Sustainability Management at Nau Inc.

The stores had a wall at the back called the 'Giving Wall'. This displayed the different charities to which Nau would give away a share of its revenues. (Refer to Exhibit VIII for the visual of the 'Giving Wall'). The company would otherwise have spent this money on advertising its products.

About 5% of the total sales amount was donated to non-profit organizations addressing environmental or humanitarian issues. Customers could choose from over ten such organizations - of which two were international, two were national groups, and six were local groups, depending on the location of the store.

Industry analysts were of the view that Nau had entered the performance and casual apparel market at the right time, when there was growing concern about the environment.

Concerned over social and environmental issues, many customers were shifting their preferences to natural, organic, and environmentally-friendly products. These consumers did not mind paying a premium for products from companies which shared a similar concern and carried out business in a responsible manner. It was these consumers that Nau targeted...