Adidas is reportedly launching multiple investigations of allegations of large-scale bribery in its Chinese operations following a whistleblower complaint, as reported by CNBC.
The complaint, allegedly authored by employees within Adidas China, accuses senior executives of embezzling millions of euros through kickbacks and other financial irregularities.
The anonymous letter specifically implicates several Chinese Adidas employees, including a senior manager responsible for overseeing the country's massive marketing budget, estimated at 250 million euros ($267.5 million) annually.
Confirming receipt of the complaint on June 7, Adidas stated it is taking the allegations seriously and has initiated a comprehensive investigation in collaboration with external legal counsel.
Adidas China Executives Involved in Bribery Case
if the allegations against Adidas executives are proven true, they could face serious legal repercussions, including criminal charges under anti-corruption laws. Professionally, they may face termination or resignation demands from employers due to ethical breaches.
The German sportswear company also reaffirmed its commitment to adhering to stringent legal and ethical standards across all markets where it operates.
Analysts believe Adidas will not simply dismiss the bribery scandal in China, considering their growing reputation in the country.
According to Yahoo Finance, Adidas experienced an 8% sales increase in China, indicating that their business in the Chinese market was expanding and is a valuable region to Adidas on a global scale.
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