B100 Module: Examining Adidas' Values, Social Justice & Environment

This essay examines Adidas' core values, focusing on social justice, environmental stewardship, and responses to political and legal factors. Adidas demonstrates strong values through initiatives like using recycled plastic, supporting refugees through employment programs, and mitigating climate change through energy-efficient programs. The company's commitment to social justice is evident in its efforts to support refugees and ensure fair labor practices. Environmentally, Adidas aims to minimize its carbon footprint and promote sustainable practices, giving them a competitive advantage as consumers seek eco-friendly products. The analysis also considers how political and legal factors, such as trade relationships and environmental regulations, influence Adidas' business strategies and global operations. This essay showcases how Adidas integrates its values into its business model to achieve both financial success and positive social and environmental impact.

Module: B100 TMA 1
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Word Count: 857

Contents Page
1. Values and beliefs…………………………………………
2. Social Justice………………………………………………
3. Environmental Factors…………………………………...
4. Political and Legal Factors………………………………
5. Reference List……………………………………………...

1. Values and Beliefs
Values can be defined as a belief or concept that is important to individuals
and companies which can shape our approach towards how we act.
(Nystrom,1990). Values are a key driver for both individuals & entities as
they can lead to improved results (Rokeach, 1968) and stronger motivational
goals (Schwartz and Bilks,1987).
Rockeach (1968) suggests that people hold different values which impact
ones decision for example, if an individual values wealth, they may choose a
different career path than someone who values creativity.
Schwartz et al designed a motivational value system (Schwartz Value
System), where ten individual basic values are grouped into 4 categories:
Self-Trascendence, Conversation, Self Enhancement and Openness to
Change. This system represents the dynamic relations between each value
and clearly highlights that some values work in conjunction with each other
whereas other could be conflicting.
Adidas display strong values through many of their initiatives such as
reducing the amount of plastic within their product’s life cycle, with the aim
to produce 100% recycled plastic shoes by 2024. This does mean that Adidas
will have to cater for an additional 20% cost margin increase but proves that
they are a self transcendent business by prioritising values over cost.
(Winship,J,.2017)

(Schwartz, S.H. 2012)
The success of a company, like Adidas can be due to having strong self-
ehancement values and being able to adapt to the current consumer market.
In 2018, Adidas saw an increase of 36% in sales from their online platform
which has inspired them to grow within the e-commence sector by creating
future partnerships with market leaders, Amazon (Waxman, S., 2019) which
will enable Adidas drive their overall sales and market share.
2. Social Justice
Social justice has always been the forefront of Adidas’ business values as they are
committed to uniting people from all backgrounds and encouraging key core life values
“such as team building, resilience and discipline”(Waxman, S.,2019)
In 2016, they formed part of the ‘Wir Zusammen’ initiative where companies were
encouraged to support local refugees through employment (knowing the associated
legalities and risks of doing so). Colleagues in Germany dedicated c.1800 hours in
supporting refugees which Adidas recognised by rewarding them with three additional
days of annual leave.
The Fair Labour Association recognised the effort that Adidas put in to help refugees in
a quick and effective way as well as collaborating with the Turkish
Government(Waxman, S.,2019). As a result, Adidas has been able to support
developing areas such as Syria and ensure refugees are able to find employment with
reasonable working conditions. They’re continuing to work with Turkish authorities to
ensure legal work permits are being provided and continuing to have the power to
change lives through sport.(Adidas, 2020)
The company drive of social justice is very strong, this is an example of strong beliefs
and value-based business.(Winship,J,.2017)
3. Environmental Factors
Being eco-friendly refers to having minimal-to-zero impact on the environment.
Organisations should consider their carbon footprint and the impact it’s having on our
eco-system. Global issues such as the shortage of natural resources, adverse
environmental events, environmental impact or/and stakeholder pressure on legislation
must be addressed in order for businesses to gain sustainability. (Winship,J,.2017)
Adidas’ environmental strategy consists of many initiatives such as mitigating climate
change by leading programmes such as ‘greenENERGY Fund’ where energy is
generated more efficiently or by incentivising employees to opt for low emission
transport. Adidas-group. 2020). Adidas could be the company leading what could be an

environmental movement for other companies, to adopt eco-friendly product life-cycle.
(Waxman.S,2019)
Society awareness on environmental sustainability means that companies need to meet
needs. However, this can lead to companies gaining a competitive advantage by
creating sustainable values and development. Adidas experienced this when launching
a limited shoe edition made of recycled plastic, having a success amongst consumers.
This suggests that more individuals are willing to acquire products that are
manufactured in an eco-friendly way and shareholders are willing to invest in companies
that keep sustainability at the forefront of their business operations. (Natalie Parletta.
2020) In addition to this, 'going green’ is beneficial due to tax credits and incentives as
well as improving efficiency and lowering product costs long term.(Natalie Parletta.
2020)
4. Political and Legal Factors
Legislation and politics can have an impact on a business in terms of success and
expansion which are reliant on specific regulations and international trade. Strong
trading relationships with other countries is mutually beneficial as it leads to cheaper
importation and exportation whilst ensuring equal opportunities and safe environments
are adhered to.(Winship,J,.2017)
This results in a competitive advantage for Adidas compared to other companies in
countries that have limited trading opportunities. This allows Adidas to outsource their
manufacturing in Asia whilst selling their products on a global scale. This also leads to
adopting new trading channels such as expanding in the e-commerce sales.
The World Trade Organisation and the European Union are two examples of strong
political relationships where trading is more accessible than between countries with
weak interrelationships. Adidas also benefits from tax breaks and incentives for
investing such as encouraging companies to reduce Co2 emissions which ultimately
leads towards reaching a desired business goal.(European Environment Agency. 2020.)

5. References List:
Adidas-group.2020. Environmental approach.[ONLINE] Available at:https://www.adidas-
group.com/en/sustainability/managing-sustainability/environmental-approach/#/unser-
ansatzunser-ansatz/. [Accessed 25 October 2020]
European Environment Agency. 2020. Tax breaks and incentives make Europeans buy
cleaner cars- European Environment Agency. [ONLINE] Available at:
https://www.eea.europa.eu/highlights/tax-breaks-and-incentives-make. [Accessed 25
October 2020]
Natalie Parletta.2020..Going Green- What’s Good For the Planet is good for Business.
[ONLINE] Available at:https://www.forbes.com/sites/natalieparletta/2019/05/14/going-
green-whats-good-for-the-planet-is-good-for-business/#774bc6bc3201. [Accessed 25
October 2020]
Nystrom, P.C (1990) ‘Differences in moral values between corporations’, Journal of
Business Ethics, vol. 9, no 12,pp 971-9
Rokeach,M.(1968) Beliefs, attitudes and Values: a Theory of Organisation and Change,
San Francisco,CA,Jossey-Bass.
Schwartz, Shalom H., Bilsky,W (1987) ‘TOward a universal psychological structure of
human values; Journal of Personality and Social Psychology, vol.103, no.4,pp173-186
Schwartz, S. H. (2012). An Overview of the Schwartz Theory of Basic Values. Online
Readings in Psychology and Culture, 2(1). http://dx.doi.org/10.9707/2307-0919.1116
[ONLINE] Available at https://core.ac.uk/download/pdf/10687025.pdf [Accessed 22
October 2020]
Waxman, S.,2019. Adidas, unknown [ONLINE] Available
at:https://learn2.open.ac.uk/mod/oucontent/view.php?id=1693615&section=6.1
[Accessed 22 October 2020]
Winship,J., 2017.An introduction to business and management-Block 1. 2nd ed. UK:
Open University.pp 93-98