The complaint includes allegations that senior managers received real estate and “millions of dollars in cash” from suppliers.
According to a report in the Financial Times, global clothing brand Adidas has launched an investigation into allegations that some of its senior employees in China were involved in a large-scale bribery scheme worth millions of euros.
The FT reported on Sunday that the investigation began after the company received a whistleblower complaint.
An anonymous letter purporting to have been written by an ‘Adidas China employee’ accused several employees of Adidas companies in China of receiving kickbacks from external service providers they do business with.
Senior managers in other departments also reportedly received “millions of dollars in cash from suppliers and physical items, including real estate,” the report said, citing sources familiar with the investigation.
He added that none of the accused have been named.
“Although the anonymous author of the letter did not provide hard evidence of the corruption allegations, he appears to be knowledgeable about highly sensitive and confidential internal matters,” the report said.
In the letter, which was also shared on Chinese social media, the defendants said company officials, including senior managers involved in marketing budgets in China, were involved in bribery.
Adidas acknowledged receiving the anonymous complaint and said it was investigating the matter with outside legal counsel.
In response to inquiries from Reuters, Adidas said in a statement: “Adidas takes allegations of possible violations very seriously and is clearly committed to complying with legal and internal regulations and ethical standards in all markets in which we operate. “He said.
Adidas said it could not provide further information until the investigation was complete.
The company has made a leadership change in China in 2023 to revive its business after a slump due to the pandemic.
Consumers in China, once Adidas’ fastest-growing and most profitable market, have grown frustrated with the company in recent years after it refused to buy cotton from the Xinjiang region, an industry that human rights activists say involves forced labor.
But earlier this year, the company said it expected sales in China to rebound and expected double-digit growth.
The German sportswear giant’s sales in China rose 8% in the first quarter, the company announced earlier.