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Accelerating progress in social and environmental sustainability
Jun 1, 2018

Ensuring Corporate Social and Environmental Responsibility through Vertical Integration and Horizontal Sourcing

In recent years, several corporate social and environmental responsibility (CSER) violations have
come under public scrutiny. Daily Mail (2011) revealed that workers in Nike’s Taiwanese-operated
overseas plant were only paid 50 cents per hour, and were mentally and physically abused by their
supervisors. Nike had faced similar controversies about their suppliers treating workers poorly since
the 1990’s. After these incidents, Nike saw its sales decrease and its stock price dropped due to the
negative publicity (Wazir 2001). In 2013, Rana Plaza, a factory building in Bangladesh, collapsed
and killed more than 1,000 workers, making it one of the deadliest industrial disasters in human
history. A report revealed that despite clear evidence that the building was a safety hazard, workers
were made to continue working there (Yardley 2013b).

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