Nike Inc.: Committed to Diversity, Equity, and Inclusion, yet Challenges Remain
| Case Code: HROB268 Case Length: 23 Pages Period: 2024 Pub Date: 2024 Teaching Note: Available |
Price: Rs.400 Organization: Nike Inc. Industry: Retailing Countries: United States Themes: Diversity and Inclusion, Discrimination Gender and Diversity Management,Workplace Diversity |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
DEI Challenges
Despite Nike’s focus on having several DEI practices in place, in 2018, some of its women employees alleged that the company had a toxic working environment. They also said that Nike gave more promotions and leadership opportunities to male workers than female workers.
In early 2018, a few female workers at Nike conducted an internal survey known as the ‘Starfish survey’ wherein they asked female colleagues if they had faced any kind of gender discrimination at the workplace. The headline of the Starfish survey form read, ‘If it’s happened to you we want to know.’
Tackling DEI Challenges
After reading the Starfish survey results, Parker apologized to the female workers and announced a management reshuffle. Commenting on the reshuffle, he said, “When we discover issues, we take action. We are laser-focused on making Nike a more inclusive culture and accelerating diverse representation within our leadership teams.”..
New DEI Initiatives
In FY22, Nike participated in 50 DEI conferences, some of which were focused on career-oriented women and their needs (See Exhibit 4 for DEI programs focusing on professional women and their needs)..
DEI Challenges Continue…
Despite implementing several DEI practices, Nike found itself still having to tackle several challenges. In September 2023, Massachusetts-based activist investment adviser Arjuna Capital asked Nike to report data on gender and racial pay parity. Commenting on Nike, Julia Cedarholm (Cedarholm), senior associate at Arjuna Capital, said, “It’s disappointing that Nike is still refusing to be transparent on the median racial and gender pay gaps. It’s especially frustrating because Nike talks a “big game” about diversity in their annual meetings, and this is a “very easy disclosure for them to make.” ..
Looking Ahead
Nike admitted that it had to be more transparent with its DEI statistics and announced that it would share its diversity data in 2024. Another major concern for Nike was that the company witnessed several of its Chief Diversity, Equity, and Inclusion Officers exiting the company in a short span of time. In January 2024, Sam said that though there was a huge push to increase diversity after the murder of Floyd in 2020, several corporations which invested in DEI initiatives aimed to bring diverse talents into their organizations but had no focus on changing their corporate culture and developing a retention strategy and hence the exit of several DEI officers.
Exhibits
Exhibit 1: Nike’s Five-Year Consolidated Statements of Income
Exhibit 2: Four Pillars of Nike’s DEI Strategy
Exhibit 3: Nike’s Employee Resource Groups
Exhibit 4: Nike’s DEI Programs Focusing on Professional Women and their Needs
Exhibit 5: Nike’s Corporate Representation and Hiring
Exhibit 6: Nike Corporate Director Level and Above) – US REM Category
Exhibit 7: Nike, Inc. Totals by Racial Ethnic Minority (REM) Group (US Only, Corporate, All Bands)
Exhibit 8: Other Nike-Sponsored DEI Programs for Minorities
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