Nike's top HR exec told employees that the company "has 'failed to gain traction'" in hiring and promoting women and minorities, weeks after "complaints of inappropriate workplace behavior" led to a leadership shake-up, according to Sara Germano of the WALL STREET JOURNAL. In a memo to staff yesterday, Nike Exec VP/Global HR MONIQUE MATHESON wrote the company wants "to create a culture of true inclusion. As part of our plan, we need to improve representation of women and people of color." Matheson disclosed that 29% of Nike's VPs are women, even though the company's global workforce is "evenly split between men and women." She also wrote that in the U.S., 16% of VPs are "nonwhite." Matheson wrote that among the changes, Nike will seek to “'remove bias from critical moments of the hiring process' by enabling blind resume reviews and eliminating the collection of salary histories." Last month, Nike Chair, President & CEO MARK PARKER told employees the company "had received complaints of inappropriate workplace behavior, and that the company would undergo a review of its human-resources department and leadership teams" (WALL STREET JOURNAL, 4/5). CNBC's Sara Eisen said all the recent issues at Nike are a "warning shot for other consumer companies and consumer brands." Eisen: "Millennial customers are going to increasingly care, and employees as well, about diversity within the organization and they're going to have to pay attention." She added Nike is "going to lead when it comes to making these kinds of changes" ("Squawk on the Street," CNBC, 4/5).
GETTING OUT IN FRONT: CNBC's Brian Sullivan said of Matheson's memo, "This is a big internal ... push, a move (because) Nike realizes they've got some problems." CNBC's Eric Chemi said it was interesting because Nike "did this all from the inside" whereas other companies had an "external nudge" to address their issues. Chemi: "You've got to give them some credit. They took the responsibility first before it came out in the press." Sullivan: "They deserve, I suppose, a little bit of credit for doing this on their own." Chemi said Nike has an "opportunity to set their own agenda without being pressured by media outlets but they do know they've got a big target on their back" ("Worldwide Exchange," CNBC, 4/5).
