Gavin Howe
Adidas executives have been involved in a number of scandals over the years. In 2017, Adidas executive James Gatto was indicted in the NCAA Division I men's basketball corruption scandal. In 2020, the head of global human resources at Adidas, Karen Parkin, stepped down after failing to address racism and discrimination in the workplace. Adidas has also been the subject of lawsuits related to match-fixing at a football club.
| Characteristics | Values |
|---|---|
| Corruption scandal | James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal |
| Racism and discrimination in the workplace | Karen Parkin, the head of global human resources at Adidas, stepped down after some black employees raised concerns about her failure to address racism and discrimination in the workplace |
| Match fixing | Tapie, who filed for personal bankruptcy in 1994, was the object of several lawsuits, notably related to match fixing at the football club |
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What You'll Learn
Corruption scandal
Adidas executive James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal. Adidas's head of global human resources, Karen Parkin, stepped down in June 2020 after failing to address racism and discrimination in the workplace.
In 1992, Adidas was sold to Crédit Lyonnais bank by Tapie, who was unable to pay his loan interest. The bank converted the outstanding debt into equity, which was unusual according to French banking practice. Tapie was Minister of Urban Affairs in the French government at the time, and the state-owned bank was reportedly doing him a personal favour. Tapie filed for personal bankruptcy in 1994 and was the subject of several lawsuits, notably related to match-fixing at the football club he owned until 1993.
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Racism and discrimination in the workplace
Adidas executive James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal. In June 2020, the head of global human resources at Adidas, Karen Parkin, stepped down after some black employees raised concerns about her failure to address racism and discrimination in the workplace. Parkin had referred to racism as "noise" and was criticised for not adequately addressing workforce diversity.
Adidas has a Human Rights Policy, launched in 2022, which supports the company's commitment to human rights. The policy, endorsed by Adidas' Executive Board, articulates the company's expectations of its own employees and business partners to embed respect for human rights across its business operations. The company also complies with the German Supply Chain Act (Lieferkettensorgfaltpflichtengesetz – LkSG), which requires it to identify, address, and report on human rights-related and environmental risks within its supply chain.
Despite these policies, the experiences of Adidas employees suggest that the company has not effectively addressed racism and discrimination in the workplace. Parkin's failure to address these issues and her dismissal of racism as "noise" indicate a lack of commitment to creating an inclusive and equitable workplace.
To create an anti-racist workplace, companies must go beyond policies and actively address systemic racism and discrimination. This includes recognising the impact of racism on employees, promoting diversity and inclusion, and holding leaders accountable for creating a safe and respectful work environment for all.
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Match fixing
Adidas executive James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal. Adidas has also been accused of failing to address racism and discrimination in the workplace.
Adidas has been implicated in match-fixing scandals in the past. In 1994, the former CEO of Adidas, Robert Louis-Dreyfus, was also the president of Olympique de Marseille, a football club owned by Tapie until 1993. Tapie was the subject of several lawsuits related to match fixing at the football club.
Adidas has also been accused of human rights violations in its supply chain. The company has a Human Rights Policy, launched in 2022, which outlines its commitment to respecting human rights across its business operations.
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Human rights due diligence
Adidas executive James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal. In June 2020, the head of global human resources at Adidas, Karen Parkin, stepped down after black employees raised concerns about her failure to address racism and discrimination in the workplace. Parkin had also made a comment about racism being "noise", in addition to not adequately addressing workforce diversity.
Adidas has a Human Rights Policy, launched in 2022, which supports its commitment to human rights. The policy, endorsed by Adidas' Executive Board, articulates the company's expectations of its own employees and its business partners to embed respect for human rights across its business operations. Adidas complies with the requirement to identify, address, and report on human rights-related and environmental risks, as defined in the German Supply Chain Act.
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Environmental risks
Adidas executive James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal. In June 2020, the head of global human resources at Adidas, Karen Parkin, stepped down after some black employees raised concerns about her failure to address racism and discrimination in the workplace.
Adidas has been trying to address environmental risks by complying with the German Supply Chain Act (Lieferkettensorgfaltpflichtengesetz – LkSG). The act requires Adidas to identify, address, and report on human rights-related and environmental risks. Adidas' Human Rights Policy, launched in 2022, supports its commitment to human rights. The policy, endorsed by Adidas' Executive Board, articulates the company's expectations of its employees and business partners to embed respect for human rights across its business operations.
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Frequently asked questions
Adidas executive James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal. Adidas executives have also been accused of failing to address racism and discrimination in the workplace, as well as match fixing at a football club. Adidas complies with the German Supply Chain Act (Lieferkettensorgfaltpflichtengesetz - LkSG) and has a Human Rights Policy, but it is unclear whether these laws have been broken.
James Gatto was indicted in the 2017 NCAA Division I men's basketball corruption scandal, but I cannot find further information on the outcome of this case.
The head of global human resources at Adidas, Karen Parkin, voluntarily stepped down after some black employees raised concerns about her failure to address racism and discrimination in the workplace.
I cannot find specific information on which Adidas executives were accused of match fixing, but Tapie, who was Minister of Urban Affairs in the French government and former owner of a football club, was the object of several lawsuits related to match fixing.
