ONE CREDIT COURSE ASSIGNMENT
D. NIMALAN BC0150017
Is it difficult to find?
No, you can easily find it in the company's website. Every company should provide such
information in their website.
2) Is there a corporate code?
The corporate code of conduct refers to a company's public policy which defines their
standards or ethical conduct. They are completely voluntary, meaning that a company may
choose to have or not have one, and may address any issues to worker's rights. Yes, of course
Adidas have a corporate code of conduct.
3) Can you find reference to labor issues?
Yes there is reference about labor related issues in the corporate code of conduct.
4) What are the standards the codes discuss?
The code discusses about the wage policy of Adidas towards the workers the benefits
given to them and the compensation paid to them. It also talks about the fair compensation to the
workers. The rights of the vulnerable groups such as child labour, Forced labour, migrant labour
and also talks about the women working in the factories etc. Health and safety of the workers
working in the factory was also discussed.
5) Are there Indications that it is working?
In the early 2000s there were complaint about Adidas that there were child labors were
being employed in the sweatshops in Indonesia who were made to work for more than 15 hours a
day and were paid less than 60 dollars a month which was below the International Labour
organization's demand for a living wage and were penalized for taking leave during medical
difficulties and had illegal deductions taken from wages as punishments for minor
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Misdemeanours. Adidas also have most of their factories in third world countries so it is very
easy for them to exploit the workers.
In another case in a Strike at Taiwanese shoe manufacturer Yue Yuen in Dongguan, china,
which supplies athletic shoes to the likes of Adidas and Nike, brought the 43,000 employee outfit
to a standstill for 10 days in April. The strike continued for a period of more than 2 months. In
this strike process Adidas played a key role. Throughout the strike Adidas group was closely
monitoring the situation and in touch with the Pou chen group the parent company of YU Yuen.
With the parent company aidas was in direct discussion with the local government and the trade
union federation to seek ways to address the concerns expressed by the workers. With respect to
the strike two of the worker representatives were arrested. Adidas was engaged with several
labour rights groups in southern china to secure their release. So by these incidents it could be
observed that initially Adidas didn't bother about their labors but later on they have developed a
corporate code and started working towards the welfare of their workers. Now this certainly
shows that the labour code of Adidas was functioning.
6) Who is monitoring the performance?
Adidas is a famous brand all over the world. Their code of conduct will be monitored by
various officers working in various parts of the world.
7) Who does the code apply to ( Contractors? Headquarters only?)
Code of conduct applies to The headquarters and also the contracts because in the case of
strike in Dongguan, china even though adidas was not the direct employer it helped the workers
to fight for their cause. It shows that Adidas corporate code policy applies also to the contractors.
8) IS there evidence in other CSR materials regarding the actual performance of the company in
the labor area?
There is no such evidence found in the company's CSR regarding the performance of the
company in Labor Area.
9) Is there something you find that persuades you about the effectiveness (or lack of) of the
code?
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The above mentioned strike incident in this assignment persuades me to believe that there was
actual performance and the effectiveness of the corporate code of Adidas.
