a sports retail problem and, in fact, some sports retailers do an excellent job treating women equitably, Powell said. A Division of NBCUniversal. The word toxic has been thrown around in recent months to describe Nike's workplace, and with similar events occurring elsewhere in the sports retail space, it may not feel like a stretch to apply it to other companies as well. Multiple executives have left Nike because of reports of inappropriate behavior and poor workplace conduct. "I'm in 100 (percent), and I'm counting on you to be all-in too. "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. So far, Portell points out, Nike's problem may be more legislative than culture-related — a system that's unfair more than a culture, though that's yet to be decided. Gender-related discrimination and misconduct claims have popped up at companies in every industry from entertainment to ride-sharing apps this year. "I don't know that these problems are systemic to just sports brands. The off-pricer plans to liquidate its 13 stores. Subscribe to Retail Dive to get the must-read news & insights in your inbox. 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 … It's not just a sports retail problem and, in fact, some sports retailers do an excellent job treating women equitably, Powell said. 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. . 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. ", —CNBC's Sara Eisen and Jessica Golden contributed to this report. All Rights Reserved. Gender-related discrimination and misconduct claims have popped up at companies in every industry from entertainment to ride-sharing apps this year. Lululemon's issues, at least for now, seem to have been tied to one executive. Parker outlined steps Nike is taking to change its corporate culture, including shifting the company's vision and behaviors it expects. 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. © 2020 CNBC LLC. Under Armour did not immediately respond to Retail Dive's request for comment. The reexamination of corporate culture at Nike stretched out over the intervening months, leading to higher salaries for some employees, promotions for others and a lawsuit which alleged that gender discrimination issues at Nike are more systemic than just a few instances. He told employees he can lead the change but he can't do it alone, and it's going to take everyone. They're not all the same scope, Greg Portell, a lead partner in the global consumer and retail practice of A.T. Kearney, told Retail Dive in an interview. 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. 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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. Discover announcements from companies in your industry. Carreon-John continued: “We are determined to take insights we have gained to build a culture that is truly inclusive, respectful and representative of diverse thoughts, backgrounds and experiences. 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. "If there are more stories, if there are more harmed people, if they truly don't walk the walk, I think there's potentially more long-term harm here," he told Retail Dive in an interview, stressing the importance of both retailers following through on promises to fix their respective cultures. The holidays are here. 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. On the heels of Nike's high-profile issues, controversies about corporate culture have befallen Adidas and Under Armour in recent weeks as well. Protests against systemic racism this year pushed retailers to take a magnifying glass to diversity, and many areas are lacking.
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