Adidas Probes Allegations of Bribery Involving Senior Staff in China
Global sportswear giant Adidas has initiated an investigation following accusations that senior personnel in its Chinese division were implicated in a substantial bribery scheme involving “millions of euros”, as per a report by the Financial Times (FT).
The inquiry was prompted by a whistleblower complaint received by the company, as outlined in the FT report published on Sunday. The anonymous communication, purportedly penned by individuals identifying themselves as “employees of Adidas China”, alleged that several staff members in China had been receiving kickbacks from external service providers collaborating with the company.
Furthermore, the complaint implicated a senior manager from a separate department who purportedly obtained “millions in cash from suppliers and tangible assets such as real estate”, according to sources cited in the report. Notably, the report refrained from disclosing the identities of the accused individuals.
Though lacking concrete evidence to corroborate the corruption claims, the authors of the anonymous letter demonstrated a deep comprehension of confidential internal affairs, compelling Adidas to instigate a thorough investigation, according to the report.
The missive, circulated on Chinese social media platforms, specifically implicated company officials, including a senior manager responsible for overseeing the marketing budget in China, in the alleged bribery activities.
In response to the allegations, Adidas acknowledged receipt of the anonymous complaint and affirmed its commitment to upholding legal and ethical standards across all markets. The company disclosed its collaboration with external legal advisors to conduct a diligent investigation into the matter and refrained from disclosing further details until the probe concludes.
Adidas underwent a leadership transition in its Chinese operations in 2023 to revitalize its business following a downturn attributed to the pandemic. Once hailed as the brand’s fastest-growing and most lucrative market, Adidas faced a setback in China amidst consumer backlash over its stance on procuring cotton from the Xinjiang region, a locality embroiled in accusations of coercive labor practices.
Despite the challenges, Adidas anticipates a resurgence in its Chinese market, forecasting a double-digit growth trajectory. The company reported an 8 percent increase in China sales during the initial quarter of the year, signaling a promising outlook for the German sportswear powerhouse.
