NIKE, Inc. Corporate Responsibility Report FY07-09
CH 05
COMMUNITIES
OVERVIEW
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Our Approach
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On the Horizon
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COMMUNITY INVESTMENT
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Target and performance 132
Our Approach 132
SOCIAL IMPACT 138
Target and Performance 138
Approach 138
CASE STUDIES 142
Homeless World Cup 142
ninemillion 143
The Nike Foundation 144
NIKE, Inc. Corporate Responsibility Report FY07-09
To access the full NIKE, Inc. FY07-09
CR Report, with additional features
including videos and an interactive
map, please go to
www.nikebiz.com/crreport.
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CH 05
COMMUNITIES
Overview
OUR APPROACH
Nike has a long history of engagement in communities around the
world, investing in our backyards, key markets, manufacturing
communities and on specific issues that we champion.
Over the past three years, NIKE, Inc. has invested in communities
through a combination of cash, product and in-kind contributions.
While far from the finish line, we are on target to achieve our
FY11 goal of $315 million in contributions. In FY07-09, our direct
community investment totaled $168.8 million. But dollar figures
alone do not tell the whole story.
Our investment in communities extends beyond writing checks
and making financial contributions. It involves contributing a
broad range of expertise and support across the full spectrum
of modern philanthropic activity. We detail the history of our
community involvement approach, including our response to
international crises and our community giving guidelines in our
FY05/06 CR Report and online at nikebiz.com/responsibility.
In FY07-09 we worked across the entire spectrum, particularly
in ways that tap innovation and will create deeper social impact.
High
Our community investment strategy has three primary areas of
focus: the Nike Foundation, brand and retail engagement, and
innovating for a better world through sport.
Social venture capital
Co-investment funds
Advocacy
Level of Involvement
Development of social business models
Support of social entrepreneurship
Hybrid business models
Cause marketing
Capacity building of organizations
Donation of business acumen
Volunteerism
Grant-making
Low
Contributions of cash and product
Low
Level of Impact/Scalability
NIKE, Inc. Corporate Responsibility Report FY07-09
High
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COMMUNITIES
1. As a separate nonprofit organization (a 501(c)(3)), the Nike
Foundation focuses on adolescent girls in the developing
world as powerful agents of change in their communities,
capable of unleashing a ripple effect that will change the
course of poverty. The Foundation manages a portfolio
of investments and strategic approaches in support of
this mission, including: Community Investment grant
making, donation of business acumen, capacity building of
organizations, support of social entrepreneurship, advocacy
and co-investment of funds. Over the last three years, the
Nike Foundation invested $41.9 million against this strategy.
Over the six-year life of the Nike Foundation, it has committed
more than $100 million to benefit adolescent girls.
2. We leverage the power of our brands (Nike as well as affiliates
Cole Haan, Converse, Hurley and Umbro) to connect with
our consumers on issues they care about deeply. We
manage a portfolio of investments in custom product lines,
marketing campaigns, events and athlete engagements
that have triggered donations from consumers, amplifying
our initial investments. Some notable projects include
Nike’s commitment to LIVESTRONG and the Human Race,
Hurley’s H2O water initiative, Cole Haan’s Penny Harvest
and the Converse (Product) RED.
3. Our commitment to channel innovation for a better world
includes tapping the power of sport for social change. Nike
believes that every young person in the world should have
access to sport and have partnered to develop and deliver
programming and activities, including the Homeless World
Cup and ninemillion.org toward this end.
In FY07-09, we began transitioning our community programs to
focus on efforts that call attention to replicable, scalable projects
and programs that serve as inspiration for community-based
sports organizations and governments. Many of these programs
are multi-year commitments, recognizing that systemic change
is not a 12-month endeavor but an opportunity to accelerate and
amplify the work of organizations that are active and making a
difference within communities.
We challenge ourselves to embed these initiatives more deeply
into our consumer-facing brand experiences, to ensure that
consumers have greater opportunity to take action.
To meet these goals, in the future, we will be mobilizing more of
our funding to focus on the higher-value areas of involvement,
including support of social entrepreneurship, development of
social business models, advocacy and co-investment of funds.
As we look to the future, some elements of our strategy will
continue, while others will evolve. We expect the Nike Foundation
to continue on its trajectory of putting girls on the global agenda,
pushing for investments and policies that will ultimately lift
millions of girls – and therefore their families – out of poverty.
Within all our investment strategies, as we seek to make lasting
positive change, we will explore further two core approaches:
1. A focus on creating new models to provide young people
access to the power of sport (be it in unleashing their
confidence, leadership, health, education or employment).
2. Leverage philanthropy mechanisms that enable our
ON THE HORIZON
As the vibrancy and vitality of communities around the world
relies on support and involvement of all players – government,
business, NGOs, individuals – economic pressures constrain the
available resources. This is where sport can show its tremendous
value and provides opportunity.
We estimate that in the U.S. alone, $2 billion in funding for sport
has been eliminated. On a daily basis, we hear stories of kids
who are no longer able to access sport due to these cuts, and
who do not have the means to pay for the same access once
provided through schools and sports bodies. Meanwhile, in
the debate on health care and wellness, we see research that
shows that for every $1 invested in sport, $4 is saved in health
care costs.
Sport has a positive impact on economies around the world. As
such, it has the potential to be a powerful lever in sustaining or
rejuvenating communities. But today its potential is undervalued.
In response to these challenges, Nike sees an opportunity. We
are driven by our passion and commitment for sport, and we
use this to uncover, support and elevate people, ideas and
opportunities that demonstrate how sport can change the world.
NIKE, Inc. Corporate Responsibility Report FY07-09
partnerships to scale without limits and create financial
flows that ensure long-term success.
We will push for models of success through our community
work that delivers both social and economic returns. Economic
sustainability of our partner programs is very important to us.
We want them to thrive without reliance on one funding source
or partner. Where we can, we work to help our partners become
self-sustaining by creating new services and experiences that
spark the development of models that can be shared and scaled.
To support organizations working to address critical challenges
at the community level through sport, we aim to introduce new
innovation models to our investment portfolio that are targeted
toward the creation of new social capital, helping to bring
innovative ideas or perspectives to old problems. We want to
seek and apply innovative solutions and strategic business
models to our partnerships, incorporating technology and other
tools as appropriate.
As we create partnerships around these leading-edge
innovations, we will hold ourselves and our community partners
accountable to measure and report our progress.
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