NIKE INC.

03 Performance Task 1

Submitted to
Mrs. Lea Nerdelita L. Baylen
STI College Lucena

In Partial Fulfillment
of the Requirements of the Subject
STRATEGIC MANAGEMENT

Group 2
Asinas, Karl Marx - 95
Eyatid, Allan Vincent - 95
Opehalda, Maria Liena Mae - 95
Penaranda, Hannah Li - 95
Tesiorna, John Rovic - 95

BSBA 3/2-1

February 2025
 STRATEGIC MANAGEMENT PAPER
NIKE
I. Company Background
History
It was founded in 1964 and has since established itself as a global leader in supplying sportswear
and equipment to provide athletes with coats of excellence. Founded as Blue Ribbon Sports, by
Bill Bowerman and Phil Knight, this was at first a distributor for the shoemaker Onitsuka Tiger
from Japan. In 1971, the company had a name change to Nike, named for the Greek goddess of
victory. Thus, the legendary swoosh logo was conceived, and is one of the highly recognizable
brand symbols worldwide since inception.
Throughout the 1970s and 1980s, Nike revolutionized the athletic footwear industry with
innovations such as the Nike Cortez for long-distance runners and the Nike Air technology for
cushioning and performance. The brand's association with high-profile athletes, such as Michael
Jordan and the market phenomenon that his Air Jordan line became, certainly helped bolster the
brand's visibility and market share.
And that rebranding turned out rather prosperous because from that point, Nike caught
significant success. Currently, Nike has over 1,000 retail stores across the globe with 380-plus
stores in the US.
Mission
“To bring inspiration and innovation to every athlete in the world. If you have a body, you are an
athlete.”
Nike's mission statement, "to bring inspiration and innovation to every athlete in the world,"
reflects its commitment to creating modern, style-focused sports apparel that aids athletes of all
abilities in reaching peak performance levels. The company envisions itself as a leader in sports
and fitness, motivating and offering new ideas to athletes of all ages and backgrounds. Nike's
advertising campaigns and product design process reflect this vision, focusing on inspiring and
innovative sporting items. The mission statement promises that high-quality solutions are
accessible to everyone, regardless of their economic standing or demographic profile.
Vision
“To do everything possible to expand human potential.”
Nike’s vision statement is to “do everything possible to expand human potential.” Nike's vision
statement emphasizes expanding human potential through innovative sports products and
empowering athletes mentally and physically. The company provides modern sports apparel for
all experience levels from beginners to professionals, offering cutting-edge designs powered by
reliable resources and services.
Objectives
 Creating innovation
Nike aims to create groundbreaking sports innovations and make its products more sustainable.
 Supporting athletes
Nike's mission is to support every athlete in the world, regardless of their athletic ability.
 Expanding access to sport
Nike aims to expand access to sport for everyone, including leveling the playing field and
protecting the planet.
 Building a diverse and inclusive workforce
Nike aims to create a more equitable and inclusive workforce by advancing gender equity and
representation across race.
 Moving towards a zero-waste future
Nike's "Move to Zero" program aims to eliminate its dependence on natural resources and create
a circular supply chain.

Policies
Nike Code of Conduct
 Prohibits child labor
 Requires workers to be at least 16 years old, or the minimum working age, whichever is
higher
 Prohibits hazardous work for workers between 16 and 18 years old
 Requires employees to act ethically and live by Nike's values
 Promotes healthy lifestyles and workplaces
 Prohibits violence and threats of violence
Corporate Governance Guidelines
 Monitors the effectiveness of policies and decision-making
 Focuses on corporate responsibility, sustainability, human rights, and more
 Reviewed annually by the Corporate Responsibility, Sustainability & Governance
Committee

II. Corporate Social Responsibility

Nike, as a leading global brand, integrates sustainability into its business model by following the
Triple Bottom Line (TBL) framework, which focuses on profit (economic), people (social), and
the planet (environmental). The company ensures long-term financial success by developing
sustainable materials, optimizing its supply chain, and implementing cost-efficient strategies. For
example, Nike uses Flyleather, made from 50% recycled leather fibers, and Nike Air soles,
produced with at least 50% recycled materials. Additionally, Nike’s Lean Manufacturing
principles reduce waste and improve efficiency, ensuring continued profitability while
minimizing environmental impact.
Nike also prioritizes social responsibility by promoting fair wages, ethical labor practices, and
community development. The company enforces a strict Code of Conduct for suppliers, ensuring
safe working conditions and prohibiting forced or child labor. To further support workers, Nike
collaborates with the Fair Labor Association (FLA) for factory audits. Beyond labor rights, Nike
invests in community programs like Made to Play, which provides sports opportunities for
underprivileged youth, and the Girl Effect Partnership, which empowers young women through
education. Additionally, Nike supports diversity, equity, and inclusion (DEI) initiatives, pledging
$40 million to organizations advocating for racial justice.
In terms of environmental responsibility, Nike is committed to reducing its carbon footprint,
waste, and water usage. The Move to Zero initiative aims for zero carbon emissions and zero
waste, with the company transitioning to 100% renewable energy in its facilities by 2025. Nike’s
Flyknit technology significantly reduces waste by using recycled polyester in its production,
cutting material waste by 60% compared to traditional manufacturing. Additionally, Nike diverts
millions of plastic bottles from landfills by repurposing them into high-performance apparel and
shoes.
Nike continues to innovate by integrating circular business models and sustainable product
designs. Programs like Nike Refurbished allow customers to return lightly used shoes for resale
at a lower price, reducing waste while maintaining product quality. The Reuse-A-Shoe Program
repurposes old footwear into Nike Grind, a material used in sports courts and playgrounds. The
company also applies waterless dyeing technology (ColorDry) and participates in the ZDHC
(Zero Discharge of Hazardous Chemicals) program to ensure environmentally safe production
processes.
Overall, Nike successfully aligns with the Triple Bottom Line (TBL) by balancing economic
growth, social responsibility, and environmental sustainability. By reducing waste, using
renewable energy, ensuring ethical labor practices, and investing in community programs, Nike
strengthens its brand while contributing to a sustainable future. Through continuous innovation,
Nike proves that profitability and sustainability can coexist, setting a strong example for other
corporations worldwide.

