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Governance and Risk Management

In developing our business, we acknowledge that it is necessary to take certain risks to maximise business opportunities.

It is a business imperative to adhere to all applicable laws, directives and guidelines. But that is not enough. We are continuously striving to improve our performance and our standing in society by regularly reviewing our progress as well as setting ourselves targets that stretch us and goals that enable us to become a more sustainable company. To achieve this, we follow a proactive approach in managing sustainability issues, which is an inherent part of the company’s Corporate Governance framework and risk management system.

Corporate Governance

Our risk and opportunity management principles and system provide the framework for adidas to conduct business in a well-controlled environment. As a company we are a part of the global economy and society and have to follow various legal rules and regulations. We have set ourselves standards of good corporate management to effectively and responsibly manage risks and challenges.

adidas has established a corporate governance framework that addresses rights of shareholders, the responsibilities and duties of the Executive Board, including social and environmental considerations, and the Supervisory Board and how they collaborate, information and disclosure obligations, and solutions for any conflicts of interest. The governing principles we have established ensure good management and control of the business.

Managing Risk

A comprehensive risk management system addresses internal or external risks that may affect the company’s goals, strategies, brand image or financial performance and health. The company’s Social and Environmental Affairs (SEA) function is an integral part of the risk management system and provides the Executive Board with regular updates on human rights, social and environmental risks, opportunities and developments. Strategic business plans by the SEA team support the development of business contingency plans and staff advisories for public health and safety issues.

Special guidance that forms part of our governance framework includes:

  • Workplace Standards, adidas' supplier code of conduct
  • Labor Rights Charter, outlining adidas' position on human and core labor rights for company employees
  • adidas Code of Conduct, defining rules for all employees with respect to legally compliant and ethical behavior
  • adidas Environmental Policy, outlining the company's position with respect to sound environmental management and its commitment in continuous improvement of its environmental impact.