[Joint House and Senate Hearing, 117 Congress]
[From the U.S. Government Publishing Office]
CORPORATE SPONSORSHIP OF THE
2022 BEIJING OLYMPICS
=======================================================================
HEARING
BEFORE THE
CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA
ONE HUNDRED SEVENTEENTH CONGRESS
FIRST SESSION
__________
JULY 27, 2021
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Printed for the use of the Congressional-Executive Commission on China
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available at www.cecc.gov or www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
45-410 PDF WASHINGTON : 2022
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CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA
LEGISLATIVE BRANCH COMMISSIONERS
Senate House
JEFF MERKLEY, Oregon, Chair JAMES P. McGOVERN, Massachusetts,
DIANNE FEINSTEIN, California Co-chair
MARCO RUBIO, Florida CHRISTOPHER SMITH, New Jersey
JAMES LANKFORD, Oklahoma THOMAS SUOZZI, New York
TOM COTTON, Arkansas TOM MALINOWSKI, New Jersey
STEVE DAINES, Montana BRIAN MAST, Florida
ANGUS KING, Maine VICKY HARTZLER, Missouri
JON OSSOFF, Georgia RASHIDA TLAIB, Michigan
JENNIFER WEXTON, Virginia
MICHELLE STEEL, California
EXECUTIVE BRANCH COMMISSIONERS
Not yet appointed
Matt Squeri, Staff Director
Todd Stein, Deputy Staff Director
(ii)
C O N T E N T S
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Statements
Page
Opening Statement of Hon. Jeff Merkley, a U.S. Senator from
Oregon; Chair, Congressional-Executive Commission on China..... 1
Statement of Hon. Chris Smith, a U.S. Representative from New
Jersey......................................................... 2
Statement of Hon. James P. McGovern, a U.S. Representative from
Massachusetts; Co-chair, Congressional-Executive Commission on
China.......................................................... 5
Holyoke, David, Head of Olympics and Paralympics Partnerships,
Airbnb......................................................... 7
Lalli, Paul, Global Vice President for Human Rights, The Coca-
Cola
Company........................................................ 8
Rodgers, Steven R., Executive Vice President and General Counsel,
Intel Corporation.............................................. 10
Mulvaney, Sean, Senior Director, Global Government Relations and
Public Policy, The Procter & Gamble Company.................... 11
Fairchild, Andrea, Senior Vice President of Global Sponsorship
Strategy, Visa Inc............................................. 13
APPENDIX
Prepared Statements
Holyoke, David................................................... 45
Lalli, Paul...................................................... 47
Rodgers, Steven R................................................ 50
Mulvaney, Sean................................................... 55
Fairchild, Andrea................................................ 58
Merkley, Hon. Jeff............................................... 62
McGovern, Hon. James P........................................... 63
Smith, Hon. Chris................................................ 63
Submissions for the Record
Article entitled, ``Uyghurs and Tibetans Locked Out of Airbnb in
China's Latest Crackdown on Ethnic Minorities,'' submitted by
Chair Merkley.................................................. 66
Questions for David Holyoke of Airbnb submitted by Senator
Lankford....................................................... 67
Questions for David Holyoke of Airbnb submitted by Representative
Smith.......................................................... 70
Questions for Paul Lalli of The Coca-Cola Company submitted by
Representative Smith........................................... 71
Questions for Paul Lalli of The Coca-Cola Company submitted by
Senator Lankford............................................... 71
Questions for Steven R. Rodgers of Intel submitted by Senator
Lankford....................................................... 75
Questions for Sean Mulvaney of Procter & Gamble submitted by
Senator Lankford............................................... 80
Questions for Andrea Fairchild of Visa Inc. submitted by Senator
Lankford....................................................... 84
CECC Truth in Testimony Disclosure Form.......................... 87
Witness Biographies.............................................. 89
(iii)
CORPORATE SPONSORSHIP OF THE 2022 BEIJING OLYMPICS
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TUESDAY, JULY 27, 2021
Congressional-Executive
Commission on China,
Washington, DC.
The hearing was convened, pursuant to notice at 10:02 a.m.,
via videoconference, Senator Jeff Merkley, presiding.
Also present: Senators King, Cotton, and Daines, and
Representatives Smith, Steel, Malinowski, and Wexton.
OPENING STATEMENT OF HON. JEFF MERKLEY, A U.S. SENATOR FROM
OREGON; CHAIR, CONGRESSIONAL-EXECUTIVE COMMISSION ON CHINA
Chair Merkley. Good morning. Welcome to today's hearing of
the Congressional-Executive Commission on China entitled
``Corporate Sponsorship of the 2022 Beijing Olympics.'' The
meeting has been brought to order.
As the world watches the Olympics currently unfolding in
Japan, this Commission remains deeply disturbed that in less
than seven months another Olympics is scheduled to begin in the
shadow of some of the world's most egregious human rights
abuses. The Olympic Games exist to uplift the human spirit.
Yet, unless something dramatically changes, in a few months'
time the Games will be held in a country that continues to
mercilessly crush the human spirit--in Xinjiang, in Hong Kong,
and in Tibet, among human rights activists and civil society,
and anywhere where defenders of freedom stand up to the Chinese
government's bullying.
This hearing will explore how Olympic corporate sponsors
can leverage their influence to insist on concrete human rights
improvements in China, and how they will manage the
reputational and material cost of being associated with an
Olympic Games held in the midst of a genocide. It follows up on
recommendations made at a May 18th hearing we held jointly with
the Tom Lantos Human Rights Commission entitled ``China,
Genocide and the Olympics.'' That hearing demonstrated just how
deep the bicameral and bipartisan congressional concern is on
this issue. I am especially grateful to Representatives
McGovern and Smith for their partnership and leadership.
For this hearing, we have invited the U.S.-based companies
who sponsor the Olympics through The Olympic Partner Programme
of the International Olympic Committee. We are pleased that all
five companies whose TOP sponsorships run through the 2022
Beijing Olympics have agreed to testify. These companies are
some of the most well-known and respected brands in the world.
This hearing is not meant to attack or embarrass individual
U.S. companies, but rather to explore how key Olympic movement
stakeholders--corporate stakeholders--can use their influence
to ensure that the Olympics lives up to its values.
Holding the '22 Winter Olympics in China and allowing its
authoritarian government to reap the rewards in prestige and
propaganda of hosting this globally beloved event does not
uphold the Olympic spirit. There is a parallel. That parallel
is Berlin in 1936, when Hitler used the Olympics to put a real
shine on his country at the same time he was already engaged in
horrific acts against his own citizens, and worse was to come.
But in this situation, it's worse than Berlin in 1936, because
the genocide is already underway.
As my co-chairman said in our last hearing, this is not the
time for business as usual. We want to hear how Olympic
sponsors can help us deny the Chinese government its propaganda
coup, support inspirational athletes without channeling the
money through an IOC that has demonstrated little regard for
internationally recognized human rights, influence the IOC to
improve its policies so that the Olympics are never again
awarded to a country engaged in genocide and gross violations
of human rights, and embrace Olympic ideals of diversity and
inclusion without supporting Olympic organizing committees that
plan opening and closing ceremonies that will cynically display
religious and ethnic minorities that in reality are being
subjected to the cruelest forms of mass internment, slavery,
forced sterilization, religious repression, and destruction of
cultural practices.
I look forward to hearing from our witnesses, and I'd now
like to recognize my co-chairman Representative McGovern for
his opening statement.
Co-chair McGovern. I want to yield to Representative Smith
first, and then I will go after him. Thank you, Chairman.
STATEMENT OF HON. CHRIS SMITH,
A U.S. REPRESENTATIVE FROM NEW JERSEY
Representative Smith. Well, thank you very much, Jim--Co-
chair McGovern. And thank you, Chairman Merkley. Today's
hearing is the second in a series which began with a hearing I
chaired, joined by Co-chair McGovern and Chairman Merkley, on
May 18, 2021--just a few months ago--entitled ``China, Genocide
and the Olympics.'' While that hearing featured testimony from
civil society human rights experts, today's hearing will focus
on the corporate sponsors of the Beijing Olympics--in effect
those who underwrite and help legitimize what we're calling the
genocide Olympics.
Let's be very clear what we are talking about here and why
multiple hearings and concrete action on this topic are
absolutely called for. First and foremost, we are not--we not
only see genocide and concentration camps directed against the
Uyghurs and the Kazakhs in Xinjiang, but also the ongoing
eradication of the culture of Tibet, the harvesting of organs
of Falun Gong practitioners, the destruction of Christian
churches, and the dismantling of freedom in Hong Kong. And yet,
for many American corporations it is business as usual when it
comes to China, notwithstanding the Communist government's
repeated unwillingness to abide by its obligations and written
agreements including, in the case of Hong Kong, a bilateral
treaty with the government of the United Kingdom.
While I appreciate that several corporations have sent
their representatives to testify at this hearing, I cannot but
shake my head in dismay when I read the preening about
compliance with ESG--the environmental, social, and
governance--principles, and the virtue signaling about their
support for Olympic athletes. For example, we have a submission
from Visa's Andrea Fairchild which touts ESG compliance, yet
not once mentions Xinjiang or the underlying violations of
human rights which have prompted this series of hearings.
Nor is she the only one. In fact, unless I overlooked
something, the only submission that even mentions Xinjiang and
makes an attempt to deal directly with at least some of the
underlying issues appears to be the submission of Intel's Steve
Rodgers. Now, to clarify the issue before our witnesses begin
speaking, we are talking about state crimes up to and including
genocide--a determination made by two secretaries of state, in
the last administration and in the Biden administration. And if
it helps crystalize the issue further, unlike the 1936 Berlin
Olympics, where Hitler sought to showcase the superiority of
Nazism, much as the Chinese Communist Party is seeking to use
the Olympics as a platform to tout its alternative vision of
global governance, the world in 2022 cannot claim that the
extent of the PRC's genocide remains unknown.
In light of this, my congressional colleagues and I--
Senators Merkley and Rubio, Lantos Commission Co-chair Jim
McGovern and I--wrote to the International Olympic Committee's
President Thomas Bach last week, stating unequivocally that
``No Olympics should be held in a country whose government is
committing genocide and crimes against humanity.'' Nor should
there be any surprise, as in October of 2018 Senator Rubio and
I had also written IOC President Bach, asking the IOC to
``review and ultimately reassign the location of the 2022
Winter Olympics, given credible reporting of the mass arbitrary
internment of 1 million or more Uyghurs or other Muslim ethnic
minorities in China's Xinjiang Uyghur Autonomous Region, and
other ongoing human rights abuses by the Chinese government.''
My question that I hope all of you will answer is, Did any
of you convey opposition to the IOC regarding Beijing as host
of the 2022 Olympic Games? And if so, can you provide the
Commission with that documentation? I would note
parenthetically, that in the early 1990s, when China was
seeking to host the 2000 Olympics, I met the father of the
Democracy Wall movement Wei Jingsheng in Beijing, who had been
released from prison to help the CCP persuade the IOC to select
Beijing for the 2000 Games. After China was denied the Games,
he was promptly rearrested and tortured, before eventually
being released and allowed to come to the United States in
1997. And he was near dead. Wei Jingsheng testified in 1998
before my human rights subcommittee and said that the bullies
in the Chinese Laogai and prisons beat and torture prisoners of
conscience more when U.S. officials kowtow and appease, and
less when we are resolute and serious and penalize barbaric
behavior.
The PRC was eventually awarded the Olympics in the year
2008, over the rigorous protests of me and many, many others.
So immediately prior to the beginning of those Games,
Congressman Frank Wolf and I traveled to Beijing to raise the
issue of human rights and to highlight the fact that the
Chinese Communist Party was arresting dissidents in and around
Beijing to prevent any contact with journalists. Will we have
that again as well in the Winter Olympics? So again, these
issues--which corporate witnesses need to squarely address
today--and how can you reconcile their ostensible commitment to
human rights with subsidizing an Olympics held in a country
which is actively committing human rights abuses, up to and
including genocide?
I respectfully suggest that moral posturing is--granted,
these corporations are not directly complicit in China abuses--
they're not Thermo Fisher Scientific, whose DNA sequences were
used to collect the biometric data of Uyghurs. I mean, that is
unconscionable. Further to the point, in 2006 I held a hearing
where representatives of Google, Cisco, Yahoo, and Microsoft
testified as to their role in assisting the repression in
China--especially with surveillance and denying people access
to an internet--that was not, again, in any way, doctored.
The year before, Yahoo had shared information with China's
secret police which led to the arrest and imprisonment of cyber
dissident Shi Tao. Yahoo also handed over data regarding one of
its own users, Li Zhi, who had criticized the corrupt local
Chinese Communist Party officials in an online discussion, for
which he was sentenced to eight years in prison. And Shi Tao,
again with Yahoo, got 10 years in prison. While your complicity
might not be so direct, your corporate involvement in the
Olympic Games nevertheless does further the interests of the
government of China, which will utilize the Olympics as a
platform to showcase its governance model, all while signaling
that crimes up to and including genocide should not interfere
with business as usual.
I also want to address a claim we often hear when the issue
of an Olympic boycott is broached. What about the athletes who
have sacrificed so hard to make it to the Olympics? Yes, their
willingness to sacrifice is absolutely admirable, exemplified
by their commitment to rigorous training regimens and time
spent away from family and friends. But sometimes greater
sacrifice is called for from each of us, and that would include
the athletes as well. I think of Ted Williams, the last
baseball player to hit .400. He sacrificed six years during the
prime of his career to serve his country in both World War II
and the Korean War. He flew a jet fighter, a Navy F-9F Panther,
in 39 combat missions in Korea. In one of those missions his
plane was hit and badly damaged, forcing him to crash land.
Finally, I want to close by mentioning where this genocidal
mania against the Uyghurs and other Central Asian Muslim
minorities like the Kazakhs originates. And that's at the very
top. In 2014 Xi Jinping, labeling all Uyghurs who dissented as
terrorists, told his officials to wipe them out completely,
destroy them root and branch, show no mercy. This has led not
only to massive internment in concentration camps in Xinjiang,
but also to tracking down Uyghur dissidents around the globe
and seeking to have them extradited or renditioned back to
China, often from Muslim countries such as Egypt and even
Turkey--which in the past has provided refuge.
One particularly egregious example of this crime came to my
attention just yesterday, where a 34-year-old Uyghur activist
named Yidiresi Aishan, who had landed in Morocco on a flight
originating in Istanbul, was arrested by Moroccan authorities
apparently at the request of Chinese government officials. I
understand he is in imminent danger of being repatriated to
China. I intend to reach out to the Moroccan Foreign Ministry
to ask that they withhold any removal proceedings given the
danger that he faces in the PRC. Perhaps my colleagues would
like to join me in that endeavor.
One reason I mention this individual is that I would like
our witnesses to keep in mind that at the end of the day, in
this case as in so many others, it is a person with a name who
is being oppressed--in this case, millions. The fanfare of the
Olympics cannot drown that out. I yield back, and I thank you,
Chairman Merkley, for chairing this hearing.
Chair Merkley. Thank you.
Co-chairman McGovern.
STATEMENT OF HON. JAMES P. McGOVERN, A U.S. REPRESENTATIVE FROM
MASSACHUSETTS; CO-CHAIR, CONGRESSIONAL-EXECUTIVE COMMISSION ON
CHINA
Co-chair McGovern. Thank you very much, Senator Merkley,
and my colleague Congressman Smith. I thank you for convening
this timely hearing entitled ``Corporate Sponsorship of the
2022 Beijing Olympics.''
You know, we hold this hearing as the Summer Games are
going on in Tokyo. And we wish the athletes the best of luck.
But in Japan, there is strong domestic opposition to their
government's handling of the COVID crisis. And I think it's
probably fair to say that the Olympics are being held under
somewhat of a cloud. No fans can attend. In addition, some
athletes, including Americans Sha'Carri Richardson and Becca
Meyers, were denied the ability to compete due to arcane or
obsolete rules. This cloud is significant enough that Toyota--
perhaps the best-known Japanese company in the world--pulled
its Olympic TV ads to stop its brand image from being
tarnished. Its CEO joined executives from Panasonic, NTT, NEC,
and Fujitsu in choosing not to attend the opening ceremonies in
their host country.
