Enforcement

Number of warning letters issued to adidas Group suppliers

We issue warning letters when we see an ongoing serious lack of management commitment to improving compliance with our Standards. In 2008, we issued a total of 37 warning letters.

Country 1st warning 2nd warning 3rd and final warning -> recommended termination Total warning letters
  2008 2007 2008 2007 2008 2007 20081 2007
Bangladesh 1 - - 1 - - 1 1
Brazil 1 - - - - - 1 -
Cambodia 1 1 - - - - 1 1
China 11 20 1 3 - 4 12 27
Greece - 1 - - - - - 1
India 3 - 1 - - - 4 -
Indonesia 1 8 1 2 - - 2 10
Jordan - - - - - 1 - 1
Korea 1 - - - - - 1 -
Macao - - - 1 - - - 1
Mexico 1 - - - 1 - 2 -
Philippines 2 - - - - 1 2 1
Thailand 2 3 1 - - 1 3 4
Turkey 1 4 1 - - - 2 4
Vietnam 6 3 - - - - 6 3
Total 31 40 5 7 1 7 37 54
1) Includes warning letters issued by licensees and agents.

Number of business relationship terminations / rejections after Initial Assessment due to compliance problems

We work closely with our suppliers to help them improve their performance. In situations of severe or repeat non-compliance we will terminate our business relationship with suppliers. In 2008 we terminated agreements with two suppliers for compliance reasons.

We also work closely with Global Operations to prescreen potential new suppliers. In total 626 Initial Assessments were conducted, resulting in a 19% rejection rate.

Asia

Country No. of terminations per country No. of rejections after IA per country
  2008 2007 2008 2007
Bangladesh - - 4 -
Cambodia - - 5 2
China - 3 54 56
India - - 12 8
Indonesia - - 2 7
Japan - - - 1
Korea - - 1 2
Laos - - 1 -
Malaysia - - - 1
Pakistan - - 5 3
Sri Lanka - - - 1
Taiwan - - 1 -
Thailand - - 3 1
Vietnam 1 - 15 6

Americas

Country No. of terminations per country No. of rejections after IA per country
  2008 2007 2008 2007
Canada - - 1 4
El Salvador - - - 1
Guatemala - - - 1
Honduras - - - 1
Mexico 1 - 6 2
Peru - - 1 -

EMEA

Country No. of terminations per country No. of rejections after IA per country
  2008 2007 2008 2007
Albania - - 1 1
Egypt - - 1 2
Israel - - 1 -
Jordan - 1 1 -
South Africa - - 2 1
Turkey - - 3 3
United Arab Emirates - - - 2
Zimbabwe - - 1 -

Global

Country No. of terminations per country No. of rejections after IA per country
  2008 2007 2008 2007
Global 2 4 121 106

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