The Beijing Olympics
Litigation, Crisis and Regulatory Communications Strategies for the Defense
High Stakes™ provides best practices for communicating on the most critical corporate, legal, and international issues of the day.
THIS ISSUE: THE BEIJING OLYMPICS
As the Olympic torch made its tumultuous journey to Beijing amid criticisms of China’s record on myriad issues, activists’ protests and calls for boycotts of the Olympic sponsors signaled the firestorm to come.
In this issue, we examine the downsides of sponsoring the Beijing Games… highlight the silver bullet that can protect corporate brands… gain insight from a former Executive Director of the U.S. Olympic Committee… take an in-depth look at what the bloggers are saying… and review a few fundamental lessons relevant for all businesses.
Strategies: China’s PR problems and a sponsorship silver bullet
There are always risks that corporate sponsors run when they associate their brands with high-visibility events. That said, there is one communications strategy that can minimize those risks and maximize sponsorship benefits.
Here are the top issues likely to generate negative headlines for the Beijing Games and their corporate sponsors:
- China’s suppression of human rights. Reports indicate that China is instituting a crackdown on dissidents ahead of the Olympics. According to the Christian Science Monitor, 742 people were arrested last year on political charges – the most since 1999 and twice the number in 2005. According to Amnesty International, “Those who have linked China’s human rights responsibilities to its hosting of the Olympics have been among the most harshly treated… It is clear that much of the current wave of repression is occurring not in spite of, but because of the Olympics.”
- China’s support of the Bashir regime in Darfur. Beijing’s relationship with the Sudanese government has led advocacy groups to label China “genocide’s enabler in chief.”
- China’s poor environmental record. There are reports that poor air quality could actually result in class action litigation brought by Olympic athletes and spectators.
- The Free Tibet Movement. As the Olympic torch made its way through San Francisco, three protesters scaled the Golden Gate Bridge to hang banners that read: “One World, One Dream: Free Tibet.” Other media attention-grabbers are likely to occur with increased frequency as the games approach.
- China’s IP encroachment against virtually every country represented at the Olympics. It’s a mite technical, but the issue of China’s refusal to protect foreign intellectual property rights could gain traction in the months ahead. After all, anyone and everyone who can use the Olympics to drive their own agendas will do just that.
While the list of grievances is long and further demonstrations are inevitable, there is a silver bullet to neutralize the activists. The message: It’s all about the athletes.
As Dick Schultz reminds us in the interview below, Olympic sponsors should always rely on their support for the athletes and families who’ve sacrificed so much to compete in the world’s marquee athletic event. Olympic athletes are not paid exorbitant professional salaries to represent their nations and they depend heavily on the generosity of sponsors to pursue their dreams of Olympic gold.
As the Games approach, sponsors will almost certainly make this theme the focal point of their marketing and communications outreach. It’s not about China; it’s about the Games themselves and the people who play them. It’s about the one global event that brings nations together in friendly competition.
Industry Insight: Dick Schultz, Chairman and CEO of International Partnerships, LLC, and former Executive Director of the U.S. Olympic Committee
As Chairman and CEO of International Partnerships, LLC, Dick Schultz guides business relationships between China and the U.S.
Mr. Schultz was formerly the Executive Director of both the U.S. Olympic Committee and the NCAA. Here’s what he had to say about the complex issues shadowing this year’s games:
Given all of the negative attention the Beijing Games are receiving, why sponsor them at all?
Dick Schultz: It comes back to branding. The Olympic brand is one of the most highly recognized brands in the world. Being able to put that Olympic logo next to your brand has a terrific impact. Anybody that has ever seen those five rings knows that.
Even though professionals have crept into the Olympics over the last ten years, the worldwide public views the Olympics as one of the purest forms of athletics. Olympic athletes are a special brand of person, and they’re not getting paid to represent their nations. Overall, the Olympics are held in very high regard and I imagine that these sponsors view the power of that brand as an asset that trumps the potential problems.
And don’t forget; most of these companies have been sponsoring the games for a long time. They know that each event has plusses and minuses. The Olympics are something that they can market all year long – and in off years as well.
What should Olympic corporate sponsors be saying to keep their constituents happy, both inside and outside of China?
Dick Schultz: They need to focus on the athletes and the Olympics themselves and not the Chinese government. That’s the only way to do it.
The U.S. companies, which make up the vast majority of sponsors, need to be saying: ‘We’re standing behind our athletes. We’re making these games possible. These folks and their families have sacrificed for years to prepare for the games. While we don’t condone what the Chinese government is doing, we want to be there to support our athletes.’
It’s all about distancing themselves from what the government is doing while letting the world know they’re there for the athletes.
What are the risks for a sponsor that withdraws its sponsorship for social or political reasons?
Dick Schultz: If it was a problem that had a big enough international impact, I don’t think it would have a negative effect on the sponsors’ brands. It might even have a positive impact.
