II. Make Today Better

Community

Introduction

See the Support Communities dashboard for an update on our performance

We leverage the power of our employees, brands, consumers and partners to support organizations and collaborations that create positive long-term changes that expand access to sport, empower adolescent girls in the developing world, and support the communities in which we live, work and play.

We focus on finding the most effective and innovative approaches and programs for driving change and then test and refine them before taking them to scale. Our community spend totaled $95.5 million over the two fiscal years covered in this report. This includes cash, product and in-kind donations.


NIKE, INC. TOTAL CASH, PRODUCT & IN-KIND CONTRIBUTIONS
(IN MILLIONS USD)
FY12 FY13
Cash $27.9 $34.9
Product/In-Kind $14.9 $17.8
Total $42.8 $52.7

NOTE: As of this reporting cycle, we have adopted an improved methodology to calculate our community contributions, incorporating a range of best practices. This allows for greater comparability in our spending and establishes consistent guidelines across our geographies.

Access to Sport

Kids are designed to move, yet today’s children are the most inactive generation in history. If no change occurs, according to research, half of all Americans and Chinese are projected to be physically inactive, along with a third of the British and Brazilian populations by 2030. That’s about 1 billion people. Physical inactivity has reached epidemic levels that threaten social and economic prosperity for individuals, companies and nations around the world. 

At NIKE we see a future where kids are running, jumping and kicking to reach their greatest potential. We assembled an Access to Sport team to address this issue, and the first step was recognizing that no one can solve it alone. 

In 2011, our Access to Sport team began working with more than 70 expert organizations to develop Designed to Move (see designedtomove.org), a framework for action supported by public, private and civil sector organizations. The framework was co-authored by the American College of Sports Medicine, the International Council of Sport Science and Physical Education, and NIKE. It highlights the growing epidemic of physical inactivity, including its costs and consequences, and outlines the benefits of physical activity and a simple call-to-action to help end this crisis: 1) create positive experiences for children in sports and physical activity, and 2) integrate physical activity into everyday life. 

The following examples showcase how NIKE’s efforts have brought this issue and its solutions to the forefront in FY12 and FY13: 

  1. Raise Awareness – Get Physical Activity on Global Agendas The costs and consequences of physical inactivity have been grossly under-appreciated. For instance, most people are shocked to learn that mortality rates related to physical inactivity now exceed those attributable to smoking. We worked with corporate, government, academic and sports industry leaders to get physical activity on agendas in global forums such as the Clinton Global Initiative, the World Economic Forum, the World Federation of Sporting Goods Industry’s General Assembly and the International Olympic Committee’s “Sport For All” Conference. To date, more than 100 organizations have officially aligned under Designed to Move, adopting a common language to collectively advocate for urgent change. 
  2. Create Active Schools – Because Active Kids Do Better NIKE, represented by President & CEO Mark Parker, partnered with US First Lady Michelle Obama; Partnership for a Healthier America; the Alliance for a Healthier Generation; the American Alliance for Health, Physical Education, Recreation and Dance; the President’s Council on Fitness, Sports & Nutrition; and five other public- and private-sector organizations to introduce Let’s Move! Active Schools. The active-school model gets kids moving before, during and after school. NIKE’s direct contribution includes professional development and training for school champions, as well as branding and communication support. As part of the overall initiative, there are opportunities for schools to apply for grants that support broader active schools efforts. Learn more at letsmove.gov/active-schools. 
  3. Early Positive Experiences – Reshape Youth Sports The Aspen Institute took inspiration from Designed to Move to create Project Play, a series of roundtable forums with experts across multiple sectors re-imagining the youth sports system in the US. The aim is to reverse the trend in youth sports of kids dropping out, burning out or getting locked out for a variety of reasons, and reset the bar to help make certain that the early experiences kids have with sports and physical activity are positive ones. Much of the work mirrors the 7 Design Filters, a global set of program best-practice guidelines developed in collaboration with practitioners from around the world and published in the Designed to Move materials. NIKE is an active sponsor and participant in Project Play, which will culminate in the Aspen Institute’s final report of policy recommendations, available in the fall of 2014. 
  4. Lead by Example - Aligning to Deliver Early Positive Experiences in Sports Together with community programming partners, NIKE reviewed our global portfolio of community sports programs against the 7 Program Design Filters laid out in the Design to Move framework. As a result, specific investments have been made in several areas: targeting younger participants with special emphasis on children more vulnerable to physical inactivity, adequate dosage and duration of physical activity, feedback mechanisms to help children assess progress, and creative ways to deliver incentives beyond trophies and winning. After 18 months of careful program evaluation we have strong partnerships in 11 countries reaching nearly 3 million kids annually with this new standard of positive experience sports programming. 
  5. Employee Empowerment – Move Your Asterisk NIKE’s mission is to bring inspiration and innovation to every athlete* in the world. The asterisk recalls NIKE co-founder Bill Bowerman’s statement, “If you have a body you are an athlete.” We turned that statement back on NIKE and challenged our employees to get moving and raise physical activity levels in the workplace. NIKE has a long-term commitment to help solve this urgent, global epidemic. We’ve invested heavily to get to the point where today, more than 100 organizations globally have formally adopted Designed to Move and are actively collaborating to promote and deliver widespread action. 

