BUSM4690: Corporate Social Responsibility of the Adidas Company

This essay meticulously examines the corporate social responsibility (CSR) initiatives of the Adidas Company, a global leader in the sports industry. The essay begins with an overview of Adidas's operations, its commitment to sustainability, and its core CSR strategies, such as the 'Run for Ocean' i...Read More

RUNNING HEAD: THE CSR WORK OF THE ADIDAS COMPANY
The CSR work of the Adidas Company
Name of the Student:
Name of the University:
Author note:

1THE CSR WORK OF THE ADIDAS COMPANY
Adidas is a multinational corporation, which manufactures sports shoes, clothing and
accessories. Corporate social responsibility is a business model, which assists a company to
be socially responsible to the shareholders, public and the company itself. In this paper, the
corporate social responsibility of the Adidas Company will be discussed. The CSR work of
Adidas will be analysed and evaluated in this paper. There are few recommendations to
improve the CSR work of Adidas Company.
Adidas Company is a Germany based international company. This global company
designs and produces sports shoes, clothing and sports accessories. “Impossible is nothing” is
the slogan of this company. Supporting athletes is the central vision of this company. This
company is an international leader in the sporting material industry. The brand value of this
sports brand is 16.7 billion U.S dollars in 2019. Fifty-seven thousand people are working in
this company as an employee. This company manufacture over 900 million sports goods and
accessories every year (www.adidas-group 2019).
Adidas Company is continually improving its sustainability responsibilities. The new
strategies of this company are to manage the challenges that threaten the sports spaces and at
the same time this earth and its people. Human-made issues such as enhancing energy
consumption and waste, human rights violations, and pollution are threatening for the spaces.
In 2018 this company fixed corporate social responsibility, which is “save marine from
plastic pollution” (www.adidas-group.com 2019). People must concern about one of the
essential environment issues, which is marine plastic pollution. In every year, oceans receive
at least eight million of plastic waste. More than 150 million tons of plastic are present in the
seas. The trashes of floating plastic are the most annoying thing in the sea. Plastic pollution in
the ocean is the most widespread problem, which affects the marine environment. The health
of the ocean, human health, and marine biodiversity is affected by the enormous amount of
plastic waste in the sea. Adidas organised an international movement by engaging nearly

2THE CSR WORK OF THE ADIDAS COMPANY
one million runners around this earth through applications, named Runtastic, and Joyrun. For
every kilometre run, Adidas will donate $1 to the Parley Ocean School. This international
sports Company has collaborated with global collaboration network “Parley for the oceans”.
Before plastic waste can reach in the ocean, “Parley for the oceans” seizes the plastic waste.
Then the plastic waste, gathered from the coastal area, made in to cotton. To manufacture
footwear, Adidas Company uses these kinds of cotton. These kinds of cotton are being used
by the company to produce sports accessories such as jerseys. By recycling the ocean plastic,
five million pair of sports shoes were manufactured by this company in 2018. In this year,
this company sourced organic cotton to produce sports shoes. To build its products; thus, the
company uses sustainable materials such as recycled polyester, organic cotton, TENCEL,
recycled nylon, recycled thermoplastic polyurethane, algae-based EVA, and recycled rubber.
Raw materials from any endangered species are not used in the manufacturing procedure of
this company. The primary corporate social responsibility done by this company in 2018 was
manufacturing sports shoes by using recycled plastic waste. To fulfil the corporate social
obligation, this company fixed a target to make the double figure of sports shoes, which is
eleven million sports shoes, by using recycled ocean plastic waste. The goal of this
movement was to educate and empower 100,000 children and their families, staying in the
coastal area. These families are affected by marine plastic pollution. The fantastic success of
the Run for oceans 2018, this company, with the collaboration of Parley Company investing
$1 million in the Parley ocean school program to help the youth from the coastal area. This
environmental education program will motivate the child from coastal space to participate in
the movement to protect the ocean from plastic waste. This initiative aims to develop next-
generation as a guardian of the sea. With several activities, this initiative teaches the youths
about the importance of marine plastic pollution and introduces children to the world of
underwater. After developing the partnership with the education department of Maldives, the

