Can Adidas’ Efforts to Unload Yeezy Gear for Anti-Hate Groups Make a Difference?

Adidas, the global sportswear giant, is planning to sell the first pairs of its leftover Yeezy sneakers as a step towards resolving its $1.3 billion inventory problem that has been plaguing the company since it severed ties with rapper Kanye West, also known as Ye, over his string of antisemitic remarks. The inventory includes Yeezy Boost 350 V2 sneakers in black and two-toned red and gray, selling for 200 euros a pair, or about $213. Adidas said that a “significant amount” of the proceeds would go to groups and organizations representing people who had been hurt by Ye’s remarks. The company consulted with several organizations in discussions leading up to the plan, including Black Lives Matter and the Philonise & Keeta Floyd Institute for Social Change, which is run by Philonise Floyd, the brother of George Floyd.

Resolving a Public Relations Nightmare

Adidas’s severing of ties with Ye resulted in lost sales worth €1.2 billion and about €500 million in profit this year. Options for eliminating the inventory ranged from burning it to donating it to the needy. Bjorn Gulden, Adidas’s chief executive, called figuring out what to do with the remaining stock “one of the most difficult decisions that I have been a part of.” The Yeezy shoes have sold for up to $1,000 a pair in the past and remain popular despite their association with Ye. The business world is now paying attention to Adidas’s approach to the public relations nightmare. The company is implementing a solution that both clears inventory and upholds its social responsibility.

Social Responsibility and Corporate Philanthropy

Adidas’s decision to sell its remaining inventory of Yeezy sneakers and donate the proceeds to organizations working against hate crimes is commendable. The company’s commitment to fighting hate, bigotry, and discrimination pivots towards social responsibility and corporate philanthropy. However, recent events underscore the need for businesses to uphold more than just “thoughtful and caring” resolutions. In Adidas’s case, despite the company’s pledge to donate the proceeds, Ye would still make money off the sales, as Adidas is obligated to honor his royalty contract.

Editorial: Understanding the Complexity of Corporate Partnerships

The end of the hugely lucrative partnership between Adidas and Ye is a valuable reminder of the power of corporations to shape conversations and set the agenda. When celebrities partner with corporations, they become more than just spokespeople. They become the face of the brand, and their actions reflect on the corporation they are endorsing. Thus, businesses must work to understand the complexity of the relationship and capitalize on the opportunity to promote positive attitudes, emotions, and behaviors.

Advice: Prioritizing Social Responsibility as a Value

Corporate partnerships can be beneficial for both celebrities and businesses. Corporations gain visibility and profit, while celebrities gain exposure and royalties. However, businesses must prioritize social responsibility as a value above profit, and celebrities must remain mindful of the impact of their actions and words on the brands they endorse. When controversies arise, businesses must act quickly, ethically, and with compassion and help to push society towards greater social responsibility by carefully considering the message they are sending.