BA11–FUNCTIONAL AREAS OF BUSINESS OPERATION

GROUP MEMBERS: ZARA C. CAGOLCOL DATE SUBMITTED : 12/21/23

FLORDELIZA GARCIA
JAEREIN TRIBUNALO
JOEY LYN ALVAREZ
JENIA MONTERO
ERICA LAGURA

COURSE/YEAR: BSA1-A2 TIME/DAYS : 4:00-5:30 TTH

HOW NIKE MAINTAIN ITS’ GLOBAL REPUTATION

Nike defines global leadership style as a strategy where risks are thoroughly
analyzed, focusing on innovative ideas, diverse collaborations, and advocacy to excel
through global economic conditions. Nike’s ethical views have been implemented in their
corporate vision because they believe that hiring and keeping the best global talent offers
them the opportunity for sustainable advancement internationally. In 2010, Nike earned
the World’s Most Ethical Companies Award, presented to them by the Ethisphere
organization. Nike has more than 300,000 employees and 800,000, including contractors.
Gina Warren, Nike’s Vice-President of Global Diversity and Inclusion, firmly believes ethical
strategy helps motivate high-performing teams that are willing to critically brainstorm new
concepts to help the organization excel, and that it offers employees an environment of
open communication respectful of backgrounds. Nike’s expectations for their culturally
diverse teams are for them to be engaging and courteous of one another, and to be both
creative and effective in models and designs. On March 30, 2010, Nike initiated the
achieving Gender Equality program in countries where the company conducts business.
This program is the first of its kind, attempting to train the men in their organizations who
come from traditionally masculine- centered countries, to encourage and accept women
into their work environment and also to promote equality in public education and the
home.

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INTRODUCTION:

Every company practice distinctive ways and marketing methods to maintain or

promote its reputation. This case study unravels how Nike maintain its’ global reputation,
starting by recognizing the efforts and programs to maintain Nike’s global reputation.
Furthermore, Nike has implemented a comprehensive diversity and inclusion program
aimed at creating a more inclusive and equitable workplace culture. The company
recognizes the importance of diversity and believes that it fosters innovation, drives
growth, and enhances their ability to serve athletes and consumers worldwide. To
conclude, diversity and inclusion program plays an important factor that maintain the
company’s culture and reputation, fostering a sense of belonging, and driving positive
change both within the organization and in the broader community.

MAIN PROBLEM:

Controversies surrounding Nike have arisen due to various issues related to labor
practices, environmental concerns, and marketing strategies. These issues directly affect
the global reputation of Nike, risking their brand identity and increasing customer loss. In
summary, our group identified three general controversies of Nike that needs immediate
and effective solutions:

1. Labor Practices: Nike has faced criticism for its treatment of workers in overseas
factories, particularly in countries with low labor standards. Reports of poor working
conditions, low wages, and even instances of child labor have raised concerns.

2. Environmental Concerns: Nike, like many other global corporations, has faced
allegations of contributing to environmental degradation through its production
processes and waste management. These concerns have primarily revolved around
excessive water usage, chemical discharge, and waste disposal.

3. Marketing and Ethical Standards: Nike has faced controversies related to its
advertising campaigns, with criticisms ranging from cultural insensitivity to the
portrayal of unrealistic body images. These issues have sparked debates about the
ethical standards of the company’s marketing practices.

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ALTERNATIVE COURSES OF ACTION:
1. Establish the fair labor association (FLA) in Nike, incorporating the right labor
practices throughout Nike’s operation management. They need to conduct
independent audits of its factories, addressing concerns about working conditions
and worker’s rights. Furthermore, Nike should implement Code of Conduct,
collaborating with independent auditors to monitor factory conditions, and
increasing transparency through public reporting. To conclude the means of
addressing this issue, Nike Pledges to End Child Labor And Apply U.S. Rules Abroad.
As a result, Nike implemented diversity in their workforce, rooting out underage
workers and promote equality to the treatment and benefits of all workers by
accepting their backgrounds and race without discrimination to increase their
motivation, influencing their performance that contributes to Nike’s success.

2. In response, Nike has been actively working towards addressing its environmental
impact. The company has set targets to reduce its carbon emissions, water
consumption, and waste generation. Additionally, Nike has committed to using
sustainable materials and has introduced recycling initiatives to minimize its
ecological footprint. To further address the environmental concerns surrounding its
production processes, Nike can implement a comprehensive sustainability strategy.
This includes investing in innovative technologies that minimize water usage and
adopting eco-friendly materials in its manufacturing. Nike should collaborate with
environmental experts, NGOs, and industry peers to influence best practices and
collectively work towards reducing the ecological footprint of sportswear production.

3. Nike should take steps to address their unethical marketing issues by collaborating
with diverse groups, including athletes, to ensure cultural sensitivity and promoting
fitness or body positivity in its campaigns. Furthermore, Nike should also embrace
an open-minded and ethical workforce throughout their management to ensure that
discrimination and criticism are prohibited in terms of promoting marketing and
ethical standards that will contribute in maintaining Nike’s global reputation. To
further address concerns about marketing and ethical standards, Nike should
conduct thorough cultural sensitivity training for its marketing teams, prioritize
diverse representation in advertisements, and establish a clear framework for
promoting realistic body images to align with contemporary ethical expectations.

