nike culture problems

"When you think about Under Armour's response — where they're not going to let employees expense certain items — that's trying to legislate a culture change. I think there are lots and lots of companies that have not treated their women employees fairly and equally. Got a confidential news tip? "If there are more stories, if there are more harmed people, if they truly don't walk the walk, I think there's potentially more long-term harm here," he told Retail Dive in an interview, stressing the importance of both retailers following through on promises to fix their respective cultures.

It's a subtle difference, but cultures are hard to change and systems shouldn't be," Portell said. But identifying a toxic corporate culture is only half the battle — the real problem comes with trying to change it, according to Portell, who noted that nearly 80% of executives in an A.T. Kearney study reported that culture was the hardest thing to change at their workplace. "Nike operates in a world that has a lot of connections to stories that aren't the most positive involving women. Maybe these are getting a little more of a call-out because they are male-dominated, male-oriented industries in some ways.". Over the last few weeks, a trickle of male executives … "Pro sports, particularly male pro sports — does not have a reputation of being a great place to be a woman.

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The Wall Street Journal was the first to report on Parker's speech.

"Notably, Nike did not move to dismiss the claim that Nike's policies and practices have resulted in lower pay and fewer promotions for women," the statement read. Reuters also said Nike will be investing in a diversity sourcing team.

When news first broke in March the brand did drop in consumer perception, the data shows, but it has since leveled off, which according to YouGov BrandIndex CEO Ted Marzilli, is thanks to the company’s “teflon” brand. The off-pricer plans to liquidate its 13 stores. Allegations against several companies — including Nike, Under Armour and Adidas — raise questions about the root causes of a spate of recent allegations.

According to data from YouGov BrandIndex, the recent reports of cultural issues at Nike haven’t permanently damaged its brand perception. The trouble arguably started in February, when former Lululemon CEO Laurent Potdevin resigned from his position following claims of misconduct. Parker said this has been "a painful moment" for him. Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. ", Christopher Skinner, founder and principal, School House, "​How can brands be marketing to women, but not be open to input or ideas from women at those companies in the first place? For Under Armour, it's even less clear. It is how they recognize and handle them, and the measures they put in place to safeguard their people, that defines them.”, Skinner continued: “Nike needs to focus on the relationship between not just their customer but also their employees on a day-to-day basis.

"We will continue representing courageous women who are willing to speak up for a workplace where their talent and skill, and not their gender, determine their pay and advancement.". The word toxic has been thrown around in recent months to describe Nike's workplace, and with similar events occurring elsewhere in the sports retail space, it may not feel like a stretch to apply it to other companies as well.

Nike’s culture did allow several female employees (or perhaps they just got fed up enough) to take it upon themselves to quietly conduct a survey on inappropriate behavior and pay equity. The then-Nike brand president was widely viewed as a potential successor to CEO Mark Parker, and his ousting served as a catalyst for a mass exodus of leadership at the company. According to Portell, Nike's troubles could have the greatest brand impact if the lawsuit doesn't go its way, not only because the claims describe a systemic issue at the athletics retailer, but also because Nike has positioned itself as a female-focused brand. Multiple executives have left Nike in recent months because of reports of inappropriate behavior and poor workplace conduct. “This is a teaching moment to any brand who believes they are beyond reproach; the past does matter,” said Christopher Skinner, founder and principal of the creative branding agency, School House. Discover announcements from companies in your industry. As it relates to Under Armour, it's not quite clear yet how much of an impact the Wall Street Journal's expose on Under Armour's corporate culture will have on its executive leadership team or its fan base — indeed, it's not even clear yet how deep the problem runs. Parker outlined steps Nike is taking to change its corporate culture, including shifting the company's vision and behaviors it expects. A Division of NBCUniversal. Analysts believe that Nike needs to retool its leadership team and truly listen to women—not just have women in leadership positions—to fix its culture. And we will continue to drive change.”.

"So the outcome of the legal proceedings absolutely should impact where Nike can position their brands going forward and I would expect consumers to hold them accountable for that connectivity. "From an impact perspective, if the case ends and it is unfavorable to Nike in a material way, then it would be very difficult for Nike to then go back to female consumers and say ‘we are your advocates in sports,'" Portell said, noting that most customers won't follow the details of a lawsuit very carefully. We are already taking action—holding our leaders to higher levels of accountability, investing in a dedicated diversity sourcing team and accelerating manager training to be clear on our expectations around culture. Century 21 is the latest retailer forced into Chapter 11 as a result of the pandemic. Still, the story for Nike is far from over. Follow Since then, Mark Parker, CEO of the behemoth brand, which has roughly 75,000 employees, has reportedly apologized to employees in an all-staff meeting and two women, Kellie Leonard and Amy Montagne have been elevated to vp positions (Leonard is now vp and chief diversity and inclusion officer, a new position for Nike; Montagne is vp and gm of global categories). The then-Nike brand president was widely viewed as a potential successor to CEO Mark Parker, and his ousting served as a catalyst for a, at the company.

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