CSR: “Leaving It Better Than We Found It”
A Detailed Analysis of Nordstrom’s Corporate Social
Responsibility
Bryanna Trawick
Corporate Social Responsibility
April 2015
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Than We Found It 2
CSR: “Leaving It Better Than We Found It”
A Detailed Analysis of Nordstrom’s Corporate Social
Responsibility
Introduction
I’m pretty sure if you searched for customer service in the dictionary, you’d find a
picture of a young John Nordstrom underneath the definition. In store, online, or
wherever new opportunities arose, Nordstrom had an unyielding attitude towards
providing customers with the most compelling shopping experience possible. From 1901
when the major retailer that is “Nordstrom” today, started out as a shoe repair store to
now, there has been one key constant that the company is still run by and that’s John W.
Nordstrom's founding philosophy: offer the customer the best possible service, selection,
quality and value. (Nordstrom History) “Leave it better than we found it,” is another of
Nordstrom’s philosophies when it comes to running their business. This describes
perfectly Nordstrom’s commitment to social responsibility.
Corporate Overview
Nordstrom, Inc. is a leading fashion specialty retailer offering a vast variety of
clothing, shoes and accessories for men, women and children in the United States and in
2016, Canada as well. The shoe store that grew to be Nordstrom was opened in
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Than We Found It 3
Downtown Seattle, 1901 as previously mentioned. Nordstrom Inc. is rated fourth overall
in number of employees’ category among related companies, right behind, Gap Inc. who
landed the third ranking position. Nordstrom employs about 73,500 people.
Nordstrom always strives to offer their customers the best possible service and
products when they visit their stores. Nordstrom also makes every effort to run an ethical
business and a pleasant environment where people want to work and shop. Since they
value their consumer and employee opinions so much when they were told they are
expected to incorporate social responsibility into their business model they make every
effort to do so and continue to improve upon every success.
Nordstrom’s CSR Overview
The World Business Council for Sustainable Development (WBCSD) defines
CSR as follows; "Corporate Social Responsibility” is the continuing commitment by
business to contribute to economic development while improving the quality of life of the
workforce and their families as well as of the community and society at large. CSR is
definitely about more than just the profit, it’s considering everyone and everything that
could be effected by the firms decision making and Nordstrom considers all the factors,
“pillars” in their words, at all times, knowing that the business, therefore profit, will
follow.
On Nordstrom’s website they say “Since our early days, we’ve focused on doing
the right thing for our employees and our customers. We continue to make every effort to
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Than We Found It 4
be an ethical company where people want to work and shop.” Nordstrom decided to
create a CSR program that had a lot of employee help. They interviewed their employees
and customers as well, to find out what matters most when it comes to social
responsibility. Based on the input received from the employees, Nordstrom was able to
build a comprehensive strategy, narrowing their focus to their four key “pillars” which
include, The Communities, The Environment, Human Rights and Their People, which is
CSR in a nutshell. (Maglis, I)
Nordstrom continues to take steps, and carryout initiatives towards bettering their
company and ultimately their image. Nordstrom is a company that is actually socially
responsible. They don’t just use the terms for publicity, it seems as though they truly do
care about the environment, customers and employees. Their business was built around
CONSIDERATION for their customers and unlike a company like such as Walt Disney
that considerations extends to their employees’ as well, along with their suppliers,
surrounding communities etc.
Tara Darrow, the company's director of public relations told Green Biz, We do
things not to get credit for them and not because it's a market initiative. We do things like
this because it's the right thing to do.” Nordstrom’s been making these moves since 1901
when the company originated. Always looking to improve upon the now, Nordstrom was
setting goals for this year, 2015, 4 years ago, and while the websites most recent report is
from 2013, even then a lot of the goals were met, surpassed or just shy, but that’s not
something the firm is hiding from the public, they are respectfully being transparent, a
reason why they are a “firm” role model of what to do in CSR.
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Than We Found It 5
An Overview of Nordstrom’s CSR Pillars
Sustaining The Environment
Being that Nordstrom’s decision makers set construction in motion and authorize
travels and trades and shipments by trucks, airplanes, trains, etc. releasing emissions into
the air, as well as the type of shopping bags they were using, they realize that every
aspect of their business affects the environment, and that's why they are committed to
reducing or eliminating those impacts wherever possible.
