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Nike Corporate Social Responsibility (CSR) and Sustainability
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Founded in 1964, Nike is the largest and most recognized sports apparel brand in the world today. From their humble beginnings as a shoe and t-
shir company, Nike has grown into an international conglemerate with an estimated glabal brand value of $30 bilion in 2021." Headquartered
regan, the company operates more than 7,000 retail stores worldwide and employs over 73,000 people in 170 countries.)
Inline with thee ieonie swoosh an “Just Do It” trademark, Nike's business model is built on developing game-changing technologies anc
products that have redefined the sports apparel industry. Much of the company's success is attributed tits international marketing, which
includes partnering with popular celebrity athletes and sports teams ‘rom around the globe,snsehts ~ | Artes and White Paper by Keyword stry Insights
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Nike's Corporate Social Responsibility (CSR) Policy
Nike's Corporate Social Responsibility and Sustaina
the better” Nike leverages the unifying power of sports to promote its CSR agenda in three key ateas: diversity and inclusion, community
iy program resonates with the company’s core belief that “sports can change the world for
investment and envitenmental sistant.
|. Nike's Diversity and Inclusion Program
Nike's CSR and corporate governance programs center on providing a healthy and tolerant work environment forall employees. To that end, the
‘company invests in promoting @ work environment that celebrates diversity and inclusion. In 2020, Nike introduced two new CSR programs,
their Juneteenth learning initiative, and their Unconscious Bias Awareness training program to promote a greater understanding of racial
‘equalty and social change, Throughout 2020-21, Nike laid outa five-year plan for creating more diversity in ther workforce, which included »
larget goal of 50% representation of women and 35% representation of racial and ethnic minorities in ther corporate workforce by 2025. In
conjunction with this initiative, Nike announced an investment of $125 milion over the next five years to support businesses committed to
“leveling the playing field"
| 2020, Nike allocated $4 milion to support diversity and inclusion in communities throughout North America through its Until We All Win
program, Adeitionally, eight of Nike's Employee Netwarks donated $25,000 a year to nonprofit organizations focusing on promoting social
‘equally, regardless of race, gender, and sexual orientation.
Il, Nike’s Community Support Program
‘As part oftheir community outreach program, Nike spent more than $89 milion in 2020 to help over 17 milion kids around the world get active
in sports and exercise. Nike also committed to taining neatly 100,000 coaches to help communities most in need
‘To encourage more gender inclusivity and equality, Nike invested over $100 milion into ther Gir Effect program between 2015-2020 to improve
the lives of tens of millions of girls in 20 countries throughout Africa and Asia"! The company also expanded its digital training tools to include
the Coaching Gils program which aims to make sports more fun and inclusive for girs through coach education and leadership training,
Lastly in collaboration with Converse, Jordan Brand, and Michael Jordan, Nike announced a 10-year $140 milion CSR commitment to support
social equality for Black Americans, $40 million of whichis intended to support organizations and nonprofits addressing systemic inequality.
COVID-19 Response
Nike's COVID-19 response was widespread, covering the costs af food and apparel for global communities ané extra assistance for their
‘employees. The efforts included $30 milion for food and medical care and a $5.7 million della donation of footwear and apparel to healthcare
professionals and front-line workerssnsehts ~ | Articles and White Papers by Keyword
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lll. Nike's Sustainability Program
Understanding that if there “is no planet, there is no sport” Nike continues to make considerable inoads in promating thei environmental
sustainabilty initiatives.
‘Through the Supplier Climate Action Program, Nike ensures their suppliers and manufacturers are committed to thelr goal of carbon neutrality
by 2025. Sofa, the company announced that all af their North American facilis, as well as 48% of ther global operations, are operating on
100% renewable energy, and 99.5% of manufacturing waste from their tier 1 suppliers have been diverted from landfills. Under this new
program, there was also a 30% reduction of fresh water used in manufacturing textiles and materia in 2020.
