The Financial Times reported that Chinese Adidas employees are accused of receiving “millions of euros” from suppliers and advertising agencies. The company has acknowledged receiving an anonymous letter detailing possible violations of the code of conduct. Adidas is taking the allegations seriously and is conducting a thorough investigation with the help of external lawyers to ensure compliance with laws and ethical standards in all markets.
The letter, signed by “Adidas China Employees,” was briefly visible on the Chinese social media platform “Xiaohongshu.” It named several employees, including a manager responsible for Adidas’ marketing budget in China. Allegations surfaced that employees received refunds or kickbacks from service providers they had hired, as well as cash and benefits from suppliers.
While the letter did not provide evidence for the allegations, the authors seemed to have internal knowledge of the company’s operations. Despite these allegations, Adidas is experiencing growth in China. The company has faced challenges due to the pandemic and boycott calls following criticism of China’s treatment of the Uighur minority. However, they expect a return to double-digit growth rates in their once largest and most lucrative market.
Adidas attributes the growth in China to a focus on Chinese fashion tastes under the leadership of country boss Adrian Siu, hired in 2022. The company’s commitment to compliance and market-specific strategies indicate a positive outlook for their operations in China.