Week 2 Discussion Response- Capstone

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Week 2 Discussion: The Social and Economic Impacts of Business

Nike and the Portland Community

Nike, Inc. is a U.S.-based sports shoes and clothing firm from Beaverton, Oregon. It has had considerable impact throughout the Portland metropolitan area in the areas of employment, business activity, community investments and charitable efforts. Nike has traditionally been a significant contributor to economic activity in Oregon. From Nike’s Oregon operations, 16,580 direct and indirect jobs have been created in Oregon as well as providing a benefit of more than $2 billion to the Oregon economy (multiplier effect of 2.3) (Cortright, 2026).

Social and Economic Impacts

Nike has had an impact on the local economy by providing job opportunities for people, business partnerships, investment in facilities, and taxes. These activities have a positive impact on other businesses and services in the community. Additionally, Nike has shown some social responsibility by setting up their Community Impact Fund, which is a fund that helps with nonprofit organizations and schools to help spread the word of sports and healthier communities to youth. The program supports investments in Portland and the Pacific Northwest (Nike, n.d.).

The company has also worked to tackle inequality in its communities via community investments. Nike spent around $40.8 million in inclusive community programs during fiscal year 2023, with $15.2 million of this total allocated to its Black Community Commitment (Nike, 2024). They invested in groups impacting racial inequities, economic power, education and social justice within American society. The corporation has made an investment of $8.9 million through 53 national and local nonprofits organizations engaged in areas such as education innovation, economic empowerment and social justice.

Impact on Perceptions

The quality of these economic and social contributions positively influences the perception of Nike, as the company assists in community development and offers employment opportunities. Stakeholders, however, can also look for Nike to practice responsible employment, environmental and social practices. Nike helps in understanding the importance of a large enterprise contributing to the growth of an economy and meeting social needs beyond the product. This activity supports the idea that responsible businesses can create shared value for organizations and communities (Gitman et al., 2018).

References

Cortright, J. (2026, April 30). Two bad years for two big firms – city observatory. Cityobservatory.Org. https://cityobservatory.org/two-bad-years-for-two-big-firms/

Gitman, L. J., McDaniel, C., Shah, A., Reece, M., Koffel, L., Talsma, B., & Hyatt, J. C. (2018).  1.2 understanding the business environmentLinks to an external site.. In  Introduction to business. OpenStax. https://openstax.org/books/introduction-business/pages/1-2-understanding-the-business-environment

NIKE, Inc. (2025). Nike Community Impact Fund. Nike.Com. https://about.nike.com/en-GB/mission/initiatives/making-play-and-sport-possible-through-our-nike-community-impact-fund

Nike. (2024, March 12). Through the power of community, NIKE, inc. advances toward a better world for all. Nike.Com. https://about.nike.com/en/newsroom/releases/fy23-nike-inc-impact-report