Leveraging Brand Power

Over the past two years, we continued various brand-sponsored projects and partnerships and began several new ones. 

  • In collaboration with (RED), Converse contributed more than $3 million from FY08 to FY13 to fight AIDS. Of that, $1.7 million was donated in FY12 and FY13. 
  • Our support for Hurley’s H2O nonprofit partner Waves For Water has helped an estimated 5 million people gain access to clean water through portable water solutions. Hurley H2O’s other nonprofit partner, The Ecology Center, connected with 40 local schools and 10,000 kids, focusing on water education. 
  • LIVESTRONG serves to improve outcomes for people facing cancer. NIKE announced it will stop producing new LIVESTRONG product after its Holiday 2013 line but will continue to support the LIVESTRONG Foundation. 
  • The NIKE N7 Fund provides grants to Native American and aboriginal communities in the United States and Canada in support of sports and physical activity programs for youth. Since 2009, approximately $1.8 million has been directed to these communities. (Learn more at n7fund.com.) 

The Girl Effect

During FY12 and FY13, the NIKE Foundation continued to catalyze partners to unleash the Girl Effect. Highlights included: 

  • A high-profile launch of Smarter Economics: Investing in Girls at the annual meetings of the World Bank and International Monetary Fund in 2012; this report makes the economic case for investing in adolescent girls 
  • The launch of the Ni Nyampinga brand radio show and magazine in Rwanda to connect girls and inspire them to reach their full potential 
  • The opening of Girl Hub Ethiopia (as part of the Girl Hub collaboration with the UK Department for International Development) and the launch of the Yegna-brand radio drama and girl band to connect, inform and inspire girls across Ethiopia 
  • Ensuring girls were included in commitments made at the London Family Planning Summit in 2012, where over $4 billion was pledged to tackle the unmet family planning needs of 120 million girls and women by 2020 
  • Celebrating the first-ever UN International Day of the Girl in October 2012, sharing messaging in advance to inform advocacy and providing a digital platform for the girl community to get its messages out 
  • Preparation of a Girl Declaration, inspired and informed by girls to rally, consolidate and focus the girl movement globally, with a specific objective to embed girls in the next set of global development goals that will determine how approximately $2 trillion of international aid will be invested over 15 years starting in 2016 
  • A new Girl Effect website (girleffect.org) designed and created so that all its content (articles, videos, case studies, fact sheets and more) can be easily used to amplify the Girl Effect 


COMMUNITY INVESTMENT BREAKDOWN

Employee Engagement

Our WE Portal brings together employees around volunteering, service, giving and community activities that matter most to them. NIKE launched a new WE Portal in FY13, providing enhancements to our online experience. The new portal includes features that allow employees to create volunteer teams in their communities, design specific cause campaigns and engage directly with qualified and vetted nonprofit organizations. Globally, employees used the portal to track personal contributions of $2.5 million to nonprofit organizations during FY12 and FY13, which NIKE matched with an additional $2.4 million. 


NIKE, INC. EMPLOYEE CONTRIBUTIONS
(IN MILLIONS USD)
FY12 FY13
Employee Contribution (Inc) $1.10 $1.41
Company Match $1.06 $1.29
Tracked Volunteer Hours 167,060 131,819

NOTE: Previous reporting tracked US employees only. A new system for capturing, tracking and reporting contributions and volunteer hours has been implemented across NIKE, Inc.

Disaster Response

When disaster strikes a community, we mobilize to help where we can have the greatest impact. For instance, in the aftermath of widespread damage to the US East Coast caused by Superstorm Sandy, we committed $2 million to rebuilding efforts in New York and New Jersey and an additional $1 million worth of product donations to New York City nonprofit organizations. Hurley H2O and Waves For Water also helped mobilize relief efforts reaching 350,000 people by distributing essential supplies, rebuilding 150 homes and donating 40,000 meals. In 2013, we also responded to the earthquake in Chengdu, China, by working with local partners to provide humanitarian assistance. And after the tornados in Oklahoma in May 2013, we helped rebuild playgrounds and support Native American tribal communities through our N7 program. 

Looking Ahead

As we move forward, we will focus our community investment in the following three areas to create sustained value for the communities where we live, work and play: 

  • Creating global impact through innovative, physical-activity based programs and initiatives 
  • Leveraging our brands and brand equity to strengthen our community activities and inspire our consumers around this work 
  • Engaging communities through locally relevant initiatives and employee programs designed to make a positive impact closer to home 

Measuring Our Impact

Creating social change is complex and so is measuring it. We are committed to measuring the social impact of our community investments, and have sought the counsel of NGOs, academics and other experts in the field. 

In FY08, we partnered with the Women’s Funding Network and piloted their “Making the Case” framework to better track our social impact over time. An expanded roll out occurred in FY10 across many of our sport-related community investments. However, as we have evolved our approach through key areas of focus, we have been looking at ways to consistently and meaningfully enhance our measurement of outcomes across our portfolio. We are currently exploring other ways to track social impact and gain insight into the effectiveness of our community investments so we can direct resources to places where we will see the greatest results. 

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