In less than seven months, as has been pointed out, the
Winter Olympics are scheduled to take place in China. Unless
things change quickly, the Beijing Games will be held under a
cloud as well--a different cloud, a cloud of genocide, crimes
against humanity, gross violations of human rights, and denial
of religious freedom. The Congressional-Executive Commission on
China has documented these abuses. Our work helped lay the
foundation for a legislative response. In the last three years,
we have passed major human rights legislation on the Uyghurs,
Tibet, and Hong Kong. My CECC colleagues and I are working to
pass our Uyghur Forced Labor Prevention Act. Both the Trump and
Biden administrations have taken action to respond to Chinese
abuses, including a ban on certain imports from Xinjiang made
with forced labor, and sanctions against complicit Chinese
officials.
So Congress and the executive branch are doing our part.
Now we ask you, as American companies, to do your part.
Congress and the executive branch are acting because, when it
comes to the Chinese government committing atrocities, we do
not accept business as usual. Today we ask you--we ask whether
you will treat the Beijing Olympics as business as usual. As
U.S.-based Olympic sponsors, your companies represent America
on the world stage. We ask whether you're willing to stand up
for universal values and use your leverage against genocide and
crimes against humanity.
As was pointed out, last week Senators Merkley and Rubio
and Congressman Smith and I asked the International Olympic
Committee to postpone the Beijing Olympics and relocate them if
China does not change its behavior. Now, if we can delay an
Olympics for a year for a pandemic--and that's what happened in
Tokyo--we certainly can delay it for a year for a genocide. Now
we have received the IOC's response. And they said they would
do nothing, not even acknowledging the atrocities in China.
Today we ask you, as American companies, if you will stand with
human rights principles to take action against the abuses in
China. Or will you side with the IOC and do nothing?
Now we hope that you agree that your company's reputational
risk--noting that each of your testimonies cited your company's
human rights values--is not worth the association with an
Olympics held in the midst of a genocide. If Toyota can do it,
well, why can't you? You know, what is--and I'll close with
this--what is particularly galling to me about the IOC's
response is its cold indifference to genocide. I mean, this is
not a policy disagreement. This is not a trade dispute. This is
not politics. This is not even a question about a particular
system of government. This is about genocide. And we all
appreciate--and I say this, I think, for all of us on this
Commission--we all appreciate all that your companies
contribute to our country, our economy, the global economy, the
jobs and all that you produce. But we are here because we are
genuinely horrified by what is happening. And we have to
believe that you are, too. I think the question here is what
you are going to do about it. So I thank you very much. I look
forward to your testimony. I yield back my time.
Chair Merkley. I'd now like to introduce our witnesses.
David Holyoke is the head of Olympics and Paralympics
Partnerships for Airbnb. He leads the strategic direction,
execution, and operation of the company's experiences, Airbnb
for work, and Olympics and Paralympics Partnership teams. Prior
to Airbnb, he established and built Travel Leaders Corporate
into one of the nation's largest travel management companies.
Paul Lalli is the global vice president for human rights
for The Coca-Cola Company. He sets company policy, leads
engagement with civil society on human rights issues, and
oversees the company's global value chain due diligence
program. Prior to joining The Coca-Cola Company, he served as
GE's global counsel for labor and human rights.
Steven R. Rodgers is executive vice president and general
counsel of Intel Corporation. Intel's legal, government, and
China groups report to Mr. Rodgers. He also serves on Intel's
senior executive team and reports to the chief executive
officer. Before joining Intel, he was a litigation partner at
Brown & Bain P.A.
Sean Mulvaney is the senior director for global government
relations and public policy for the Procter & Gamble Company.
Before joining Procter & Gamble, Mr. Mulvaney served as a
member of the board of directors of the Export-Import Bank of
the United States from June 2011 until July 2015. In the Bush
administration, he was assistant administrator for management
at the U.S. Agency for International Development.
Andrea Fairchild is senior vice president of global
sponsorship strategy for Visa Inc. She is responsible for
leading Visa's global sponsorship portfolio. Prior to joining
Visa, Ms. Fairchild provided brand-building services for elite
athletes and for businesses that work with athletes. She
previously spent over five years with Gatorade and ten years
with Nike.
Each witness will be recognized for five minutes of
testimony. Mr. Holyoke, you have the microphone.
STATEMENT OF DAVID HOLYOKE, HEAD OF OLYMPICS AND PARALYMPICS
PARTNERSHIPS, AIRBNB
Mr. Holyoke. Thank you, sir. Chairman Merkley, Chairman
McGovern, respected members of the Commission, thank you for
the opportunity to testify before you today. My name is David
Holyoke. I've been at Airbnb since 2016, and I am currently the
head of Olympics and Paralympics Partnerships.
In our 14 years, Airbnb has helped guests experience the
world in a more authentic, connected way. We began with two
hosts taking in three guests at their apartment in San
Francisco. Today, Airbnb has grown to 4 million hosts who have
welcomed 900 million guest arrivals in more than 220 countries
and regions around the world. At Airbnb, we believe travel can
be transformational. It can break down barriers, help people
get to know each other, and foster acceptance and
understanding.
The Olympic Games have shown that sports can do the same,
bringing the world together through an incredible and
inspirational athletic competition. In the same way that hosts
are at the heart of the Airbnb experience, athletes are at the
core of the Olympic and Paralympic movement. That's why we are
proud that our Olympics partnership is premised on empowering
and connecting athletes from different cultures, races,
religions, and creeds, all under the banner of sports.
As an IOC TOP partner, we are committed to a unique
partnership to support both the economic empowerment of
individual athletes and the role that the Olympics and
Paralympics have historically played as a global movement to
foster people-to-people connections. This commitment spans nine
years and encompasses five Olympic and Paralympic Games. And
our partnership is designed to support athletes, not any
particular city or Games. Our athlete-centered approach is
based on three pillars.
First, supporting and empowering athletes, particularly via
the creation of a specific category of Olympian and Paralympian
hosted experiences, to provide them with a platform to share
their voices and earn extra income. Second, providing
accommodations support to the Olympic family, including
accessible stays for Paralympians. And, third, supporting the
Refugee Olympic and Paralympic Teams, which we see as an
extension of our longstanding efforts to support refugees.
Through this athlete-focused partnership, we are proud to do
our small part to support Olympic and Paralympic athletes as
they strive to achieve their dreams and inspire the world.
As a company based on connection and belonging, we operate
globally everywhere the U.S. Government allows us to. We
recognize that our global footprint means we have and will
continue to face complex and challenging issues worldwide.
That's why our core values and policies have long reflected our
recognition of and respect for human rights, as informed by
internationally recognized standards such as the Universal
Declaration of Human Rights and the United Nations Guiding
Principles on Business and Human Rights.
Everyone who uses Airbnb must agree to our Community
Commitment, a global standard that requires all members of our
community to affirmatively agree to treat everyone in the
Airbnb community with respect and without judgment or bias.
This commitment applies to everyone who uses Airbnb around the
world, including users in China.
In markets throughout the world--including in all the
countries where the Olympics are scheduled to take place over
the course of our partnership--we have removed listings and
people from the platform when we find they violate this
Community Commitment. This is an important part of our work to
address bias and discrimination on our platform, which are
antithetical to our mission and values. We are constantly
working to improve and to ensure that human rights
considerations are embedded in our policies and practices.
We're grateful for the opportunity to support global
Olympic and Paralympic athletes, Team USA, and our host and
guest community. Thank you for the chance to testify before you
today to share more about Airbnb's commitment to these athletes
and the Olympic spirit. I look forward to your questions. Thank
you.
Chair Merkley. Thank you very much.
[The prepared statement of David Holyoke appears in the
Appendix.]
And now Mr. Lalli.
PAUL LALLI, GLOBAL VICE PRESIDENT FOR HUMAN RIGHTS, THE COCA-
COLA COMPANY
Mr. Lalli. Chairman Merkley, Chairman McGovern, and
distinguished members of the Congressional-Executive Commission
on China, thank you for inviting me to speak to you about The
Coca-Cola Company's human rights commitment and our proud
history of supporting global sporting events. We as a company
and I personally, share your passion for human rights and have
the greatest respect for this Commission's essential work. My
name is Paul Lalli. I am global vice president of human rights
at The Coca-Cola Company. In that capacity, I oversee the
company's human rights policies and due diligence programs
across the world. I also lead our human rights transparency and
stakeholder engagement efforts.
Almost a century ago, The Coca-Cola Company sponsored the
1928 Olympic Games and partnered with the U.S. Olympic
Committee for the first time. In every Olympic Games since
then, we have proudly supported the International Olympic
Committee and Team USA. As the U.S. Olympic and Paralympic
Committee always stresses, no athlete achieves their dream
alone. The Coca-Cola Company is proud to play a part in making
these dreams come true. We are also a longstanding partner of
other major sporting events, including the FIFA Men's & Women's
World Cups, the UEFA Championships, the Special Olympics--of
which we are the founding partner--and many others.
We sponsor these events because we believe that sport is
unique in its ability to bridge divides between people and
showcase the best of the human spirit. Across our sponsorships,
our credo is simple. We follow the athletes. We do not select
venues. We do not endorse cities, countries, or governments. We
sponsor events and competitors. We ensure that the vast
majority of our funding flows to the athletes. With the
Olympics, for instance, 90 percent of our funding flows to 206
National Olympic Committees, their teams and athletes, and the
IOC Refugee Olympic Team. Team USA is the largest single
beneficiary of this funding.
In our sponsorships and our business, we have long been a
leader in advancing respect for human rights. The Coca-Cola
Company was among the first companies to commit to the United
Nations Guiding Principles on Business and Human Rights, and we
strive constantly to realize their ideals. Two elements are
critical in that effort--due diligence and stakeholder
collaboration. Both are pillars of our approach. Our policies
establish strict and binding human rights expectations of our
employees, our bottlers, and our suppliers. These policies are
supported by a robust infrastructure to identify and address
human rights risks across our value chain.
We regularly disclose how we're doing with reference to
these standards. The Coca-Cola Company's Sustainability Report,
for instance, is integrated with our annual report to make
clear that respect for human rights and the environment is at
the heart of our business. In pursuit of practical and
meaningful difference, we engage with a broad array of
stakeholders across the world regarding the full range of human
rights. And we are proud of our strong relationships with so
many leaders in the global fight for human rights, from Oxfam
and Human Rights Watch to the Interfaith Center on Corporate
Responsibility.
We operate in more than 200 countries and territories, each
posing unique economic, cultural, and political challenges. We
do our best wherever we operate to improve the lives of
everyone we impact--workers, communities, and consumers.
Stakeholder collaboration empowers us to make a practical
difference. Collaboration is also the cornerstone of our drive
to embed respect for human rights in global sporting events.
The Coca-Cola Company is a founding member of the Centre for
Sport and Human Rights. The Centre brings together sports
bodies, governments, international civil society, sponsors and,
critically, broadcasters, to do what no individual actor alone
could, by building consensus and offering practical guidance.
Much work remains to be done. The international world of
sport is vast and complex, with many different stakeholders and
interests. The Centre provides a unique platform to bring these
stakeholders together to drive practical progress. And we
remain committed to its success. As we strive for this
progress, we will continue to follow the athletes. But the
United States is our home and beacon. We will always follow
U.S. law. And if our government decides not to send athletes to
any sporting event for public policy reasons, we will treat
that decision with respect. Thank you for your time. I look
forward to answering the Commission's questions.
Chair Merkley. Mr. Lalli, thank you very much.
[The prepared statement of Paul Lalli appears in the
Appendix.]
Chair Merkley. And now Mr. Rodgers.
STEVEN R. RODGERS, EXECUTIVE VICE PRESIDENT AND GENERAL
COUNSEL, INTEL CORPORATION
Mr. Rodgers. Good morning, Chairman Merkley, and Co-chair
McGovern, and distinguished members of the Commission. My name
is Steve Rodgers, and I'm the executive vice president and
general counsel of Intel Corporation. My role at Intel is to
keep the company legal, ethical, respected in every
jurisdiction in which we do business. My day-to-day
responsibilities at Intel include managing the company's legal,
government affairs, trade, ethics, and legal compliance
functions generally. Additionally, Intel China's headquarters
operation reports to me. Thank you for inviting Intel to
testify today and thank you for the Congressional-Executive
Commission's continued leadership and guidance on important
issues regarding China.
Intel is a proud sponsor of the Olympic Games. Our
sponsorship of the Olympics spans several Games and cities,
including PyeongChang, Tokyo, Beijing, and Paris. Intel
supports the Games' overarching mission to bring athletes
together from every corner of the world to participate
vigorously and peacefully, to experience fellowship, and to
participate in the symbolic nature of a diverse, inclusive, and
global event that celebrates excellence among us. Intel is
driven by our mission to develop world-changing technology that
enriches the lives of every person on Earth. The success of
that mission is predicated on the continued trust placed in us
by our customers, business partners, governments, employees,
and communities around the world, and includes our longstanding
focus on corporate responsibility.
Intel is committed to respecting and promoting human rights
in connection with our operations, supply chain, business
relationships, and products. In 2021, Intel was named one of
the world's most ethical companies by Ethisphere--an honor that
we have received for each of the past 10 years. At Intel, we
pride ourselves on not just complying with the law but going
above legal mandates on issues of human rights. For example,
under our human rights principles we have forgone hundreds of
millions of dollars in sales globally that, while legal, did
not meet our internal standards. Intel actively collaborates in
the business and human rights community, and we engage on human
rights issues through memberships, partnerships, and
participation in external organizations, as well as with
leading human rights experts.
Our engagement includes serving as a founding member of the
Responsible Business Alliance since that organization's
inception in 2004. The RBA is the world's largest industry
coalition dedicated to corporate social responsibility in
global supply chains and helps Intel hold suppliers accountable
and to the same high expectations and human rights standards
that we have set for ourselves. We are deeply concerned when we
hear reports of human rights violations in any jurisdiction in
which we do business.
We are aware of the determinations made by the U.S.
Department of State regarding the Xinjiang region, as well as
the U.S. Government's ban on the importation of products
sourced from that region. We respect the rule of law and seek
to operate ethically everywhere we do business. After
conducting due diligence, we have confirmed that Intel does not
use any labor or source goods or services from the Xinjiang
region. We also take steps to prevent and mitigate the risk of
our third-party business partners globally using our products
to cause, contribute, or be linked to human rights abuses.
Our sponsorship of the 2022 Winter Olympic Games in Beijing
does not negate or undermine our commitment to respect for
human rights, or the activities we have taken for over a decade
to prevent the risk of human rights violations around the
world. Moreover, our sponsorship of the Olympics is not an
endorsement of any specific host country, nor an acceptance of
every activity that occurs within any specific country. We are
strong supporters of the Centre for Sport and Human Rights,
which has engaged with the IOC and openly commented on the 2022
Olympic Games, including recommending specific steps for the
IOC to accept.
It is our goal to conduct our business around the world
ethically and to fulfill our commitment to respect human rights
in all of our business dealings. We appreciate the opportunity
to participate in this hearing. Thank you.
Chair Merkley. Great.
[The prepared statement of Steven Rodgers appears in the
Appendix.]
Chair Merkley. And now we'll turn to Mr. Mulvaney.
STATEMENT OF SEAN MULVANEY, SENIOR DIRECTOR, GLOBAL GOVERNMENT
RELATIONS AND PUBLIC POLICY, THE PROCTER & GAMBLE COMPANY
Mr. Mulvaney. Chairman Merkley, Co-chairman McGovern,
fellow members of the Commission, my name is Sean Mulvaney, and
I'm a senior director for government relations and public
policy at Procter & Gamble. Thank you for the opportunity to
appear to discuss P&G's commitment to respecting and
prioritizing human rights, including our longstanding support
of Olympic athletes and their families.
P&G's support for the Olympic movement began with our
sponsorship of Team USA in the 2010 Vancouver Games and
continues today with our participation in the IOC's Olympic
Partner (or TOP) program. This commitment spans two decades and
nine past and future Games, from London 2012 to Los Angeles
2028. As an Olympic sponsor, our focus from the very start has
been on supporting Olympic athletes and their families. To
date, we have supported more than 400 global athletes,
including at least 100 American athletes.