To further reduce waste, Nike is introducing more sustainable materials into their product lines and taking advantage of reusable and recyclable
products. In 2020, sustainable material integration increased from 41% to 50% in their clothing lines. Although [EET] [MH2] the use of
‘sustainable materials in their footwear was unchanged in 2020, the company is focusing on sustainable materials suchas Flyleather, a material
made with a least 50% recycled leather scraps. So fr, over 4 billion plastic bottles have been repracessed into polyester and other textiles that
are used in their products. Nike also piloting alternative packaging solutions that replace corrugated cardboard with reusable shipping totes
Nike's Corporate Social Responsibility Issues
Despite adopting » range of new environmental protocols to reduce environmental waste, Nike's carbon feotprint remains unchanged from its
2015 baseline, This is largely attributed to a steady stream of new footwear ines that require new materials, In addition, while the brand has set
1 science-bases target to reduce greenhouse gas emissions, there i little evidence they are on tack to meet their target of operating entiely on
renewable energy by 2025. There is also.no clear indication thatthe company - which elies heavily on trees and plants for their textles -has a
policy in place to address deforestation.
In addition to concerns surrounding their environmental impact, Nike's labor practices continue to be scrutinize far human rights violations. In
2020, The Washington Post reported that members of the Uighur Muslim minority in China working for Nike were subjected to coerced working
conditions and ethne-religious discrimination, In response to this criticism, Nike issued a statement saying that while they are “concerned about
reports of forced labor, Nike does not source products from the XUAR [Xinjiang Uyghur Autonomous Region] 7)
Nike has alse been under fire recently for financially penalizing fernale athletes who become pregnant while under contract. To address the
controversy, Nike has since amended its policy, stated that twill longer pause or stop payment to pregnant athletes. Despite these efforts,
the company continues to be criticized for not acknowledging ts past treatment of female athletes "1
Nike's Corporate Social Responsibility Report
‘Access Nike's 2019-20 CSR Impact report
Conclusionsnsetts ~ | Arties and White Papers by Keyword stry Insights
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Sources:
Hableton, Brittany, “Athletes React to Nike Pregnancy Ad” Running Magazine, March 16, 2021. httas:/runningmagazine.ca/the-scene/athletes:
nike-pregnancy-ad/. Accessed 1, October 2021
Nike Inc.com. FY20 NIKE, Inc. Impact Report.” httos:/urpose-cms-pregrodO! s3.amazonawis com/wo-content/uploads/2021/04/2622504
‘8/620 NIKE Ine Impact Report2;pdf. Accessed 25, September 2021
Nike Inc.com. Waste” hits /purpose.rike com/waste, Accessed 26, September
Statistca.com, "Brand value ofthe sports company Nike worldwide from 2016-2021.” httns //\waw statsta com/statstcs/632210/nike-brand.
walue/, Accessed 20, October 2021.
Staistica.com, "Nike's net income worldwide from 2005-2021” hitps://wiyw staista com/statisties/241685/net-proft-of-nike-since:
2005/, Accessed 24, September 2021
Suliman, Adela,
ttps//wwy.nbenews.com/news/sworld/nike-h-m-face-bactlash-china-over-iniang-catton-concerns-ni262018. Accessed 77, September
2021
ike, H&M, Burberry face Backlash and Boycott in China Over Stance on Uyghur Treatment,” NBC News, March 25, 2021
Thomas, Lauren. "Nike Sets Fresh diversity Targets for 2025, and Ties Executive Compensation to Hiting Them." CNBS.com, March 11,2021
ites//onyyeenbe.com/7021/ 02/11 /nke.sets-diversty-poals-for-202S-tinc-executive-comp-back-to-them him, Accessed 30 September
2021
(1) bites/ www statist com/statistics/637710/nike-brandvalue/
(2) bitos://www statist com/statistics/241685 /net-profit-of-ike-since-2005/
[31 tos // www. enbe.com/2021/03/1V/ike-sels-diversly-goals-for-2025-ties-executive:-comp-backcto-them html
[4] ibid
[5] bites /ournose-cms-nreprodO1.s3.amazonaws.com/wp-content/uploads/2021/04/26225049/FY20 NIKE Inc Impact ReportZ.ndf
[61 htins/ourpose.nikecom/waste
(71 bites //www nbenews.com/news/world/nike-h-m-face-backlash-china-over-vnjang.cotlon-concerns-11262019
[8) httpsx//cunningragazine ca/the-scene/athleesreac-to-nike-pregnancy-26/
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