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Corporate Social Responsibility and Artificial Intelligence Integration in Adidas

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0% found this document useful (0 votes)
112 views9 pages

Corporate Social Responsibility and Artificial Intelligence Integration in Adidas

Uploaded by

alxvan3230
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Title: Corporate Social

Responsibility and Artificial


Intelligence Integration in
Adidas: A Strategic Approach
to Global Impact
Introduction

In this interdependent world of today, the responsibilities of


corporations have extended well beyond generating profits toward the
commitments sought by society and the environment. One such
globally acclaimed sports brand, Adidas, has gone an extra mile by
incorporating CSR and AI into its business model. But Adidas goes far
beyond an afterthought in marketing; the company views sustainability
as integral to its very ethos, with the high-minded ambition to eliminate
plastic waste and embrace AI in pursuit of operational efficiency and
increased customer satisfaction. By aligning itself with strategic
relevance to the United Nations' SDGs, Adidas shows how business can
create betterment on a global scale through the use of technology for
competitiveness in the global marketplace.

The following report is on CSR and AI strategies related to Adidas; it


provides details of some CSR activities of the company, such as the
"End Plastic Waste" campaign, and takes a closer look into its AI-
enabled supply chain, personalization, and innovations. Finally, it
discusses how Adidas contributes to many UN SDGs by placing it in the
leader position for responsible and innovative business.

Overview of Adidas

From a small German producer of sports shoes founded in 1949 by Adi


Dassler, through to today, Adidas grew into one of the largest and most
important sportswear companies in the world. Guided by the mission of
being the best sports brand in the world, Adidas focuses on innovation,
sustainability, and community involvement. Recognized for the iconic
products such as the Stan Smith sneaker, the Ultra boost line, its deal
with athletes and sports teams worldwide. Much more than a brand,
Adidas perceives itself as a partner in global sustainability efforts: via
the protection of the environment, ethical production, diversity, and
inclusion.

Corporate Social Responsibility (CSR) Strategies

The guiding philosophy of sustainability at Adidas encompasses, in a


holistic manner, environmental, social, and economic facets. Therefore,
its main strategic focal areas remain material usage, labor practices,
and community development. A deeper look at some of Adidas's CSR
strategies:

1. Environmentally friendly materials and products


Adidas pledged that from 2024 onwards, all of its products would
use only recycled polyester. This is part of its wider commitment
to preventing plastic waste. With that, the brand is doing wonders
in lowering its footprint. Besides, the brand has even tested
biodegradable fabrics derived from renewable biomass-algae-for
its innovative Futurecraft range of products, placing it ahead in
the development of eco-friendly products.

2. Partnerships for the Environment


One of the most important CSR initiatives of Adidas involves
working with environmental organizations. Most famously, in
cooperation with Parley for the Oceans, the company has been
able to manufacture products created from recycled ocean
plastic. Through cleaning the oceans to turn injurious waste into
performance products, Adidas educates consumers
simultaneously on the relevance of reducing plastic pollution.

3. Human rights and decent work conditions


Adidas has an extensive initiative on ensuring that strict labour
and human rights standards are maintained in the supply chain. It
regularly audits factories and provides training programs with the
purpose of increasing fair remuneration, ensuring safe working
conditions, and making observance of workers' rights more
possible. That commitment to responsible sourcing speaks
volumes about respect and equality in Adidas's international
business.

4. Community Involvement and Youth Development


Adidas invests in community programs, especially the ones
encouraging youth to participate in sport activities. The "Breaking
Barriers" initiative supports the underprivileged communities of
the world with resources, including young athletes, for physical
health and personal growth. It is through such programs that
Adidas forms an enriching relation and contributes to a change in
communities worldwide.

Artificial Intelligence (AI) Strategies

From optimizing its value chain to improving customer


experiences, Adidas employs AI for every aspect of its operations.
Through such applications of AI, it enhances productivity, cuts
down on waste, and can remain competitive in a rather
dramatically changing industry.

1. Supply Chain Optimization


Adidas uses AI-based demand-forecasting applications for more
accurate product demand estimates that enable the organization
to correct the production volume and avoid the overstocking of
inventories. With the power of machine learning algorithms, the
company forecasts seasonal trends and changes in consumer
demand to put restrictions on overproduction and its associated
ecological impacts.

