Corporate Culture Diversity-Nike

Company Information

Nike, a multinational with a pedigree in sportswear and athletic footwear that goes back to 1964, is a global giant with a history that started when Bill Bowerman and Phil Knight founded Blue Ribbon Sports (B.R.S.). The original distribution deal supported the Japanese shoe producer Onitsuka Tiger until Nike, Inc. was officially established in 1971. The distinctive “Swoosh” logo was introduced, symbolizing the athlete in action, movement, and speed. Over the years, it has become more than just a brand name and is now the epitome of innovation and athletic perfection. The company’s mission statement reflects its commitment to inspiration and innovation: “Bring inspiration and innovation to every athlete on the planet (“F.D.R.A. | Nike’s Impact Report Shows Progress on Diversity,” n.d.).” This idea of inclusivity is what Nike stands for. It shows the company’s commitment to catering to a worldwide audience and helping people understand the importance of being active and healthy.

Nike’s product line extends to an extensive list of athletic gear, such as shoes/footwear, apparel, equipment, and accessories for numerous sports and activities. The organization is known for its innovative technologies like Airy cushioning technology and Dri-FIT fabric, which are helpful for athletes in diverse sports. Nike’s customers range from professional athletes to fitness lovers and ordinary people. The quality of Nike sportswear is unbeatable. The comprehensive marketing strategies and sponsorships with high-profile athletes significantly enhanced and made the company famous (“Nike Inc: Greater Disclosure of Material Corporate Diversity, Equity, and Inclusion Data,” n.d.). Under the Nike umbrella, innovation fuels introducing new products into the market. It also promises collaboration with designers to ensure its products meet the current needs of the athletic and lifestyle market. Nike mirrors this pattern at the global level, where employees work to support the firm in many capacities, from design and marketing to manufacturing and retail. N.I.K.E. office is located in Washington County near Beaverton, Oregon, in the United States. Nike is a global company with offices, production facilities, and stores in many countries. Its worldwide presence points to a company culture of customer satisfaction on a global scale that also uses international talent to maintain a standard of world excellence in all aspects of its operations. Nike’s protection of their worldwide brand further bolsters their goal to motivate and equip athletes, irrespective of their level or location, with the tools needed to succeed in sports and fitness.

Status of Diversity within the organization

Diversity is the key element that plays a vital role in N.I.K.E.’s organization. It is necessary for creating innovations, new ideas, and a unique corporate culture. This company acknowledges the inherent value of a diverse workforce, knowing the power of variety in viewpoints, histories, or experiences as the basis of a much broader canvas of ideas. N.I.K.E. will support a policy of inclusiveness that respects all people from different races, genders, and backgrounds, developing a workplace where everyone is cherished and respected. The organization engages in a diversity promotion process facilitated by several strategies, such as a mentorship program, employee resource groups, and leadership development (Spann, 2021). Diversity of employees worldwide is something N.I.K.E. focuses on, so N.I.K.E. recruits talents ready to represent various ethnicities of N.I.K.E. customers. This importance reaches out to all employment promotions where employees of different backgrounds are provided an equal chance for career advancement.

Although N.I.K.E. takes part in international business, conducting its supply chain activities globally, the company has been criticized for outsourcing product manufacturing to countries offering labor costs lower than that of the U.S., focusing on Asian countries. This has led to a debate on the ethical concerns of sourcing practices and their effect on the local labor market (Spann, 2021). Nonetheless, N.I.K.E. has tried to remedy these issues by upholding transparency and implementing programs to enhance the working terms of its foreign factories. The duality of diversity, both within the organization and in the global setup of its operations, features N.I.K.E. as a market-leading brand with a solid social responsibility and inclusiveness.

Philosophy

Nike’s leadership approach to diversity issues and management is founded on the firm belief in creating a workplace that mirrors the diversity of all the localities it serves worldwide. The central part of this approach is the idea that diversity, equity, and inclusion (D.E.I.) are not just initiatives. However, the D.E.I. is an element of the organization’s core values and mission. Nike executives know the importance of setting an example and creating a strongly inclusive environment through resolutely implementing diversity, equity, and inclusion policy frameworks (Khamis et al., 2021). Strategic integration is at the core of the philosophy, meaning D.E.I. efforts are not just independent initiatives but integrally connected to the organization’s values, business strategy, and daily operations. Strategic alignment is deemed the ultimate key factor for diversity initiatives’ long-term sustainability and efficiency. The principle of continuous improvement is a pillar, acknowledging the dynamic nature of diversity issues and the ongoing need to audit and adapt based on feedback, data, and changing reality.

