A water-based sulfonated polyurethane composition and footwear manufactured using the composition as as an adhesive, coating and primer. The sulfonated polyurethane is a reaction product ofa) at least one polyisocyanate;b) at least one alkylene diol;c) at least one sulfonated polyester polyol wherein the sulfo groups thereof are present as alkali metal salts; andd) at least one dihydroxy carboxylic acid, or salt thereof. The composition may also be modified to include a dispersed polymer or copolymer of an ethylenically unsaturated monomer. Such mofified compositions may be obtained by preparing the sulfonated polyurethane in the presence of an ethylenically unsaturated monomer and subsequently subjecting the mixture to free-radical polymerization conditions.