3THE CSR WORK OF THE ADIDAS COMPANY
Parley Ocean School initiatives launched in the Maldives for the first time. Local
communities, schools, around 100,000 youths and their families participated in this program.
Adidas Company is interested in accomplishing its corporate social responsibility. This
company prepares a new holistic sustainability strategy for 2020. To complete the corporate
social responsibility, this company fixed its vision, which decreases the plastic pollution. This
company will use sports to change the world. This company takes two initiatives. One is
priorities the Run for Ocean initiative, which will reduce marine plastic pollution. Another
one is creating plastic-bag free stores and offices throughout the world. The new strategy of
2020 will focus on water efficiency and the quality of water. The priority fixed by this
company is enhancing sustainable materials in the manufacturing procedure, worldwide
offices. This company is working to fulfil corporate social responsibility (www.adidas-
group.com 2019).
Stakeholder theory will be used to evaluate the corporate social responsibility of
Adidas Company. According to Dr F. Edward, the developer of stakeholder theory, anyone
affected by the company and its working is included in the stakeholder of the company. This
theory ensures that the people or groups, who are affected by the company’s action, must
have a right to participate in the stakeholder of the company (Frynas and Yamahaki 2016).
The prime stakeholders of a company should be the shareholders, labours, consumers,
suppliers, and community. Adidas Company is fulfilling its customer social responsibility. To
reduce the marine plastic pollution, Adidas Company started a new initiative, which is “Run
for Ocean”. People from the coastal area are affected by marine plastic pollution. This
initiative not only helps the people from the coastal area but also helps the company to reduce
plastic pollution. This company reuses the marine plastic wastes, which are collected from
oceans, and sustainable raw materials in the manufacturing procedure. To reduce plastic use,
this company stop using plastic bags in every brunch of this world. Adidas Company focuses

4THE CSR WORK OF THE ADIDAS COMPANY
on the consumers, employees, community, and environment. A strategy is developed by this
company to empower people, improve health situation, and inspire other people to achieve
the sustainability goal. According to the stakeholder theory, the stakeholders of this company
are the consumers, communities, employees. Through this “Run for Ocean” initiative, Adidas
Company uses and motivates other stakeholders, such as staff, people, society, to give the
shape of the effort. The implication of this theory will be beneficial for this company to fulfil
the target. Benefits achieved from this initiative will develop a positive impression of Adidas
Company not only to the stakeholders but also to the rest of the world.
Carroll’s pyramid of CSR will help to evaluate the CSR of Adidas Company. Archie
Carroll developed the pyramid model and focused on four components, which are Economic,
Legal, Ethical, and Philanthropic. This pyramid of CSR is a framework, which explains why
a company should fulfil corporate social responsibilities (Carroll 2016). To make profits for
the company is an economic responsibility, which is the first component of this theory. The
second component of this framework is legal responsibility, which refers that the company
will follow the law set by the society. Ethical responsibility is doing the right thing at the time
when the rules and regulation do not constrain business. Lastly, philanthropic responsibility
which refers that to fulfil social, cultural, recreational determinations, and educational (Deigh
et al. 2016). Evaluate the corporate social responsibility of Adidas Company with Carroll’s
pyramid theory will provide a clear idea about the CSR. Adidas Company managed internal
and external obstacles successfully. This company is successful in continuing its business
growth and profits. This company follows the second component of Carroll's pyramid. The
management of this company follows the laws and agreement established by society and
authorities. By following the rules and regulation, this company is running its business
operation. This company fulfils ethical responsibilities (www.adidas-group.com 2019).
Company is not bound to achieve these responsibilities, but society expects this from any

5THE CSR WORK OF THE ADIDAS COMPANY
company. Adidas Company develops several strategies, such as the "Run for Ocean
initiative", sustainable raw material usage, plastic-free offices. These initiatives are focused
on fulfilling the ethical responsibilities.
The core characteristics of corporate social responsibility are the fundamental features
of corporate social responsibility. There are six core characteristics of CSR, which are
voluntary, managing externalities, multiple stakeholder orientation, alignment of social and
economic obligations, practices and values, and beyond philanthropy (Crane, Matten and
Spence 2019). The Adidas company full feeling its voluntary duties. The initiatives taken by
this company are unrestricted and expanded beyond what the law has imposed. Managing
externalities in corporate social responsibility to the factors which have Deep impact on
rights of several stakeholders are not precisely taken care in the decision making the
procedure of a company. To manage externalities, this business organisation develops
strategy and policy for the improvement of all other stakeholders (Otubanjo 2013). These
policies and initiatives are taken by the Adidas company focus to create a positive impact on
other stakeholders. To survive and grow business, business organisations have to fulfil their
responsibilities towards other stakeholders. Component of other stakeholder is customers,
suppliers, staff, community, and other people. The work of business organisation affects the
consumers, employees and community. That is why these people are named as other
stakeholders. The corporate social responsibilities of the Adidas Company is proof that this
organisation is willingly promoting the improvement of other stakeholders. The fourth feature
of the core characteristic of CSR is the alignment of social and economic duties. The way
business organisations can enhance their business by maintaining social functions is analysed
by the fourth feature of Core Characteristics of corporate social responsibilities. The Adidas
Company, which is the leading sports company, is continuing business growth. Besides of
being socially responsible, this company enhancing its profit. Practices and values are the

