The world of sports retail has not been quiet this year. Allegations against several companies — including Nike, Under Armour and Adidas — raise questions about the root causes of a spate of recent allegations. But in order to move into the spaces, companies will have to come to terms with whether their workplace culture is at odds with the very values they want to advocate for. ", As far as legal proceedings go, Nike's current position is that the plaintiffs "fail to plead sufficient factual matter" in the case, according to a motion filed last week that seeks to dismiss some of the claims. Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. The trouble arguably started in February, when former Lululemon CEO Laurent Potdevin, Nike was the next athletics retailer to come under scrutiny with the departure of Trevor Edwards. 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. The Wall Street Journal was the first to report on Parker's speech. Nike CEO Mark Parker apologized to employees for permitting a workplace culture where some felt excluded and management didn't take complaints seriously, according to a copy of his speech obtained by CNBC. One is ingrained in the culture. "Nike operates in a world that has a lot of connections to stories that aren't the most positive involving women. More Nike executives out amid misconduct investigation. On first glance, it's easy to paint all sports retailers with the same brush — and there is certainly a trend worth examining, at least this year — but it's equally important to examine each instance individually. In addition, Nike argues that the class is too large, with too little evidence to support it, writing that "The proposed class would span thousands of female employees in hundreds of disparate job categories. The retailer came under fire for a corporate culture that only recently stopped allowing employees to charge costs for adult entertainment and gambling to company credit cards, according to a report by the Wall Street Journal. This isn’t about putting women in leadership roles just to fill them—this is about listening to your female co-workers and treating them with the utmost respect, welcoming their thoughts and ideas alongside everyone else’s.”, The company is working to remake its leadership team and put women into influential positions at the company, according to Nike’s Carreon-John, who pointed to the recent promotions of Montagne and Leonard: “We believe it takes leaders and systems in place to listen and take action. Get this delivered to your inbox, and more info about our products and services. Gender-related discrimination and misconduct claims have popped up at companies in every industry from entertainment to ride-sharing apps this year. I think there are lots and lots of companies that have not treated their women employees fairly and equally. With a single 1997 New York Times expose, its famous swoosh lost its cool icon status, and was no longer a logo people wanted to wear. They have, along with other brands, the responsibility of putting human experience ahead of profitability, which will bring a positive reaction from consumers and business partners alike.”, Brands marketers looking to learn from Nike’s current situation should “listen to the women on the team now, and actively work to bring in diverse voices for all roles, especially leadership roles,” explained Lincoln. 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. Owens followed up with Retail Dive Monday, adding that Nike's response does not change the "ultimate goal" for the plaintiffs. May 4, 2018 Nike is working to address its cultural problem. That's not the issue: The issue is the culture that allows it.". … We will continue to invest in our teams to create a culture of empowerment and respect while putting a sharper focus on increasing diverse representation through promotion, retention and recruiting.”. 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. In the Nike case, those broader problems include accusations of depressed starting salaries and failure to promote women to the highest-paying jobs. "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. “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. A Glimpse into Nike’s Culture You might remember when Nike became a controversial brand back in the 90s due to its use of sweatshops. Nike CEO Mark Parker apologized to employees for permitting a workplace culture where some felt excluded and management didn’t take complaints seriously, according to a … "I don't know that these problems are systemic to just sports brands. Where's the consumer? "While many of us feel like we're treated with respect at Nike, that wasn't the case in all teams. a sports retail problem and, in fact, some sports retailers do an excellent job treating women equitably, Powell said. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. In an all-staff meeting, Parker addressed issues that have come into light in recent months. 