That said, I’d remind sponsors considering such a move of the backlash that Jimmy Carter suffered when he pulled the U.S. out of the Moscow games in 1980. All of those positive messages about supporting the athletes and their families…they’ll come back and haunt you if you renege on that promise in any way or for any reason.
I’m a $100 million company, a company that makes in a year what most Olympic sponsors shell out in advertising alone. I’ll never sponsor the Olympics. What can I learn from all of this?
Dick Schultz: I think the big thing is – whatever you’re going to spend in marketing and advertising – make sure you pick your target well. Again, that’s the real value of the Olympics. If everything else screws up, you’ve got the athletes to fall back on.
So ensure that whatever you put your brand on has strong visibility and that, if something should go wrong, there’s a fallback position you can use.
The bloggers have sunk their teeth into the Beijing event, detailing human rights abuses, chronicling protests, and calling for boycotts. Here’s some of the buzz on Beijing, as viewed through the high-authority bloggers:
Everyday Sociology Blog
http://nortonbooks.typepad.com/everydaysociology/2008/04/criticizing-chi.html
http://nortonbooks.typepad.com/everydaysociology/2008/04/criticizing-chi.html
"I have previously stated my position on this complicated issue by trying to take a moderate approach: I do not support calls for a blanket or total boycott of Chinese goods or other products, but I wholeheartedly support keeping the pressure on China (and the corporate sponsors of the Beijing Olympics) to improve its record on human rights, environmental protection, safe products, and freedom for Tibet."
"If people want to really use the Olympics to make China change its human rights policies, I feel that stronger motives much be used. Sending a public message doesn't create policy change. The boycott must touch someone economically and create a long-term fear. If countries threatened to stop trading or significantly lessen foreign investments, which they never would, or something of the sort that could hurt China economically, then maybe these protesters might see the actions that they desire. But I don't think protesting the opening ceremonies but then allowing athletes to play in games, which will bring money and tourism into China's economy will affect human rights policies."
Royale with Cheese
http://blog.cmstrapz.com/2008/04/olympic-fever-catch-it.html
http://blog.cmstrapz.com/2008/04/olympic-fever-catch-it.html
"The decision of the Olympic committee to hold the Olympics in China this year was incredibly short-sighted, and shows that the Olympics are all about money. Human rights continue to be neglected by the oppressive Chinese government, and freedom of speech and information is continuously suppressed. In fact, based on this posting, I'd be willing to bet that my blog is not [on] the "no-view" list in China (though, I might have pissed them off before now... I'm actually probably lucky I'm still viewable in this country). Add in the religious persecution of the Dalai Lama and his followers, and you have a level of injustice which is unacceptable for a honor like hosting the Olympic games."
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What can smaller companies learn from the corporate behemoths sponsoring the Beijing Olympics?
- Recognize potential liabilities. No brand is impenetrable to criticism, so choose your venues wisely. Assess how associating your brand with an outside event might affect your target audiences. If there is controversy brewing, or a looming threat of any sort, makes sure you have a solid fallback position.
- Put the focus on positives. No matter what event you’re sponsoring, your fallback position should speak credibly to the values you share with all your valued audiences. For the Olympics, it’s all about the athletes. For a local 10-K run, it’s all about the charities. There is always a positive. Identify it and communicate it in order to leverage your opportunity and investment, and to silence potential detractors.
- Articulate the cores values that drive your decision. By pulling a sponsorship, you express your values. By not pulling a sponsorship, you likewise make a very strong statement about who you are. Either choice involves plusses and minuses. Whatever you decide, you should be unequivocal in expressing the core values that guided your decision.
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More to come:
• Accidents and Disasters
• Antitrust
• Board or Board Member Liability
• Class Actions
• Coming to America
• Crisis
• Diversity
• Education
• Energy
• Executives Behind Bars
• Food
• Global Capital Markets
• Intellectual Property
• Internal Communications
• Internal Investigations
• Labor & Employment
• Monetizing Moments
• Money Laundering/Money Transfers
• New Media/Social Networking
• Product Liability
• Professional Services Crises
• Public Equity
• Whistleblowers
• Reputation Management – Celebrity
• Reputation Management – Corruption
• Reputation Management – SEC Investigations
• Tourism
• Trade
• Accidents and Disasters
• Antitrust
• Board or Board Member Liability
• Class Actions
• Coming to America
• Crisis
• Diversity
• Education
• Energy
• Executives Behind Bars
• Food
• Global Capital Markets
• Intellectual Property
• Internal Communications
• Internal Investigations
• Labor & Employment
• Monetizing Moments
• Money Laundering/Money Transfers
• New Media/Social Networking
• Product Liability
• Professional Services Crises
• Public Equity
• Whistleblowers
• Reputation Management – Celebrity
• Reputation Management – Corruption
• Reputation Management – SEC Investigations
• Tourism
• Trade
Next month’s focus: BANKRUPTCY