Adidas Investigates Alleged Large-Scale Bribery Among Senior Staff in China

International sportswear giant Adidas is investigating allegations of large-scale bribery involving senior staff members in China, as reported by the Financial Times (FT). The inquiry follows a whistleblower complaint received by the company, accusing several employees of accepting substantial kickbacks.

According to the anonymous letter, purportedly authored by “employees of Adidas China,” senior staff members were allegedly involved in receiving millions of euros in bribes from external service providers. Additionally, a senior manager from a different division is accused of accepting millions in cash and valuable items such as real estate from suppliers.

The whistleblower’s allegations, despite lacking concrete evidence, have prompted a full-scale investigation due to the detailed knowledge of sensitive internal matters they revealed. The letter, also shared on Chinese social media platforms, implicated officials, including a senior manager overseeing the marketing budget in China.

Adidas confirmed receipt of the anonymous complaint and announced the launch of an investigation with the assistance of external legal counsel. The company emphasized its commitment to legal and ethical standards in all its markets.

“Adidas takes allegations of possible compliance violations very seriously and is clearly committed to complying with legal and internal regulations and ethical standards in all markets where we operate,” the company stated in response to a query from Reuters. Adidas declined to provide further details until the investigation is concluded.

This scandal emerges amid Adidas’ ongoing efforts to recover its market position in China. In 2023, the company implemented a leadership change in China to address a business slump exacerbated by the pandemic. Historically one of Adidas’ fastest-growing and most profitable markets, the company faced backlash from Chinese consumers over its stance on Xinjiang cotton, associated with forced labor concerns raised by human rights activists.

Despite these challenges, Adidas projected a rebound in Chinese sales earlier this year, anticipating double-digit growth. The company reported an 8% increase in China sales during the first quarter, signaling potential recovery in this crucial market.