organization behavior addressing the toxic workplace cuture for women at nike group 9 advanced finance 63d

The organizational culture at Nike is also a critical aspect of this examination, as it plays a pivotal role in shaping the work environment and how employees interact within the company

NATIONAL ECONOMICS UNIVERSITY

ADVANCED EDUCATION PROGRAMS

ORGANIZATION BEHAVIOR

ADDRESSING THE TOXIC WORKPLACE CUTURE FOR

WOMEN AT NIKE Group 9 - Advanced Finance 63D

Vu Lé Minh Leader 11213981

Dinh Xuan Anh Member 11210327

Hoang Bao Ngoc Member 11211304

Diép

Lé Kim Ngan Member 11214201

Tran Diéu Linh Member 11213426

Lecturer: Mrs Pham Thi Bich Ngoc

Hanoi, 2023

Table of Contents

I INTRODUCTION -.- con Ăn SH nY nu nu n mm vn

1 A brief overview Of NIK@ TT KH nh nh nh hư kg 3

1 Internal Factors influencing the Problem and Success 6

2 External Factors influencing the Problem and Success 6

1 A change project that Nike could implement to improve the problems

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2 Why this change project could be effective and how it would help

I INTRODUCTION

1 A brief overview of Nike

Nike is a major US footwear, clothing and sportswear supplier based

in Beaverton, Oregon Today Nike is considered the world's leading supplier of athletic shoes and apparel and one of the world's most famous and strongest brands with a net worth of $189.5 billion in 2023.With a direct workforce of over 79,000 individuals, Nike also indirectly impacts a multitude of workers through its extensive network

of more than 600 international factory collaborations It is a truly multinational company, offering its products to over 170 countries Nike accomplishes this through a diverse portfolio of over a dozen distinct brands, each cultivating a unique brand identity and catering

to specific customer segments

Nike is Known for its iconic "Swoosh" logo and its strong presence in the global sports and fitness industry The company's mission is to

"bring inspiration and innovation to every athlete in the world" and it famously adds, "If you have a body, you are an athlete."

While probably best known for its range of iconic footwear, most notably the Jordans brand of sneakers, Nike, Inc is also a leading brand

in other sports gear such as activewear, sports equipment, and wearable fitness tech

2 The primary goal of this paper

Nike, the global athletic footwear and apparel giant, has not been immune to the challenges of our times This paper delves into the pressing issues within Nike's organizational structure, with a particular focus on allegations of sexual harassment and the broader problem of gender discrimination By comprehending the extent of these issues, it becomes possible to gauge their impact on the workplace, employees' well-being, and the company's standing in the industry Furthermore, this exploration seeks to shed light on how Nike manages employee dissent, with a spotlight on its policies and practices in handling internal concerns and grievances The organizational culture at Nike is also a critical aspect of this examination, as it plays a pivotal role in shaping the work environment and how employees interact within the company By addressing these multifaceted challenges, the ultimate aim is to propose a change project that fosters a more inclusive, respectful, and productive work atmosphere at Nike, ensuring that allegations of harassment are properly addressed, employees feel empowered to voice their concerns, and the company's culture aligns

with its mission to empower athletes and inspire positive change This change project aspires to not only enhance the workplace but also to streamline Nike's operations and enhance its corporate image

1 The problem that has occurred within Nike

In 2018, Nike faced allegations of a toxic work culture for women A New York Times investigation found that women at Nike were subjected

to a "bro culture" that included sexual harassment, discrimination, and retaliation The investigation also found that Nike had a "pattern of protecting high-level executives who were accused of wrongdoing." The majority of individuals interviewed by The New York Times requested anonymity, often due to nondisclosure agreements, concerns about potential industry or community ostracization, or because they have family members or spouses still employed at the company, which holds significant sway in the Portland community The surveys, Known as the Starfish Surveys, conducted by the New York Times reveal employees' experiences within the company According to Insider, many women expressed dissatisfaction with HR, said that it was a “joke”, feeling powerless to effect societal change in

a company they perceive as consistently disrespectful to women, essentially labeling it a "boy's club."

One woman recounted witnessing inappropriate behavior in the company gym, while another reported a manager using his influence to avoid consequences for derogatory language Following a 2018 internal investigation, Nike saw the departure of several executives However,

discrimination case victims, contested Nike's claim in 2018 that toxic behavior was limited to a small group, stating, "It wasn't limited to one vertical or one department And it wasn't limited to one manager This was a common experience throughout the company."