2. Personalized Customer Engagement


The AI enables Adidas to personalize the shopping experience.
Adidas makes personalized product recommendations with
data analytics and recommendations algorithms for each
customer to enhance engagement and satisfaction. This will
increase sales while improving customer loyalty by making
every engagement more relevant to the consumer's unique
preferences.

3. Innovation and Product Differentiation


Adidas incorporates artificial intelligence into designing and
improving its products. For instance, the company uses
biometric data to create customized footwear products that
help enhance athletic performance. The Future craft STRUNG
shoes, which are 3D printed, are a perfect manifestation of AI-
driven innovation; they are specifically designed to
accommodate specific movements while minimizing material
waste. By using AI in designing products, Adidas is effectively
fusing functionality and sustainability together.

Examples of CSR Activities

The following initiatives bring Adidas CSR into life, considering its
declared goals on the environment and social surroundings:

1. End Plastic Waste Campaign


Besides Parley for the Oceans, Adidas designed the "End Plastic
Waste" campaign and prepared products with the waste gathered
from the ocean. Such a campaign informs about the problem
concerning marine pollution and allows replacing traditional
products with ecologically clean ones. Adidas has already
manufactured several million pairs of Parley shoes; each one
manufactured means a step closer to a plastic-waste-free world.

2. Sustainable Store Design


Besides, Adidas initiated sustainability in its retail by creating eco-
friendly stores: stores that run on renewable energy and make
use of sustainable materials to reduce their carbon footprint. By
extending the commitment into the physical space, Adidas
reinforces its brand ethos and encourages customers to think
about their ecological footprint.

3. Youth Empowerment Programs


Adidas supports hundreds of programs that let young people
who, otherwise, cannot afford to participate in sportive activities.
Most of those programs bring in physical activity, life skills, and
personal development. Adidas believes that sports change lives,
and it is investing in generations through these very programs.

Alignment with UN Sustainable Development Goals (SDGs)


Its various CSR initiatives correspond to the various UN SDGs in
commitment towards creating a sustainable and fair world.
1. SDG 12: Responsible Consumption and Production
This directly contributes to Adidas's effort to eliminate plastic
waste and use 100% recycled polyester by 2024 to contribute
to SDG 12. Adidas follows responsible production practices,
hence causing minimal environmental harm and setting
standards for sustainable manufacturing.

2. SDG 13: Climate Action


Through initiatives like eco-friendly store designs and
renewable energy usage, Adidas supports global efforts to
mitigate climate change. Its actions align with SDG 13,
highlighting the company’s dedication to environmental
stewardship.

3. SDG 14: Life Below Water


This cooperation of Adidas with Parley for the Oceans, for the
fulfillment of SDG 14, reduces plastic pollution in oceans. In
return, Adidas is producing products with ocean plastic,
thereby raising awareness to protect life in the marine
ecosystem.

4. SDG 8: Economic Growth and Decent Work


By enforcing decent work practices within its value chain,
Adidas contributes to SDG 8. In light of this, it points out that
the company is committed to ethical labor standards with safe
and decent working conditions, hence supporting sustainable
economic growth in communities.

Conclusion

Adidas is one such example of corporate social responsibility


and one of the pioneers in integrating AI. In this regard, Adidas
is proud to be part of the social and environmentally
sustainable circles by means of sustainability as well as ethical
labor and community engagement. Its commitment to the UN
SDGs underscores its contribution to global goals concerning
sustainability and equity even further. While Adidas forges
ahead with artificial intelligence in innovation and extending
corporate social responsibility, it creates a powerful example of
shared value that business can create within society, the
environment, and within the economy.

References
1. Adidas AG. (2023). Sustainability Progress Report. Retrieved from
Adidas website
2. Parley for the Oceans. (2023). End Plastic Waste Partnership with
Adidas. Retrieved from Parley website
3. UN Global Compact. (2022). Adidas’s Commitment to UN SDGs.
Retrieved from UN Global Compact website
4. Smith, J. (2022). "How Adidas is Using Artificial Intelligence to
Transform Retail." Forbes. Retrieved from Forbes
5. Davis, L. (2022). "Adidas and AI: The Future of Sustainable
Footwear Design." Harvard Business Review. Retrieved from HBR

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