Adidas investigating corruption allegations in China, reports FT

BENGALURU – Adidas has opened an investigation into allegations of large-scale corruption in China after the company received a whistleblower complaint accusing its senior executives of embezzling “millions of euros”, the Financial reported Times on June 16.

The anonymous letter, which claims to have been written by “Adidas China employees”, names several Chinese Adidas employees, including a senior executive involved in the country's marketing budget, which the document says amounts to 250 million euros (S$362 million). per year, the FT reported.

Adidas confirmed that it received an anonymous letter on June 7 indicating potential compliance violations in China. The German sportswear company said it was investigating the matter in conjunction with external legal counsel.

“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,” it said in a released statement in response to a question from Reuters. Adidas said it could not provide further information until the investigation was complete.

According to the FT, the letter alleges that Adidas staff received bribes from external service providers commissioned by the company, including “millions in cash from suppliers and physical items such as real estate”.

The company's sales in China rose 8 percent in the first quarter, Adidas reported earlier. REUTERS