This support is particularly important here in the United
States. Unlike in many other countries, the U.S. Olympic and
Paralympic Committee is privately funded and receives no direct
funding from the government. The USOPC is therefore especially
reliant on private funding, with 33 percent of funding for Team
USA coming from TOP sponsorships. This funding allows the USOPC
to pay for things like athlete programs, training facilities,
and competition support like travel and lodging. Simply put, it
is support from private sponsors like P&G that enables Team
USA's athletes to compete and win at the highest level.
Our support for athletes and the Olympic mission also
includes direct athlete sponsorships, marketing campaigns,
spectator activations, and providing essential personal
services for athletes participating in the Games. For instance,
one of P&G's central initiatives during the Games is the P&G
Family Home, which gives athletes and their families a place to
convene, relax, rest, and eat. Through our Olympic advertising,
we also seek to champion the accurate portrayal of all people,
including female athletes, while raising their voices and
highlighting the causes they champion, on and off the field.
In the Tokyo Olympics, 16 of 18 P&G-sponsored athletes are
women, and five of our brands are launching campaigns
celebrating a diverse group of women Olympians. Separate from
our role as a TOP sponsor, P&G and the IOC jointly established
the Athletes for Good Fund, which in the lead-up to the Tokyo
Olympics has provided 52 grants to community causes that
Olympic and Paralympic athletes and hopefuls support. These
efforts are just some of the ways that we put our purpose,
values, and principles into practice. And as in all things we
do, P&G is committed to respecting human rights in our Olympic
sponsorship.
That's why we ensured that our TOP sponsorship contract
required the IOC to maintain policies that respect human
rights, and why we have supported the IOC's efforts to
implement the UN Guiding Principles in its operations and
oversight of the Games. It's also why, as a founding member of
the Centre for Sport and Human Rights, an alliance of
organizations working to protect and promote human rights in
athletics, we have encouraged the Centre to reach out to the
IOC. Specific to the Beijing Games, the Centre has engaged with
the IOC regarding supply chain considerations, free speech
protections, and protections against displacement of local
communities.
We have further urged the IOC to implement expert-developed
recommendations on a human rights strategy, including amending
the Olympic Charter to address human rights, building the IOC's
human rights expertise, strengthening due diligence on human
rights risks, helping improve athlete grievance mechanisms, and
communicating human rights progress publicly. P&G has
consistently engaged with the IOC to offer support as the IOC
implements these recommendations.
At P&G, our commitment to respecting and prioritizing human
rights is fundamental to how we manage our entire business. In
particular, we support the UN Guiding Principles. We encourage
anyone with potential human rights concerns related to our
business to share information. And we have set up a 24/7 help
line to enable confidential reporting. We have also extended
our commitments to our global supply chain by adopting our
Responsible Sourcing Expectations for External Business
Partners. These expectations include prohibitions on the use of
forced or child labor; prohibition of discrimination based on
race, gender, religion, or other protected characteristics;
prohibition of coercion, harassment, or punishment of workers;
and respect for employee and consumer privacy.
As this Commission knows well, achieving respect for human
rights around the world can be an enormous challenge. P&G
believes we can make meaningful contributions in our shared
objectives through collaboration and engagement with others.
Thank you again for this invitation to testify this morning. I
look forward to answering your questions.
Chair Merkley. Thank you, Mr. Mulvaney.
[The prepared statement of Sean Mulvaney appears in the
Appendix.]
Chair Merkley. And now we'll turn to Ms. Fairchild.
STATEMENT OF ANDREA FAIRCHILD, SENIOR VICE PRESIDENT OF GLOBAL
SPONSORSHIP STRATEGY, VISA INC.
Ms. Fairchild. Good morning, Chairman Merkley, Co-chairman
McGovern, and members of the Commission. Thank you for the
opportunity to appear before you today to discuss Visa and the
2022 Beijing Winter Games.
Visa is a proud, longstanding supporter of the Olympic and
Paralympic Games and the athletes who dedicate their lives
training to compete at the highest levels of their sport. We
view the Games as one of the most important global movements
that bring people together to promote peace, friendship, and
mutual understanding. At Visa, our mission is to connect the
world to enable individuals, businesses, and economies to
thrive. We recognize our responsibility to respect, advance,
and maintain global human rights across our company and
operations, and in connection with our global sponsorship
programs.
Our approach to respecting human rights is guided by the
international frameworks, including the United Nations Guiding
Principles on Business and Human Rights, which we fully
support. Visa is also a proud founding supporter and Advisory
Council member of the Centre for Sport and Human Rights. The
Centre is dedicated to advancing a vision of the world of sport
that fully respects and promotes human rights through stronger
accountability across the sports ecosystem.
Visa's mission also underpins our approach to sponsorships.
For more than 35 years, our partnership with the International
Olympic Committee has been rooted in a shared commitment to
make a positive transformational impact on the world, and in
supporting the athletes. Visa is a founding member of The
Olympic Partner Program, a global sponsorship program which was
founded by the IOC in 1985 with the goal of establishing long-
term partnerships that would directly benefit athletes, who are
at the heart of the Olympic movement. Visa also became the
first global partner of the International Paralympic Committee
in 2003.
I would like to address the issues that bring us here
today. Sponsors like Visa have no say in the countries selected
by the IOC to host the Games. It has been that way for the
entirety of our 35-year partnership and remains that way today.
Indeed, the foundation of our sponsorship has always been
supporting the incredible Olympic and Paralympic athletes and
hopefuls in their journeys to achieve their dreams. And as long
as governments allow athletes to participate in the Games, we
will be there to support them.
Without the contributions of the Olympic partners, the
world's best athletes simply would not have the opportunity to
compete at the Games. In fact, 90 percent of all IOC revenues
are redistributed to support athletes and sports organizations
globally, including the 206 National Olympic Committees and
International Sports Federations. This support is even more
critical for Team USA athletes, as the United States Olympic
and Paralympic Committee relies solely on private funding to
deliver on their mission of empowering American athletes to
achieve their sustained competitive excellence and well-being.
In addition, Visa created its own athlete support program,
called Team Visa, more than two decades ago, focused on
supporting athletes before, during, and after the Olympic and
Paralympic Games. We are proud that more than 500 athletes have
joined the Team Visa roster to date. Olympians and Paralympians
representing the United States have generally had the largest
representation on Team Visa and more than half of Team Visa
athletes have been women. Many Team Visa athletes have had to
overcome significant challenges to rise to the highest levels
of competition.
The Olympic Games have been a bright spot for many athletes
and allowed them to achieve their lifelong dreams. The Team
Visa roster for Tokyo 2020 includes 102 athletes from 54
countries and territories, and 28 sports. It's our largest and
most diverse and inclusive roster in our history. We look
forward to naming our Team Visa athletes for the 2022 Winter
Games later this year.
In closing, we know that when we empower someone--whether a
local shop owner or an athlete competing in the Olympic Games--
we can bring about positive change to uplift everyone,
everywhere. Thank you, again, for the opportunity to represent
Visa today. And I am happy to address any questions that you
may have.
Chair Merkley. Thank you, Ms. Fairchild.
[The prepared statement of Andrea Fairchild appears in the
Appendix.]
Chair Merkley. And we'll now have questions. And we'll ask
each individual to limit their questions to seven minutes. So
I'm starting the timer on myself because I'm going to go first.
I'm going to ask similar questions of each of you, just
kind of setting the framework here. Starting with you, Mr.
Holyoke: Does your company reject human rights practices like
mass internment, forced labor, forced sterilization, religious
repression, destruction of cultural and religious practice,
arrest and intimidation of human rights defenders, and other
violations of internationally recognized human rights?
Mr. Holyoke. Thank you for the question. Human rights is
core to our values and principles. And discrimination has no
place on our platform.
Chair Merkley. And all of those things that I just
mentioned, you reject those as inappropriate activities of a
government?
Mr. Holyoke. Correct.
Chair Merkley. Thank you. Second, if you sign up for
another IOC contract, will you insist that the IOC not assign
the Olympic Games to any country engaged in genocide?
Mr. Holyoke. Thank you for the question. Our partnership
with the IOC spans nine years. It's not about any specific
Games or city. We've had numerous conversations with the IOC
about the importance of human rights. And we've encouraged the
IOC to be transparent and engage with host governments about
this important matter.
Chair Merkley. OK, but you didn't really answer my
question, unless you're saying no, you would not insist that
the IOC not assign the Olympics to a country engaged in
genocide.
Mr. Holyoke. As I mentioned, human rights is core to our
values. We've had, prior to coming into the partnership and
ongoing, conversations with the IOC about the importance of
this, and we would continue to have that dialogue with the IOC.
Chair Merkley. Would you consider insisting that your
contract in the future be ``Games-by-Games,'' so you're not
locked into being a sponsor of the Olympics at a nation engaged
in genocide? So the first question was whether in renegotiating
the contract you'd insist the IOC not put the Games in a
country that's engaged in genocide--obviously putting you in a
very difficult situation. But another choice would be to
negotiate that contract and to go ``Games-by-Games,'' so you're
not accidentally, if you will, locked into this situation.
Mr. Holyoke. Thank you for the question, sir. We would
continue to have ongoing dialogue with the IOC, and we would
continue to express our views and values around human rights
and encourage them to be in the selection and engage with host
governments on this important topic.
Chair Merkley. OK. Well, I hope you will consider that--
those types of possibilities. This is where your corporate
leverage is--not being put in this regrettable and horrific
situation. This host, China, made promises in 2015 when it was
awarded the Games, about improving its human rights. It did not
honor those promises and went in the other direction, went in
the other direction on Hong Kong, certainly went in the other
direction in the treatment of Uyghurs and other ethnic
minorities. If the IOC accepts such promises and a country
doesn't deliver, would you encourage the IOC to move the Games
to another country, to reassign them?
I'm sorry, were you able to hear my question?
Mr. Holyoke. I'm sorry, sir. Was that directed to me?
Chair Merkley. Yes.
Mr. Holyoke. Would you mind repeating the question?
Apologies.
Chair Merkley. Certainly. If in 2015, in this situation,
China made promises on human rights to the IOC--those promises
the IOC has never actually delivered the details on--but they
said that China promised improvements. If a nation promised
improvements on human rights to meet certain human rights
standards and they failed to meet those, would you encourage
the IOC to have a practice of moving the Games?
Mr. Holyoke. Thank you, sir. And again, apologies for not
hearing it originally. Prior to entering our partnership--we
came in after 2015--we had numerous conversations with senior
officials at the IOC around the importance of human rights. We
continued to encourage them to be engaged on this topic with
host governments. And we will continue to do so.
Chair Merkley. OK. And several companies have noted that
this is all about the athletes. The IOC has threatened to
disqualify athletes who express concerns about human rights at
the Olympic Games. Would your company support athletes' rights
to speak up about violations of human rights?
Mr. Holyoke. Thank you for the question. We believe
athletes are humans, first and foremost, and should have the
ability to express their voice in a peaceful manner that aligns
with the Olympic Charter and principles. And so our partnership
is, first and foremost, about empowering and supporting
athletes. And we would continue to be focused on that.
Chair Merkley. I'll ask one final question, and I intended
to ask these questions of each person; it's just that you are
the first person to testify. So I don't mean to be ganging up
on you.
But this one is a specific question about Airbnb. It's an
article from The Telegraph. I'll ask unanimous consent to put
it into the record. Hearing no objection, so ordered. And it
notes that Uyghurs and Tibetans are locked out of Airbnb in
China's latest crackdown on ethnic minorities. This article
goes on to note that essentially people have to put on their
Airbnb listings that they will not allow Uyghurs or other
ethnic groups to utilize an Airbnb listing.
So here is a piece of the discrimination--a part of the
broader, even more horrific practices of genocide, directed at
the Uyghurs. Is this an issue you're aware of? And is Airbnb
working to address this in the specific context of your
company?
Mr. Holyoke. Thank you, Chairman, for the question. Yes, I
am aware of the article. Human rights is core to our values and
principles. Discrimination has no place on our platform.
Anywhere that we see language that is discriminatory, we take
action to remove those listings and hosts from our platform.
All of our users, whether hosts or guests, are required to sign
our Community Commitment, which ensures that our users behave
and operate on our platform without bias or discrimination. We
regularly scan for listings and hosts on our platform where we
see discrimination against minorities. And we take action up to
removing those hosts and listings from our platform. To date,
we have removed over 1.5 million people from our platform that
have failed to agree to our Community Commitment, including
users in China.
Chair Merkley. Thank you very much. And again, I apologize
for putting you on the spot through my entire questioning, but
I'll direct my next set of questions elsewhere.
Meanwhile, my time is up. And so we'll turn to Co-chairman
McGovern.
Co-chair McGovern. I thank you very much. And I appreciate
everybody testifying here today. And I appreciate everybody's
commitment to human rights, but I kind of feel we've tiptoed
around the focus of this hearing. Nobody really talked about
what is happening in China or what is happening in Xinjiang.
So let me if I can, ask--these are yes-or-no questions to
all the witnesses. And I mean yes or no. Would your company be
willing to ask the IOC to postpone the Olympics to allow time
for the Chinese government to stop its atrocities and relocate
if they do not? I'll begin with Ms. Fairchild.
Ms. Fairchild. I'm sorry. Could----
Co-chair McGovern. It's a yes-or-no question. Would your
company be willing to ask the IOC to postpone the Olympics to
allow time for the Chinese government to stop its atrocities
and relocate if they do not?
Ms. Fairchild. As a sponsor we have no role in the site
selection process of where the Olympics are held.
Co-chair McGovern. As a sponsor, I would assume that you
could make a request. Mr. Mulvaney.
Mr. Mulvaney. Congressman, we respect human rights all
around the world. As Visa said, we don't have a role in site
selection. So I don't believe that we would be in a position to
tell the IOC to move the Games.
Co-chair McGovern. All right. Mr. Rodgers.
Mr. Rodgers. Good morning, Mr. Chairman. The answer to the
question is yes. We have stressed with the IOC the importance
of human rights to Intel and have encouraged them to take these
matters most seriously.
Co-chair McGovern. Thank you. Mr. Lalli.
Mr. Lalli. We, again, do not have a say on the host city
selection and whether Games are relocated or delayed. We follow
the athletes. But we work through the Centre to strive for a
responsible event, including embedding human rights in any of
the mega sporting events.
Co-chair McGovern. All right. Mr. Holyoke.
Mr. Holyoke. Thank you, sir. We've had numerous
conversations with senior leaders at the IOC about the
importance of human rights. And we've continued to stress to
them the importance of being transparent and engaged with host
governments about this matter.
Co-chair McGovern. The question is, though, would you ask
them to postpone the Olympics to give China an opportunity to
try to stop its atrocities and urge them to relocate if they do
not?
Mr. Holyoke. Thank you, sir. We're not involved in the
selection of host cities. Human rights----
Co-chair McGovern. All right. So another yes-or-no
question. Noting that the CEOs of at least four Japanese
companies declined to attend the Tokyo Olympics, is your
company willing to consider not sending its CEO or their
designee to Beijing? We'll begin with Mr. Holyoke.
Mr. Holyoke. Thank you for the question. Our partnership as
it relates to Beijing 2022 isn't about any large global
marketing activities. It's about empowering and supporting the
athletes. Any activations or participation in Beijing is local
in nature and focused in the China market.
Co-chair McGovern. OK. All right. Mr. Lalli.
Mr. Lalli. Chairman, again, we really--we follow the
athletes in respect to these Games and are not involved in
determining who attends with respect to our company.
Co-chair McGovern. But you will decide whether your CEO or
a designee attends. I mean, that's a decision you make, not the
IOC. So the question is, given what is going on, are any of you
willing to--I mean, we've had four Japanese companies decide to
have their CEOs not attend based on the cloud over the current
Olympics in Tokyo. The question is, would you consider having
your CEO or your designee not attend these Olympics, given what
is happening there?
Mr. Lalli. Chairman, I respect the question. And our focus
is twofold: on sponsoring and supporting the athletes and on
embedding human rights in the lifecycle of these Games.