Established metrics and accountability mechanisms are the basis on which Nike founded its strategy, showing that they take seriously measuring and tracking the progress of their diversity and inclusion project. Accountability is the core of Nike’s diversity, equity, and inclusion approach. This is achieved through setting ambitious targets and keeping track of the organization’s progress towards these targets at all levels (Itatsu, 2023). The philosophy additionally spotlights the value of employee engagement and growth, which uncovers that conducting training, encouraging employee-led groups, and cultivating an inclusive atmosphere are among the most strategic initiatives for cultivating a diverse workforce. Furthermore, Nike engages in partnerships and cooperation and knows that collaboration with external organizations will help improve the D.E.I. effort’s results and bring positive change.

Strategies

One of the world’s leading sportswear companies, Nike, has been well aware of the vital role of embracing diversity and inclusivity in the workplace. The business adopts a multi-angle approach by combining cultural and strategic initiatives on managing diversity to create a workplace where everyone feels welcome. The nucleus of Nike’s diversity strategy is the promise to encourage and cultivate a workforce of people from various cultural backgrounds. The organization recruits professionals from varied cultures, sexes, and generations (Ye, 2023). The recruitment efforts aim to get the widest net possible by reaching out to diverse communities through various tools, such as targeted outreach programs, joining forces with different organizations, and attending recruitment events. Having a diverse hiring workforce is how Nike intends to create a workforce that represents the wealth of colors of its global customer base.

Nike also considers making onboard workforce and inclusive workplace culture a priority. The firm dedicates resources to training and workshops that sensitize unconscious biases, promote cultural sensitivity, and encourage diverse behaviors. These programs ensure that staff understands and enjoys diversity, creating a more unified and creative working environment. Nike also fosters an open communication and a feedback environment where employees can have a platform for airing out their concerns and sharing experiences that give other employees diverse voices a listen.

Moreover, Nike uses its clout internally and its brand influence externally to address diversity and social justice issues outside its acumen. The company becomes attuned to social causes, being in line with the purpose of the campaigns promoting the aspect of inclusion and equality. Through supporting essential issues, Nike puts on its best face and encourages positive societal change. This external engagement presents an add-on that complements the internal initiatives to ensure a holistic approach that pervades within the organization. Also, Nike understands that diversity involves workforce demographics and different opinions, ways, and thoughts. The firm listens to employees of all tiers and is a bottom-up approach, which the company strongly advocates. Employee resource groups like L.G.B.T., gender, and ethnicity are significant in building a sense of belonging and a platform for voicing less represented groups.

Goals

The company’s 5-year plan elaborates on instilling a diversity and inclusion culture among the workforce, with accountability and ethics as a sign of commitment. The company took one step further by making executive compensation based on achieving specific objectives concerning diversity, inclusion, environment, and social responsibility by 2025. According to John Donahoe, the president and C.E.O., the process will not end (“F.D.R.A. | Nike’s Impact Report Shows Progress on Diversity,” n.d.). C.E.O. acknowledged significant achievements. At the same time, the C.E.O. stressed the need for an effort toward responsible leadership, which is a long-term task. In their 2020 report, Nike exposed some positive developments, which reflected an increase in the percentage of the global female representation to 49.5% and also pointed out a noticeable growth of minority races and ethnicities representation at the vice president level in the U.S.A., which was 29%.