III. Corporate Governance

Nike, Inc. has implemented a comprehensive corporate governance framework to ensure
effective oversight and strategic guidance. The company's Board of Directors comprises a
majority of independent directors, adhering to the New York Stock Exchange's independence
standards. The Board has established four standing committees:
1. Audit & Finance Committee: Oversees financial reporting and disclosure.
2. Compensation Committee: Manages executive compensation and related policies.
 3. Corporate Responsibility, Sustainability & Governance (CRS&G) Committee:
Reviews significant strategies, activities, and policies regarding sustainability, labor
practices, community impact, and charitable activities.
4. Executive Committee: Chaired by the CEO, this committee supports the efficient
functioning of the Board by taking actions on its behalf between regular meetings.
Nike's corporate governance guidelines emphasize enhancing long-term shareholder value and
corporate purpose, including corporate responsibility, sustainability, human rights, global
community and social impact, and diversity and inclusion. The company also maintains a Code
of Conduct to guide ethical behavior across all levels. Overall, Nike's corporate governance
initiatives reflect a commitment to ethical practices, sustainability, and responsiveness to
stakeholder concerns.
Goals and Risk Management:
Nike’s Board of Directors establishes comprehensive policies to manage both short-term and
long-term business objectives. The Audit & Finance Committee plays a key role in overseeing
financial reporting, internal controls, and risk assessment. Nike’s enterprise risk management
framework helps identify potential business risks, including those related to supply chain,
cybersecurity, and sustainability, enabling proactive strategies to mitigate them.
Corporate Accountability:
Nike maintains high standards of corporate accountability through an independent Board, strong
leadership roles, and a Code of Business Conduct. The Corporate Responsibility, Sustainability
& Governance (CRS&G) Committee ensures that corporate policies align with ethical standards,
focusing on sustainability, labor practices, and social impact. This framework promotes
transparent reporting and holds executives accountable for performance and ethical conduct.
Shareholder Meetings:
Nike conducts regular shareholder meetings, providing updates on financial performance,
strategic goals, and key initiatives. Shareholders have the opportunity to engage with the Board,
ask questions, and vote on critical governance matters. Nike’s investor relations portal offers
continuous updates, ensuring transparency and fostering investor trust.
Government Regulations:
Nike complies with global regulatory requirements, focusing on financial disclosures,
environmental practices, and ethical labor standards. The company’s compliance programs
address anti-corruption, data privacy, and human rights issues, particularly within its supply
chain. Nike also publishes sustainability reports that detail its efforts in reducing environmental
impact and promoting fair labor practices.
IV. Management Lessons Learned
Nike's transformation from Blue Ribbon Sports in 1964 to a global sportswear powerhouse
showcases its ability to innovate and build a strong brand identity. The company's success is
largely attributed to its technological advancements, such as Nike Air and Flyknit, as well as
strategic athlete endorsements, including the iconic Air Jordan line. These factors have helped
Nike maintain a dominant position in the global market, with over 1,000 retail stores worldwide.
Nike’s mission and vision emphasize inspiration, innovation, and human potential. The company
is committed to creating high-quality sportswear that caters to all athletes, regardless of skill
level or background. Its objectives align with these principles, focusing on innovation, athlete
support, accessibility in sports, workplace diversity, and environmental sustainability. Nike's
"Move to Zero" initiative highlights its ambition to eliminate waste and reliance on natural
resources, reinforcing its commitment to sustainability.
Corporate social responsibility is another pillar of Nike’s business model, integrating economic,
social, and environmental considerations. Economically, the company balances profitability with
sustainable business practices, such as improving its supply chain efficiency. Socially, Nike
upholds fair labor practices, provides safe working conditions, and invests in community
programs, particularly those promoting sports and education. Environmentally, Nike is reducing
its carbon footprint through the use of sustainable materials and renewable energy, aiming to
achieve zero waste and carbon neutrality in the future.
Nike also upholds strong corporate governance to ensure ethical and strategic decision-making.
Its Board of Directors includes independent members and several key committees, such as the
Audit & Finance Committee and the Corporate Responsibility, Sustainability & Governance
(CRS&G) Committee. These committees oversee financial transparency, executive
compensation, and sustainability efforts. Nike’s corporate accountability framework ensures
compliance with global regulations, including labor rights, anti-corruption policies, and
environmental standards. The company also maintains open communication with shareholders
through regular meetings and transparent reporting.
V. Bibliography

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