Co-chair McGovern. OK. Mr. Rodgers.
Mr. Rodgers. We haven't made any decision on who will
attend any particular Games, Mr. Chairman.
Co-chair McGovern. Thank you. Mr. Mulvaney.
Mr. Mulvaney. We have not made any decisions as well on who
attends the Games. In fact, we're holding off on a lot of our
marketing decisions in order to hear the perspective of you and
the members of the Commission.
Co-chair McGovern. I appreciate it. And Ms. Fairchild.
Ms. Fairchild. Yes, Chairman. Agreed, we have not made
those decisions at this time. And it's not possible right now,
several months out--especially given the variable of COVID-19.
And, again, our focus now is on the Tokyo Games.
Co-chair McGovern. OK. All right. Let me ask you another
yes-or-no question here. You know, noting that Toyota decided
to pull all of its domestic Olympic-themed television
commercials for Tokyo, is your company willing to consider
canceling its Olympic-themed television commercials for
Beijing, to disassociate itself from the host government's
atrocities? Why don't we begin with Mr. Mulvaney.
Mr. Mulvaney. Thank you, Congressman McGovern. You know,
our advertising is always about the athletes. It's not about
the host city. You can go back to London, currently in Tokyo,
all the Games, it's never been about the host city. It's always
been about the athlete. I'm taking all this in. Our company is
taking all this in. Our normal approach to this is to
advertise, because it's about the athletes and enabling them to
compete. And we portray the athletes and the grit, and their
family support. And so I'm here to listen. You know, I can take
this back to my company but, you know, I can't make a
commitment that we won't advertise.
Co-chair McGovern. OK. Ms. Fairchild.
Ms. Fairchild. Similarly, we are assessing the situation at
this point. However, it is important for us to support the
athletes. That's the foundation of our sponsorship. And we
focus our advertising in that realm as well. We will continue
to assess the situation and make that determination.
Co-chair McGovern. Mr. Rodgers.
Mr. Rodgers. Chairman, we have not made any decision at
this point beyond what we're going to do with the current Tokyo
Games.
Co-chair McGovern. Mr. Lalli.
Mr. Lalli. Chairman, I'm not aware of our decision yet
regarding advertising in the Beijing Games. Our focus is on the
athletes and on working through these multi-stakeholder
initiatives.
Co-chair McGovern. Mr. Holyoke.
Mr. Holyoke. Thank you, sir. We are not planning any
traditional large-scale global marketing campaigns relating to
Beijing. Our focus will be on empowering athletes and the
sponsorship of the Olympic and Paralympic refugee teams. And
any programs would be local to the China market only.
Co-chair McGovern. I know my time is running out, but let
me just kind of sum up my thoughts at this moment. As I said in
the beginning, we appreciate all of the companies that are
represented here today, as to what they do in terms of creating
jobs and helping our economy and the global economy. That goes
without saying. But you know, enough of you keep on going back
to, ``We support the athletes, we support the athletes.''
Everybody supports the athletes. This is not about--this whole
hearing is not about supporting the athletes. It is about
dealing with something, quite frankly, that is beyond the pale,
that is at the extreme. What is happening in China right now,
especially in Xinjiang, is beyond the pale. This is different.
This is at the outer edges of what is bad.
And I think that with respect to everyone here, in addition
to trying to send a message to China--and I know it is
difficult, because China plays hardball. And I know you're
worried about your profits, and your business models, and
dealing with China. I understand all that comes into play. But
there's also something else that I think people need to
consider, and that is reputations, because we are talking
about--you heard from Mr. Smith and from Senator Merkley--we
are dealing with a genocide that is unfolding that is well
documented.
And I think we all took note that in all the testimonies
nobody really talked about what is happening to the Uyghurs in
Xinjiang. Nobody talked about specifically what is going on.
And I attribute that to, I think, trying to prevent a backlash
from China. But I'll just say this--we want to influence
China's behavior here in a good way. And we think that you can
play a role in that. I understand the difficulties that you all
face, but on the other hand--we are happy to provide briefings
on what is going on with the Uyghurs and others. But again, it
is at the extreme. And it is beyond the pale.
So with that I will stop, and I will yield back my time.
Thank you.
Chair Merkley. Representative Smith.
Representative Smith. Thank you very, very much, Mr.
Chairman.
I'd like to ask each of our witnesses, if I could--and this
would be a yes-or-no answer. Knowing what we know now about the
Beijing genocide Olympics, should it be moved to another
country and another city? We'll begin with Ms. Fairchild. Yes
or no.
Ms. Fairchild. Again, as I stated in my opening statement,
as sponsors we have no responsibility in the site selection.
Representative Smith. I understand that. But you know
what's going on there, and the myriad of other human rights
abuses that are being committed. But genocide is in a league of
its own. Should it be moved, yes or no?
Ms. Fairchild. I will respond to that by saying that our
sponsorship commitment really spans several years, so it's not
about a particular host city. It's more about the long-term
support for the Olympics.
Representative Smith. We're just talking about the Beijing
genocide Olympics. We all respect what you do for the
Olympians. It's fantastic. But we're talking about a host city
that is analogous to exactly what Hitler did in 1936. And Xi
Jinping has said clearly on the record he wants to tell the
whole world how great his governance is, which is despotic.
It's dictatorial. And it's a genocide. Should it be moved, yes
or no?
Ms. Fairchild. Again, I will answer the question by saying
as long as the governments allow the athletes to attend the
Games, Visa will be there to support and sponsor them.
Representative Smith. So that's ``no.''
Ms. Fairchild. We will be there to support and sponsor them
if the Games are held.
Representative Smith. But you don't think it should be
moved. I just want clarity. Just clarity.
Ms. Fairchild. I do not have any specific opinion on that.
Again, that is not a decision and a role that the sponsors
play.
Representative Smith. But as a human being and as
somebody--as a corporation that believes in human rights, it
seems to me that you have a moral responsibility, very clear,
when a genocide is ongoing, when women are being raped and in
concentration camps, forced abortion, forced sterilization. The
men are being tortured as well as the women. And we have, on
the China Commission, of which I'm ranking member, and on the
Lantos Commission, numerous hearings about what these
individuals are undergoing. I'm baffled and disappointed that
you can't just say: Move the Games.
Ms. Fairchild. I understand, Chairman, and absolutely
recognize the seriousness of the issues that we're discussing
today. We take note that the Olympics is what we are discussing
and what has brought us together to have this important
conversation. But I will say again that as long as the
governments are allowing the athletes to attend the Games, we
will be there to support and sponsor them, including our
American athletes.
Representative Smith. Could I ask Mr. Mulvaney, Mr.
Rodgers, Mr. Lalli, Mr. Holyoke--if you could all answer that
question. Should they be moved, the Olympic Games? The Beijing
genocide Olympics?
Mr. Mulvaney. Mr. Chairman, at Procter & Gamble we don't
have a position on moving the Games. We support the promise and
the potential of the Olympic movement. And that's our
commitment over a multi-year horizon.
Representative Smith. Can you not understand that this
grossly undermines the Olympic creed, the Olympic mission,
which--I love the Olympics, as do my colleagues on this--you
know, on the Senate and House side. This is beyond an
unconscionable enabling of genocide, because we know what Xi
Jinping is doing with this. You know, in our last hearing we
heard from experts who said how he's using this to say to the
world: Look at our governance model and replicate it. And
again, for those who are suffering in the gulags, in the
Laogai, in the concentration camps, how demoralizing this will
be. Should they be moved?
Mr. Mulvaney. Mr. Chairman, our commitment is to the
Olympic movement.
Representative Smith. OK. But this hurts the Olympic
movement, as well as the people who are victimized so grossly.
If I could, the other members--Mr. Holyoke, Mr. Lalli, if
you all could--and Mr. Rodgers. Should they be moved?
Mr. Holyoke. Our partnership is a nine-year partnership
with the IOC. It's not focused on Beijing or any other single
Games. It's about----
Representative Smith. But this is unique, isn't it? This is
absolutely special and unique--special in a very bad way--
because it's a genocide Olympics. Can you not say move them?
Mr. Holyoke. Thank you, sir, for the question. Our
partnership is providing dedicated support to individual
athletes on an ongoing basis. Our purpose is to connect people,
and we've seen that the Games do the same.
Representative Smith. OK. Would the others like to answer
it? Mr. Rodgers. Mr. Lalli.
Mr. Rodgers. Commissioner, we haven't stated a position on
the location of the Games. A couple of thoughts----
Representative Smith. Can you do it now? Can you do it now?
With all due respect.
Mr. Rodgers. I heard this morning that the IOC has
responded to the letter sent by the Commission. I haven't seen
that letter. I'd like to look at it. We will continue to urge--
--
Representative Smith. I've read their response. It is a
nothingburger, with all due respect. It doesn't address this at
all.
Mr. Rodgers. I haven't read it and didn't know it existed
until this morning. So I've learned something----
Mr. Smith. We've been asking you since 2018, when Marco
Rubio and I did the letter asking that this be moved. And
again, this is totally bipartisan and bicameral.
Let me just ask, I guess, Did any of you convey to the IOC
or the U.S. Olympic Committee and Paralympic Committee this
opposition, or concerns about these Beijing genocide Olympics?
And also, if you could all answer this, Has anyone in the
Chinese government or anybody acting on their behalf conveyed
to your company any penalty or risk of access or participation
in the Chinese economy should you raise your voice on behalf of
the victims and suggest that there be a move to another venue
in another country?
Mr. Rodgers. Commissioner, the answer to your second
question is no. And the answer to your first question is yes.
Representative Smith. OK.
Mr. Lalli. Commissioner, this is Paul Lalli, on behalf of
The Coca-Cola Company.
Representative Smith. Mr. Lalli.
Mr. Lalli. We have conveyed to both the IOC and through the
Centre, through these multi-stakeholder initiatives, the
importance of embedding human rights in these events. We've
worked for years, including being the sole funder of the
initial Mega Sporting Events Platform for Human Rights, to try
to bring progress and human rights into these Games. And I'm
not aware of any communications regarding your second question.
Representative Smith. OK. Anybody else want to speak to
that, whether or not there's been any threat by the Chinese
Communist Party, or anybody acting on their behalf that should
you, like today, say ``Move the Games,'' that there would be a
penalty to your corporation in access to the Chinese market in
any way?
Ms. Fairchild. In answer to that question, I can say no,
that has not happened. And in answer to your first question, we
have had ongoing dialogue with the IOC. And as a TOP sponsor,
we have encouraged the IOC to adapt to the recommendations
contained in the December 2020 report on human rights strategy.
Representative Smith. OK. But again, I think this is so
injurious to the Olympic movement in and of itself, but above
all to the victims in China--whether it be the Uyghurs, the
Tibetans, the Hong Kongers. Joshua Wong, who appeared before
our Commission has been prosecuted so grossly and unfairly by
the Chinese Communist Party. And this is a reward. You know, in
2015, I think you will know this, as Xi Jinping was doing the
planning for the genocide in Xinjiang, simultaneous with that
he was telling the IOC how they would comport with human rights
standards and norms. And we've asked the IOC to be specific on
that. They have not told us exactly what promises were made.
We don't even know how the American affiliate voted. It was
a 44 to 40 vote. And Kazakhstan was the competitor. And yet 40
countries voted no. How did the U.S. vote? Maybe some of you
might know that. We can't get that information. Why is that not
transparent? This isn't the Manhattan Project. There ought to
be complete transparency as to how that vote went down. But I'm
not sure how much time I have. I'm out of time? I'm out of
time. If there's a second round, I do have a number of other
questions. But thank you very much.
Thanks, Chairman.
Chair Merkley. Thank you.
And we will now turn to Senator Angus King.
Senator King. Thank you very much, Mr. Chairman. I've
listened to this hearing with a great deal of interest. And
this is a very difficult question. But it strikes me that we
have the wrong set of witnesses here today, that our real beef
is with the International Olympic Committee in terms of how the
decision was made, whether the decision is under review, as it
should be. I've been a member of this Commission for four or
five years now. I've sat in on the hearings with regard to the
Uyghurs. I think what's going on is accurately characterized as
atrocious and genocide.
The question is, these companies that are before us today
made long-term commitments. One of the questions earlier was,
Why are you supporting the Beijing Olympics? My understanding
is they're not supporting the Beijing Olympics. They are
supporting a whole series of Olympic Games at different sites.
And they're supporting the International Olympic Committee, and
through them the American Olympic Committee, and the athletes.
So I must say, it bothers me that these companies, which have
contractual relationships that span 8, 10 or 12 years--in the
case of Coca-Cola going back almost 100 years--are being asked
to essentially say, you know, we're going to--we're going to
boycott, or we're going to insist on a change.
They have no role as I understand it--and perhaps I could
ask Mr. Mulvaney from Procter & Gamble, do you have as part of
the contract that you signed--that I understand goes back 8 or
10 years--do you have any control whatsoever on the site
selection? Is that something that is--do you have a veto or a
voice in that process?
Mr. Mulvaney. Senator, thank you for the question. We do
not have a role in site selection. And we can't force the IOC
to make a decision or make a choice on its business operations.
Now, that's not to say that we don't have influence in the
situation. We do. And we try to use that influence, as Procter
& Gamble. As a part of the contract that P&G has as a sponsor
with the IOC, that contract obligates the IOC to respect the UN
Guidelines on Human Rights and Business. And we have a
concerted effort to upgrade the practices at the IOC. We work
both directly with the IOC and indirectly through other
stakeholder groups to try to get them to upgrade their
processes in three dimensions--really briefly.
A, they need to change their governance documents. They
need to amend their charter. Second, they need to aggressively
create due diligence processes that are compliant with the UN
Guiding Principles. And third, they need to create grievance
mechanisms for athletes. Those three items would be helpful in
a situation like this. And they have a responsibility for that.
And the companies on the panel today, including P&G, we do push
for that, Senator.
Senator King. Well, and I presume all the companies would
respond as Mr. Mulvaney did in terms of your role in the
location process. Let me ask a question. Is it a contractual
obligation? If you said, we're pulling our sponsorship of this
particular Olympic Games, what would that do to your
relationship to the remaining Games or to the relationship that
you have with the IOC in terms of your legal obligation?
Mr. Mulvaney. Senator, I don't know the details of the
exact contract in the context of P&G in terms of a pullout. I
do know there are penalties, and those penalties are probably
written onto the entire scope of the contract. Again, our
contract isn't written to a specific city. And so I can't
address that situation.
Senator King. Mr. Rodgers, you're the general counsel, as I
recall. What are the legal obligations under this contract that
you--the multi-year contract that you all executed?
Mr. Rodgers. Senator, thank you for the question. And I
knew as a lawyer this was going to come--that you'd bring this
question to me. So I appreciate the chance to answer it. Our
contract sounds similar to P&G's and does not give us any
influence over site selection and the ability to veto or change
the site selection. It includes penalties if we don't live up
to our side of the bargain, which is the sponsorship and other
promotional and marketing events that we participate in.
Senator King. And if you pulled out--if you said, we're not
going to sponsor the Beijing Olympics, what would the impact of
that be? I suppose the members of this Commission would say,
well, maybe that would make Beijing change their policies. But
basically, it would leave the Olympic movement without a
substantial form of support, and that would, in turn, leave the
athletes without that substantial support. Is that correct?
Mr. Rodgers. I think that is correct, Senator. I don't know
what portion of the overall IOC budget our sponsorship money
is. You know, we do have influence on the IOC, and we've used
that influence, and continue to use that influence as a sponsor
to encourage the IOC to improve on human rights. I think that
the specific recommendations that I mentioned in my opening
remarks, that come from the Centre for Sport and Human Rights,
are something that we've urged the IOC to adopt, and we'll
continue to do so.
You know, I think one other key point, Senator, is the
voice of the USOPC. Our contract is not just with the IOC, it's
always with the U.S. Olympic and Paralympic Committee. And to
date, the U.S. Committee has asked the sponsors to not drop our
sponsorships because, in their view, doing so would hurt the
athletes.
Senator King. Thank you. Thank you all very much. Thank
you, Mr. Chairman.
