Nike and Societal Issues

Nike, as a global leader in athletic footwear and apparel, experiences significant dilemmas when choosing which societal issues to confront. In the contemporary business landscape, stakeholders—including investors, customers, employees, and communities—expect companies to address a range of controversial topics such as racial justice, gender equality, climate change, and voting rights.

The challenges for Nike are multifaceted. Key decisions rest on whether an issue aligns with Nike’s “Purpose Pillars,” which include commitments to people, the planet, and play. These pillars guide Nike’s strategy and operations, helping determine whether to engage with a particular issue. For example, diversity and inclusion directly relate to Nike's core consumers and historical partnerships, making them integral to its brand identity.

However, Nike must navigate the risks associated with taking a public stance. Missteps can impact reputation, consumer loyalty, and sales. The company carefully assesses the potential impact on various stakeholders, including employees and athletes, before deciding to engage. This assessment is critical since different groups may have conflicting expectations or reactions to the company’s position on contentious issues.

A dedicated team, including CEO John Donahoe, evaluates these factors, exploring implications and weighing potential risks and benefits. This thorough vetting process ensures Nike’s responses are consistent with its core identity and capability to make a meaningful impact.