Abstract

American footwear and apparel company Nike Inc. (Nike) had fostered a diverse and inclusive culture and did not discriminate against its workers based on their gender, race, ethnicity, or sexual orientation. It focused on equitable and inclusive practices to empower its workforce. The company stated that it treated its employees equally and with gender pay parity. However, in 2018, some of its women workers complained of gender discrimination and sexual harassment and of being underpaid compared to their male colleagues. The company also observed that women and People of Color held a few senior-level positions. Consequently, the company made efforts to increase the representation of women globally and of racial and ethnic minorities in the US. Since Diversity, Equity, and Inclusion (DEI) initiatives were top priorities for Nike, it appointed James Loduca (Loduca) as its new chief DEI officer in March 2023. Loduca’s challenge was to promote, support, and elevate diversity at Nike, tackle allegations related to gender discrimination and sexual harassment at the workplace, ensure pay equity, and foster an inclusive workplace culture. He also had to create a more equitable future for Black Americans in the company in the US. With Nike as an example of a company with both DE&I shortcomings and accomplishments, students can get to understand the concepts of diversity, inclusion, gender discrimination, racial discrimination, gender equity, and pay parity, and how to apply them in business settings.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Express a cogent understanding of why diversity, equity, and inclusion are good for the sports apparel industry
• Analyze how companies can increase representation of Blacks in senior-level positions
• Evaluate how companies can tackle the challenge of gender disparity and recruit more women in senior positions in organizations
• Develop a deeper understanding of why DEI leaders fail
• Develop ways in which companies can strive for workplace diversity, equity, and inclusion

Keywords

Inclusive work environment; Racial discrimination; Sexual harassment; Lesbian, gay, bisexual, and transgender (LGBT) workers; Diverse talent; Boys club culture; Starfish survey; John Donahoe Historically Black Colleges and Universities (HBCUs); Employee Resource Groups; Serena Williams Design Crew; Harlem’s Fashion Row; US Equal Employment Opportunity Commission; US equal-pay law; Black at Nike