Adidas is currently investigating allegations of significant bribery in China. The company received a whistleblower complaint claiming that senior staff members embezzled "millions of euros".
Anonymous Letter Alleges Adidas China Spends €250 Miliion on Marketing
A recent report revealed an anonymous letter purporting to be from Adidas China employees has allegedly surfaced.
The letter identifies various Chinese Adidas employees, including a senior manager responsible for the country's marketing budget.
According to The Economic Times, the document suggests that the marketing budget amounts to a staggering 250 million euros ($267.5 million) annually.
Adidas Investigates Kickback Claims in China Operations
According to the FT, Adidas has acknowledged receiving a letter on June 7 regarding possible compliance violations in China, as stated in their official statement.
The company assured the newspaper that it is dedicated to following all legal and internal regulations and ethical standards in every market it operates in, Bloomberg reported.
They also mentioned that they are actively investigating the matter with the help of external legal counsel.
"Adidas acknowledges the seriousness of the allegations regarding possible compliance violations and emphasizes its unwavering commitment to adhering to legal and internal regulations as well as ethical standards in all the markets it operates in," the company stated in response to a query from Reuters.
Adidas stated that additional information would not be available until the investigation concluded.
The FT has reported that a letter claims Adidas employees received kickbacks from external service providers hired by the company, including large sums of cash and physical items like real estate.
Join the Conversation