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. All of which begs the question: Are these isolated incidents or does the sports retail category have a systemic corporate culture problem? Multiple executives have left Nike because of reports of inappropriate behavior and poor workplace conduct. Multiple executives have left Nike in recent months because of reports of inappropriate behavior and poor workplace conduct. Nike is working to address its cultural problem. Still, that doesn’t mean Nike can sit pretty. He told employees he can lead the change but he can't do it alone, and it's going to take everyone. “We’ve seen this cycle happen again and again—when you have a non-diverse, male-only leadership team, bad decisions get made, valuable employees leave, and the business suffers. I'm thinking of all of the assault issues in sports, all of the issues that female reporters have had," Portell said. Whether it’s facilitating or ensuring a healthy culture, the decisions HR departments make have an increasingly profound effect on how a brand is perceived.”, Values-Driven Leadership Matters Now More Than Ever, How the Black Lives Matter Movement Changed Student Spending, What Marketers Need to Do Now That 5G Is Here, "This is a teaching moment to any brand who believes they are beyond reproach; the past does matter. Nike was the next athletics retailer to come under scrutiny with the departure of Trevor Edwards. For Under Armour, he argues, it's more of a culture problem than anything else and the fixes for those aren't the same. While CEO Kevin Plank promised to fix the company's culture, claiming in a statement to the Journal that "We can and will do better," much depends on how deep the problems run for both Under Armour and Nike, according to Matt Powell, vice president and senior industry analyst of sports at the NPD Group. This weekend, the New York Times published an in-depth story on the toxic work culture at Nike. One example is moving from the mindset of Nike being a place where the loudest voices carry the conversation to a place where every voice is heard. on Several anonymous sources confirmed the racial tensions to FN. Parker said this has been "a painful moment" for him. Over the last few weeks, a trickle of male executives … By signing up to receive our newsletter, you agree to our, Press release from Midwest Retail Properties, As retailers focus on diversity, executive representation is stagnant, 17 retailers that could go bankrupt as the COVID-19 era wears on, CBL, PREIT file for bankruptcy as retail's problems hit mall landlords, Nike increases layoffs at headquarters to 700. “We recognize and acknowledge that behaviors inconsistent with our values have prevented some employees from feeling respected and doing their best work,” said Sandra Carreon-John, global corporate communications director for the brand, in an email. Once again a lack of female leadership is corresponding with a dip in their market share, in this case in the super hot category of women’s products,” explained Cat Lincoln, CEO and co-founder of influencer marketing agency Clever. "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. Subscribe to Retail Dive: Topics covered: retail tech, e-commerce, in-store operations, marketing, and more. Gender-related discrimination and misconduct claims have popped up at companies in every industry from entertainment to ride-sharing apps this year. "I'm in 100 (percent), and I'm counting on you to be all-in too. It's a subtle difference, but cultures are hard to change and systems shouldn't be," Portell said. Earlier this year, the company faced questions over whether or not it should continue a partnership with Kanye West after the hit artist made controversial comments about slavery. Twitter. “That’s a huge miss for Nike that demonstrates how a failure to value all employees equally leads to a decline in business.”, Lincoln continued: “It sounds like they’re being proactive—now—about putting women in leadership roles, but their failure to listen to women in the past has already cost them quite a bit of female talent. Training programs are designed to uphold such corporate culture that aligns with the Nike brand image for sports footwear, apparel and equipment. "Let's move towards that future," Parker said. "I think it's probably a larger symptom of corporate America. Got a confidential news tip? Subscribe to Retail Dive to get the must-read news & insights in your inbox. It's not just a sports retail problem and, in fact, some sports retailers do an excellent job treating women equitably, Powell said. Nike declined any further comment on the lawsuit, though plaintiffs' attorney Laura Salerno Owens of Markowitz Herbold emailed Retail Dive a statement acout Nike's motion to dismiss claims. Under Armour to exit up to 3K wholesale doors, sell MyFitnessPal, Saks Fifth Avenue relaunches website with emphasis on personalization, Strategic Moves for the New E-Commerce Landscape, 5 Strategies to Power Your Omnichannel eCommerce Success, 3 Keys to Building a Resilient Retail Organization, OnQ’s Retail Security Brackets for iPhone 12 Available Now, Midwest Retail Properties Acquires Three Walmart-Anchored Retail Centers, Americans show they’re eager to shop even as pandemic stretches on, retail economist says, From Boarding Up Stores to Closing Shop Early, These Retailers Are Taking Extra Precautions Ahead of Election Day, Amazon and Apple Eye Historic $100 Billion in Holiday Quarter, How to Deliver a Contactless Holiday Experience.
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