Business Ethics Report: Adidas Company and Social Responsibility

This report provides a comprehensive analysis of Adidas' business ethics, examining its vision, mission, and organizational values. It identifies the company's initiatives for social development, including its commitment to sustainability, ethical sourcing, and community support programs such as the 'Earn Your Stripes Scholarship Program'. The report delves into Adidas' ethical policies, such as the labor rights charter, code of conduct for workers and suppliers, and modern slavery policy. It evaluates these practices to assess Adidas' ethical performance and suggests improvements, such as enhancing ethical involvement in the host communities and modifying the existing code of conduct. The report concludes by emphasizing Adidas' commitment to creating a positive impact on society and the environment through ethical business operations and CSR initiatives.

RUNNING HEAD: BUSINESS ETHICS
BUSINESS ETHICS
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Author’s Note:

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Introduction:
The moral and ethical obstacles, which arise in a business environment, are examined
by business ethics. Adidas, an international business organisation, headquartered in
Herzogenaurach of Germany, is the designer, manufacturer of sports accessories. By
following business ethics, in future, this organisation can manage ethical problems. The aim
of this essay to analyse the operation of this organisation from the business ethics view. For
this purpose, this essay will identify the vision statement, mission statement, and
organisational values of Adidas. After analysing the activities, taken by this organisation to
make a better society, this essay will provide suggestions.
The vision statement of Adidas is “to be the design leaders with a focus on getting the
best out of the athletes with performance guaranteed products in the sports market globally”
(Adidas-group.com, 2018). The mission statement of Adidas is “The Adidas Group strives to
be the global leader in the sporting goods industry with brands built on a passion for sports
and a sporting lifestyle. We are committed to continuously strengthening our brands and
products to improve our competitive position.” Organisational values of Adidas comprise
“performance, passion, integrity, and diversity” (Adidas-group.com, 2018)
Explanation about the present ethical values:
As a leading business organisation, Adidas has developed and implemented initiatives
for the development of society. Through CSR, this organisation are implementing several
initiatives to support the society. Employees, consumers, environment, and shareholder of
this company are getting benefit from these initiatives (Rahim, 2014). This organisation has
created more than five million pair of sports shoes by using recycled plastic waste to reduce
ocean pollution. Adidas has partnered with Parley for the Oceans, which is an international
collaboration network, to manufacture more than ten million pair of shoes in 2019
(Loyalty360.org, 2019). Sports accessories are prepared by using recycled materials by this
company. For the development of society, this organisation has started using sustainable
materials. To improve the environment, this organisation has prioritised the reduction of CO2
emissions. After signing the Climate Protection Charter at the UN Climate Change
Conference, the authority of Adidas decided to diminish greenhouse gas emissions by 30 per
cent by 2030. Scientific waste management procedure is followed by this company to prevent
wastage. By prohibiting the use of plastic, this organisation saved more than 40 tons of
plastic waste.

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To support the society, this organisation maintain ‘Earn Your Stripes Scholarship
Program’ that offers commercial support to the graduating high school seniors (Adidas-
group.com, 2018). To achieve this scholarship, students have to demonstrate in community
activities, sports, and academics. For the underprivileged students, this organisation provides
backpack and school supplies through the local charitable Schoolhouse supplies.
To analyse the business operation of Adidas from business ethics view, the policies of
Adidas will be explained here. This organisation strictly follows ethical features while
managing the business organisation. Labour rights charter, fair play code of conduct for the
workers, code of conduct for the suppliers, modern slavery policy, liable sourcing and
procuring policy, assimilated management procedure for health, safety, atmosphere, and
energy, controlled substances program ‘A-01 Requirements’ are followed by this company
(Adidas-group.com, 2018). Through labour rights charter, Adidas is interested in fulfilling
the responsibilities to its global workforce. Worker recruitment, improvement, the same
opportunities, compensation and benefits of this company follow the ‘Labour Rights
Charter.’ This organisation is interested in fulfilling its pledge to the ‘United Nations
Universal Declaration of Human Rights.’ This organisation follows an ethical code of
conduct for the workers and suppliers (Adidas-group.com, 2018). Every employee, manager,
supplier of this company is bound to follow the ethical decision-making system of this
company. To maintain the workplace standard, the authority of Adidas follows the
international law, International Labour Organisation conventions, and the model code of
conduct of the World Federation of Sporting Goods Industry (Adidas-group.com, 2018).
Modern slavery policy is followed by this company. Forced labour, human trafficking,
slavery is prohibited by the authority of Adidas. To maintain responsible recruitment, this
organisation follows the Dhaka Principles for Migration (Adidas-group.com, 2018).
Integrated management policy is implemented by this company to manage the business
operation in a safe, healthy, energy-efficient, and ethical and environment-friendly way.
So it can be said that this organisation is successfully controlling its business
operation by following the ethical business aspect. To make a better society, this organisation
has taken several initiatives by following business ethics.
Suggestions:
By following a few steps, Adidas Company can improve ethical performance. It will
help this business organisation to create customer loyalty, brand reputation, and positive work

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environment (McMurrian & Matulich, 2016). To retail the best employees and avoid legal
problems, it will aid the organisation. To implement ethical performance, the management
team of the company has to improve and modify the existing code of conduct. Authority of
the company must engage, communicate, and train the employee. The management team of
this company has to provide support routes for the employees. The appropriate evaluation of
ethical program must be conducted continuously by the authority.
Another suggestion for Adidas Company is to improve organisational ethical
involvement in society. Though this organisation follows the regulations of International
Labour Commission yet, Adidas Company has to prioritise the people from the host
community. This approach of Adidas Company will create a positive environment in the
society. To prioritise the host community, this organisation has to engage with the people
from the host community. Sustainable development of the infrastructure of the host
community area can be beneficial for this company to maximise its reputation.
Conclusion:
This aim of this essay to analyse the business ethics of Adidas Company. Whether
this organisation is interested and successful to develop the society or not is discussed in this
piece of writing. It can be said that to improve society, and ethical business operation, this
company has taken various initiatives. As a leading business organisation, this organisation is
committed to creating a positive impact on the society and environment. Policy and CSR
initiatives of this business organisation are successful in achieving the vision of the company.
By maintaining ethical business operation, this company is successfully operating its business
in several countries.

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References:
Adidas-group.com. (2018). POLICIES AND STANDARDS. Retrieved 17 January 2020,
from https://www.adidas-group.com/en/sustainability/reporting/policies-and-standards/
Adidas-group.com. (2018). GENERAL APPROACH. Retrieved from https://www.adidas-
group.com/en/sustainability/managing-sustainability/general-approach/.
Adidas-group.com. (2018). Profile. Retrieved from
https://www.adidas-group.com/en/group/profile/.
Loyalty360.org. (2019). Adidas Commits to Corporate Social Responsibility. Retrieved 17
January 2020, from https://loyalty360.org/content-gallery/daily-news/adidas-commits-to-
corporate-social-responsibility
McMurrian, R. C., & Matulich, E. (2016). Building customer value and profitability with
business ethics. Journal of Business & Economics Research (JBER), 14(3), 83-90.
Rahim, M. M. (2014). The impact of corporate social responsibility on corporate governance:
The rise of standardization of CSR principles. In Corporate social responsibility in the
global business world (pp. 93-113). Springer, Berlin, Heidelberg.