In recent news, Adidas employees in China are being accused of receiving “millions of euros” from suppliers and advertising agencies. The company has acknowledged receiving an anonymous letter detailing possible violations of their code of conduct. Despite the allegations, Adidas is taking the matter seriously and conducting a thorough investigation with the help of external lawyers to ensure compliance with laws and ethical standards in all markets.
Allegations surfaced that several employees, including a manager responsible for Adidas’ marketing budget in China, received refunds or kickbacks from service providers they had hired, as well as cash and benefits from suppliers. However, the letter did not provide evidence for these allegations. Nevertheless, it seemed that the authors had internal knowledge of the company’s operations.
Despite these allegations, Adidas has experienced 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 its growth in China to a focus on Chinese fashion tastes under the leadership of country boss Adrian Siu, who was hired in 2022. The company’s commitment to compliance and market-specific strategies indicate a positive outlook for their operations in China.