The allegations against Nike in 2018 were quite serious and included

a range of discriminatory and harassing behavior Overall, the surveys included specific details and allegations:

Pay Discrimination: The class-action lawsuit filed against Nike alleged that women at the company were systematically paid less than their male counterparts for performing similar job roles The plaintiffs claimed that this wage gap was a result of discriminatory practices and

policies within the company They argued that this pay disparity was a clear violation of gender equality laws

Promotion and Advancement Barriers: Female employees at Nike also alleged that they faced significant barriers to career advancement They claimed that they were often overlooked for promotions and leadership roles, even when they had the necessary qualifications and experience This was seen as part of a broader culture of gender bias within the company

Hostile Work Environment: The toxic culture at Nike was described as fostering a hostile work environment for women Female

harassment, and bullying This included instances of derogatory comments, sexist behavior, and an overall atmosphere that made it difficult for women to thrive in their roles

#MeToo Stories: The #Meloo movement gave voice to many women who had experienced sexual harassment and misconduct while working at Nike These stories included instances of inappropriate conduct by male colleagues and superiors Some women claimed that they had reported such incidents to HR but felt that their concerns were not adequately addressed

Lack of Accountability: One of the major criticisms of Nike was its alleged failure to hold individuals accountable for their actions The company was accused of not taking appropriate action against those responsible for discriminatory behavior and harassment, which contributed to the toxic workplace culture

2 Nike’s response and subsequent actions

Nike's initial response to the article was widely criticized as being dismissive and out of touch The company's CEO, Mark Parker, issued a statement saying that he was "deeply disturbed" by the allegations, but that he was "confident" that Nike was "taking the right steps to address them.” He also said that the company would be "conducting a comprehensive review of our workplace culture."

However, many observers felt that Parker's statement did not go far enough They argued that Nike needed to take more concrete steps to address the allegations, such as firing executives who were accused of wrongdoing and creating a more inclusive workplace culture

In September 2018, Nike released the results of its workplace culture review The report finds that the company has a "historically male-dominated culture" and that there is "a lack of accountability for

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inappropriate behavior." The report also recommends several changes

to Nike's workplace policies and procedures

comprehensive review of its workplace culture, which resulted in a number of changes, including:

New training programs on unconscious bias and respect in the workplace

A new task force to review hiring and promotion practices Increased investment in diversity and inclusion initiatives The creation of a new position of Chief Diversity Officer

Nike also made public commitments to improving its workplace culture In a 2019 letter to employees, Parker said that Nike was

"committed to creating a workplace where everyone feels respected, valued, and empowered." He also said that the company would be

"making significant investments in diversity and inclusion initiatives." Nike has taken steps to address specific allegations of misconduct For example, in 2020, Nike settled a lawsuit with a former employee who alleged that she was sexually harassed by her manager The company agreed to pay the woman $1.5 million and to implement new policies to prevent sexual harassment

Nike has improved gender representation in its leadership positions

As of 2023, women make up 45% of Nike's global workforce, but only 37% of its leadership positions The company has set a goal of having women hold 50% of all leadership positions by 2025

1 Internal Factors influencing the Problem and Success Boys' club culture: Nike's workplace culture has been plagued by

a pervasive "boys' club" mentality, where men are consistently given preferential treatment over women in terms of opportunities, salaries, and promotions This entrenched favoritism has created a breeding ground for misogyny and a lack of accountability for discriminatory actions Women within Nike have faced significant barriers to advancement, restricted opportunities for growth, and unequal compensation compared to their male counterparts This gender inequality has fostered a sense of frustration and resentment among female employees, who have repeatedly voiced their concerns to HR and management

Ineffective HR division: Nike's HR division has faced criticism for its handling of gender discrimination allegations Female employees have reported facing wage disparity, harassment, and other forms of discrimination, yet their complaints have often been met with indifference or dismissal from HR personnel This pattern of neglect has encouraged a climate where wrongdoers face no consequences and created a climate of fear and intimidation among female employees In response to mounting pressure, Nike has implemented reforms aimed

at improving its HR department and creating a more equitable workplace However, the company must remain vigilant in addressing gender discrimination issues and ensuring that HR serves as a resource for all employees, not just a means of silencing their concerns

Sexual harassment incidents: Nike's workplace has been tainted

by instances of sexual harassment, creating an atmosphere of intimidation and fear among female employees These experiences, as shared by women who spoke up against the abuse, paint a disturbing picture of a toxic work environment where male supervisors felt emboldened to make derogatory remarks, belittle their subordinates, and even engage in physical intimidation The prevalence of such behavior has undoubtedly undermined the sense of security and comfort for women at Nike, making it difficult for them to thrive in such

a hostile environment

2 External Factors influencing the Problem and Success Societal gender stereotypes: The roots of Nike's gender disparity issues can be traced back to the broader societal context in which the company operates Gender stereotypes and gender roles, often reinforced through media portrayals and cultural norms, have perpetuated the notion that men are better suited for leadership and decision-making roles The company's male-dominated leadership structure and entrenched gender biases have made it challenging for women to secure promotions, receive equal pay, and gain access to opportunities that would allow them to reach their full potential This systemic discrimination has resulted in a significant gender gap in Nike's workforce, with women holding a disproportionately lower number of senior management positions compared to their male counterparts

Sports industry gender imbalance: The gender disparity issue extends beyond Nike's internal operations and is a prevalent concern

throughout the sports industry The perception of sports as a male- dominated field has deterred many women from pursuing careers in sports and has led to a lack of female representation in both leadership and athlete roles This gender imbalance has deprived the industry of valuable female talent and perspectives, hindering its overall growth and development