I would suggest that the next hearing we have should be
with the IOC and perhaps the American Olympic Committee. I
think that would be a more appropriate--those would be a more
appropriate focus of our attention. Thank you, again, for all
of your testimony and thanks to the members of the Commission.
Chair Merkley. Thank you, Senator King. And certainly
future conversations with the IOC, we hope we can in fact have
them appear to address some of these issues regarding human
rights and the selection process.
We'll now turn to Congresswoman Steel.
Representative Steel. Thank you, Mr. Chairman. And thank
you for all the witnesses coming out today. And the human
rights atrocities and abuse happening in China right now should
horrify every one of us. Forced sterilization, labor camps, and
murder are happening right now against Uyghur and other Muslim
minorities. We have a responsibility to speak out. I am just so
honored to be on this Commission because we really have to
study what's really going on in China.
Our witnesses today certainly felt compelled to speak out
over the last year in support of political and social protests.
Coca-Cola spoke out loudly against laws passed in Georgia. Visa
said change starts here and highlighted their focus on global
acceptance. Airbnb condemned racism, bigotry, and hate. But
where are your statements against the human rights abuses
happening right now in China? How can we support sending our
athletes, the best of the best, who have worked so hard for
these moments, to a country with a backdrop of abuse and
violence? A few months ago, Senator Ted Cruz and I sent a
letter out to actually change the location of the Beijing
Olympics to another, safer place for our athletes. But the
International Olympic Committee sent us a letter that the UN's
been supporting them, so they're not going to change it.
So having said that--Beijing is going to be happening. So
my question to all is this: Will you use public platforms--like
social media--to raise awareness of the atrocities being
committed by the Chinese government and to pressure China to
end its human rights violations? This question is for all of
you.
Mr. Rodgers. Commissioner, I'll go first. The answer to
your question is that we will. We have and will continue to
speak out on the importance of human rights. And I would just
refer back to my opening remarks just an hour or so ago in
front of this Commission, which specifically referred to some
of the matters that you raise in your question.
Mr. Lalli. Congressman, this is Paul Lalli with the Coca-
Cola Company. We speak out very loudly on respect for human
rights through our policy and through our industry-leading due
diligence program. We require any business partner we operate
with to comply with our policy, or we won't do business with
them, period. We do business in 200-plus countries and
territories around the world. But we are founded and
headquartered in one, and that's the United States. And we're
proud to call Georgia our home. So we are concerned about
allegations of human rights abuses anywhere in the world. We
will always be most active, engaged in policy issues here at
home. And we are proud to be--really have been at the vanguard,
have a history of fighting for voting rights and equality for
the last 50-plus years, dating back to the Voting Rights Act of
1965.
Mr. Mulvaney. Congresswoman, this is Sean Mulvaney. And on
behalf of Procter & Gamble, I want to answer your question and
communicate that P&G's respect for human rights is fundamental
to our business. Addressing human rights situations whenever
they happen around the world is not a nice thing to do--it's a
must-do, as we navigate our business operations. Respecting
human rights is central to our values as a company. And when it
comes to communicating support for human rights, our
advertising around the world reflects our belief in diversity
and inclusion. And so you can look at examples and see how we
walk the walk in that context, supporting human rights.
And so I respect the question. And you asked about how we
participate in the U.S. political system. And like Coca-Cola we
are really active in our home market. And we operate in 70
countries around the world, where--and our products are
available in 180. And so it's natural for us to be more active
in this market. And that's why you see us active in this
market.
Mr. Holyoke. Thank you, Congresswoman, for the question.
This is David Holyoke with Airbnb. As I mentioned in my opening
statement, racism, hate, and discrimination go against
everything we believe in as a company. We take the topic of
human rights very seriously. It's core to our values and our
principles as a company. We are committed to fighting
discrimination and making Airbnb a place where everyone belongs
and can succeed. All of our users from our host and guest
community must agree to our Community Commitment policies,
which requires them to treat everyone in the Airbnb community
with respect and without judgement or bias. And we regularly
monitor our platform. And where we see discrimination against
minorities we take the appropriate action, including removing
those hosts from our platform.
Ms. Fairchild. Thank you. This is Andrea Fairchild. And I
will just add, on behalf of Visa, in response to your question,
that, yes, we do our part, and we are extremely proud of the
work that we do. We recognize that it is our responsibility to
respect, advance, and maintain global human rights across our
company and our operations. We do perform regular human rights
assessments. And Visa has been recognized as one of the most
ethical, responsible companies, guided by those UN principles.
Representative Steel. Thank you, Mr. Chairman. I yield
back.
Chair Merkley. Thank you very much.
And I believe that Senator Daines is not back with us, but
if you are, Senator Daines, jump right on. If not, then Senator
Tom Cotton is next.
Senator Cotton. Thank you, Senator Merkley. I just want to
say, I've been listening to all the testimony here. This is one
of the most pathetic and disgraceful hearings in which I've
participated in my eight years in Congress. It's clear to me
that every one of you were sent here probably with directions
directly from your CEOs and your board not to say a single
cross word about the Chinese Communist Party. And for that
matter, I think most of you could be spouting talking points of
the Chinese Communist Party. So we're going to see about that
in a moment. I've got a few questions for all of you.
First, though, I just want to address some questions to Mr.
Lalli from Coca-Cola. Mr. Lalli, earlier this year when the
Georgia legislature passed an election reform law, your CEO,
James Quincey, decided that he was going to weigh in against it
and your company was going to lead a bunch of other ``woke''
corporations to denounce that law. Let me ask you first, is
James Quincey an American citizen?
Mr. Lalli. I believe he is a citizen--I believe he is, yes.
Senator Cotton. Can you tell me when he was naturalized as
an American citizen?
Mr. Lalli. I cannot tell you that.
Senator Cotton. Yes, well your company and Mr. Quincey seem
to have done an extremely thorough job of trying to conceal
that fact. So I would like you to return to me on the record in
written testimony if necessary if James Quincey is an American
citizen.
Mr. Lalli. Senator, I'll take that question back.
Senator Cotton. Your company said at the time: That we will
continue to stand up for what is right in Georgia and across
the United States. So are we to take from that statement at the
time--that Coca-Cola will not stand up for what is right
outside the United States? Because that's what it sounds like
this morning, this testimony.
Mr. Lalli. No, Senator. We stand up for what is right
across the world. We apply the same human rights principles in
the United States that we do across the world.
Senator Cotton. Do you believe that the Chinese Communist
Party is committing genocide against the Uyghur people?
Mr. Lalli. We're aware of the reports of the State
Department on this issue as well as other departments of the
U.S. Government. We respect those reports. They continue to
inform our program, as do reports from other--from civil
society. We of course----
Senator Cotton. See, this is what I'm talking about. Under
questioning from Senator Merkley and Representative McGovern
and Representative Chris Smith, every single one of you refused
to say a single word, by all appearances, that will cost you
one bit of market share inside of mainland China. Mr. Lalli,
for instance, you were asked if Coca-Cola would call for the
IOC to delay the Chinese Olympics, to give a chance for them to
be re-bid or for China to stop its genocide against its own
people. And you said that Coca-Cola--I think these are your
exact words--``doesn't have a say.'' So can you tell me why
Coca-Cola doesn't have a say in whether it sponsors the
genocide Olympics next year, but it does have a say in how the
state of Georgia runs its elections?
Mr. Lalli. Senator, what I stated was that we do not have a
say in the selection of the host city, nor on whether an
Olympics is postponed or relocated.
Senator Cotton. So you don't. But you could just make a
statement. Your CEO could saddle up the same moral high horse
that he got on when Georgia passed its election law and write a
letter to the IOC and ask them to. Anybody can do that. If he's
an American citizen, that's his right under our Constitution.
Mr. Lalli. As I said, we are mostly engaged on policy
issues here at home, but we are clear in our respect for human
rights globally.
Senator Cotton. So can you explain to me why James Quincey
will denounce a democratically elected legislature's laws but
he will not simply say that the IOC should consider re-bidding
its Olympics or that Coca-Cola should reconsider sponsoring the
genocide Olympics? What's the difference there?
Mr. Lalli. Our role as a sponsor is to support and follow
the athletes. Our----
Senator Cotton. So you're sponsoring the genocide Olympics.
You are spending millions of dollars to sponsor the genocide
Olympics, yet you will not opine on any matter about it. Yet
you will stick your nose in the Georgia legislature's election
reform laws. Can you explain to me the contrast?
Mr. Lalli. First, let me say that we do not make decisions
on these host locations. We support and follow the athletes
wherever they compete. Second----
Senator Cotton. Yeah, no, I've heard your talking points
and I'm tired of hearing them, Mr. Lalli. I'm asking you a
simple question. Why is it that Coca-Cola will opine on
Georgia's election laws but not on the genocide Olympics?
Mr. Lalli. As I stated, Georgia is our home. It's where
many of our employees live and work. And we are most engaged on
public policy issues here in the U.S. But we are----
Senator Cotton. I think the answer is you're afraid of the
Chinese Communist Party. You're afraid of what they will do to
your company if you say a single word. Like, for instance,
saying that both the Biden and the Trump administrations are
correct when they say that China is committing genocide against
its own people.
Let's ask that simple question of the other witnesses. Mr.
Holyoke, will you agree with the Trump and Biden
administrations that China is committing genocide against the
Uyghur people?
Mr. Holyoke. Thank you, Senator, for the question. Human
rights is core to our values and principles as a company. We
would defer to the U.S. Government or other experts who are
better equipped than us to address that.
Senator Cotton. All right. Let's try Mr. Rodgers. Will he
answer the question? Mr. Rodgers, do you agree with the Trump
and the Biden administrations that the Chinese Communist Party
is committing genocide against the Uyghur people?
Mr. Rodgers. Senator, we don't do business in Xinjiang.
That was true before the State Department issued its report.
I've read the State Department report. I've studied it. And I
believe its conclusions.
Senator Cotton. Thank you, Mr. Rodgers, for a straight
answer. Mr. Mulvaney, do you agree with the Trump and the Biden
administrations that the Chinese Communist Party is committing
genocide against the Uyghur people?
Mr. Mulvaney. Senator Cotton, P&G supports human rights all
around the world in our operations. On this particular issue,
directly to your question, Senator, we believe that it is the
role and responsibility of government to make these
determinations.
Senator Cotton. OK. So I'll take that as you also are
joining some of your colleagues in dodging and you refuse to
answer that simple, basic question.
Ms. Fairchild, now to you. Do you agree with the Trump and
the Biden administrations that the Chinese Communist Party is
committing genocide against the Uyghur people?
Ms. Fairchild. Thank you, Senator. We oppose genocide
anywhere it's happening, and that is why as a company we are
guided by those human rights principles. But as the other
members have said, Visa's not in a position to make those kinds
of determinations. And we defer to and respect our government.
Senator Cotton. All right. So one for five. That's why I
say this is the most pathetic, disgraceful hearing in which
I've participated in eight years. Obviously every one of you,
with the exception on occasion of Mr. Rodgers, were sent here
with orders not to say anything that could offend the Chinese
Communist Party.
You know, I'll just close with a story, Mr. Lalli. I used
to drink a lot of Coca-Cola, back when I was a kid and a young
man. I stopped drinking it before I joined the Army because I
knew the Army wouldn't offer it in places like basic training,
and Officer Candidate School, and Ranger School. One night in
Ranger School, when you get by on just a few hundred calories a
day, we were able to buy hot dogs and cokes. And I bought them
because I was so hungry. I took a drink of the coke and I spit
it out, because I hadn't had one in two years. I couldn't
tolerate the taste of it. That's about the feeling I have today
about your testimony and about all the witnesses' testimony in
this pathetic hearing.
Mr. Lalli. Senator Cotton, I'm sorry to hear that. I hope
you reconsider that position. And we respect human rights
globally. And we earn our social license every day. We take
that very seriously.
Senator Cotton. Well, you wouldn't know from this
testimony. Senator Merkley, I'm going to yield my time back.
Chair Merkley. Thank you. Your time has expired, but thank
you for yielding it back.
And we now have Representative Malinowski.
Representative Malinowski. Thank you so much, Senator
Merkley. Thanks to the witnesses.
I rarely in life agree with Senator Tom Cotton. I'm pretty
much in full agreement with him today. So with that, let me
start with you, Mr. Holyoke. And I'm going to give you a
hypothetical. I'm going to pick a completely random American
city for this. Imagine there were a major sporting event in the
city of Los Angeles. And you knew that the state of California
was holding hundreds of thousands of LGBTQ Americans, Jewish
Americans, and African Americans in concentration camps. And
you further knew that even those LGBTQ, Jewish Americans, and
African Americans living in California who were lucky enough
not to be in concentration camps were going to be barred by the
state of California from attending this sporting event in Los
Angeles and booking Airbnb accommodations. Would you sponsor
that event?
Mr. Holyoke. Thank you, sir, for the question. You know, I
don't think it's appropriate to weigh in on a hypothetical.
What I can share with you is that human rights is core to our
values and our mission. Discrimination has absolutely no place
on our platform. And we take a number of steps to--with our
hosts and our guest community--require them to commit to our
Community Commitment principles----
Representative Malinowski. So you're not willing to say
that you wouldn't participate in a sporting event in the United
States if hundreds of thousands of Jewish Americans in that
state were being held in concentration camps? All you're
willing to say is human rights are core to your values, but you
won't apply those values to that kind of situation. I mean, I
know the answer to this question. The answer to this question
is you would absolutely not participate in that kind of event
if it was in the state of California or anywhere in the United
States. I mean, that's absolutely plainly obvious. Do you
disagree with me?
Mr. Holyoke. As I stated, human rights is core to our
mission and our values. Where we see discrimination occurring
on our platform, we take appropriate action.
Representative Malinowski. Well, OK, where you see it
occurring on your platform. But are you aware of the fact, Mr.
Holyoke, that in China you can't stay in accommodations,
whether a hotel or an Airbnb, if you don't have a passport
issued by the government--an identification document? Are you
aware that the Chinese government denies those documents to
Uyghurs and Tibetans, and that they are therefore unable to
actually stay at your accommodations in Beijing for these
Games?
Mr. Holyoke. Thank you for the question. Obviously we
operate in 220 countries and regions around the world,
everywhere that the U.S. Government allows us to. We believe
our platform is about building bridges between cultures around
the world through----
Representative Malinowski. Are you aware of what I just
said to be a fact? Are you aware of it?
Mr. Holyoke. In China, we are required to follow local laws
and regulations. However, all of our users are required to
commit to our Community Commitment principles. And where
discrimination is happening----
Representative Malinowski. How can they commit to not
discriminate if persons of those ethnicities can't even show up
at their door because that's the policy of the government?
Mr. Holyoke. We regularly scan for posts and listings on
our platform that are discriminatory about minorities----
Representative Malinowski. I'm not asking about the host
and listings. I'm asking about the policy of the government
which effectively prohibits those people from staying. And,
again, think about my California example. If the state
prohibited Jewish Americans from staying in your properties,
would you still run a business in that jurisdiction?
Mr. Holyoke. Sir, thanks for the question. Our policies do
not require hosts to violate local laws. In some cases, I do
understand, hosts receive guidance from local authorities that
they may not host guests from outside mainland China.
Representative Malinowski. I understand. So you're just
completely absolving yourself of responsibility for being
complicit in abject discrimination.
Mr. Lalli, let me go back to you here, because I have huge
respect for the stand that Coca-Cola has taken on domestic
civil rights issues. I guess in that respect I do differ with
Senator Cotton. And I understand why you might not want to echo
a legal determination on whether genocide is happening in
China. But, you know, are you willing to say that you condemn
the Chinese government's policy of holding hundreds of
thousands of people in concentration camps because of their
ethnicity and religion--whether we call that genocide or not?
Mr. Lalli. Commissioner, we condemn any violation of human
rights. Our policy is absolutely clear on that. We----
Representative Malinowski. No, not any violation of human
rights. Do you specifically condemn that violation of human
rights?
Mr. Lalli. We condemn all violations of human rights. And
we respect the report's----
Representative Malinowski. So you do not condemn the
Chinese government's practice of holding hundreds of thousands
of people in concentration camps? You're not willing to say
that? Yes or no?