An important element in helping the environment they’ve taken on is working to
reduce greenhouse gas emissions. To reduce their carbon footprint Nordstrom has been
working to increase energy efficiency throughout facilities and to increase product
transportation efficiency. The specific goals were to:
- Reduce total waste sent to landfills and/or incinerators by recycling plastic,
glass, metal, paper, corrugated cardboard and organic waste by 90% they reduced it by
87.4%
- Reduce carbon dioxide emissions through improved fleet fuel economy, carton
delivery optimization and reduced airfreight.
-
Reduce consumption of paper and packaging, and increase recycled content in
forest products we use (paper, corrugated cardboard, shopping bags, gift
boxes, catalogs and collateral).
-
Reduce energy consumption through more efficient technologies, elimination
of excess energy use, creation of streamlined processes and researching of
alternative energy sources.
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Than We Found It 6
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The Communities
Nordstrom is excited to award $10,000 in scholarships to 80 U.S. and Puerto
Rican high school and 10 Canadian secondary school students to help them achieve their
dreams of going to a four-year university. The Nordstrom Scholarship recognizes
CSR: Leaving It Better
Than We Found It outstanding students across the U.S., Puerto Rico and Canada for their exceptional
scholastic achievement and community involvement.
http://shop.nordstrom.com/c/nordstrom-scholarship-2015 – Scholarship winners’ video
Also, each year Nordstrom donates to a number of different NPO’s including but not
limiter to:
-YWCA Alaska
- Dress for Success Oregon
- Bailey-Boushay House
- YMCA of Greater Seattle
- California Philharmonic
- NJPAC
…. And the list really does go on and on they are active in NPO’s in 30 different States..
GOALS — Give back to the diverse communities where we do business by
supporting organizations that champion arts and culture, education, health and
community development.
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Than We Found It 9
In 2013, one thing Nordstrom did was give 447 organizations cash grants in all 35
states where a Nordstrom or Nordstrom Rack Center was located.
HUMAN RIGHTS
Nordstrom strives to ensure that the workers working where their private label
products are being manufactured are safe, healthy and being treated fairly. Nordstrom
monitors 100% of their factories by their guidelines and happily report that 66% of the
factories had Acceptable results, and only 8% had At-Risk results, where the others feel
under need improvement, no-complaints and uncategorized.
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Than We Found It 10
In 2007 Nordstrom Fair Factories Clearinghouse not-for profit-organization announced
that Nordstrom and 3 other firms would be join them including Abercrombie & Fitch,
Nike & Levi Strauss. This is NPO dedicates itself to supporting factory compliance by
sharing audit information. "Nordstrom believes that increased partnership between
retailers is an important step toward creating better working conditions for factory
workers across the globe and values the FFC's efforts toward this end," said Linda Peffer,
Vice President of Corporate Social Responsibility for Nordstrom, Inc.
Employee Experience
Nordstrom knows that every employee, vendor and customer contributes to the
firms success. They are proud of their efforts to maintain a workforce that represents
many backgrounds—it makes the company better and the communities it serves stronger.
The corp. offers its employees an extensive benefit program including a 401k with
company matching funds, profit sharing, a stock ownership plan, adoption assistance and
domestic partner benefits to same sex couples. Nordstrom also has a long history of
promoting from within—a fact that is best illustrated by the number of corporate
employees, store and regional managers who began their careers on the selling floor.
Fortune added Nordstrom to their “one of the Best Companies to Work for” list in 97,
98, 99, and the year 2000. They also selected Nordstrom, Inc. as one of America’s
Most Admired Companies in 1999 and 1998. During the same two years, Nordstrom,
Inc. made the magazine’s 50 Best Companies for Asians, Blacks & Hispanics.
Conclusion
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Than We Found It 11
Nordstrom has been making CSR moves since the company started. The attitude
of “Leaving it better than we found it” is probably the best attitude to have, and a good
brand mission to follow, where everyone from the CEO to the sales people on the
department store floors, are always looking for ways and things to improve, never feeling
that they’ve reached there plateau and that everything is perfect, despite the reputation
they have built for themselves with their attention to their customers.
