Social Causes for Adidas Inc.

Organizations consider the social issues in their environment, and Adidas Inc has adopted
social responsibility and social sustainability. This paper proposes several social causes that
Adidas can engage in and analyses those issues in terms of their organizational fit. The paper
also analyzes the social issues from the shareholder theory to identify the most preferred social
cause for the organization. The selected causes’ ethical impacts have also been analyzed
internally and externally. Finally, the ethical theories that conform with the selected cause,
including the stakeholder and stockholder theory, have been evaluated.
The proposed Social Causes

Social cause 1: Sustainability Training
Adidas can increase its community engagement on sustainability by training shore
communities on the impact of ghost fishing gear on marine life. Ghost fishing gear is the gear
that has been abandoned in the sea. Such fishing gear is a leading cause of plastic pollution in the
sea. Besides pollution, the gear is known to negatively impact other marine life not meant to be
parts of commercial fishing, such as turtles, whales, and seals. A study conducted by Earth.org
and WWF revealed that there could be as much as 500,000 to 1 million tons of fishing gear
abandoned in the ocean. Training can fundamentally inform shore communities that they need to
be more environmentally conscious and aware of the dangers of their reckless actions. The
training allows Adidas to practice the education that they have learned. Adidas can adopt the
education model that it implements in conjunction with Parley to implement such training.
Social Cause 2: Donating Towards Social Causes
Adidas engages in many social causes. Through its ‘own’ systems, Adidas has reduced its
carbon footprint. It has also engaged in water conservation, recycling, and sustainable sourcing

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causes. However, it can actively participate in social causes by making financial donations
(Pennerstorfer & Neumayr, 2016). For instance, Adidas can donate financial resources or
humanitarian resources to victims of the ongoing conflict between Ukraine and Russia. Adidas
has a presence in both Russia and Ukraine. However, Adidas has been forced to suspend retail
activities in those countries since the conflict began. One characteristic of political conflicts is
that they always have humanitarian casualties, and Adidas can participate through donations to
go towards food, shelter, medical attention, and logistical needs. Adidas can make this donation
to The Redcross, which is involved in helping in the crisis.
Social Cause 3: Child Empowerment
Adidas can engage in a program that helps children from disenfranchised backgrounds
attain education and get involved in sports. Adidas can partner with education and rescue
facilities to identify children from underserved families who can excel in sports. Since Adidas
operates mainly in the sports industry, it can provide such children with sporting apparel and
equipment, training, and facilitate their education through scholarships. This way, Adidas can
contribute to developing children’s education and talent. Such a program in society can be
immeasurable because education and sport can help children live a more fulfilling life and
become better prepared for the opportunities that may come up in the future.
How Each Cause Does or Does Not Meet Adidas Mission, Vision, Ethical Framework, and

Ongoing Social Responsibility Efforts

It is essential to restate Adidas’s statements to understand better how these activities
interact with its mission, vision, and goals. Adidas’s mission statement reads: “To be the global
leader in the sporting goods industry with brands built on a passion for sports and a sporting
lifestyle. We are committed to continuously strengthening our brands and products to improve

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our competitive position” (Adidas, 2022). Adidas’s vision is “to be the design leaders focusing on
getting the best from athletes with performance guaranteed products in the sports market globally
(Adidas, 2022). Adidas’ core values comprise performance, passion, integrity, and diversity.
The first social cause has little correlation with the organization’s mission and vision. The
mission and vision are concerned mainly with the business aspect, overcoming the competition,
and providing the best for its customers. However, this cause demonstrates the organization’s
passion and diversity.
On the other hand, cause two meets the organization’s mission, vision, and values. The
mission and vision depict an organization that aims to be a global leader. Global leadership
qualities are also demonstrated in times of crisis. This cause enables Adidas to be visible even
though it has closed its operations in both countries. It practically demonstrates passion,
integrity, and diversity.
Equally, cause three contributes to the organization’s mission, vision, and goals. The
organization’s mission and vision are concerned with athletes’ performance. Through this cause,
Adidas can focus on creating products for amateur athletes and getting the best athletic
performance from them. Through this cause, Adidas can demonstrate passion, performance, and
integrity.
The above social causes are a good fit for the organization. The first is that they
demonstrate concern for their customers’ current issues. Since Adidas has customers in Ukraine
and Russia, cause two shows concern and organizational empathy towards the unfortunate
situation.
Secondly, the causes are aligned well with Adidas’ sustainability initiatives. Adidas has
emerged as a leader in advocating for reduced ocean plastic pollution. Sustainability training

