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Two Adidas employees out in China corruption probe
  + stars: | 2024-06-26 | by ( Juliana Liu | ) edition.cnn.com   time to read: +3 min
Hong Kong CNN —Two employees have left Adidas as a result of an ongoing investigation by the German sportswear brand into allegations of corruption in China. Chinese state media outlet Economic View reported Wednesday that both former employees had worked in marketing for Adidas China. The allegations against Adidas executives were contained in an unsigned letter from people calling themselves employees of Adidas China. Greater China — a region that encompasses mainland China, Hong Kong and Taiwan — accounts for 15% of the company’s sales. In mainland China, Adidas is the second-largest international sportswear brand behind Nike (NKE).
Persons: ” Claudia Lange, , , Jiemian, Lange, Yang Mi, Yi, Fred Organizations: Hong Kong CNN —, Adidas, , Adidas China, CNN, Nike Locations: China, Hong Kong, Taiwan, Beijing
Hong Kong CNN —Adidas says it has started an investigation into allegations of “compliance violations” in China, a key market for its sportswear. The reported complaint alleged that a senior executive in Greater China who manages Adidas’ marketing budget had embezzled millions of euros and taken huge kickbacks from external advertising and celebrity agencies. Greater China — a region that encompasses mainland China, Hong Kong and Taiwan — contributes 15% of the company’s sales. In mainland China, Adidas is the second largest international sportswear brand behind Nike (NKE). Adidas is well known for playing the “celebrity” card in its marketing in China.
Persons: Hong Kong CNN —, Jiemian, Claudia Lange, , Lange, , Taiwan —, , Yang Mi, Yi Yangqianxi Organizations: Hong Kong CNN, Hong Kong CNN — Adidas, Adidas China, CNN, Adidas, Nike Locations: China, Hong Kong, Taiwan, Beijing, Xinjiang
Several press releases allegedly sent from Adidas about a Berlin Fashion Week launch, its treatment of workers abroad and other topics related to its business structure were fake, according to the company. The groups hope Adidas signs onto the Pay Your Workers labor agreement, which advocates for garment worker pay and the right to organize. Two of the faked press releases claimed Adidas was launching new clothing called REALITYWEAR from celebrities Pharrell Williams, Bad Bunny and Philllllthy. The hoax release announcing the Berlin Fashion Week debut on Jan. 16 claimed it was part of a push for a renewed focus on workers' rights and material sourcing. The Guardian first reported that The Yes Men were behind the campaign.
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