| NEW YORK — Will the political protests and | | | | political protests and deadly violence in China force |
| deadly violence in China force sponsors of the Beijing | | | | sponsors of the Beijing Olympics to rethink their |
| Olympics to rethink their strategies? | | | | strategies? |
| Analysts and business experts said most companies | | | | Analysts and business experts said most companies |
| wouldn’t tamp down their sponsorship | | | | wouldn’t tamp down their sponsorship |
| commitments, despite pressure from activist groups | | | | commitments, despite pressure from activist groups |
| and consumers. | | | | and consumers. |
| “Companies [are concerned about their public | | | | “Companies [are concerned about their public |
| image] and they have been in the past in terms of | | | | image] and they have been in the past in terms of |
| manufacturing. These companies are very attuned to | | | | manufacturing. These companies are very attuned to |
| the factors that influence the decisions of American | | | | the factors that influence the decisions of American |
| and Western European consumers,” said Robert | | | | and Western European consumers,” said Robert |
| Kapp, a former president of the U.S.-China Business | | | | Kapp, a former president of the U.S.-China Business |
| Council. “But I would be surprised if any | | | | Council. “But I would be surprised if any |
| sponsoring company weighed both sides and found | | | | sponsoring company weighed both sides and found |
| that the downsides outweighed the upsides — | | | | that the downsides outweighed the upsides — |
| [especially with] the upsides including long-term | | | | [especially with] the upsides including long-term |
| business development in China.” | | | | business development in China.” |
| Adidas has said it expects its visibility as an official | | | | Adidas has said it expects its visibility as an official |
| sponsor of the Beijing Games to propel it to the top | | | | sponsor of the Beijing Games to propel it to the top |
| spot among athletic players in China. Nike, meanwhile, | | | | spot among athletic players in China. Nike, meanwhile, |
| will sponsor 22 of the country’s 28 competing | | | | will sponsor 22 of the country’s 28 competing |
| federations, and predicted China will be its | | | | federations, and predicted China will be its |
| second-largest market by 2009. | | | | second-largest market by 2009. |
| Still, the pressure is mounting from activist groups for | | | | Still, the pressure is mounting from activist groups for |
| sponsors to condemn China for its policies on Tibet | | | | sponsors to condemn China for its policies on Tibet |
| and Darfur. “We have asked several sponsors of | | | | and Darfur. “We have asked several sponsors of |
| the Games to raise human rights issues | | | | the Games to raise human rights issues |
| publicly or privately with China,” said Ellen | | | | publicly or privately with China,” said Ellen |
| Freudenheim, head of corporate outreach of the | | | | Freudenheim, head of corporate outreach of the |
| Dream for Darfur organization. There is a | | | | Dream for Darfur organization. There is a |
| “reputation risk” for sponsors that don’t | | | | “reputation risk” for sponsors that don’t |
| challenge China on human rights issues, she explained. | | | | challenge China on human rights issues, she explained. |
| “We are not calling for a boycott. We ask them | | | | “We are not calling for a boycott. We ask them |
| to work with other sponsors, contact the United | | | | to work with other sponsors, contact the United |
| Nations and the International Olympic Committee and | | | | Nations and the International Olympic Committee and |
| make a public statement.” | | | | make a public statement.” |
| But that’s tricky terrain for companies. | | | | But that’s tricky terrain for companies. |
| “I’m sure [these issues] have caused them | | | | “I’m sure [these issues] have caused them |
| at least some concern, but both [Adidas and Nike] | | | | at least some concern, but both [Adidas and Nike] |
| seem pretty adamant about going forward,” said | | | | seem pretty adamant about going forward,” said |
| John Shanley, an analyst at Susquehanna Financial | | | | John Shanley, an analyst at Susquehanna Financial |
| Group. “They’ve invested a lot of money, | | | | Group. “They’ve invested a lot of money, |
| and both are very actively engaged in growing their | | | | and both are very actively engaged in growing their |
| businesses in China.” | | | | businesses in China.” |
| Nike did not respond to requests for comment. A | | | | Nike did not respond to requests for comment. A |
| spokesperson for Adidas confirmed the firm was | | | | spokesperson for Adidas confirmed the firm was |
| concerned about the violence, but stressed the | | | | concerned about the violence, but stressed the |
| importance of celebrating athletics at the Games. | | | | importance of celebrating athletics at the Games. |
| “Adidas and Nike are two huge companies that | | | | “Adidas and Nike are two huge companies that |
| manufacture in China, so there could be some | | | | manufacture in China, so there could be some |
| leverage there,” said Matt Powell, an analyst at | | | | leverage there,” said Matt Powell, an analyst at |
| SportsOneSource. “But I think Nike’s interest | | | | SportsOneSource. “But I think Nike’s interest |
| is more about making sure their factories are being | | | | is more about making sure their factories are being |
| run fairly, which is something they have more control | | | | run fairly, which is something they have more control |
| over.” | | | | over.” |
| Other experts, meanwhile, said that despite the | | | | Other experts, meanwhile, said that despite the |
| spotlight on China, the country isn’t likely to cave | | | | spotlight on China, the country isn’t likely to cave |
| to commercial pressure. | | | | to commercial pressure. |
| “The Chinese understand the sense of the | | | | “The Chinese understand the sense of the |
| Games and the need to manage problems in Tibet | | | | Games and the need to manage problems in Tibet |
| and Darfur, and they’ll do what they can,” | | | | and Darfur, and they’ll do what they can,” |
| said Peter Mangione, president of Footwear Retailers | | | | said Peter Mangione, president of Footwear Retailers |
| & Distributors of America. “But they’re not | | | | & Distributors of America. “But they’re not |
| going to change the way they function over some | | | | going to change the way they function over some |
| shirts and shoes.”NEW YORK — Will the | | | | shirts and shoes. |