Nau is an outdoor company which the whole organization shares a belief that “in addition to generating a profit, companies have an equal responsibility to create positive social and environment changes”. To achieve this target, they claimed that they have 3 approaches in design, sales and financial areas to do a green business. The public get an impression that this company is doing something to improve the society by using the sustainable approaches and they must be ethical and responsible. However, if we keep a lookout for it, we will have questions.
Is this company really doing something good for the society or it is just some marketing gimmicks? I have doubts and do not think that they are ethical and responsible. Firstly, in the design area, they stated that they develop 24 of its 32 fabrics to be more sustainable. To some certain extent, the sustainable fabric is a real boon to the environment. But what is the inwardly intention by achieving this goal? The raw material of the sustainable fabrics may be much cheaper than the original one. By developing these, the companies can save cost and their revenue is higher.
They may not be so considerate to the environment but these are just pretty covers. Secondly, in the sales area, they have provided a web store so that customers can do online shopping. As the real store inventories has reduced, the store become smaller. The company claimed that this is good for the planet by minimizing the operational cost to save energies. Let us have an exhaustive examination of the issue. Provide online shopping platform is for saving the cost to hire staff and promoting their business using the World Wide Web. They also save the cost to rent a bigger store.
These helps their business for better revenue which nothing done with the environmental protection. That’s only the goldbrick to create a positive reputation for the company. Thirdly, in the financial area, the company has pledged 5% of the sales to charitable organization. Compared to other companies, Nau has donated a much higher sale to the charity. However, what if Nau raised the selling price higher and customers pay more. Therefore, the 5 % denotation is actually all coming from the customers and Nau have the same profit without any sacrifice.
They use the tricks on the selling price and make everyone thinks that they have corporate responsibility to do something good for the world. All in all, I do not think Nau’s approaches place much emphasis on the social responsibility. Although their ideas are worthy of praise, they are still under suspicion due to the above reasons. This is not a good approach for Nau to do business. You can use this as the decoration for your company to increase the reputation but this is not a long term way to build the images.
Nau has now decreased the denotation to charity from 5 % to 2% which provide a bad impression to the public that if this company can stay long in the market. This also scares away the investor to put their investment into Nau. If the price of the material of the sustainable fabrics increase a lot and this makes the company cannot survive, will the company abandon the sustainable fabrics and use the normal fabrics? Therefore, it is not wise for the company to only build their images on this areas and they should think of some other promotion gimmicks like good and colourful appearances of their products.