Examining Adidas' Commitment to Fair Wages and Improved Working Conditions in its Supply Chain

Commitment of Adidas towards Fair Wages and Better Working Conditions in its Supply Chain
The sportswear multinational leading company, Adidas has heavily invested in the conditions and wages within the supply chain. As part of all its efforts toward upgrading social responsibility, the company forms new initiatives to focus on the topics of pay equity, safe work environment, and living conditions in workers who are working for global markets.

Focus on Supply Chain Accountability
Adidas runs a huge supply chain that reaches many countries worldwide, most of which are in Asia where most of their products are made. Adidas is aware of the situation there and has framed their policies of just treatment and living wages to its workers.

Major initiatives
Formulation of wage policies for suppliers with them that ensure them of a minimum living wage
Third party audited of workplace with the test aim of confirming its accordance to the established in the workforce standard of ensuring workplace safety.
An improved channel to complain so the employees be issued with sources which they can have them
Earn living wages and a transparent wage practices.
Adidas promised to implement a living wage in its supply chain. Thus, a living wage would become that wage that effectively ensures one meets basic living costs, such as food, shelter and other forms of healthcare, leaving some scope for discretionary spending.

The company has partnered with other organizations in the development and establishment of wage standards. Some of the organizations include the Fair Labor Association and the International Labour Organization. In addition, Adidas has assisted its contractors to implement wage transparency practices. This means that structures on how to pay to workers have been documented clearly and disclosed appropriately.

Improvement of Working Condition
Adidas has made sure that workplaces are safe, especially for those factories placed in developing countries. The practice is as follows:
Removal of hazards in the workplace.
Provision of personal protective equipment whenever there is the need.
Proper equal working hours and overtime
The company is listed as complying to international labor standards. Further, it partners with NGOs to monitor issues and follow up on safety matters.
Machine for grievance of workers
The company has streamlined its mechanisms of grievance redressal by installing systems that enable the complaint report to be done anonymously. This helps cases of workplace abuse, wages not paid in proper proportions, or probably hazardous conditions are resolved without fear of retribution.

Stakeholder Interaction
Adidas consults NGOs, trade unions, and other stakeholders who can initiate change. Therefore, it establishes a dialogue process that will help the workers and the owners of the factory resolve issues better.

Hence, it tries to make the suppliers good at developing future habits. Adidas actually also educated the suppliers on labor rights, safety at work, and the structures of wages.

Problems and Issues
In the middle of all this, Adidas has yet to meet some of its objectives. The company has been scaled so heavily on the slow initiation of the living wage policy and some rare reports of labor breaches across the supply chain.
Adidas has recognized these issues and has committed to becoming more transparent and accountable. The company reports its periodic progress and reporting on labor practices as part of its response to stakeholder concerns on the issue.

Commitment to Sustainable Progress
Adidas will look forward to:
More policies of living wages for a greater proportion of its supply chain.
Strengthening partnerships with industry bodies for observing standards of the global labor organization.
Adoption of digital tools to track the level of compliance in the workplace and filing grievances
All these strategies will make Adidas' supply chain a benchmark in the apparel and footwear industries in ethical and sustainable practices.

Conclusion
Such commitment to responsible supply chain management manifests itself in Adidas's commitment towards fair wage and better conditions. It has been working hard to make sure that workers powering global brands are treated in a fairer manner and given dignified lives through a transparent wage regime, workplace safety and grievance redressal systems. Challenges prevail, but this step further helps Adidas set up a much more responsible supply chain.