SELF IMPROVEMENT

quietly goes about  business

The sole of Nike's (NKE) new Air Jordan is made with ground-up bits of old Nike sneakers. But the company isn't selling it as an eco-friendly shoe: That might not be good for business.
Nike, which is No. 42 on BusinessWeek 's list of the top-performing companies, has an unusual problem. Nike customers buy shoes to make them feel fast, slick, and hip; they don't care much about being eco-chic. "Nike has always been about winning," says Dean Crutchfield, an independent branding consultant in New York. "How is sustainability relevant to its brand?"
The company launched its first line of environmentally friendly shoes, called "Considered," in 2005. Critics called the $110 shoes "Air Hobbits" because of their forest-dweller feel and took Nike to task for a design that detracted from its high-tech image. "We want to do more and say less," is the way Lorrie Vogel, who oversees Nike's green business practices, puts it. PERFORMING WELL
Nike's marketing, though, doesn't suggest a feel-good, do-good attitude; and its designs don't compromise quality. "Saving money [with an environmentally friendly product] only works if people buy it," says Sam Poser, an analyst with brokerage firm Sterne Agee. The company also invented a sewing machine that speeds up assembly time, which saves electricity. Nike simply heralded the XX3 as the next iteration in a 24-year string of Air Jordans. The Air Jordans continue to sell well, recycled materials and all, suggesting that customers are still happy with the shoe's performance. Charles D. Denson, Nike brand chief, says that during the company's most recent quarter Air Jordan helped the basketball shoe division achieve double-digit growth. Nike's lineup now includes eco-friendly basketball, football, soccer, tennis, and running shoes.