Media & Entertainment Law

Olympic Sponsors Face Darfur, Tibet Protests

By Mark

Now, however, those sponsors are facing an unexpected political and business crisis in the form of rising protest over China's involvement in the ongoing genocide in Darfur and the mounting protests in Tibet. In addition, the Games were awarded to China upon promises to the IOC of substantial improvements in human rights treatment in China and now those promises have been ignored.

The Games themselves may be marred by a substantial military presence to prevent Tibetan protests. Athletes may boycott Beijing in protest over Tibet or Darfur. IOC president Jacques Rogge, taking the same stance as each of his predecessor's when faced with the possibility that the Games may face the reality of world politics, told reporters that a boycott would only hurt athletes and "doesn't solve anything."

So, what do the sponsors do? Several plan to get together to discuss that very thing. They do plan to discuss their concerns privately with the Chinese, however, that doesn't satisfy the public need to be seen as doing something. The protesters need to know the sponsors have taken action, however ineffective it may be. Yet, the sponsors don't want to piss off the Chinese and risk being tossed out of the country. Ah, there is nothing like trying to do business with a dictatorial regime, hellbent on proving a point to a dissenting minority (Tibet) or doing deals with the devil for oil (Darfur)

There may not be good options for Western companies in this situation. To be seen to be kowtowing to the Chinese is to risk a consumer boycott. It may be an effective way to stay in the Chinese market, which is not yet a mature one for consumer products and has yet to reach the size of the US and the EU. To walk away in order to satisfy a vocal minority and to embrace a worthwhile principal may be conceding that market to your rivals for at least a generation. Will the goodwill you earn in your home market make up for the loss of China? Will you actually lose China if you just walk away? Hard questions with no easy answers - but it's what happens when you do business with maintain no illusions about democracy, human rights or basic freedom.

Full post as published by Sports Biz on March 18, 2008 (boomark / email).