Strategic Leadership of Nike

To enhance corporate leadership, Nike has established Strategic Leadership Team, chaired by CEO Mark Parker. This team is responsible for directing NIKE, Inc.'s mid- and long-term strategy. Strategic leadership of Nike is based on the principles of heterogeneous top management team and evenly distributed powers among top management. NIKE, Inc.'s Board of Directors is responsible for corporate governance in compliance with the U.S. Sarbanes-Oxley Act and other laws, and representing the interests of shareholders. As of November 19, 2009, the board was composed of 13 members, 11 of whom are considered independent, non-executive directors under the listing standards of the New York Stock Exchange. As is obvious Nike encourages outsiders to become part of board, in order to avoid bias connected with “corporate conformism”. Having board members assigned from heterogeneous backgrounds makes Nike’s corporate leadership very successful.

Corporate responsibility and organizational culture are crucial elements of successful Strategic leadership. The Corporate Responsibility Committee of the Board of Directors was established in 2001 to review significant policies and activities and make recommendations regarding labor and environmental practices, community affairs, charitable and foundation activities, diversity and equal opportunity, and environmental and sustainability initiatives. Either the company chairman or the chief executive officer attends the Corporate Responsibility Committee meetings.

NIKE, Inc. has a code of ethics for all employees called Inside the Lines. It defines the standards of conduct company expect employees to follow and includes a range of topics on employee activity, ethical behavior, product safety, legal compliance, competition and use of resources.

Each year, all NIKE, Inc. employees are required to verify that they have read and understand Inside the Liness. NIKE, Inc. also operates a global toll-free AlertLine for employees to confidentially report any suspected violations of the law or code of ethics. Any reported concerns around accounting, auditing or internal control are communicated to the Board's audit committee, which determines appropriate action.

In order to enhance innovation and support corporate traditions Nike uses both internal as well as external managerial labor market for employment. As already mentioned many of board members are outsiders on the other hand board member Jeanne Jackson, who also served on the CR Committee, stepped down from the Board in late FY09 to become an executive of NIKE, Inc.