Mr. Lalli. Back to our clear policy on this; we respect all
human rights and condemn any abuses. Our role as sponsor is to
try to embed these fundamental principles in the mega sporting
events. And I would say that there has been progress in that
space, but there is much more to be done.
Representative Malinowski. I'm absolutely--I just think
this is stunning. Again, you are absolutely right to condemn
voting laws in the United States that make it harder for people
to vote. You never in those cases said, well, we condemn any
and all voter suppression. You signed letters condemning
specific legislation. I understand and respect your point that
the United States is special to you because this is your
country. But I would also submit to you that genocide is a
human rights abuse of such magnitude that when it is occurring
in a country where you not only do business, but you are
sponsoring an event that is beneficial to the government of
that country, that you have a particular responsibility.
And it is absolutely clear to me that the only reason you
are not doing so is because you know for a fact that if you
simply utter the words, ``We condemn the Chinese government's
policies,'' that you would be subject to a campaign organized
by the Chinese government that would undermine your ability to
make a profit in that country. You are afraid of them in a way
that you are not afraid of critics in the United States. And I
think that's shameful. I yield back my time. Thank you.
Chair Merkley. Senator Daines.
Senator Daines. Great. Senator Merkley, thank you. And I
want to thank the witnesses for coming before this Commission
and providing perspective on this very important topic.
Certainly, I support American athletes continuing their
longstanding record of success at the 2022 Olympic Games in
Beijing. But I also believe it's very important to address the
serious and legitimate human rights concerns and the atrocities
occurring in China. To see what's been going on in Hong Kong,
to see what's been going on in Tibet, with the Uyghurs, with
the very bellicose rhetoric coming from Beijing toward Taiwan,
I think we all should be very, very concerned.
Additionally, what concerns me greatly--and Senator Cotton
alluded to this earlier--is the contrast between many large
U.S. corporations, including some of the sponsors of the 2022
Games, who on one hand are criticizing U.S. states or some of
the laws in these states, while remaining silent--silent--on
the repression of Uyghurs, Tibetans, and others in China. And
that contrast could not be more stark, and in my opinion is
unacceptable. On one hand you see American corporations
becoming very ``woke,'' while at the same time they're asleep
as it relates to what's going on in China.
Mr. Lalli, as you know, Coca-Cola's CEO described a recent
Georgia election law as ``unacceptable'' and ``a step
backward'' and released a statement expressing disappointment
in the law being enacted. And just last year, Coca-Cola was
also reported to have spent millions seeking to weaken and
modify the Uyghur Forced Labor Prevention Act. I see hypocrisy
between these actions. On one hand criticizing a U.S.
legislative body but at the same time remaining largely silent
on the plight of Uyghurs and, frankly, working to undermine a
key proposal to strengthen U.S. supply chains to ensure that
forced labor isn't utilized. I find that quite disturbing.
Mr. Lalli, what actions has Coca-Cola taken to ensure that
none of your supply chain utilizes forced labor? And how have
you engaged the CCP in support of human rights?
Mr. Lalli. I appreciate the question. Let me--there's a few
points I'd like to make.
First, I need to correct the record. We did not take a
position against the legislation that you mentioned. That was
erroneously reported. As a company that has invested much in
its human rights program, we would generally support any
legislation that practically and meaningfully advances respect
for human rights.
Secondly, with respect to our human rights program and
supply chain, I appreciate that question. We have an industry-
leading due diligence program when it comes to our supply
chain. We have over 700,000 systemwide employees, over 900-plus
bottling plants, tens of thousands of suppliers throughout the
world. We conduct thousands of onsite assessments with respect
to that supply chain to assure compliance with our human rights
policy. If any of those suppliers, any of them, do not comply
with our policy, they're required to correct that and subject
themselves to a reassessment. If they either can't or won't
comply with our policy, we will terminate that relationship.
That is the way we handle all of our business relationships
around the world. We've conducted over 35,000 on-site
assessments since the beginning of this program. We've used a
number of other resources to corroborate these findings, to
support and ensure that we're respecting human rights
throughout our value chain.
Senator Daines. OK, thank you. And perhaps--let me
differentiate between the position taken by Coca-Cola as a
corporation and statements made by the CEO. But I think for
many Americans, the statement by a CEO would reflect,
oftentimes, the position of the company.
Mr. Lalli. I'm sorry. I thought you were talking about
Federal legislation. The----
Senator Daines. No, I'm talking about the recent Georgia
election law.
Mr. Lalli. OK. I'm sorry. As I mentioned, we're a U.S.
company.
Senator Daines. I want to make sure--I want to make sure we
both set the record straight. You said my statement was
erroneous. And I just want to make sure we got the facts right
too, because if I've got the facts wrong I'll be the first one
to say I'm sorry, I made a mistake. But I'm really going back
to--I talked about the recent Georgia election law. So I'll let
you go ahead and clarify that.
Mr. Lalli. No, I appreciate that. I want to make sure we're
clear on the record on that. I thought you were talking about
the recent Federal legislation that was reported erroneously.
Senator Daines. Right, no.
Mr. Lalli. We did not take a position against that. And you
are right that we did engage on the Georgia voting rights law.
Senator Daines. OK. And I guess that's the--that's, for me,
concerning--the hypocrisy of--and I understand where your
headquarters are, and so forth. But to engage the Georgia
legislature and positions taken by elected officials there on
one hand and remaining silent oftentimes with far worse
situations in China, I guess that's the disconnect and the
hypocrisy that I was trying to paint.
Mr. Lalli. Well, I would just point out that we take a
position on human rights consistently across the globe with our
operations and those of our bottlers and suppliers.
Senator Daines. OK. Thank you.
Ms. Fairchild, a question for Visa. Has Visa received any
documentation or demonstration of improved human rights
conditions in China, as it relates to the Beijing Olympics--
related to it?
Ms. Fairchild. Thank you, sir. Not to my knowledge.
Senator Daines. And were any human rights assessments
undertaken at Visa regarding the 2022 Olympics? And if so, what
steps were taken in response?
Ms. Fairchild. No, that did not happen.
Senator Daines. OK. So there were no assessments of human
rights taken regarding the 2022----
Ms. Fairchild. Our last human rights assessment confirmed
that Visa is focusing on identifying the right risk areas,
which include the role that we play as an employer and a
purchaser, an e-payment enabler, and business partner, and
sponsor.
Senator Daines. All right. Thank you. Well, I just want to
conclude by stating that we should have little to probably no
confidence in the Games' ability to advance human rights in
countries under repressive regimes. And I think all of us were
hopeful as we saw the liberalization of the Chinese economy
over the course of the last couple of decades, that it would
lead toward greater freedom and liberalization of the political
situation in China. But that has obviously turned out to be
very, very different, very concerning for many of us.
Freedom in China, frankly, has regressed since the 2008
Olympic Games in Beijing. Look no further than Hong Kong and
the Uyghurs and the Tibetans, and the rhetoric against Taiwan.
And I have unfortunately, and regrettably, come to the
conclusion that I see no reason to believe that anything will
be different following the 2022 Games. And I just would urge
all of our Olympics stakeholders--whether governments,
sponsors, athletes, and others--to not provide cover or
legitimacy to the CCP regime during the 2022 Games, and to work
to hold the regime accountable, and with awareness regarding
the oppression of its people.
Mr. Chairman, I yield back my time.
Chair Merkley. Senator Daines, thank you.
I'm going to turn the gavel over to Co-chair McGovern,
because we have a vote on the Senate floor and the time has
expired. So that means eventually we have to get over there. I
will try to rejoin. I just want to note that the next
individual up is Representative Wexton. And then after that,
Senator Ossoff. And I'll be returning for final comments.
But before I hand the gavel over, Congressman McGovern, I
want to just note in the context of the conversations today,
there's some sense that we have no tools at our disposal
because we signed this contract, and we have no role. And yet,
it's clear that companies have a choice on how to advertise
during the Olympics in China. They have power over how they
attend. They have power over what influence they seek to
exercise with the Olympic Committee through private
communications. They have the power to make public statements
of concern about gross violations of human rights or genocide.
They have power over the decision on how they will
structure their future contracts, whether they would accept a
contract in which the Olympic Committee can assign the Games to
a country engaged in genocide or gross violations. They have
power over whether they would choose to do an ``Olympics-by-
Olympics'' sponsorship, if the IOC is not willing to rule out
placing the Games with a country that has engaged in--is
engaging in genocide. And they have power over defending the
athletes' rights to free expression at the Games.
Many athletes may choose to say that they are absolutely
appalled by the treatment of the Uyghurs or other ethnic
minorities. Or they may say that they condemn the crushing of
the political rights of the people of Hong Kong. And right now,
the Olympic Committee has a threat to take away awards from
those who express themselves at the Games. And it's a power
that they have reminded athletes that they have. And certainly,
you all could express--since you are saying that you are
concerned about the athletes--could express a clear defense of
athletes' right to express their opinions at the Games.
So you do have many instruments available. And I just hope
that your company boards and executives will engage in some
pretty significant thinking about how you exercise that set of
tools in the context of the horrific practices and genocide
that China is engaged in. So with that, Representative
McGovern, I hand the gavel over to you. Thank you.
Co-chair McGovern. Thank you. And I yield now to
Representative Wexton.
Representative Wexton. Thank you, Mr. Chairman. You know,
one of the things I like about serving on this Commission is we
have a very--we have quite a varied group of Representatives
and Senators, bipartisan, bicameral. We don't agree on a lot,
but we are completely united when it comes to this Commission.
And I want to associate myself with the remarks of my
colleagues who are very disappointed in the testimony we've
heard today from the various witnesses.
Mr. Lalli, how many independent bottling partners do you
have in the People's Republic of China?
Mr. Lalli. We have two bottling partners in China.
Representative Wexton. Are either of those in Xinjiang?
Mr. Lalli. One of them has a bottling operation in
Xinjiang, yes.
Representative Wexton. OK. And in your testimony, you talk
about human rights due diligence in suppliers, and you call
them human rights assessments. I guess that's your terminology
for them, is that correct?
Mr. Lalli. That's correct. Onsite assessments, that's
correct.
Representative Wexton. And those--and those are essentially
audits, is that right?
Mr. Lalli. That's correct. By independent third-party
certified auditors, yes.
Representative Wexton. That part of your testimony was kind
of concerning to me, because as anybody who's paying attention
to what's happening in that region and this issue knows,
auditing suppliers in Xinjiang is just about impossible. And
it's why at least five international auditing organizations
have already pulled out of the regime. It's because it's a
police state and forced labor is so systemic that it's hard to
determine if there's forced labor in the supply chain. It's
even harder to determine if there isn't forced labor in the
supply chain.
Another question I had for you is, Why don't you include
China in your sugar supply chain report, which was one of the
reports that you referenced in your written testimony?
Mr. Lalli. Are you talking about the country sugar reports?
Representative Wexton. Yes, that's correct.
Mr. Lalli. Those were conducted before I started with the
company, but I think we based it on a review of--kind of a
geographic spread and risk approach. But we apply the same
human rights standards and onsite assessments throughout our
supply chain.
Representative Wexton. OK. With those reports focused on
key markets, and that was Coca-Cola's terminology, not mine,
and there were 21 countries listed. China is the fourth-largest
supplier of sugar in the world and Coca-Cola didn't mention it
at all in the news reports. Do you think that that's a pretty
important oversight?
Mr. Lalli. Well, I think there was not a separate report
done, but the same onsite due diligence occurs throughout our
sugar supply chain in China, as it does everywhere. And, if I
may discuss a little further, because you mentioned the
concerns over onsite assessments. While these audits are the
foundation of our program, they're not the only tool we use. We
actually do heed the advice that comes from our government, as
well as the NGO stakeholder engagement that we participate in
regularly, to ensure that our program is up to date and
correctly assessing human rights compliance.
In addition to onsite assessments, we use a number of other
kinds of mutually reinforcing approaches, be it grievance
mechanisms, compliance investigations, stakeholder engagement
to ensure that we're understanding the risks that we're facing
in the field, and----
Representative Wexton. So are you confident, and can you
say here in your testimony today, that you're confident that
forced labor does not exist in Coca-Cola's supply chains in the
People's Republic of China or Xinjiang?
Mr. Lalli. Yes, I am confident that the audits that we've
done--conducted on our operations throughout the globe,
including in that region, have shown that no forced labor
exists. If it did exist, it would have to be corrected
immediately. And if it wasn't, then the business relationship
would be terminated.
Representative Wexton. So Coca-Cola is the shining unicorn
in the whole region, it seems, because you guys can say that
your supply chains are 100 percent clean and nobody else can.
That's very impressive to me.
Mr. Lalli. Well, I mean, Commissioner----
Representative Wexton. Now, if I may--I'm reclaiming my
time. Now, one of the things that you said in your testimony is
that you will always follow U.S. law, right?
Mr. Lalli. That is correct.
Representative Wexton. And you're familiar with the Uyghur
Forced Labor Prevention Act because the previous person asked
you about it, right?
Mr. Lalli. Yes.
Representative Wexton. OK. Why did Coca-Cola oppose that
legislation if you're so confident----
Mr. Lalli. We did not oppose--yes. Again, let me state, we
did not oppose that legislation. Reports----
Representative Wexton. So what was the nature of your
lobbying on that legislation? I mean, you certainly weren't
supporting it, because we didn't hear anything about that and
we would have heard about it, if somebody were supporting----
Mr. Lalli. We support any legislation that practically
advances human rights. With respect to that, at that time we
were having discussions regarding correcting the record
concerning reports of the importation of beverages with sugar
from Xinjiang into the U.S., which we do not do. There were
erroneous reports about that, and we were correcting those
reports, as well as educating the Hill about our due diligence
program. We did not take a position against that bill.
Representative Wexton. Then why are there five separate
lobbying disclosures that were filed from Coca-Cola mentioning
this bill as one of the things that you were lobbying during
the 116th Congress?
Mr. Lalli. The lobbying disclosures required that we
reported the communications that I just discussed regarding
correcting reports that we were importing beverages or sugar
from that region into the U.S. Those communications--my
understanding is--I'm not an expert on these disclosures--but
my understanding is we were required to report those. But they
were not communications taking a position against that bill.
Representative Wexton. So will you be supporting the
legislation in the 117th Congress?
Mr. Lalli. I'm sorry, what's that?
Representative Wexton. Will you be supporting the
legislation in the 117th Congress?
Mr. Lalli. Well, again, there are a number of bills right
now. We support generally legislation that advances human
rights. And if I may get back to your point about forced labor,
there are 28--estimated, according to the Department of Labor--
over 28 million victims of forced labor around the world. It is
an epidemic, a human rights scourge. It is a challenge every
day to ensure that we have no forced labor in our vast supply
chain. We do our best, and we continually improve our program.
There obviously are no guarantees because we can't be
watching every operation every day. But I assure you that we
are doing everything we can with respect to our onsite
assessments and the other approaches we take, and most
importantly our stakeholder engagement, to avoid any
involvement with forced labor. And when we do find it, we
eliminate it, or we eliminate the business relationship.
Representative Wexton. All right. So looking forward to
2022, we know if you guys do stay on as sponsors of the
Olympics, there's going to be a lot of--a lot of occasions
where your logo is going to appear on various things--whether
it be shirts, or promotional materials, things like that. Have
you given any thought to how you're going to ensure that your
logo doesn't appear on promotional materials that were sourced
with forced labor?
Mr. Lalli. Absolutely. I'm glad you raised that issue. One
of the critical components of our sponsorship, in addition to
advancing this multi-stakeholder initiative to embed human
rights in the full lifecycle of these Games, is to ensure that
any products of ours that are used in the Olympics do not
involve any forced labor in their sourcing. That's the same way
we deal with our own products, as well as any products that are
distributed at the Games. That is a key component of our due
diligence program.
Representative Wexton. Mr. Holyoke, how are you going to
ensure that your--that your logo doesn't appear on these items
that support forced labor?
Mr. Holyoke. Thank you, Congresswoman, for the question.
Our partnership is for--is a nine-year partnership that spans
multiple Games. It's not specific about Beijing. What we're
actually planning to do is around supporting travel and
accommodation needs for athletes and the sponsorship of the
Olympic and Paralympic Refugee Team. We have no plans to have
large-scale global marketing activities for the Beijing Games.
