German sportswear giant Adidas is reportedly investigating allegations of bribery involving senior executives at its China branch.
According to a report by the Financial Times on June 16, sources revealed that the world’s second-largest sportswear manufacturer, Adidas, received reports accusing its senior employees of embezzling “millions of euros.” The company has launched an investigation into the widespread bribery allegations in China.
An anonymous whistleblower claiming to be an “employee of Adidas China branch” mentioned several names of Adidas China employees, including a senior manager involved in Adidas’ marketing budget in China. The whistleblower alleged that these budgets amount to 250 million euros annually.
The anonymous whistleblower accused the Adidas employee of receiving kickbacks from external service providers commissioned by the company. Another senior manager at Adidas working in a different department in China has been accused of “receiving millions in cash and real estate from suppliers.”
Adidas confirmed that the company received a report on June 7, warning about “potential violations in China.” The company stated that they are conducting a thorough investigation into the matter with external legal advisors.
In a statement to Reuters, the company expressed that they “take allegations of potential wrongdoing very seriously and are committed to compliance with laws, internal regulations, and ethical standards in all the markets we operate in.” The statement added that the company cannot provide further information until the investigation is completed.
Sources told the Financial Times that no individuals accused have been suspended from their positions yet. Internal sources at Adidas mentioned that although the anonymous whistleblower did not provide concrete evidence for their corruption allegations, they seem to have a deep understanding of highly sensitive and confidential internal issues.
According to Agence France-Presse, the whistleblower’s report appeared on the Chinese social media platform Xiaohongshu earlier this month, but as of Sunday, the letter was no longer visible on the website. However, several accounts have released what they claim to be copies of the letter, and the authenticity of these copies remains unverified.