BEIJING (AFP)--Big corporations are still loyal backers of the Beijing
Olympics, looking beyond boycott calls and protests over Tibet, Darfur and human
rights to their long term interests in China.
Firms such as Coca-Cola, Visa, Volkswagen and Adidas are jittery about the bad
news swirling around the Games but are even more worried about offending
Beijing's rulers, according to experts.
"The Chinese government is the gatekeeper to 1.3 billion potential consumers
so they are choosing their words carefully," said Damien Ryan, a Hong Kong-based
media advisor with Ryan Financial Communications.
"Nobody wants to say a word that could be used against them down the road." As
recently as three months ago the Beijing Olympics looked like a win-win
marketing dream for the world's top companies who fought tooth and nail, and
paid tens of millions of dollars, for the right to sponsor the event.
The opportunities remain dazzling in a country where the consumer base is
measured in hundreds of millions, but suddenly the companies find themselves in
a position where they have to explain themselves.
"The line so far is that the Olympics are a force for good and sponsors are
part of that change for good," said Ryan.
But sponsors have been unable to deflect pressure from campaign groups who are
urging them to bring pressure to bear on the International Olympic Committee (
IOC) and on the Beijing Games organizers.
Group such as the Students for a Free Tibet, which want the IOC to reroute the
torch relay to eliminate the Tibet leg, are planning to launch grass roots
campaigns targeting sponsors.
Dream for Darfur, an organization set up to pressure China into helping end
the bloodshed in the western Sudanese region, has also urged Olympic sponsors to
speak out publicly on the issue.
Those who fail to do so will face "intensive advocacy," that may include
demonstrations at corporate headquarters, said Jill Savitt, the group's
director.
Coca-Cola, Samsung and computer maker Lenovo, which are sponsors of the torch
relay in addition to being top Olympic sponsors, and other firms have shown no
signs of wavering publicly on their backing for the event or the Games
themselves.
Coca-Cola said in a statement it was "inappropriate" for sponsors to comment
on the political situation of individual nations and that it "firmly believed
the Olympics are a force for good." "We remain committed to supporting the torch
relay, which provides a unique opportunity to share the Olympic values of unity,
pride and inspiration with people all over the world," the firm added.
Adidas, another veteran Olympic sponsor, expressed concern about Tibet and
also addressed boycott calls.
"We are concerned about the recent situation in Tibet. We hope that the
situation will calm down very soon," the firm said in a statement.
"We believe that a boycott of the Beijing Olympic Games would be counter-
productive and we have therefore reiterated our commitment to the 2008 Beijing
Olympic Games." Privately, however, firms are worried, according to western
marketing experts in Beijing.
They have appointed crisis management teams, increased their budgets for media
consultants, and have been talking privately to the Beijing Olympic organizing
committee, which has invited sponsors to Beijing for talks later this month At
least one multinational sponsor is considering cutting its budget for Olympic-
related marketing in the west because it fears a possible consumer backlash
there, where opposition to China's Tibet crackdown is high.
The sponsors have also become more conciliatory towards human rights and other
groups.
Last year, multinational Olympic sponsors refused to meet with Dream for
Darfur representatives.
That has changed. Savitt and Hollywood actress Mia Farrow, the organization's
founder, have been meeting with sponsors for the past week in the United States.
Nicholas Bequelin, a researcher for Human Rights Watch, said big firms were
also "much more open to meeting with us and hearing from us." "We have told them
that there are high reputational risks to be associated with any event that
takes place in a one party dictatorship," he said.
(END) Dow Jones Newswires
03-27-08 0153ET
Copyright (c) 2008 Dow Jones & Company, Inc.