The company also mentioned the diversity within its 2020 intern class by pointing out the record-breaking percentage of women, who make up 55% of the 310 interns and 49% of racial and ethnic minorities. Looking ahead, Nike has set a significant strategy for 2025, which expounds that the company will achieve 50% representation of women in its global corporate workforce, excluding employees at retail outlets and warehouses, and 45% representation of women in leadership positions (V.P.V.P. level and above). The commitment is extended to racial and ethnic diversity, striving for 35% representation per Nike in the U.S.U.S. workforce by 2025. The company will allocate 125 million dollars to charity foundations during the next five years to create a level playing field.’ N.I.K.E. will distribute this amount to those dedicated to erasing racial imbalances (Rasmussen, 2021). One of the organizations that lived up to the pledge of support was Nike in the social justice campaigns that were meant to give justice to the Floyd boy who was killed in police custody. The business said it would be investing one hundred forty million dollars into the education and employment of African Americans after moving into Detroit. As Nike’s C.E.O., John Donahoe shares the issues of Black athletes and the Black culture and identity at the heart of the business.

Although Nike has had its fair share of criticisms, especially about treating female employees and racial minorities, the company has evolved to address the concerns through different policies. As part of such initiatives, some workers’ salaries are adjusted, others have an overhaul of their bonus structures, and others’ contracts as athletes get revised to support them during pregnancy. Nike’s pay equity commitment can be seen in data from 2020, which shows global gender parity as well as pay equality by race and ethnicity as compared with their white employees in the U.S.U.S. By 2025, the company has committed to keeping 100% pay equity annually, ensuring the sustainability of a diverse and inclusive work environment.

Current status

Nike has undertaken major moves towards diversifying and promoting inclusion within their workforce, most notably with gender equity. Last year (2021), the company said that Asians made up 15% of its U.S. workforce, one percentage point higher than the previous year. Further, Black and African American groups represented 6% of the total, whereas Hispanic and Latino categories comprised 7% of U.S. employees. The company has set several far-reaching goals for 2025, with targets including 50% female representation in the global corporate workforce and 45% in leadership positions (Rasmussen, 2021). Specifically, Nike plans to have a workforce in the U.S.A. with a 35% representation of racial and ethnic minorities. Despite the gained ground in gender diversity, several difficulties remain. In the 2022 fiscal year, female employees have a slightly lower proportion at 49.8% of the overall workforce, compared to the industry average. Women took 44.1% of senior director roles, 43. 9% are director positions, and 47.1% are managerial positions. In particular, women still have a low percentage on the board 36,.4% among 11 members. Nike affirms this through associations with PowerToFly and Grace Hopper, among other organizations that promote the representation and development of women. On the other hand, the paper points out that the desired outcomes from such actions have yet to be outlined. On the positive side, Nike has achieved a commendable gender pay gap of 1:1, citing the addition of equal pay for men and women in workplaces.

References

F.D.R.A. | Nike’s Impact Report Shows Progress On Diversity. (n.d.). Retrieved from https://fdra.org/fdra-news/nikes-impact-report-shows-progress-on-diversity/

Khamis, S., Auld, M., Gilly, M. C., Kreshel, P. J., & Timke, E. (2021). Author Meets Critics: Branding Diversity: New Advertising and Cultural Strategies. Advertising & Society Quarterly, 22(3).

Nike Inc: Greater Disclosure of Material Corporate Diversity, Equity, and Inclusion Data. (n.d.). Retrieved from As You Sow website: https://www.asyousow.org/resolutions/2022/04/14-nike-greater-disclosure-of-material-corporate-diversity-athletica-equity-and-inclusion-data

Rasmussen, K., Dufur, M. J., Cope, M. R., & Pierce, H. (2021). Gender marginalization in sports participation through advertising: The case of Nike. International Journal of Environmental Research and Public Health, 18(15), 7759.

Spann, J. (2021, October 6). Transparency and Accountability in Nike’s Diversity Initiatives. Retrieved from As You Sow website: https://www.asyousow.org/blog/transparency-and-accountability-nike-diversity-initiatives

Peer reviewed

Itatsu, Y. (2023). Not Quite There: Nike’s Diversity and Inclusion Agenda and Japan’s Readiness. Gender in Japanese Popular Culture, 99–122. https://doi.org/10.1007/978-3-031-12942-1_4

Rasmussen, K. (2021). Brand Activism and Gender: Nike as a Case Study. Brigham Young University.https://scholarsarchive.byu.edu/cgi/viewcontent.cgi?article=10016&context=etd

Ye, Z. (2023). Nike’s Culture and Organizational Strategy. BCP Business & Management, 38, 2455–2461. https://doi.org/10.54691/bcpbm.v38i.4120