Representative Wexton. Very good. And my final question for
everybody on this panel is, how are you going to support
athletes who protest the host nation's human rights abuses? How
are you going to protect them from the IOC and the PRC, and
everything like that? What are you going to do to support those
people who speak out? Let's start with you, Mr. Mulvaney.
Mr. Mulvaney. Congresswoman, thank you for the question.
You know, freedom of expression, it's a fundamental right. It's
a right that P&G supports. We have conversations with the IOC
about this right and other rights. And so we're extremely
conscious that this is a big issue heading into the Games. And
so all of us have a responsibility to engage the IOC to protect
that athlete right. And it is a, I know, an issue that is in
dispute between the U.S. Olympic Committee as well as the IOC.
And what I can commit to you is that P&G will use its voice and
its influence with the IOC to try to encourage clarity on this
issue and respect for freedom of expression.
Representative Wexton. Thank you. Mr. Rodgers.
Mr. Rodgers. Commissioner, thank you for the question. It's
an important issue and one that we take seriously. We will
continue to urge the IOC to adopt the position of the United
States Olympic and Paralympic Committee on this issue.
Representative Wexton. Ms. Fairchild.
Ms. Fairchild. Thank you. I can say at Visa that we support
and respect an individual's right to freely and peacefully
express themselves, and we support our athletes in doing that.
Representative Wexton. Mr. Holyoke.
Mr. Holyoke. Thank you for the question. I would echo the
comments of my colleagues. We believe athletes are human beings
first and foremost and have--should have the freedom to express
their views, aligned with the Olympic Charter and the power of
support.
Representative Wexton. Mr. Lalli.
Mr. Lalli. We too respect the freedom of expression of the
athletes, all athletes. We've made that clear both directly to
the IOC and through the Centre. And I believe the USOPC has
taken that same position.
Representative Wexton. Well, I hope that you guys actually
live up to what you said here today, because you guys control
the purse strings, and that gives you a lot of power. So I hope
that you will actually do what you've said and stand up for the
values that you have professed to have here today. Thank you
very much, Mr. Chairman. I'll yield back.
Co-chair McGovern. Thank you very much. I don't know
whether Senator Ossoff is still on the line, or whether he had
to go vote. But if he's--Congressman Smith, do you have
anything you would like to add?
Representative Smith. Thank you very much, Mr. Chairman.
I would ask Mr. Lalli--he did not answer my original
question--yes or no, would he be willing to say, move the
Olympics to another country and another venue? And just yes or
no on that. And secondly, the legislation that you and I--and
you're the prime sponsor, I'm the principal Republican
cosponsor--H.R. 1155, the Uyghur Forced Labor Prevention Act--
there is that presumption that anything coming out of Xinjiang
was made with forced labor and therefore would be denied entry
into the United States. Given that Mr. Lalli is so confident
that their supply chain is completely clean and there's no
problem, they should be in support of this legislation. So I
would ask him directly, and I ask all the witnesses if they
would like to opine on this, but especially Mr. Lalli--will
they now support the Uyghur Forced Labor Prevention Act, which
has 89 cosponsors and, again, you and I--you're the prime
sponsor and I'm the principal cosponsor.
Mr. Lalli. Well, several points to make there. First, I
can't comment on all the details of the Uyghur Forced Labor
Prevention Act. Again, we didn't take a position against it; we
support, generally, legislation that advances respect for human
rights. Secondly, as I stated, we have tens of thousands of
suppliers. And we are diligent in how we ensure respect for
human rights throughout it and avoid forced labor. It is a
challenge that we face every day. With respect to goods coming
into the U.S., I made it clear, though, that we do not import
beverages or sugar into the U.S. from Xinjiang. And we would
generally support legislation that advances human rights
broadly.
Representative Smith. But, again, you do utilize the sugar
that comes out of China--again, the fourth-largest producer--in
other operations?
Mr. Lalli. Our local bottler utilizes that. Our bottlers
service their local markets. And so the bottler there utilizes
sugar produced or farmed there. We have conducted onsite
assessments not only of the mill but of the farms to ensure
that we are not--that there's no forced labor involved in
either. And so far, we've had no signs of forced labor in all
these audits. But again, they continue--we continue to do
reassessments as well as a number of these other mutually
reinforcing approaches--be it a grievance mechanism so any
workers in the world--not just our employees, but any workers
in the world--can contact our company directly with problems or
human rights abuses. And we would--then we'd be able to know
what's happening locally.
Representative Smith. Not to cut you off--but knowing my
time is probably very short--the Uyghur Forced Labor Prevention
Act--I would hope all of you would support it as a way of
saying ``We're not kidding'' when it comes to importing forced
labor goods. You have said very clearly that you think that you
are very clean on this. You said that to Ms. Wexton, and I
appreciate that. But will you support it now? And will others
on this panel support it?
I mean, the message needs to be sent very clearly and
unambiguously to China that they can't hide this genocide. It
is out in the open. And to know that some things are being made
even in the concentration camps with Uyghur Muslims being
coerced into making those goods, just makes it all the more
compelling. So will you support it? And again, you didn't
answer the question yet. Will you support moving the Olympics
to another city and country?
Mr. Lalli. On the second question, again, we support
athletes. We don't have a position on--if they're going to be
moved or delayed. We will follow these athletes wherever they
compete. But we will also continue----
Representative Smith. So if they got Pyongyang in North
Korea, that's OK, too? I mean, seriously, your voice matters.
Coca-Cola is a giant, as is Visa, as are the others that are
participating in this hearing. We want your voice to be heard.
And if you say, Hey, IOC, hey world, Coca-Cola thinks it's
wrong, that will be listened to. So can't you say that?
Mr. Lalli. And, respectfully, we do make our voice heard
every day, both through our own program but also through these
initiatives--multi-stakeholder initiatives, that we engage
these supporting bodies in a way, and we have seen progress in
this space. There is much more to be----
Representative Smith. Have you said that to the IOC or the
American affiliate? ``What are you doing awarding this to
China?'' Did you?
Mr. Lalli. We have engaged the IOC both directly and
indirectly through these initiatives to make it clear about
embedding human rights in these wherever the Games----
Representative Smith. I know you've said that several
times, about embedding human rights. But how about moving the
venue . . . with the Chinese Communist Party committing
genocide?
Mr. Lalli. Well, this is where we feel the approach that
works the best is the multi-stakeholder initiative through the
Centre for Sport and Human Rights, because it brings together
everybody----
Representative Smith. I understand. But can't you say in
this hearing--I mean, we're all waiting with bated breath for
all of you to say: Move the Olympics. The Beijing genocide
Olympics needs to be moved. Can't you say that?
Mr. Lalli. We don't make a decision on the host location,
but we work on the human rights aspect. And there has been
progress in this space. We will continue to do that and speak
clearly on both human rights and the need to embed them into
these mega sporting events. We were the company that--we're the
initial sole funder--sole funder--of the Mega-Sporting Events
Platform for Human Rights in 2015. We helped found that
institution because we recognized the importance of this.
Representative Smith. I understand all that. I do
understand all that. But again, you know, as some of my
previous colleagues said, and I said it as well, I think
there's concern among corporate America that if you do, they
will deny you access. That's how they retaliate. That's how
they are able to get away literally with murder. I yield back
my time. Thank you.
Co-chair McGovern. Thank you. Did you want to finish your
response? I didn't want to interrupt anybody.
Mr. Lalli. Thank you. I was just going to say, nothing
changes--nothing changes our commitment to this, and nothing
changes our requirements of our suppliers, bottlers, and our
own operations.
Co-chair McGovern. OK. And I think everybody has asked
questions here. I don't see anyone else on the line. So let me
close by saying to all of you that I think we all appreciate
you being here. And there was some tough questioning here, I
think which is an indication of how strongly many of us feel.
You notice that it was Democrats and Republicans. There's
bipartisan concern here. And how genuinely horrified we are
with what is unfolding in Xinjiang and, quite frankly, in a lot
of other places.
And I know all of you are good people. And we appreciate
the commitment to human rights. But I think what is
particularly frustrating for us--and you heard this from the
people who asked questions--is that you can sense the economic
coercion that is at play here. That if you even say that the
genocide against the Uyghurs is wrong, that there could be some
sort of regulatory retaliation. And a lot of you have strong
economic ties in China, with your business with China, I mean.
And I get all of that.
I think what we're trying to say here is that things are
unfolding in a way that it can't be business as usual. And it's
concerning that it appears that oftentimes the Chinese
government's interests are prevailing over values that are
universal, and over morality. And so I would just close with
this. I think in six-and-a-half months the Olympics in China
begin. And our goal here, and I'll yield back--I see Mr.
Merkley's back--but our goal here really is to try to find a
way to persuade China to change its behavior. And so we have
six-and-a-half months. And my hope is that you can help us in
these six-and-a-half months.
And some people, you know, through a variety of actions--we
went through a number of suggestions, I did, at the beginning,
of things that can be done. But, again, we all believe very
strongly that we're facing reality on the ground in China, that
it is beyond the pale and is so horrific that we all have to
raise our voices in some form or another. So I appreciate it.
Now, let me yield back to Chairman Merkley for any closing
remarks he has. But I appreciate everybody being here, and I
appreciate you appearing before this Commission.
Chair Merkley. Thank you very much, Co-chair McGovern. And
I've just now this moment gotten on, so I'll assume that all of
our Senators and Representatives have asked their questions. I
want to join in thanking you all for appearing. You chose to
come and address this issue, which is a very significant one.
And I do feel that perhaps there are elements of this
conversation that will be fuel for thoughtful deliberation by
many companies in terms of their relationship with the
International Olympic Committee and the type of circumstances
that they can advocate for.
The International Olympic Committee does seek your
sponsorships. They understand that the way they behave can
influence whether they raise money in this fashion. So you have
enormous influence. And it deeply, profoundly disturbs me
because the whole world responded in recognition of the
historical wrong of Germany being able to use the 1936 Games to
polish their international reputation while they were already
deeply abusing citizens--Jewish citizens of Germany, and other
groups within Germany. And that ability to polish that
reputation gave a sense of empowerment to Hitler that may have
accelerated the things that followed.
Certainly, we now are in a situation--there is not
something to follow. It is happening at this very moment. So
each of us has to be challenged in our code of conduct for our
own personal morality, certainly for the code of conduct for
companies, on how we respond to this. And as I noted before I
handed over the gavel to Congressman McGovern, you have many
tools to apply in this situation. And you have many tools to
apply if you consider re-sponsoring the Games in the future in
this fashion as an Olympic partner at the top level of
sponsorship.
And also, I want to note something that I'm not sure ever
became clear. There are many ways to support the athletes that
do not go through the IOC and do not go through this top-tier
partnership. You can directly support the international or the
United States Olympic Committee. You can directly support other
national committees. So you have options for the future in this
pursuit of support for the athletes if the International
Olympic Committee does not listen to you all. Collectively, you
have tremendous clout on how these Games will be conducted in
the future.
So thank you again for sharing your perspectives at this
moment. Not everyone who's asked to come testify chooses to
come testify. So again, my appreciation for that. I think it's
a pretty important discussion for human rights in the world,
and corporate governance in the world. And thank you for being
part of it. And certainly, the record will remain open for
additional questions folks wish to file, and we will deliver
those to you. The record will remain open until 5:00 p.m. on
Friday for any commissioners who wish to submit additional
material for the record or for members who wish to submit
questions to all of you. Thank you, and with that we adjourn
the meeting.
[Whereupon, at 12:20 p.m., the hearing was concluded.]
?
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A P P E N D I X
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Prepared Statements
------
Prepared Statement of David Holyoke of Airbnb
Chairman Merkley, Chairman McGovern, respected members of the
Commission, thank you for the opportunity to testify before you today.
My name is David Holyoke. I have been at Airbnb since 2016, and I
am currently the Head of Olympics and Paralympics Partnerships. In our
fourteen years, Airbnb has helped guests experience the world in a more
authentic, connected way. We began with two hosts who welcomed three
guests to their apartment in San Francisco. Today, Airbnb has grown to
4 million Hosts who have welcomed 900 million guest arrivals in more
than 220 countries and regions around the world.
At Airbnb, we believe travel can be transformational--it can break
down barriers, help people get to know each other, and foster
acceptance and understanding. To that end, there are three reasons why
we decided to become an Olympic sponsor:
1. We want to support connections at a global scale. The Olympic
Games have shown that sports can accomplish this goal, bringing the
world together through an incredible and inspirational athletic
competition.
2. We want to economically empower athletes via our platform. In
the same way that Hosts are at the heart of the Airbnb experience,
athletes are at the core of the Olympic and Paralympic Movement. That's
why we are proud that our Olympics partnership is focused on empowering
and connecting athletes from different cultures, races, religions, and
creeds, all under the banner of sports.
3. We are particularly proud of the opportunity to support the
Refugee Olympic Team. We see this as an extension of our broader
efforts to provide long-term support to refugees.
airbnb's ioc sponsorship
As a sponsor of The Olympic Partners (TOP) Programme, established
by the International Olympic Committee (IOC), we are committed to a
unique partnership to support both the economic empowerment of
individual athletes and the role that the Olympics and Paralympics have
historically played as a global movement to foster people-to-people
connections. This commitment spans nine years and encompasses five
Olympic and Paralympic Games. And our partnership is designed to
support athletes, not any particular city or Games.
Our athlete-centered approach is based on three pillars:
1. Supporting and empowering athletes, particularly via the
creation of a specific category of Olympian and Paralympian Hosted
Experiences to provide them with a platform to share their voices and
earn extra income.
2. Providing accommodation support to the Olympic Family.
3. Supporting the Refugee Olympic and Paralympic Teams.
To date, we have committed millions to direct support for athletes,
including through the creation of the Airbnb Athlete Grant, which
supports up to 500 athletes a year with direct travel credits to help
meet their accommodation needs when they travel to train or compete. We
are proud that more than fifteen different Team USA sports teams are
finding ways to connect with each other and continue their training
while staying on Airbnb.
We have also established three athlete-focused initiatives unique
to Airbnb:
1. Olympian and Paralympian Experiences on Airbnb. In 2020, Airbnb
and the IOC launched the Olympian and Paralympian Experiences category
\1\--one of the largest long-term athlete support programs the IOC has
with a TOP Partner. These Experiences provide an opportunity for
athletes to generate income while they share their passions and their
sport with Guests directly on the Airbnb Experiences platform. When the
Tokyo Games were postponed last summer, Airbnb hosted the Olympian and
Paralympian Online Experiences Festival in July of 2020, which featured
over 200 athletes from around the world hosting Airbnb Experiences and
spreading the Olympic and Paralympic spirit to fans around the
world.\2\
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\1\ https://www.airbnb.com/s/experiences/olympics-online
\2\ https://news.airbnb.com/airbnb-ioc-and-ipc-announce-summer-
festival-of-online-experiences/
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2. Accessible Stays for Paralympians. Like many others with
disabilities, Paralympic athletes have been disproportionately impacted
by the pandemic. Airbnb will commit to investments that directly
support Paralympians and Paralympic hopefuls with up to 8,000 stays
that meet their specific travel needs. Paralympians also make up a
large portion of the Hosts in our Olympian and Paralympian Experiences
category, many of which compete for Team USA.
3. Support to Refugee Olympic and Paralympic Teams. Our partnership
is also unique in its support of the Refugee Olympic and Paralympic
Teams. Over the course of our partnership, we will help create economic
opportunities for refugee Olympic and Paralympic athletes with ongoing
Online Experiences and also provide funding to support their costs to
train and participate in the Games.\3\ Just this month, we launched a
series of Online Experiences with refugee athlete Hosts that will allow
them to share their incredible stories of overcoming adversity and the
power of sport while earning meaningful income and raising awareness
about the global refugee crisis. We have also developed a unique
scholarship program that mirrors that of the IOC for the Refugee
Olympic Team to create equitability across the teams.
