Photo courtesy of Streething.com
One of the leaders in developing a sustainable business model, Nike, Inc. proudly states that its “vision is to build a sustainable business and create value for its stakeholders by decoupling profitable growth from constrained resources.” At first glance, this seems like a very wise and visionary goal: to divorce profits from the reality of increasing resource scarcity. However, the reality that most resources are scarce, particularly those that are necessary to produce, transport, and sell the products that Nike sells, means that this is potentially monumental task, keeping in mind the reality that businesses are profit maximizing enterprises and have duties to their shareholders to make profitable investments.[1]
Thus the question: sustainable long-term vision, or unrealistic goal that is impossible to achieve while continuing to increase profits and sell more product?
[1] See e.g. Dodge v. Ford Motor Co., 204 Mich. 459 (1919); Bancroft-Whitney Co. v. Glen (1966) 64 Cal.2d 237, 345; Small v. Fritz Companies, Inc. (2003) 30 Cal.4th 167; Professional Hockey Corp. v. World Hockey Assn. (1983) (California); Florida Corporations Statute FS 607.07401 describing requirements for shareholder derivative lawsuit.
Tags: footwear, sustainability accounting, sustainable business
