Adidas's weak 'Ye' solution is a failure of corporate social responsibility

In the era of carbon offsets and corporate responsibility, companies have grown accustomed to leveraging charitable donations to make publicity problems go away. But given that these companies wield such enormous influence, shaping our daily lives in unprecedented ways, they must be reminded that integrity is more important than empty words.

One example is Adidas’s decision to sell its leftover "Yeezy" sneakers, allowing Kanye West to profit despite his series of gross antisemitic comments last year. The Yeezy brand became a lucrative cornerstone for Adidas and was hailed as the most successful sportswear collaboration since Michael Jordan teamed up with Nike. Despite officially ending its relationship with the rapper over his ugly antisemitic comments, the German sportswear company recently announced that it would continue to sell the Yeezy athletic shoes in stock, donating a portion of the profits to groups representing people who had been hurt by West's remarks.

Adidas CEO Bjoern Gulden, called this “the best solution” because “it respects [Ye’s] created designs and the produced shoes, it works for our people, resolves an inventory problem, and will have a positive impact on our communities." Gulden added that "there is no place in sport or society for hate of any kind and we remain committed to fighting against it."

A noble statement, but the devil is in the details, particularly if the decision enriches a person who has helped propel Jew hatred into the mainstream.

Adidas has not publicly clarified what percentage of the proceeds would be donated as it sells off the inventory, the value of which has shot through the roof in recent months. The bottom line is that by selling the sneakers, Adidas will most likely improve its own bottom line.

Ye most certainly will improve his. The rapper already made over $25 million in just one day of sales. This windfall flies in the face of claims that the company cut ties with its creative originator over unacceptable comments. Ye did not apologize for his statements, which included “I like Hitler” and the threat to go “death con 3 on JEWISH PEOPLE,” but feebly claimed that he was not affiliated with any hate groups.

To state the obvious, one need not be associated with a hate group to peddle hate and contribute to the frightening rise in antisemitism in this country. 

In its pursuit of ever-greater market share and earnings, Adidas has forgotten that some things are worth more than money. It has also sent a message that it’s okay to profit from antisemitism and reinforced the notion that some amount of fame, talent or popularity can purchase social indulgence for malicious wrongdoings.

There is no denying that surplus inventory and losses can pose real challenges for companies striving to maintain profitability. Pressures to increase margins and satisfy shareholders can often cloud judgment. Even so, it is essential to maintain a steadfast commitment to principles that go beyond the bottom line.

It is disheartening, therefore, to witness companies crafting eloquent public relations statements espousing values and principles, only to abandon them when money is on the line. When principles are sacrificed at the altar of financial gain, a company treads perilously close to the treacherous waters of moral bankruptcy. A company’s reputation and credibility are not built solely on meticulously crafted statements of intent. True integrity lies in the actions and choices made when faced with dilemmas.

Adidas could use this moment to meaningfully raise awareness about the evils of antisemitism and other forms of hatred plaguing historically marginalized communities. The company could, for instance, donate the shoes to artists to redesign them into art or fashion that asks people to walk in the shoes of people targeted by discrimination and bigotry.

The burden of combatting hatred cannot rest solely on the shoulders of the communities being targeted and harassed, nor can the problem be solved through public relations campaigns or empty gestures. It requires a sustained commitment to systemic change and a genuine effort to commit resources to the effort.

Adidas may have found itself in the center of a public relations storm through no fault of its own, but it now has the power to decide for itself what comes next. This is the time to take a meaningful stand against antisemitism.

Aviva Klompas is CEO and co-founder of Boundless and can be found on Twitter @AvivaKlompas.