Welcoming scrutiny Outsourcing operations overseas raises valid questions over ethics and standards, which in turn affect a company’s image. For adidas, it has been necessary to stake their reputation on accountability. Trust? Trust? There There are are some some words words we we use use so so often often that that we we no no longer longerreally reallyhear hearthem. them.Trust Trustisisone onesuch suchword. word.Everyone Everyoneuses uses itit and and everyone everyone believes believes that that itit shapes shapes what what they they say say and and do. do. However, However, its its commonplace commonplace character character isis precisely precisely why why the the word wordisislosing losingits itsexclusivity exclusivityin inlanguage languageuse. use. Trust Trustisn’t isn’tjust justabout aboutfair fairprices pricesor orreliable reliablequality, quality,it’s it’salso alsoabout about decency decencyand andethics. ethics.After Afterall, all,who whowould wouldbuy buythe thestrong strongbrand brand of ofaacompany companythat thatcontinued continuedto tobreak breaksociety’s society’srules? rules?PresumPresumably ably nobody, nobody, because because the the moral moral seismograph seismograph of of consumers consumers isis very very sensitive sensitive to to injustices injustices and and inconsistencies. inconsistencies. Of Of course, course, there there are are companies companies that that mercilessly mercilessly pursue pursue profi profitt and and don’t don’t really reallycare careabout aboutcriticism criticismand andadmonitions. admonitions.However, However,in inorder order to toachieve achievelong-term long-termeconomic economicsuccess, success,aacompany companyhas hasto tobe be socially sociallyaccepted. accepted.This Thisisisan aninescapable inescapabletruth. truth.Translating Translatingthis this into intocorporate corporateactions actionsand andearning earningsocial socialacceptance acceptanceisisdiffi difficult cult because becauseititisisexceptionally exceptionallyhard hardwork. work.
American Americanhuman humanrights rightsgroups groupsand andstudent studentorganisations. organisations.The The greater greater focus focus on on this this issue issue within within companies companies operating operating in in the the sporting sporting goods goods industry industry was was set set against against the the background background of of pressure pressurefrom fromaagrowing growingnumber numberof ofcritical criticalconsumers consumersworldworldwide. wide.At Atthe thesame sametime, time,as asaaresult resultof ofthis thispublic publicpressure, pressure,this this industry industry––and andespecially especiallyits itsleading leadingcompanies companies––committed committedto to sustainability sustainability earlier earlier than than many many other other sectors, sectors, both both of of its its own own volition volitionand andin inresponse responseto toexternal externalforces. forces. Much Much has has happened happened in in the the 12 12 years years since since the the Social Social and and EnEnvironmental vironmental Affairs Affairs department department was was established. established. Since Since 2000, 2000, the theadidas adidasGroup Grouphas hasbeen beenincluded includedin inthe theDow DowJones JonesSustainSustainability abilityIndex, Index,the thebest bestknown knownand andmost mostimportant importantsustainability sustainability index indexfor forlisted listedcompanies. companies.Since Since2004, 2004,adidas adidashas hasbeen beenlisted listed there there as as an an industry industry leader. leader. Since Since 2001, 2001, we we have have also also been been listed listed in in the the FTSE4Good FTSE4Good Index. Index. In In 2007, 2007, the the adidas adidas Group Group rereceived ceivedthe theBAUM BAUMenvironmental environmentalaward awardfor forits itssocial socialand andenvienvironmental ronmentalprogramme. programme.
