Wrestling the Olympics Activists


How corporate sponsors of the Beijing Games plan to deal with mounting pressure from advocates for Darfur


BusinessWeek
February 28, 2008

The opening ceremonies for the Beijing Olympics will take place on Aug. 8, and the weather in the Chinese capital is sure to be steamy. But the games' corporate sponsors are already feeling the heat. Human rights groups want multinationals to press Beijing to seek an end to the killing in the Darfur region of Sudan (PetroChina is a major investor in the African country). That leaves companies in a bind: If they pipe up, they might offend their Chinese hosts—and lose access to one of the world's fastest-growing markets. If they don't, they risk appearing insensitive. "It's a minefield for marketers," says Mike Paul, president of public-relations firm MGP & Associates.

The pressure began last summer. A group called Dream for Darfur asked 19 corporate sponsors to contact the International Olympic Committee and the Chinese government about Darfur and to sign a statement of concern about violence there. In November the group released a "report card" evaluating whether companies complied with its requests and whether they took any initiatives to help Darfur's victims. The highest grade, a C+, went to General Electric (GE). Coca-Cola (KO) took home a D and Eastman Kodak (EK) an F. The group will issue new report cards this month and will then begin targeting those with low grades with demonstrations, online videos, and stickers that read "Proud Sponsor of the Genocide Olympics." "We will use our elbows if it helps the people of Darfur," says actor Mia Farrow, who chairs the group.

How should corporate sponsors respond to the unwanted attention? Bob Marston, CEO of PR firm Robert Marston & Associates, counsels companies to draft a public statement that promotes the Olympics' potential to "build international understanding." They should also clearly state that they don't believe "supporting the Olympic Games is a direct or implied endorsement of Chinese policy" and highlight their good deeds. Coke (KO), for instance, plans to spend $5 million to fund water projects in Darfur and is donating $2.25 million to the Red Cross for relief to those displaced by violence. GE has contributed $4 million for Darfur refugees.

However, none of the sponsors have gone as far as to retool their marketing plans for the Olympics. And at least one has spoken out against the activists' hardball tactics. Says Bob Corcoran, GE vice-president of corporate citizenship: "Using the egregious term genocide Olympics' is not fair to the athletes or to their families." This war of words is just starting.