Adidas shoes are displayed at the DSW store in Novato, California on January 31, 2024.
Justin Sullivan | Getty Images
Adidas has launched an investigation into allegations of large-scale bribery in China after a whistle-blower claimed senior employees embezzled “millions of euros”, the Financial Times reported on Sunday.
The Financial Times reported that the anonymous letter was written by an “Adidas China employee” and named several Chinese Adidas employees, including senior managers involved in the company’s marketing budget in the country, which the document said is worth 250 million euros ($267.5 million) a year.
Adidas confirmed it received an anonymous letter on June 7 pointing out possible compliance violations in China. The German sportswear maker said it was investigating the matter with outside legal counsel.
“Adidas takes any alleged compliance violations very seriously and is clearly committed to adhering to the law, our internal regulations and ethical standards in all markets in which we operate,” the company said in a statement in response to queries from Reuters. Adidas said it could not provide any further information until the investigation was completed.
According to the Financial Times, the letter alleges that Adidas staff received bribes from external service providers contracted by the company, including “millions of dollars in cash from suppliers, as well as tangible assets such as real estate.”
The German sporting goods giant earlier said its sales in China rose 8 percent in the first quarter.