THE THESTRUGGLE STRUGGLEFOR FORMORALITY MORALITYAND ANDIDEALS IDEALS THE THEART ARTOF OFCONSTRUCTIVE CONSTRUCTIVECRITICISM CRITICISM Society Society isis constantly constantly evolving. evolving. Support Support and and opposition, opposition, anxieanxieties ties and and emotions emotions seem seem to to come come and and go go in in an an ethical ethical dimendimension sion to to aa company’s company’s activities. activities. Sooner Sooner or or later, later, ifif morals morals and and ideals ideals change, change, but but companies companies continue continue to to operate operate on on another another scale scale of of values, values, differences differences emerge. emerge. For For the the adidas adidas Group, Group, these theseare arenot notjust justtheoretical theoreticalissues. issues.We Weare areextremely extremelypractipractical cal in in our our approach. approach. But But how how do do we we maintain maintain aa trust-based trust-based work work ethic? ethic? What What does does transparency transparency in in everyday everyday business business actually actuallymean? mean? Our Ourtrustworthiness trustworthinessdoes doesnot notstart startin inthe thestore, store,in inthe thestadium stadium or or on on the the trading trading flfloor. oor. ItIt starts starts in in our our suppliers’ suppliers’ factories factories that that are are located located in in more more than than 55 55 countries. countries. This This isis where where we we proproduce duce221 221million millionpairs pairsof ofshoes shoesand and284 284million millionitems itemsof ofclothclothing, ing,ranging rangingfrom fromshorts shortsand andjerseys jerseysto totracksuits. tracksuits. Of Of course, course, itit isis not not only only potential potential customers, customers, but but also also us, us, who who want wantto toknow knowthe theconditions conditionsunder underwhich whichour ourproducts productsare aremanmanufactured, ufactured, and and furthermore, furthermore, we we want want to to have have aa positive positive infl influuence enceon onthese theseconditions. conditions.This Thisisiswhy whywe weare arecommitted committedto tohigh high social socialand andenvironmental environmentalstandards standardsat atour ourproduction productionsites. sites. GROWING GROWINGPUBLIC PUBLICINTEREST INTEREST This This has has not not always always been been the the case. case. We We started started to to outsource outsource production production from from our our own own production production sites sites in in Germany Germany and and France Franceto tosuppliers suppliersin inAsia Asiaat atthe theend endof ofthe the1980s. 1980s.However, However, we weonly onlyestablished establishedaaSocial Socialand andEnvironmental EnvironmentalAffairs Affairsdepartdepartment ment within within the the adidas adidas Group Group in in 1997. 1997. The The same same year, year, the the adidas adidasGroup Groupintroduced introducedits itsfifirst rstcode codeof ofconduct conductfor forsuppliers suppliers and and set set up up aa monitoring monitoring team. team. The The establishment establishment of of this this dedepartment partment coincided coincided with with growing growing public public interest interest in in the the condiconditions tionsunder underwhich whichproducts productsin inall allsectors sectorsare areproduced producedin inAsia Asia for for the the global global market. market. In In particular, particular, our our main main competitor, competitor, with with headquarters headquartersin inthe theUS, US,came cameup upagainst againstheavy heavycriticism criticismfrom from
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At At our our Annual Annual General General Meetings, Meetings, for for example, example, we we are are conconstantly stantlycriticised criticisedfor forthe thesocial, social,economic economicand andecological ecologicalcondiconditions tions at at our our suppliers’ suppliers’ factories factories as as ifif we we hadn’t hadn’t done done anything anything about about them them at at all. all. Of Of course, course, we we can can and and must must be be capable capable of of withstanding withstanding criticism. criticism. However, However, some some hardliners hardliners seem seem to to have havean anemotional emotionalproblem problemunderstanding understandingthat thataaDAX-30 DAX-30listed listed
“Trustworthiness doesn’t start in the store, in the stadium or in the trading floor.” oor. company company isn’t isn’t solely solely interested interested in in the the manufacturing manufacturing plant plant of of one oneof ofadidas’ adidas’Chinese Chinesesuppliers, suppliers,dividends dividendsand andcash cashflflow. ow.The The dilemma dilemmafaced facedby bythese thesecritics criticsisisclear: clear:we wesimply simplydon’t don’tequate equate to tothe thenegative negativenotions notionsof ofdeep-rooted deep-rootedprejudices, prejudices,and andititisisnot not easy easy to to criticise criticise conclusively. conclusively. Whoever Whoever wants wants to to get get involved involved in inthe thediscussion discussionhas hasto tohave havegreat greatexpertise expertisein inthe thefifield eldof ofcliclimate materesearch, research,chemistry chemistryand andmaterial materialscience, science,and andboth bothmicro micro and andmacroeconomic macroeconomicconditions conditionsin inthe theemerging emergingcountries. countries. ItIt isis precisely precisely these these experts experts that that we we involve involve inin our our important important social social and and ecological ecological decisions. decisions. We We work work with with the the International International Labor Labor Organisation Organisation (ILO); (ILO); we we are are co-founder co-founder members members of of the the Fair Fair Labor Labor Association Association (FLA), (FLA), which which carries carries out out independent independent checks checks on on supplier supplier factories. factories. We We maintain maintain aa constant constant dialogue dialogue with with governments governments and and non-governmental non-governmental organisations organisations on on all all continents continentsand andface facethe thequestions questionsof ofrepresentatives representativesfrom fromUS US high highschools. schools.