Sustainability Management at Nau Inc.


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Case Details:

Case Code : BECG080
Case Length : 20 Pages
Period : 2004-07
Pub Date : 2008
Teaching Note : Available
Organization : Nau Inc.
Industry : Apparel Manufacturing and Retailing
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Not Just Another Green Company Contd...

Nau made efforts to integrate every aspect of its operations with sustainability, right from the material used to make the garments to the way the clothes were produced and distributed. All the products were made from organic and recycled fabrics, and most of them were developed by the company along with its vendors.

Nau also sold its products using a unique concept: it opted for 'Webfronts', which were smaller stores that combined the retail buying experience with the convenience of online shopping. The company set a new standard in corporate philanthropy by contributing a part of the total revenues to non-profit organizations.

Though it was too early to deliberate on Nau's success, it was clear that it was gaining acceptance among the growing strata of environmentally conscious consumers, who did not mind paying a premium for such products and services.

Analysts described Nau's efforts to do business in a responsible manner as highly commendable.

As BusinessWeek pointed out, "Nau is part of an emerging group of startups that reflect a new sensibility about what it means to be green. Where a few years ago just adding a few green products to the shelf might have made a company more appealing to environmentally conscious consumers, a backlash is beginning to emerge against companies that promote 'green' offerings that are only marginally better than regular ones."7

Excerpts >>


7] Heather Green, "The New, New Green,"BusinessWeek, May 25, 2007.

 

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