Talent attraction and retention: Nike's inability to effectively address these gender disparities has created a significant challenge in attracting and retaining top female talent Women who are aware of the company's history of gender discrimination may be hesitant to join

or remain with Nike, seeking employment opportunities elsewhere that offer a more equitable and inclusive work environment This loss of female talent further exacerbates the gender gap and hinders Nike's ability to achieve its full potential as a global leader in the sports industry

Legal framework and social movements: The resolution of the Nike gender discrimination lawsuit was the culmination of a complex interplay of factors, including a supportive legal and regulatory environment, the growing momentum of the #MeToo movement, extensive media coverage, and mounting public pressure The landscape of employment law provided a solid foundation for the lawsuit against Nike Two key federal statutes, the Equal Pay Act of

1963 and Title VIl of the Civil Rights Act of 1964, established legal grounds for alleging gender discrimination in the workplace These laws prohibited employers from paying women less than men for the same work, creating a basis for legal action against Nike's alleged discriminatory practices The #MeToo movement, which emerged in

2017, had a profound impact on the perception and treatment of workplace harassment and discrimination The movement encouraged women to speak out about their experiences, shattering the silence that had long perpetuated such injustices This shift in societal attitudes created an environment where Nike's alleged actions were scrutinized more closely and held to account

Media scrutiny and consumer pressure: The New York Times' investigation into Nike's gender discrimination practices brought the issue to the forefront of public attention The resulting media coverage exposed Nike's alleged wrongdoings to a global audience, amplifying the voices of the plaintiffs and putting immense pressure on the company The negative publicity forced Nike to confront the issue publicly and demonstrate its commitment to addressing the concerns

raised The public outcry over the lawsuit also extended to Nike's customers As the allegations gained traction, consumers expressed their disapproval of Nike's practices, threatening to boycott the company's products This economic pressure further incentivized Nike

to resolve the issue and address the discriminatory practices that had tarnished its reputation

IV ANALYZING MANAGEMENT TOOLS APPLIED AT NIKE

Nike Inc., facing yet another controversy over gender equality involving its endorsed female athletes, found some success in 2018 in its push to improve the representation of female and minority employees in its workforce, according to the company’s first FY18 Impact Report Below, there are various management methods and tools employed by Nike to address its challenges and achieve success Diversity and Inclusion Initiatives In response to the toxic culture allegations, Nike has placed a significant emphasis on diversity

workforce

In 2018, Nike increased its investment in eight employee-formed and managed communities with a focus on programs advancing career and culture The employee networks collectively known as NIKEUNITED include Ability & Friends, Ascend Network & Friends, Black Employee & Friends, Latino & Friends, PRIDE, Nike Military Veterans & Friends, Native American & Friends, and Women of Nike & Friends Nike wrote,

“Our NIKEUNITED teams meet regularly with their executive sponsors and bi-annually with our executive leadership team to review programming success.”

Moreover, to develop new talent pipelines in design, Nike has created an apprenticeship experience with the community college system of Los Angeles Students gain work experience in design, footwear, apparel graphics, and color as part of a six-month rotational program and an opportunity to apply for open positions at Nike

In the FY18 Impact Report, Nike described 2018 as “a challenging and inspiring year, marked by growth and learnings, and an increased focus on our team and culture.”

In September of 2020, Nike launched a maternity line, targeting the struggles women face due to the body’s rapid changes during and after

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pregnancy Nike advertised this line in its trademark style, portraying a diverse group of female athletes wearing the gear during different stages of pregnancy Likewise, with the company’s many other marketing campaigns, these ads reinforce the idea that Nike stands for inclusivity and equality

Leadership Changes Nike made leadership changes, including the departure of some executives, to signal a commitment to addressing cultural issues

Since the initial news of inappropriate workplace conduct, Parker has said several times the company is taking its corporate culture more seriously Some newer and older initiatives helped drive some progress, according to the FY18 Impact Report

According to Mark Parker, CEO: “We know that we can do better, and we know that we can be better as a more diverse company Incremental change is not enough,” wrote Parker in a letter in the report “So, we're taking intentional action to increase representation, especially across our leadership That includes continuing to expand our pipeline of diverse candidates at leadership levels It also includes holistic approaches across our organization — from mitigating potential bias in the interviewing process to increasing training programs that will help strengthen a culture of belonging.”

Around women’s representation, the report notes that Nike saw a 4 percent increase of VP-level representation for women in CY18 at the global level, leading women to represent 36 percent of Nike’s VPs, up from 32 percent in CY17 and 28 percent in CY16 Nike closed the year with 145 women’s VPs versus 257 male VPs

At the directors’ level, women's representation increased to 39% of all directors at the end of 2018 from 38% in CY17 and 37% in CY16 There were 2,414 women and 3,731 men in director positions at Nike

In June 2018, Nike launched Amplify, an internal development program for high-potential women and URGs at the director and senior director levels Currently, 101 employees are part of the program’s first cohort, which ends in June 2019

Pay Equity Measures Nike has conducted pay equity reviews in

an effort to address gender-based pay disparities Ensuring equal pay for workers can be ensured by taking this practical step Nike