CSR & Ethics: Damaging Allegations for Adidas and the London Olympics 2012

On the face of it, the findings of the Independent newspaper’s investigations into the sourcing of the official London Olympics GB team kit are very damaging for both LOCOG and the supplier - Adidas. You can read the full report here.

The key allegation is that Olympic-branded gear - to be worn by GB athletes and Games volunteers, is being manufactured for Adidas in sweatshop conditions. Some of the working practices described in the report make for pretty uncomfortable reading. The claims are hugely embarrassing for the London 212 organisers who have claimed that the London Olympics will be the most ethical ever. It will be interesting to see what response there is from LOCOG and Adidas in the coming days.

However, as a business studies example, the investigation is very interesting. It has taken some investigative journalism to uncover the alleged practices. Why had Adidas and/or LOCOG not carried out an effective supplier audit to support their claims? If they did, were their findings the same as those of the Independent?