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shows the commitment and action that Adidas can take to reduce the amount of plastic waste in
the ocean. Adidas already partners with Parley to use ocean waste as raw material for one of its
product lines. Adidas may increase its efforts through training.
Thirdly, the causes are aligned with the sports industry. For example, cause three enables
Adidas to invest and contribute to the future of the sport through children. Nurturing sports talent
in children increases the likelihood of children taking up sports careers in the future. Adidas
products ensure that children have quality products to work with to grow their sporting talent.

Selecting the Best Cause and It is a Good Fit for Adidas

Cause three is undoubtedly the most appropriate for Adidas because of multiple reasons.
Firstly, the cause matches Adidas’s characteristics, key business area, mission, vision, values,
and goals. Adidas is already contributing to cause one (sustainability training), including through
its partnership with Parley. Adidas also donates to charitable causes; the conflict between Russia
and Ukraine is expected to be resolved. Therefore, cause three is the most sustainable and unique
among the three.

Stockholder and Stakeholder Theories’ Impact on the Selected Cause
The stockholder theory suggests that the primary responsibility of organizations is to
make a profit. This theory advocates that the manager’s responsibility is to use the organizational
resources to generate profits for the organization; according to stockholder theorists, this is the
only way an organization can benefit and remain sustainable (Castelo, 2013). Cause three is an
investment in Adidas’s brand image as it creates investor confidence and appeal. Brand image is
directly connected to revenues and profits. Investor confidence boosts a company’s ability to
raise funds through capital markets and the value of its shares, and stockholders benefit in the
process.

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Stakeholder theory advocates that managers engage in business activities that benefit
stockholders and other stakeholders such as customers, suppliers, the community, and employees
(Freeman, 2006). Since the selected cause promotes the organization’s brand, it helps build an
attractive perception for the stakeholders.

The Personal Ethical Framework that Impacted the Final Selection
The virtue ethical theory is the most applicable for the selected cause. The virtue ethics
theory suggests that an organization’s involvement in ethical activities should be guided by
morals and the virtuous nature of the organization (Swanton, 2016). The cause empowers
children from underserved backgrounds impacted my selection because it shows the virtues of
compassion, care, and kindness. Helping children is especially impactful because they are most
vulnerable at a young age. Also, children demonstrate high potential for future success and
excellence if they are guided and their talents nurtured.

Internal and External Ethical Impacts

Implementation of the social cause will demonstrate the organization’s commitment to
social empowerment for employees. Ethical activities can increase employee loyalty and
commitment (Syed et al., 2017). Ethical causes require financial investment to be directed to
other causes besides profitability. However, considering Adidas’ significant financial strength
and growth prospects, the chosen cause does not pose a significant financial risk. The external
impact is that the social cause will enhance the organization’s reputation (Syed et al., 2017). The
cause is a significant investment in brand image and brand equity.

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References

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Freeman, R. E. (2001). A stakeholder theory of the modern corporation. Perspectives in Business
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expenditure, non-profit regimes, and charitable giving. VOLUNTAS: International
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Syed, S. F., Muhammad Ali, S., & Nguyen, B. (2017). The importance of ethics in branding:
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Swanton, C. (2016). A virtue ethical theory of role ethics. The Journal of Value Inquiry, 50(4),
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