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Fortune magazine recently

COLLAPSE

Fortune magazine recently named Nike as one of the major companies that is changing the world for the better. Fortune said the following about Nile:

“The world’s largest athletic-gear company, which kicked off a recycled-shoe program back in 1990, has hit a steady sustainability stride ever since. In a recent report, Nike disclosed that 71% of footwear and apparel uses Nike Grind, which is made of recycled polyester and other materials.”

Nike is a publicly-traded company which means that anyone can own stock in Nike and that its stockholders generally want Nike to make as much money as possible.

Assuming that the sustainability activities of Nike increase its expenses and therefore decrease its profit, how does Nike convince its stockholders that these activities are worthwhile?

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