NIKE: Individualized Donation and Time Contribution
We all instantly recognize the Nike Swish symbol, and their energizing byline "Just Do It." Nike has been very successful in building an image and feeling that we easily identify with. This is mainly because Nike has cleverly set up a program that taps into our self-image and looks to explore "the vast potential in individuals". This is enhanced by their company statement of purpose "to bring inspiration and innovation to every athlete in the world" (and according to Nike if you have a body, you are an athlete). Anyone who has been exposed to their electrifying ad campaigns and design has been stirred by the Nike concept. Still Nike is realizing that it has to deliver on its values through more than just great products. Nike is heavily involved in building their brand experience, from specially designed Nike stores, Nike towns, and other projects that look to tap into consumers desire to be part of something bigger. Nike states on their website, "We feel lucky to have a genuine, altruistic reason to be: the service of human potential. That's the great benefit of sports, and we're glad to be in the middle of it."
In the UK, Nike is getting involved in an exciting project to help improve education by promoting healthy living and physical activity, especially among kids. Nike has teamed up with the UK department for Education and Skills and London schools, and has transformed playgrounds into colorful "Zoneparcs" that provide exciting activities such as sports, action skill games, or ball games. Nike even provides special "kits" for children who act as "Nike Monitors" on the playgrounds. The kids absolutely love the playgrounds, and the schools are raving about increased school attendance, and fewer disruptions from rowdy kids. And Nike's commitment is building their cultural capital through this brilliant idea. Nike plans on having over 300 of these Zoneparcs all over the UK, all building on Nike's commitment to mentoring, responsibility and cooperation.
Nike also actively encourages its employees to be active in their communities. If a U.S. based employee contributes to a qualified non-profit organization, they match the contribution, dollar-for-dollar, up to $5,000 per employee per year. When a U.S. based employee volunteers for a qualified non-profit organization, they donate $10 for every qualifying hour of volunteer work. (In fiscal year 2005, Nike's matching contributions totaled more than $2.8 million in the U.S.). In Europe, employees participate in the Sport4ACause Fund, which engage them in charitable sporting events, and Nike matches the funds they raise. In the UK, their "EXTRA TIME" program gives employees six days per year for volunteer activities. By allowing the employees to find their own programs, Nike frees employees to reach in a more personalized manner, donating through Nike's innovative and unique sports-approach.
Nike came under fire because of "sweatshop" practices, and this seriously tarnished its image. Nike has literally evolved their production image in hopes of providing a "cleaner" product. They are making their move by shifting from outsourcing labor monitoring to a team of trained, internal monitors who also work in close connection with the Fair Labor Association. Nike's program involves identifying risk, uncovering problems and implementing strategies that can be used to drive performance. They realize that the money they saved with cheap production was not worth the net loss in cultural capital. Not convinced? Nike takes us one step further inviting us to digitally enter one of their production factories. On their website clients can access video, testimonials and a conclusive address list of every location from which they create their product creating the image that "responsibility and competitiveness go hand-in-hand. And what is the effect of all of these experience innovations? Nike has reported record financial performance for 2005, and they achieved double-digit growth for the first time in a few years. Nike has battled through criticism, and with innovative experience offerings is again becoming the powerhouse in retail sports wear.