: 2002, ‘Nike’s Supreme Fight on Free Speech’, The Times (London), September 23, 4.

  • Biskupic, J.: 2003, ‘Nike Case: Are Press Releases Free Speech?’, USA Today, January 13, A.02.

  • M. N. Browne F. P. Haas (1974) ArticleTitle‘Social Responsibility: The Uncertain Hypothesis’ MSU Business Topics 22 IssueID3 47–51

    Google Scholar 

  • ‘Bush Administration, ACLU, Organized Labor, Media and European Entities Join Together to Protect First Amendment in Supreme Court Case Involving Nike, Inc.’: 2003, PR Newswire, March 3, 1.

  • R. B. Byrum (2003) ArticleTitle‘Nike’s Speech Fight is Our Own’ Advertising Age 74 IssueID3 22

    Google Scholar 

  • Campbell, D.: 2003, ‘Nike’s Big Ticking-off: How America’s First Amendment on Free Speech Kept Accurate Corporate Reporting away from Company Spin’, The Guardian, Nov 17, 25.

  • Companies Fail Social Investors: Most Investors Value Corporate Responsibility, Few are Satisfied: 2001, Investor Relations Business, Aug 6, 1.

  • K. Davenport (2000) ArticleTitle‘Corporate Citizenship: A Stakeholder Approach for Defining Corporate Social Performance and Identifying Measures for Assessing it’ Business and Society 39 IssueID2 210–220

    Google Scholar 

  • Dierickx, C.: 2004, ‘Sarbanes-Oxley Compliance Costs Average $16 Million Per Company’, Business Wire, 1.

  • J. Edwards (2002) ArticleTitle‘Taking it to the Big Guys’ Brandweek 43 IssueID29 18–23

    Google Scholar 

  • T. Emerson (2001) ArticleTitle‘Swoosh Wars: in an Operation Modeled on the Clinton Campaign Machine, Nike Takes on its Enemies’ Newsweek 12 35–40

    Google Scholar 

  • M. J. Epstein M. Freedman (1994) ArticleTitle‘Social Disclosure and the Individual Investor’ Accounting, Auditing and Accountability Journal 7 IssueID4 94–100

    Google Scholar 

  • V. P. Filios (1984) ArticleTitle‘Corporate Social Responsibility and Public Accountability’ Journal of Business Ethics 3 IssueID4 305–314 Occurrence Handle10.1007/BF00381753

    Article  Google Scholar 

  • V. P. Filios (1986) ArticleTitle‘Review and Analysis of the Empirical Research in Corporate Social Accounting’ Journal of Business Ethics 5 IssueID4 291–307 Occurrence Handle10.1007/BF00383096

    Article  Google Scholar 

  • A. Florini (2003) ArticleTitle‘Business and Global Governance’ Brookings Review 21 IssueID2 4–9

    Google Scholar 

  • D. S. Gelb J.À Strawser (2001) ArticleTitle‘Corporate Social Responsibility and Financial Disclosures: An Alternative Explanation for Increased Disclosure’ Journal of Business Ethics 33 IssueID1 1–13 Occurrence Handle10.1023/A:1011941212444

    Article  Google Scholar 

  • Geller, A.: 2004, ‘Law Sparks Wave of Would-be Whistle Blowers’, Telegraph-Herald, November 21, B3.

  • Gerena-Morales, R.: 2004, ‘The Burden of Compliance Sarbanes-Oxley’s Record-Test Audit Rule is Taxing’, South Florida Sun-Sentinel,November 14, F.1.

  • D. Graulich (2002) ArticleTitle‘Press Release: Write in Haste ... Repent’ National Law Journal 25 IssueID6 D.12

    Google Scholar 

  • Greenhouse, L.: 2003, ‘Supreme Court to Review Nike Case in Major Look at Free Speech Rights of Companies’, New York Times, January 11, A.12.

  • Hagerty, J.: 2004, ‘Sarbanes-Oxley is Not a Fact of Business Life’, VARbusiness, November 1568.

  • B. Herbert (1996) ArticleTitle‘Nike’s Pyramid Scheme’ New York Times 10 A.17–A.23

    Google Scholar 

  • P. Jenkins (2004) ArticleTitle‘German Groups Rue US Listings: Many Dax 30 Companies Eyeing Withdrawal from NYSE’ Financial Times 19 21

    Google Scholar 

  • B. Jopson (2004) ArticleTitle‘Japan Looks to Tighten up Regulations’ Financial Times 18 31

    Google Scholar 

  • J. Kilpatrick (2003) ArticleTitle‘Justices should have Tackled Commercial-speech Case’ Deseret News 6 A09

    Google Scholar 

  • C. Lane (2003) ArticleTitle‘Nike Speech Case Goes to High Court’ Washington Post 11 E.01

    Google Scholar 

  • S. Laurita (2001) ArticleTitle‘Low Marks for Corporations’ PR News 57 IssueID27 1

    Google Scholar 

  • A. Linn (2003) ArticleTitle‘Firms Finding a Little Good will Stretches a Long Way’ Rocky Mountain News 25 5.C.

