Tibet Could Sap Coke's Olympic Zing

So far the soft-drink giant and other sponsors won't temper support for the Games because of China's Himalayan crackdown. That might change

High Priestess Maria Nafpliotou (right) lights the torch from the Archaic Pot in the Sacred Alti during the Lighting Ceremony of the Olympic Flame at Ancient Olympia on March 24, 2008 in Olympia,Greece. Milos Bicanski/Getty Images

by Chi-Chu Tschang

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Tibetan organizations protesting the Chinese crackdown in the Himalayas are turning up the pressure against corporate sponsors of the Beijing Olympics. A prime target is Coca-Cola (KO), co-sponsor of the Beijing Olympic torch relay. The most ambitious in the history of the modern games, the 2008 relay began on Mar. 24 in Olympia, Greece, and will go to 21 countries and involve more than 21,000 torchbearers by the time it reaches Beijing for the Summer Games' opening ceremony on Aug. 8. Coke, along with Chinese computer company Lenovo and South Korean electronics giant Samsung, has spent millions of dollars (the companies won't disclose the exact amounts) to sponsor the relay. Lenovo designed the torch and provided free laptops to Olympic officials. Samsung plans to pass out Samsung flags in all 134 cities along the route. Coke nominated 100 environmental activists to serve as torchbearers.

However their marketing strategies took shape before the latest violence in Tibet, where dozens of people have died since anti-Chinese protests started on Mar. 14. So instead of winning uncritical publicity, corporate sponsors have come under attack. Human Rights Watch issued a statement on Tuesday, Mar. 25 urging Coke, Lenovo, and Samsung to pressure Beijing to reopen Tibet and calling for the torch relay to avoid the region unless the Chinese government agrees to an independent investigation into the recent unrest. Tibetan activists (BusinessWeek.com, 3/20/08) are also planning protests in London, Paris, San Francisco, Mumbai, and other cities when the Olympic torch relay passes through and are also calling for the corporate sponsors to withdraw.

Politicians in the West are starting to respond to the pressure. On Mar. 25, for instance, French President Nicolas Sarkozy discussed the possibility of boycotting the opening ceremonies. According to a report in the Associated Press, Sarkozy responded to a question about a boycott by saying he would "not close the door to any possibility." French Foreign Minister Bernard Kouchner has spoken favorably of a boycott of the opening ceremonies. On Mar. 26, U.S. President George W. Bush, who has said he plans on being in Beijing for the first day of the Games, phoned Chinese President Hu Jintao to discuss the Tibetan situation.

Not Their Responsibility?

When it comes to corporate targets, the activists are focusing their pressure on Coke because they say they hold the Atlanta-based soft drink company to higher standards. A group of 153 Tibet organizations sent a letter to Coke Chairman and Chief Executive Officer E. Neville Isdell demanding that the company withdraw its sponsorship of the relay and lobby the International Olympic Committee (IOC) to cancel the leg of the relay passing through Tibet and via Mt. Everest. "You cannot, as a responsible American company, leave American values at the border in exchange for access to a lucrative market," says Jacob Colker, campaign manager for International Campaign for Tibet, a Washington (D.C.)-based organization that works to promote human rights and democratic freedoms in Tibet. "It's not acceptable, and it's not appropriate. They need to really consider this sponsorship of the torch relay, especially if it continues to go through Tibet."

So far, Coke and the other sponsors have taken the position that the problem in Tibet is an issue to be resolved by the government and is outside their responsibilities as corporate sponsors. In an interview in Beijing, Coke spokesperson Christina Lau would not comment when asked by BusinessWeek about Tibet and the torch relay.