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(Yicai) June 27 -- Two employees have left the Chinese unit of Adidas amid an ongoing investigation launched by the German sportswear brand in the wake of corruption allegations, Yicai learned.
Two members of Adidas China’s marketing department, including a senior executive, have departed the company, it was announced at an internal meeting yesterday, according to an insider.
At the meeting, a manager said evidence was found that an employee had violated the code of conduct in dealing with local suppliers, and a senior marketing executive had failed to meet its leadership expectations of fostering mutual respect and trust. Adidas has a zero-tolerance policy toward non-compliant behavior, the person noted.
The departures follow swiftly on a whistleblower’s claims that a senior marketing executive was involved in corruption. On June 8, a person claiming to work at Adidas China posted an anonymous letter on social media platform Xiaohongshu, accusing the executive of workplace bullying and taking huge kickbacks from external service providers.
The Shanghai-headquartered company then launched a probe into the matter. That investigation is still going on, the manager said at yesterday’s meeting.
“Following the incident, we will further enhance our training in communication and compliance, ensuring that employees are fully acquainted with the communication mechanisms available within Adidas,” the manager said. “This event will not shake our confidence and determination in any investments and commitments in China.”
China is an important market for Adidas. Its revenue in China rose 8 percent to EUR900 million (USD960 million) in the three months ended March 31 from a year earlier. And about 75 percent of the company's products sold in China are made locally.
Editor: Martin Kadiev