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RECOMMENDATIONS:
This case study propose recommendations as specific strategies for Nike in terms
of maintaining their global reputation. These recommendations could be an immediate and
comprehensive action to address the identified controversies and ensure the sustainability
of Nike’s global reputation.

• For labor practices, Nike should enhance auditing processes, invest in

worker welfare programs, and empower workers through education that
demonstrate a commitment to fair and ethical treatment of Nike’s
stakeholders. Our group recommend Nike to strengthen their supply chain
responsibility that involves monitoring and improving labor conditions in the
supply chain, ensuring fair wages, and safe working conditions.
Furthermore, Nike should prioritize their employee’s welfare and ensure that
they are recognized non-monetary and well-supported, motivated to drive
the company’s mission and values.

• In terms of environmental concerns, Nike should implement a foundation of

sustainability strategies or implementation of 5s, incorporating innovative
technologies, eco-friendly materials, and a circular economy approach to
emphasize the growth of environmental health surrounding Nike. Moreover,
Nike should engage their business by scanning and considering the
environmental welfare in the industry to collectively reduce the ecological
impact of their production.

• Regarding marketing and ethical standards, this case study recommend

digital innovation for marketing management and invest in personalization
that leverage data and artificial intelligence to enhance customer
personalization to identify individual preferences. Through this way, Nike
can develop public relations and monitors customer’s feedback efficiently.
In addition, Nike should practice ethical marketing and be gender or race
sensitive towards the success of diversity that fosters a more responsible
and inclusive approach to marketing practices. In conclusion, Nike can not
only maintain and protect its' global reputation but also contribute to
positive industry-wide changes by proactively addressing these issues.

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 Questions

1. What programs has your company put in place to expand diversity

and inclusion in the workplace? List three programs that you believe may cultivate
diversity and acceptance.

Three general programs that Nike implement to foster diversity and inclusion in
their workforce that may cultivate diversity and acceptance:

a. Diversity Training Programs:

Educational initiatives to raise awareness about biases, promote inclusivity, and

enhance cultural competence among employees.

b. Employee Resource Groups (ERGs):

Establishing groups based on shared characteristics or interests to provide a sense

of community and support within the organization.

c. Mentorship and Sponsorship Programs:

Pairing employees with mentors or sponsors to facilitate professional development,

especially for individuals from underrepresented groups.

2. How does diversity spawn innovation in the work- place?

• Diversity spawn innovation in the workplace by bringing together individuals with

diverse perspectives, experiences, and skills. This mix of backgrounds encourages
creative thinking, problem-solving, and the exploration of new ideas, ultimately
driving innovation.

3. Discuss culture as a form of diversity.

• Culture, as a form of diversity, involves the shared values, beliefs, and practices
of a group. Embracing cultural diversity in the workplace fosters a rich environment
where different viewpoints contribute to more comprehensive decision-making and
a more inclusive organizational culture.

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 Your CASE STUDY will be graded based on this rubric. Consequently, use this rubric as a
guide when writing your case study and check it again before you submit your output.

Critical Elements Exemplary Proficient Needs Not Evident Valu e

Improvement

Main Elements Includes all of the Includes most of Includes some of Does not include
main elements the main the main any of the main
and requirements elements and elements and elements and
and cites requirements requirements requirements
multiple and cites many
examples examples to
to illustrate each
illustrate each element
element (20-22)
(18-19) (0-17)
(23-25)
Inquiry and Provides in-depth Provides in- Provides in- Does not provide
Analysis analysis that depth analysis depth analysis in-depth analysis
demonstrates that that
complete demonstrates demonstrates
understanding complete complete
of understanding of understanding of
multiple concepts some concepts minimal
(18-20) (16-17) concepts (0-13)
(14-15)
Integration and All of the course Most of the Some of the Does not
Application concepts are course concepts course concepts correctly apply
correctly applied are correctly are correctly any of the
applied applied course
(9-10) (8) (7) concepts
(0-6)
Critical Thinking Draws insightful Draws informed Draws logical Does not draw
conclusions that conclusions that conclusions, but logical
are thoroughly are justified with does not defend conclusions
defended with evidence with evidence
evidence and
examples
(18-20) (16-17) (14-15) (0-13)

Research Incorporates many Incorporates Incorporates Does not

scholarly some scholarly very few incorporate
resources resources scholarly scholarly
effectively that effectively resources that resources that
reflect depth and that reflect depth and reflect depth
breadth of reflect depth and breadth of and breadth of
research breadth of research research
research (0-10)
(12-13) (11)
(14-15)
Writing No errors related to Minor errors related Some errors related Major errors related
(Mechanics/Citation organization, to to to
s) grammar and style, organization, organization, organization,
and citations grammar and style, grammar and style, grammar and style,
and and and
citations citations citations
(9-10) (8) (7) (0-6)

Earned Total 100%

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