Not just another outdoor company Robins (2010), Fundamentals of Management (Pages 115-116). This company is located in Portland, Oregon and was the creation of a small group of executi
Not just another outdoor company
Robins (2010), Fundamentals of Management (Pages 115-116).
This company is located in Portland, Oregon and was the creation of a small group of executives who left demanding jobs at Patagonia, Nike, and Adidas. These individuals shared the belief that “in addition to making a profit, companies have an equal responsibility to create “positive” social and environmental change. By putting their ideas into action, the group formed Nau (Maori for “Come in, Welcome!”) And Nau is not just another outdoor company!
When they decided what Nau was going to be and how it was going to do business, the founders knew they didn’t want to do things the way traditional companies had always done them. Their director, Crish Van Dyke said, “We started with a clean virtual slate. We believed that every operational element of our business was an opportunity to change traditional ideas of business, to integrate environmental, social and economic factors.” From design to sales to finance, Nau is driven by these factors. Everything in Nau’s operations is approached with a “filter” of sustainability and social justice.
In the area of design, the company, in partnership with its suppliers, developed 24 of its 32 fabrics to be more sustainable and combine performance and visual appeal. Each supplier, manufacturer, and even Nau itself, is committed to a code of conduct. To ensure that all parties perform in accordance with the standards, their actions are monitored by an independent, not-for-profit audit and research firm.
On the sales side, the way the company markets its products is also unique. Through a concept it calls “web front,” Nau has combined the efficiency of the web with the intimacy of a gallery-like boutique. In the “storefront,” customers can try on clothes, but use their own kiosks to shop from the web. Because in-store inventory is very small, the stores are very small (2,400 square feet, compared to the standard 4,000 square feet in an outdoor retail store). This approach saves operating expenses because less energy and fewer materials are used. If it’s good for the planet…it’s good for business. Finally, Nau has a unique financial approach, which it calls “aggressive altruism.”
The company has committed five percent of its sales to charities dedicated to solving crucial environmental and humanitarian problems. The “philanthropic gold standard” is 1 percent of sales, and the average among all corporations is 0.047 percent. But while the amount it gives is unusual, what happens with Nau’s money is truly exceptional: Nau puts the decision to give in the hands of its customers. They are asked to indicate to which “Partner for Change” they want their 5 percent to go. With this “conscious choice” process, Nau is inviting its clients to dare to “connect the dots.”
Analysis questions:
What do you think about Nau’s approach to doing business? Is it ethical and responsible? Argue.
Does Nau’s method have limited appeal, or do you think it has the capacity to endure? Discuss: What disadvantages are there to what Nau does? Argue
Are there any lessons for other companies? Argue
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