Organizational Behavior : NIKE

Summary

Nike's internal turmoil over sexual harassment and gender discrimination came to light through a covert survey conducted by female employees. Allegations of toxic workplace culture, including harassment and exclusion, led to the departure of several high-ranking executives, including Nike's president. The company is now focusing on promoting diversity and inclusion through various strategies, such as improving recruitment, offering mentorship, and enhancing transparency in pay. These measures come in response to both employee concerns and broader corporate diversity issues, reflecting Nike's efforts to overhaul its organizational culture and address ongoing inequalities.

Takeaways

• 😀 Nike joined the Me Too movement, addressing allegations of sexual harassment and discrimination within the company.
• 😀 A group of women at Nike conducted a covert survey to highlight toxic workplace culture, leading to significant changes at the top.
• 😀 Allegations included women being passed over for promotions, marginalized, and sexually harassed, with HR responses failing to bring about real change.
• 😀 The informal survey detailed issues like inappropriate behavior from male managers, including sexual advances and carrying explicit materials.
• 😀 The results of the survey reached CEO Mark Parker in March, leading to the departure of high-ranking male executives, including Trevor Edwards.
• 😀 Mark Parker announced changes at Nike, emphasizing a commitment to inclusivity and elevating company culture.
• 😀 A 2016 McKinsey study outlines five solutions to solve general diversity problems, including mentorship, inclusive recruitment, and flexible working options.
• 😀 Mentoring women in leadership positions is crucial for their professional development and helps address systemic barriers.
• 😀 Blind recruitment processes can help mitigate unconscious bias and ensure candidates are evaluated based on merit, promoting inclusivity.
• 😀 Flexible working options, especially for women with children, help retain experienced employees and reduce discrimination against older women.
• 😀 Nike has introduced pay adjustments for 10% of its workforce, aiming to meet diverse employee needs and foster a more inclusive environment.

Q & A

What triggered the internal revolt at Nike regarding workplace culture?

The revolt at Nike was triggered by allegations from women employees who felt marginalized, passed over for promotions, excluded, and sexually harassed. These women banded together to circulate a secret survey that revealed a toxic work culture, which was then presented to the company's CEO.

How did Nike's leadership respond to the findings of the covert survey?

Nike's CEO, Mark Parker, acknowledged the results of the survey and implemented significant changes, including the departure of several male executives accused of sexual harassment. This also led to a commitment to continue improving the company's culture of inclusion.

What were some of the allegations shared by women employees at Nike?

The allegations included instances of a manager trying to kiss an employee in a bathroom, and another manager bragging about carrying condoms in his backpack and magazines with scantily clad women on the covers. These complaints contributed to the revelation of a toxic culture at Nike.

How did Nike address the gender pay gap issue in its workforce?

Nike raised the pay for 10% of its total workforce as part of an effort to address the gender pay gap. This increase was aimed at employees across various levels, geographies, functions, and brands, reflecting the company's commitment to improving pay equity.

What diversity solutions did the McKinsey study suggest for improving gender equality in companies?

The McKinsey study suggested several strategies to improve gender equality, including setting up mentoring programs, making recruitment processes more inclusive, offering flexible working options, and ensuring transparency around the gender pay gap.

Why is mentorship considered a key solution to promoting gender equality in the workplace?

Mentorship is seen as a key solution because it helps employees, especially women, develop professionally by providing guidance and support. It ensures that their professional growth is taken seriously and that they are encouraged to seek new opportunities.

What is blind hiring, and how does it contribute to reducing unconscious bias?

Blind hiring is a process where employers evaluate candidates based solely on their skills and experience, without being influenced by unconscious biases. This approach helps to ensure that hiring decisions are made fairly, contributing to more inclusive workplaces.

How does flexible working contribute to retaining women in the workforce?

Flexible working options help retain women in the workforce by allowing them to balance career and family responsibilities. This flexibility prevents career stagnation, especially for women with children or those in senior roles, and can help keep them on track for promotions.

What did Nike's pay increase initiative involve, and who benefited from it?

Nike's pay increase initiative involved raising the pay for 10% of its workforce, which translates to around 7,000 employees. The increase was distributed across various levels, regions, and functions, as part of a broader effort to address pay inequality.

How did the departure of several high-ranking executives impact Nike's corporate culture?

The departure of several executives, including those implicated in the sexual harassment allegations, highlighted the need for a cultural shift at Nike. It prompted the company to take steps toward a more inclusive environment, with a focus on tackling gender discrimination and improving workplace dynamics.