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Supply Chain Innovation

adidas

adidas owns adidas and Reebok brands, and its social compliance program is accredited by FLA.

From the adidas website: Being a sustainable business is about striking the balance between shareholder expectations and the needs and concerns of our employees, the workers in our supply chain, and the environment. We truly believe that acting as a responsible business – one that is fully committed to respecting human rights – will contribute to lasting economic success.

The FLA Board of Directors accredited adidas-Salomon’s labor compliance program in May 2005, at the end of a three-year initial implementation period. Separately, the FLA Board of Directors accredited Reebok’s footwear program in 2004 and its apparel program in 2005; further, the FLA Board reaccredited Reebok’s footwear labor compliance program in 2006. This assessment for reaccreditation of adidas’s labor compliance program covers the period 2005-2007.

On May 27, 2008, FLA published a Second Interim Summary Report providing information on all activities related to a Third Party Complaint (3PC) initially filed on December 8, 2005 by Christliche Initiative Romero (CRI) regarding Hermosa Manufacturing in El Salvador. FLA affiliate companies adidas, Nike, Inc. and Russell Athletics sourced from the factory at the time the 3PC was filed. CIR alleged workers were owed wage, overtime and severance payments from the sudden closure of Hermosa Manufacturing in May 2005.

adidas-Salomon was approved as a FLA Participating Company in 2001. The adidas-Salomon Standards of Engagement (SOE), the Company’s Code of Conduct, includes benchmarks for labor and health, safety and environment. The FLA Board of Directors voted to approve the accreditation of the adidas-Salomon compliance program on May 12, 2005, based on proven adherence to FLA's Workplace Code of Conduct and the Obligations of Companies.

In September 2003, FLA published a Summary Report on the Third Party Complaint (3PC) filed by FLA Participating Companies Nike, Reebok and adidas alleging freedom of association violations and other noncompliance issues at BJ&B. The FLA investigated the situation and made recommendations to ensure that freedom of association rights were respected.

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