The images were made-for-TV dramatic: Olympic torch-bearers ran through capital cities, encircled by two columns of Chinese guards and local police while protesters dove into their midst, struggling to wrest away the historic torch. The televised scenes in London and Paris early this month appeared to be a worst-case public relations scenario for China, host of the upcoming Summer Olympics, but for the three international corporate sponsors of the round-the-world Olympic torch relay, there was a small blessing: Amid the images of hand-to-hand street fighting, logos for Coca-Cola, Lenovo and Samsung Electronics were not readily visible.
With the Olympics still months away, however, corporate sponsors may not remain so lucky. Human-rights activists, celebrities, political leaders and average citizens accuse China of repressing its population in Tibet, supporting a genocidal regime in Sudan and crushing religious and political dissent at home, and many are gearing up for further public pressure on China during the games. Meanwhile, Chinese authorities have said they will expel Olympic athletes who engage in "propaganda," such as displaying a Tibetan flag. Could there be an unlucky photo or video clip of, say, Chinese police cracking a protester over the head in Beijing with a General Electric, Johnson & Johnson or Visa logo in the background?
Of the 12 companies who are "Worldwide Olympic Sponsors" -- the highest level of sponsorship, costing an estimated $70-plus million each -- only one, Lenovo, is based in China. Wharton professors say international sponsors will have to dance a tricky two-step to reap the benefits of sponsoring such a hallowed, high-profile event while maintaining reputations for corporate social responsibility outside China.
"There's been some form of political protest at each Olympics going back decades," says Kenneth Shropshire, director of the [continue]
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