6THE CSR WORK OF THE ADIDAS COMPANY
fifth features of this strategy. According to this feature, every business company must imply
the concept of corporate social responsibilities in their business. The expansion of CSR
practices is affected by the personal values of the supervisor. Supervisor of a company
creates CSR policies and strategies, which are followed by the sub-ordinate staff. The
supreme authority of Adidas Company is working towards sustainability for several years.
The social and environmental team of Adidas Company is headed by the Chief Human
Resource Officer, who communicates with the CEO directly. Personal values of the Chief
Human Resource Officer are reflected in the new CSR strategies and policies. Beyond
philanthropy is the last feature of core strategies of CSR. This feature helps Adidas Company
to integrate the CSR practices in to the business function.
After evaluating the CSR function of the Adidas Company, there are some
recommendations for this international business organisation to improve CSR practices.
Multinational Company, like Adidas, must promote education, employment training, and a
small business start-up in the developing countries. It will help to enhance society by creating
a stable and healthy community. This approach will develop a positive impact on other
stakeholders such as people, community, who are affected by the company’s action. This
recommendation is related to the stake-holder theory of CSR. Human activities create
pollution. This company has to promote the importance of natural resources. The Adidas
Company must do proper waste management and using alternative renewable energy in the
manufacturing procedure. Like “Run for Ocean” initiative, this company should prepare other
plans to involve more people to improve the earth.
Therefore, in conclusion, it can be said that the Adidas Company is focused on
completing its CSR responsibilities through sports. “Run for Ocean” initiative, use
sustainable raw materials, and plastic waste in the manufacturing procedure, curtail the use of
plastic bags, use substitute renewable energy is the instance of the Adidas Company’s CSR

7THE CSR WORK OF THE ADIDAS COMPANY
functions. After evaluating the CSR function of the Adidas Company with the help of
stakeholder theory, Carroll’s pyramid theory and the Core characteristics of CSR, it can be
said that this company focused on completing its CSR.

8THE CSR WORK OF THE ADIDAS COMPANY
References:
Carroll, A.B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of
corporate social responsibility, 1(1), p.3.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings
and cases in a global context. Routledge.
Deigh, L., Farquhar, J., Palazzo, M. and Siano, A., 2016. Corporate social responsibility:
Engaging the community. Qualitative Market Research: An International Journal, 19(2),
pp.225-240.
Frynas, J.G. and Yamahaki, C., 2016. Corporate social responsibility: Review and roadmap
of theoretical perspectives. Business Ethics: A European Review, 25(3), pp.258-285.
Jones Christensen, L.I.S.A., Mackey, A. and Whetten, D., 2014. Taking responsibility for
corporate social responsibility: The role of leaders in creating, implementing, sustaining, or
avoiding socially responsible firm behaviors. Academy of Management Perspectives, 28(2),
pp.164-178.
Otubanjo, O., 2013. Theorising the interconnectivity between corporate social responsibility
(CSR) and corporate identity. J. Mgmt. & Sustainability, 3, p.74.
www.adidas-group. (2019). https://www.adidas-group.com/en/group/profile/. [online]
Available at: https://www.adidas-group.com/en/group/profile/ [Accessed 10 Sep. 2019].
www.adidas-group. (2019). https://www.adidas-group.com/en/sustainability/managing-
sustainability/sustainability-history/. [online] Available at:
https://www.adidas-group.com/en/sustainability/managing-sustainability/sustainability-
history/ [Accessed 10 Sep. 2019].

9THE CSR WORK OF THE ADIDAS COMPANY
www.adidas-group.com. (2019). https://www.adidas-group.com/en/sustainability/. [online]
Available at: https://www.adidas-group.com/en/sustainability/managing-sustainability/
sustainability-history/ [Accessed 10 Sep. 2019].
www.adidas-group.com. (2019). https://www.adidas-group.com/en/sustainability/managing-
sustainability/materiality-analysis/. [online] Available at:
https://www.adidas-group.com/en/sustainability/managing-sustainability/materiality-analysis/
[Accessed 10 Sep. 2019].