    Google Scholar 

  • T. Mauro (2002) ArticleTitle‘Let Nike Speak up for Itself ’ USA Today 14 A.15

    Google Scholar 

  • D. T. McAlister L. Ferrell (2002) ArticleTitle‘The Role of Strategic Philanthropy in Marketing Strategy’ European Journal of Marketing 36 IssueID5/6 689–707 Occurrence Handle10.1108/03090560210422952

    Article  Google Scholar 

  • D. M. McCabe (2000) ArticleTitle‘Global Labor and Worksite Standards: A Strategic Ethical Analysis of Shareholder Employee Relations Resolutions’ Journal of Business Ethics 23 IssueID1 101–111 Occurrence Handle10.1023/A:1006231229696

    Article  Google Scholar 

  • S. Murray (2003) ArticleTitle‘Communicating CSR Activities: Corporate Messages on Responsibility Call for Sensitivity – but without Transparency, they Lose Credibility’ Financial Times 29 4

    Google Scholar 

  • ‘Nike Annual Report and Proxy Statements’: 2004, Nikebiz.com: The Inside Story, Accessed January 14, 2004. <http://www.nike.com/nikebiz/nikebiz.jhtml? page=l7>.

  • ‘Nike vs. Kasky’: 2004, Reclaim Democracy: Restoring Citizen Authority Over Corporations. Accessed January 13, 2004. <http://www.reclaimdemocracy.org/nike/index.html>.

  • R. Parloff (2002) ArticleTitle‘Can we talk?’ Fortune 146 IssueID4 102–112

    Google Scholar 

  • M. E. Porter M. R. Kramer (2002) ArticleTitle‘The Competitive Advantage of Corporate Philanthropy’ Harvard Business Review 80 IssueID12 56–68 Occurrence Handle12510538

    PubMed  Google Scholar 

  • PR News: 2004, “Living up to (Corporate Social) Responsibility’, PR News, March 22, 60(12), 1.

  • P. Raynard (1998) ArticleTitle‘Coming Together. A Review of Contemporary Approaches to Social Accounting, Auditing and Reporting in Non-profit Organisations’ Journal of Business Ethics 17 IssueID13 1471–1480 Occurrence Handle10.1023/A:1017139501972

    Article  Google Scholar 

  • M. A. Reynolds (2001) ArticleTitle‘Greener CPA: An Alternative Vision’ Ohio CPA Journal 60 IssueID1 61–64

    Google Scholar 

  • D. C. Robertson N. Nicholson (1996) ArticleTitle‘Expressions of Corporate Social Responsibility in U.K. Firms’ Journal of Business Ethics 15 IssueID10 1095–1106 Occurrence Handle10.1007/BF00412050

    Article  Google Scholar 

  • D. G. Savage (2002) ArticleTitle‘The State; Nike Takes ad Liability Case to High Court’ Los Angeles Times 15 B.6

    Google Scholar 

  • M. S. Schwartz (2002) ArticleTitle‘A Code of Ethics for Corporate Codes of Ethics’ Journal of Business Ethics 41 IssueID1/2 27–44 Occurrence Handle10.1023/A:1021393904930

    Article  Google Scholar 

  • R. Scrushy (2004) ArticleTitle‘Ethics in the Corporate Suites’ Chicago Tribune 13 24

    Google Scholar 

  • Siegal, N.: 1998, ‘The Last Days of Joe Camel. How a Team of Lawyers Defeated Big Tobacco’, California Lawyer, November.

  • M. Sillanpää (1998) ArticleTitle‘The Body Shop Values Report – Towards Integrated Stakeholder Auditing’ Journal of Business Ethics 17 IssueID1C 1443–1457 Occurrence Handle10.1023/A:1006099731105

    Article  Google Scholar 

  • M. L. Stoll (2002) ArticleTitle‘The Ethics of Marketing Good Corporate Conduct’ Journal of Business Ethics 41 IssueID1/2 121–129 Occurrence Handle10.1023/A:1021306407656

    Article  Google Scholar 

  • F. Stormer (2003) ArticleTitle‘Making the Shift: Moving from ‘Ethics Pays’ to an Inter-Systems Model of Business’ Journal of Business Ethics 44 IssueID4 279–289 Occurrence Handle10.1023/A:1023600820194

    Article  Google Scholar 

  • Ì. Tkacik (2003) ArticleTitle‘Just How Far Does First Amendment Protection Go? High Court May Decide to Hear Whether Nike’s PR Statements to Media, Others are Protected’ Wall Street Journal 10 B.1

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Organizational Leadership and Strategy, Marriott School of Management, Brigham Young University, 590 TNRB, Provo, UT, 84602, U.S.A

    Kristen Bell DeTienne & Lee W. Lewis

Authors
  1. Kristen Bell DeTienne
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Lee W. Lewis
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Kristen Bell DeTienne.

Rights and permissions

Reprints and permissions

About this article

Cite this article

DeTienne, K.B., Lewis, L.W. The Pragmatic and Ethical Barriers to Corporate Social Responsibility Disclosure: The Nike Case. J Bus Ethics 60, 359–376 (2005). https://doi.org/10.1007/s10551-005-0869-x

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-005-0869-x

Keywords

Search

Navigation