Athletic apparel giant Adidas has initiated an investigation into allegations of “compliance violations” in China following an anonymous letter received earlier this month, which accused local executives of embezzling “millions of euros,” according to various news reports.
Adidas acknowledged receiving the anonymous letter on June 7, which pointed to potential “compliance violations” in China, as reported by the Wall Street Journal and Bloomberg. The company confirmed it is investigating the matter with the assistance of external legal counsel, according to the reports.
Chinese state media outlet Jiemian recently reported that a group of whistleblowers, identifying themselves as employees of Adidas China, sent the letter containing the allegations to the company's German headquarters. The letter, published by Jiemian and widely shared on social media, accused senior executives and several staff members of embezzling funds, accepting bribes from suppliers in the form of cash and real estate, and taking kickbacks from celebrities and advertising agencies. Additionally, one senior executive was accused of workplace bullying, including swearing at subordinates, and nepotism. The whistleblowers warned that if Adidas does not address the issues raised in the letter, the matter would be exposed to external media and “legal departments.”
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