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Adidas Investigates Alleged ‘Large-Scale Bribery’ by Officials in China: Report | Business and economic news
The complaint includes allegations that a senior manager received real estate and “millions in cash from vendors.”
International clothing brand Adidas has launched an inquiry into allegations that some of its senior officials in China were involved in large-scale bribes involving “millions of euros”, according to a Financial Times (FT) report.
The investigation was opened after the company received a whistleblower complaint, the FT reported on Sunday.
The anonymous letter, which claims to have been written by “employees of Adidas China,” accused several of the company’s employees in China of receiving bribes from external service providers with which it does business.
A senior manager in a different division also allegedly received “millions in cash from suppliers and physical items such as real estate,” the report said, citing sources familiar with the investigation.
It added that none of the accused individuals have been named.
“Although the anonymous authors of the letter did not provide concrete evidence of their allegations of corruption, they appear to be well informed about highly sensitive and confidential internal matters” that deserve a full investigation, the report states.
In the letter, also shared on Chinese social media, the accusers mention that company employees, including a senior manager involved with the marketing budget in China, were involved in the bribery.
Adidas acknowledged receiving the anonymous report and said it was investigating the matter together with an external legal advisor.
“Adidas takes allegations of potential compliance violations very seriously and is clearly committed to complying with legal and internal regulations and ethical standards in all markets where we operate,” it said in a statement released in response to a news agency inquiry. Reuters.
Adidas said it could not provide further information until the investigation was complete.
The company made a leadership change in China in 2023 in a bid to revive business after suffering a slump during the pandemic.
Once Adidas’ fastest-growing and highly profitable market, Chinese consumers have angered the company in recent years over its refusal to buy cotton from the Xinjiang region, where human rights activists say the industry involves forced labor.
But earlier this year, the company said it expects a recovery in sales in China, forecasting a double-digit growth rate.
The German sportswear giant’s sales in China grew 8% in the first quarter, the company previously reported.