Nike has suffered major scrutiny the last couple years for the maltreatment of their outsourced employees and unethical labour practices. Because of this public shaming, Nike’s brand image has been tainted and their sales have suffered. However, the company has worked hard to rebuild their image.
Honesty and transparency are now a priority for the global brand. They have completely open to the labour issues that they have faced and are taking steps to improve them. By raising their minimum wage, improved work site safety and ensuring clean air, Nike is trying to make a change and communicate thus to their customers. See: http://www.businessinsider.com/how-nike-fixed-its-sweatshop-image-2015-6, for more details.
But is it enough? Can a company that was so incredibly unethical repair their image by simply being transparent? Nike did not think so. On Monday, February 22nd, Philip Knight, the co founder and chairman of Nike gave 400 million dollars to Stanford University. The money is intended for recruited graduate students from around the world to address some of the globe’s major economic and environmental problems (poverty and climate change).
This donation will hopefully improve Nike’s brand image in the eyes of their target customers. By donating such a large amount of money, Nike is communicating their commitment to real change to, not only their current consumers, but hopefully new ones as well. Nike is showing the world that they are not as concerned about profit alone and that they are willing to give up $400 dollars in order to help society as a whole. Hopefully, through this act, Nike will be able to shift their image to more sustainability minded company, rather then one that is known for the maltreatment of their employees.
Braelyn Fedun
March 9, 2016 — 11:02 am
Great post Danielle – super informative, I had no idea Nike donated $400 million dollars. I wonder how effective this has been on improving their tainted brand image? I fear that consumers will see this as a “band aid” solution to the problem at hand. Just because they are donating large sums of money, and incorporating transparency into their business model does that mean they have really changed? I sure hope so – but you never know! Regardless, I think Nike is taking the right steps towards change, which is great to see.
mollyh
March 20, 2016 — 12:26 pm
I think the donation that Nike made was a push in the right direction and investing in young graduates to come up with sustainable recommendations is an innovative and creative strategy that allows for a diverse dialogue.
Although I feel that donating money is more of a passive approach to sustainability. I think Nike needs to become more engaged and active in the sustainable movement. Nike needs to start practicing what they preach and become leaders of change starting with their business model. They must re-evaluate their internal business operations and learn from successful sustainable businesses. Nike needs to start making decisions with front-end thinking in mind because change starts with the business.
Gabriel Cheung
March 20, 2016 — 6:34 pm
I think Nike does deserve to be forgiven. Nike sweatshops haven’t really been an issue since the 90s and it is clear that the company is taking a strong stance to treat their workers fairly by being honest and transparent about their business practices. Even if people do think that Nike is just doing these actions to improve their brand image, the 400 million dollars given to Stanford University is a pretty expensive price in order to do so. It is time for people to stop criticizing Nike about their past issues, and start focusing on what the company is doing right presently.
Tessa Yin
April 10, 2016 — 10:21 pm
Wow that’s a lot of money! I think Nike is trying to pick itself up piece by piece, by donating that amount to create a global conversation about sustainability and conservation is definitely going in the right direction. However, I am a little skeptical because if Nike has the capacity to donate millions of dollars to its chairman’s alma mater, should they have launched actual projects in developing countries instead? Perhaps making sure the working environments of its manufacturers overseas are in great working condition, or establishing new regulations and higher pays. It’s great that Nike is beginning to fund researchers and graduate students, but hopefully actual change will happen in front of our eyes!