CSR Revised Vision
Nordstrom has to do two major things if it wants to improve its CSR. First, it
needs to add variety to its CSR programs. The company should continue to base the
programs around the four pillars, but every year pick one of them and find a way to bring
awareness to the issues. Do cause-promotions or cause-related marketing or corporate
volunteering programs. This will add some variety and call attention to the issue and add
to their already bright image. Secondly, Nordstrom needs to speak up about all of the
efforts and programs they have in place for all of the different issues. Society isn’t going
to go looking for this information; it is Nordstrom’s job to get the news out there be it
through, social media, press releases, or for starters a larger icon on the website. Unless
you were abreast to “Nordstrom Cares” because you happened to over hear the associates
speaking in a department store, or you were researching for a class project, you wouldn’t
know much about the many initiatives Nordstrom has in place for so many different
causes, and that is something they have to work on.
In retail there are many different channels Nordstrom could use to educate their
consumers on they’re many different actions taken for CSR, which in turn could make
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Than We Found It 12
the consumer feel a lot better as they continue their loyalty towards the firm. Whether
it’s a rewards program with gift cards themed with Human Rights or Environmental
Sustainability behind it or its listing and informing a Member of a Weekly E-mail
Newsletter about initiatives. Beginning to make consumers aware of what they’re
money is being used for, bettering the chances of them staying. “So not only is the
product I’m receiving of good quality, but so is the service I got when picking up my
product, and now my money I paid for the product goes to help someone else, or the
community I live in?” This is the type of mindset that is made when the consumer is
aware that they are making environmentally conscious purchases, or improving the
working conditions of that nice associate, that grabbed that pair of shoes for them from
the back. This in turn ensures loyalty, when people can they like to feel as if they’re apart
of a bigger picture and helping someone else, there’s a sense of accomplishment within
that.
For example TOMS shoes are not high quality – it’s the exact opposite.
Nordstrom salespeople warn consumers “they’re only built to last about four months.”
“The shoes that TOMS CEO made with tomorrow in mind barely last through a full day,”
writes Kimmy Erin, a blogger. But people still return to buy multiple pairs.
They do a lot of great programs and support worthy and necessary non- profits
and they make consumers aware of these things. The key component to TOMS’ brand
and their one-for-one program is that they made human impact part of their business.
They make people feel good about themselves for purchasing an ethical product. Toms is
an example of when perception of a company’s CSR can outweigh perception of the
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Than We Found It 13
product. So far, TOMS has given away over 2,000,000 pairs of new shoes and there are
so many people who are made aware of how they played a role in that which is what
keeps them coming back.
Nordstrom is definitely a Trend Setter for A+ Customer Service and everyone can
take notepads of notes on how to improve in that area, but in this case for the betterment
of themselves there would be nothing wrong with them picking up a pen and paper
themselves and get with the program. If they do there is no limit, and imagining where
they would end up in a next few years is impossible, but it will be a great place indeed.
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References
2013 CSR Report. (n.d.). Retrieved April 16, 2015, from
http://i.nordstromimage.com/images/default/shop/image/shops/cares/2014/1006/S
OP_2013_FINAL.pdf
Approach to Social Responsibility | Nordstrom. (n.d.). Retrieved April 16, 2015, from
http://shop.nordstrom.com/c/nordstrom-cares-approach
Ingram, J., & Skrinar, E. (n.d.). CSR - Why It Matters & How It Can Increase Brand
Value. Retrieved April 16, 2015, from
http://www.straightlinenyc.com/sites/default/files/docs/SL_WP_CSR.pdf
Maglis, I. (2011, May 17). Nordstrom's CSR. Retrieved April 18, 2015, from
https://fashionwithaheart.wordpress.com/2011/05/17/nordstroms-csr/
Nordstrom History. (n.d.). Retrieved April 18, 2015, from
http://shop.nordstrom.com/c/company-history
Nordstrom Named To Fortune Magazine’s 100 Best Companies List. (2000, December
18). Retrieved April 16, 2015, from
http://www.csrwire.com/press_releases/24898-Nord strom-Named-To-FortuneMagazine-8217-s-100-Best-Companies-List://fortune.com
Nordstrom Revamps Its Corporate Responsibility Web Site. (2011, January 6). Retrieved
April 16, 2015, from
http://www.greenretaildecisions.com/news/2011/01/06/nordstrom-revamps-itscorporate-responsibility-web-site
WBCSD - World Business Council for Sustainable Development. (n.d.). Retrieved April
18, 2015, from http://www.wbcsd.org/work-program/business-role/previouswork/corporate-social-responsibility.aspx