Enforcement
Rejection rate
Our initial assessments are uncovering threshold or zero tolerance issues in 19% of potential new suppliers, resulting in rejections. This shows that non-compliances with our Workplace Standards are still common in our potential supply chain.
Rejection rate of factories after initial assessments in 2008
Warning Letters
Warning letters are an essential part of our enforcement efforts and are triggered when we find ongoing serious non-compliance issues that need to be addressed by our suppliers. For further information on our enforcement practices, please see our Enforcement Guidelines.
In 2008 we issued a total of 37 warning letters across twelve countries. The general trend for the past two years has been a reduced number of warning letters, both in total and by category.
The largest number of warning letters continued to be issued in Asia, where we have the greatest concentration of adidas Group suppliers. But there was a significant decline (62%) in numbers of first and second warning letters being issued in China and Indonesia in 2008, compared to the previous year.
Following the 2006 launch of the new adidas Group Workplace Standards and our supplier approval guidelines – that more clearly defined zero tolerance and threshold issues – we stepped up our efforts to achieve greater compliance among suppliers. This resulted in a larger number of warning letters being issued in 2007. Since then factory conditions have improved, with significant non-compliances remedied by those factories which had received the earlier warnings. As a consequence there was a reduced number of warning letters issued in 2008.
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