adidas reportedly opens probe into alleged large-scale bribery in China

Adidas has reportedly opened a probe into allegations of senior employees involved in large-scale bribery worth millions of Euros.

According to Financial Times, a person familiar with the matter said adidas has received an anonymous complaint letter, purportedly written by employees of adidas China, which alleges that senior staff members embezzled “millions of Euros”.

The complaint letter has named several adidas China employees involved with the company's US$267.5 million annual marketing budget, with some receiving improper payments as kickbacks from external service providers commissioned by adidas. 

The letter has also accused a senior adidas manager, working in a different division in China, of receiving similar illicit benefits including "millions in cash from suppliers, and physical items such as real estate.” 

Meanwhile, adidas has acknowledged receiving a letter on 7 June that notified the company of "potential compliance violations in China”, according to the report. Adidas has reportedly said that it was investigating with external legal counsel. It has also emphasised its commitment to comply with legal, internal, and ethical standards in all of its markets.

According to the report, adidas has not made any accused individuals redundant.

MARKETING-INTEARACTIVE has reached out to adidas for a statement.

Don't miss: adidas, Nike and SHEIN to disclose supply chain over alleged forced labour in China

This is not the first time adidas has faced allegations regarding its branch in China. Back in May last year, US lawmakers questioned some of the world's largest apparel companies, such as adidas, Nike and SHEIN, for possible links to forced labour in China during the production of its products.

US lawmakers sent letters to the company leaders to confront them about the use of materials and labour sourced from the Xinjiang Uyghur Autonomous region of China.

In the letters, which were seen by AFP, the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party cited witness testimonies that said that Nike and adidas might be getting materials from China's Xinjiang region. This was illegal according to US law.

The letters said that it would like to "offer" Nike and adidas the opportunity to respond to these "serious allegations" and to provide information that they are compliant with the Uighur Forced Labour Prevention Act.

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