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\3\ https://news.airbnb.com/airbnb-athlete-travel-grant/
We are proud to do our small part through this athlete-focused
partnership to support Olympic and Paralympic athletes as they strive
to achieve their dreams and inspire the world.
airbnb's commitment to human rights and fighting discrimination
We are a company based on connection and belonging. Every day, more
than 4 million Hosts have the opportunity to share their homes and
culture with guests around the world. To achieve this, we operate
globally everywhere the U.S. Government allows us to operate--that
includes more than 100,000 individual communities across more than 220
countries and regions around the world. We recognize that our global
footprint means we have and will continue to face complex and
challenging issues worldwide. That's why our core values and policies
have long reflected our recognition of and respect for human rights, as
informed by internationally recognized standards such as the Universal
Declaration of Human Rights and the United Nations Guiding Principles
on Business and Human Rights (UNGPs), and we have a range of policies
and tools to support our community and act in accordance with our
values everywhere we operate.
Everyone who uses Airbnb must agree to our Community Commitment, a
global standard that requires all members of our community to
affirmatively agree ``to treat everyone in the Airbnb community--
regardless of their race, religion, national origin, ethnicity, skin
color, disability, sex, gender identity, sexual orientation, or age--
with respect, and without judgment or bias.'' \4\ This Commitment
applies to everyone who uses Airbnb around the world. On an ongoing
basis, in markets throughout the world--including in all the countries
where the Olympics are scheduled to take place over the course of our
partnership--we have removed listings and people from the platform when
we find they violate this Community Commitment. This is an important
part of our work to address bias and discrimination on our platform,
which are antithetical to our mission and values.
---------------------------------------------------------------------------
\4\ https://blog.atairbnb.com/the-airbnb-community-commitment/
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We are constantly working to improve, and we plan to build on our
commitment to anti-discrimination and other important human rights
issues by ensuring our policies and procedures continue to respect
human rights.
Given the Commission's mandate, we know you may be particularly
interested in Airbnb's work in China. Airbnb's community in China grew
organically: Chinese travelers first used Airbnb as guests abroad and
decided to host when they returned home--a pattern we have seen all
over the world. Our current presence in the country reflects our
purpose of enabling individual economic empowerment and bringing people
together from communities and neighborhoods around the world to bridge
cultures, including in China, which is home to roughly 20 percent of
the world's population. Airbnb has a long track record of economically
empowering individuals, and we're proud that hosting on Airbnb is an
important source of income for our Hosts.
We're grateful for the opportunity to support global Olympic and
Paralympic athletes, Team USA, and our Host and Guest community. Thank
you for the chance to testify before you today to share more about
Airbnb's commitment to these athletes and the spirit of coming together
in global athletic competition. I look forward to your questions.
______
Prepared Statement of Paul Lalli of The Coca-Cola Company
Chairman Merkley, Chairman McGovern, and distinguished members of
the Congressional-Executive Commission on China: thank you for inviting
me to speak to you about The Coca-Cola Company's human rights
commitment and our proud history of supporting global sporting events.
We as a company--and I personally--share your passion for human rights
and have the greatest respect for this Commission's essential work.
My name is Paul Lalli. I am Global Vice President, Human Rights at
The Coca-Cola Company. In that capacity, I oversee the company's human
rights policies and due diligence programs across the world. I also
lead our human rights transparency and stakeholder engagement efforts.
Today I hope to shed light on The Coca-Cola Company's sponsorship of
global sporting events, including the Olympics; lay out the principles
that guide our human rights program; and explain the steps we have
taken to live by our commitments in our day-to-day business and in our
sponsorships.
overview of the coca-cola company & system
The Coca-Cola Company is a global business that operates locally in
every community where we source, produce, and sell our products. While
our value chain is vast--spanning 200 countries and territories across
the globe--we are able to keep a local focus because of the strength of
the Coca-Cola system, which comprises our company and more than 250
independent bottling partners worldwide.\1\ As a company, we employ
80,300 people. Our system, including bottlers, employs over 700,000.
\2\ Our mission is to refresh the world and make a difference. The
second part of that mission is as integral to our business as the
first. Each of the countries in which we operate poses unique economic,
cultural, and political challenges. We do our best wherever we operate
to improve the lives of everyone we affect--workers, communities, and
consumers.
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\1\ The Coca-Cola Company, ``Human Rights Report 2016-2017'' at 5.
\2\ The Coca-Cola Company, ``2020 Business & Environmental, Social
and Governance Report'' at 12.
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the coca-cola company's support for athletes
Almost a century ago, The Coca-Cola Company sponsored the 1928
Olympic Games and partnered with the U.S. Olympic Committee for the
first time. In every Olympic Games since then, we have proudly
supported the International Olympic Committee (IOC) and Team USA; we
have committed to continue doing so until at least 2032. The U.S.
Olympic and Paralympic Committee (USOPC) always stresses: ``No athlete
achieves their dream alone.'' \3\ The Coca-Cola Company is proud to
play a part in making these dreams come true.
---------------------------------------------------------------------------
\3\ Team USA, ``Join the team behind the team,'' available at
https://www.teamusa.org.
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We are also a longstanding partner of other major sporting events,
including the FIFA Men's & Women's World Cups, the UEFA Championships,
the Special Olympics--of which we are the founding partner--and many
others. We sponsor these events because we believe that sport is unique
in its ability to bridge divides between people and showcase the best
of the human spirit.
Across our sponsorships, our credo is simple: we follow the
athletes. We do not select venues. We do not endorse cities, countries,
or governments. We sponsor events and competitors. We ensure that the
vast majority of our funding flows to the athletes. With the Olympics,
for instance, 90 percent of our funding flows to 206 National Olympic
Committees, their teams and athletes, and the IOC Refugee Olympic
Team.\4\ Team USA is the largest single beneficiary of this funding:
since 2013, the IOC has distributed approximately $1.1 billion of
sponsorship and broadcast revenue to the USOPC to support U.S. athletes
and sport (including forecasted revenue from Tokyo 2020).
---------------------------------------------------------------------------
\4\ International Olympic Committee, ``How the IOC Finances a
Better World through Sport.''
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the coca-cola company and respect for human rights
The Coca-Cola Company's commitment to human rights is sincere and
embedded in our culture and strategy. It flows from the very top of our
leadership throughout the organization. In the words of our CEO, James
Quincey: ``Respect for human rights is at the foundation of our
business and ingrained in our culture, guiding our interactions with
employees, bottling partners, suppliers, customers, consumers and the
communities we serve.''
Our touchstone is the United Nations Guiding Principles on Business
and Human Rights, the global benchmark for corporate human rights
responsibility. The Coca-Cola Company was among the first companies
voluntarily to commit to the Guiding Principles, under which businesses
are expected to do their best to identify and address human rights
risks to individuals and communities across their value chain--from
supplier to consumer. Realizing these ideals requires constant
vigilance for continuous improvement. Two elements are critical in that
effort: due diligence and collaboration. Both are pillars of our
approach.
The Coca-Cola Company has worked tirelessly to embed respect for
human rights across our system with a coherent and comprehensive
framework of policies, due diligence, and remediation processes aligned
with the Guiding Principles.\5\ Our Human Rights Policy captures our
overall commitment to human rights and applies to all our
operations.\6\ We expect the same of all of our suppliers and bottling
partners. Our Supplier Guiding Principles \7\ and our Principles for
Sustainable Agriculture \8\ are contractually binding on suppliers,
with clear and strict human rights expectations. Our robust due
diligence process, with a particular focus on forced and child labor,
helps ensure that our high standards are being respected throughout our
supply chain.
---------------------------------------------------------------------------
\5\ The Coca-Cola Company, ``Human Rights Report 2016-2017'' at 7.
\6\ The Coca-Cola Company, ``Human Rights Policy.''
\7\ The Coca-Cola Company, ``Supplier Guiding Principles.''
\8\ The Coca-Cola Company, ``Principles for Sustainable
Agriculture.''
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The cornerstone of our due diligence is an industry-leading onsite
assessment program. To date, we have conducted more than 35,000 human
rights assessments at supplier and bottler sites, including 2,279 in
Covid-affected 2020. Assessments follow a detailed Coca-Cola protocol,
including (i) confidential interviews with a representative sampling of
employees and contract workers from different vulnerable groups; (ii)
extensive document reviews to understand legal compliance, recruitment
practices, and fair treatment of workers, among other issues; and (iii)
hundreds of discrete and collectively comprehensive questions for
management and workers on the full suite of sustainability issues.
When a supplier or bottler fails to uphold any aspect of our
policies, we require them to implement corrective actions and undergo
follow-up assessments until outstanding issues are resolved. We also
provide training programs and ongoing guidance to assist suppliers and
bottlers in improving their workplace practices. Our Workplace Rights
Implementation Guide outlines how to meet the Supplier Guiding
Principles,\9\ and our Business Toolkit provides suppliers and bottlers
with practical guidance on how to improve their sustainability
performance.\10\ We terminate relationships with any supplier or
bottler who is unable or unwilling to allow an independent assessment
or meet our human rights standards.
---------------------------------------------------------------------------
\9\ The Coca-Cola Company, ``Workplace Rights Implementation
Guide.''
\10\ The Coca-Cola Company, ``Business Toolkit.''
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Beyond onsite assessments, we continuously strive for accurate and
timely information about human rights issues across our value chain
with a suite of mutually reinforcing approaches. These range from
reliance on authoritative US Government and civil society reports to
sophisticated data analytics, rigorous compliance investigations, and
grievance mechanisms open to a broad array of stakeholders. Each of
these measures helps triangulate and validate information from our
onsite assessments.
We also give great weight to ongoing engagement with stakeholders
and experts who can offer regional nuance and practical insight to
advance our human rights journey. As an example, when mapping human
rights risks across our value chain, we worked closely with Shift, a
leading non-profit on the meaning and implications of the Guiding
Principles. We then engaged with over 180 experts from around the world
to understand their perspectives and concerns. Finally, we consulted
broadly with more than 57 civil society groups to establish our human
rights priorities.\11\ Such engagement is part of a continuous dialogue
that enables us to identify and address potential issues proactively
and collaboratively.
---------------------------------------------------------------------------
\11\ The Coca-Cola Company, ``Human Rights Report 2016-2017'' at
19.
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We are proud to count among our civil society partners some of the
leading global advocates for human rights, including:
Oxfam, with whom we engage primarily regarding human
rights risks in the sugar sector, land rights, and environmental
issues.\12\
---------------------------------------------------------------------------
\12\ Id. at 46.
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Institute for Human Rights and Business, with whom we
have collaborated on various projects related to modern slavery and
sport and human rights.\13\
---------------------------------------------------------------------------
\13\ Id.
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Interfaith Center on Corporate Responsibility, with whom
we have worked on our human rights program for many years, including an
onsite validation of our assessment method.\14\
---------------------------------------------------------------------------
\14\ Id. at 47.
These trusted stakeholder relationships, among many others, inform our
program and constantly drive us to be better.
We extend that spirit of collaboration to peer businesses as well,
particularly when facing systemic challenges that range far beyond our
own value chain. Forced labor, for instance, is an endemic human rights
issue that respects no borders; it is a serious risk in virtually every
company's value chain. Unethical recruitment is a primary cause of this
abuse. Collaborative action of the private sector is key to achieving
the necessary scale and momentum to advance responsible recruitment
practices. In 2016, we collaborated with four other companies to launch
the Leadership Group for Responsible Recruitment, a business group
working closely with international organizations, NGOs and trade unions
to eliminate all worker fees in recruitment, both in law and practice,
by 2026. The group is supported by the Institute for Human Rights and
Business, the Interfaith Center on Corporate Responsibility, the
International Organization for Migration, and Verite, a non-profit
trusted by the State Department to advise on modern slavery around the
globe.\15\
---------------------------------------------------------------------------
\15\ Id. at 27.
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We also value transparency to ensure that stakeholders can hold us
accountable for our human rights commitments, which is why we regularly
release reports disclosing information about our performance and
challenges. Chief among these is our annual Business & Environmental,
Social and Governance Report, which demonstrates how critical making a
difference is to our corporate mission by integrating our reporting on
financial and sustainability performance. In our CEO's words: ``Our
environmental, social and governance (ESG) goals are embedded in how we
operate as a business--they are part of our very foundation.'' \16\ In
addition, we published a detailed, standalone human rights report in
2017 \17\ and have also published 21 country reports detailing human
rights investigations of our sugar supply chain.\18\
---------------------------------------------------------------------------
\16\ The Coca-Cola Company, ``2020 Business & Environmental, Social
and Governance Report'' at 3.
\17\ The Coca-Cola Company, ``Human Rights Report 2016-2017'' at
27.
\18\ The Coca-Cola Company, ``Country Sugar Studies.''
---------------------------------------------------------------------------
There remains much still to be done. But our commitment has not
wavered. We will continue to strive to make a practical and meaningful
difference in the lives of everyone we affect across our value chain.
the centre for sport and human rights & our drive for respect in sport
The Coca-Cola Company's commitment to human rights extends to our
sponsorship of global sporting events. We have been at the forefront of
the drive to deliver sustainable and socially responsible global
sporting events and to tackle their inherent human rights risks. In the
context of such events, the expectation--and challenge--for companies
under the Guiding Principles is to exercise `leverage', which is ``a
company's ability to influence the behavior of others.'' \19\ As Shift
has noted, leverage ``gets to the heart of what companies can
realistically be expected to do in practice'' when trying to address
human rights risks caused by businesses or states in their value
chain.\20\
---------------------------------------------------------------------------
\19\ Shift, ``Using Leverage in Business Relationships to Reduce
Human Rights Risks'' at 11.
\20\ Id.
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As a sponsor of global sporting events, our influence is limited.
In the case of the Olympics, for instance, The Coca-Cola Company is one
of 14 companies in The Olympic Partners program. Those 14 companies
together provide less than a fifth of the IOC's funding. By contrast,
broadcasters contribute almost 75 percent.\21\ That governments are
always intimately involved in bidding for and hosting any event only
heightens the challenge. As Shift cautions, in such contexts ``the role
of the state as regulator--and sometimes as an arbiter of whether a
company can do business in that country--makes the exercise of leverage
particularly challenging.'' \22\ Further limiting our leverage is the
fact that we commit to multi-year partnership agreements to sponsor
events long before the host city is selected.
---------------------------------------------------------------------------
\21\ International Olympic Committee, ``How the IOC Finances a
Better World through Sport.''
\22\ Shift, ``Using Leverage in Business Relationships to Reduce
Human Rights Risks'' at 11.
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We have fought to overcome these limitations and advance respect
for human rights in sport through innovative collaboration. The Coca-
Cola Company is a founding member of The Centre for Sport and Human
Rights and the sole funder of its precursor, the Mega-Sporting Events
Platform. The Centre unites an unprecedented coalition of sports
bodies, governments, international civil society, sponsors and,
critically, broadcasters ``to advance a world of sport that fully
respects and promotes human rights by generating awareness, building
capacity and delivering impact.'' \23\
---------------------------------------------------------------------------
\23\ Centre for Sport and Human Rights, ``About Us.''
---------------------------------------------------------------------------
The Centre's focus is practical progress. To that end, it does what
no individual actor could. It serves as a credible intermediary to
raise sensitive questions with the full array of sports stakeholders.
It can press governments without risking regulatory retribution. It can
engage broadcasters without seeming as if it is passing the buck. And
it can offer practical guidance to sports bodies and unite the voices
of sponsors to drive meaningful reform, often from behind the scenes.
The Centre is young. But it has already achieved meaningful gains.
It has helped FIFA integrate human rights into the bidding requirements
for the World Cup. It has helped the Tokyo Organising Committee of the
Olympic and Paralympic Games with sustainable sourcing, grievance
mechanisms, diversity and inclusion, and public health. And, in
partnership with the government, it has advanced labor rights in Qatar.
Much work remains to be done. The international world of sport is
vast and complex, with many stakeholders and interests. But the
Centre's ability to galvanize a range of stakeholders provides a unique
platform to drive meaningful progress in the ethical conduct of global
sporting events. We remain more committed than ever to its success.
the usa is our home and beacon
As we strive for this progress, we will continue to follow the
athletes. But the United States is our home and beacon. We will always
follow U.S. law. And if our government decides not to send U.S.
athletes to any sporting event for public policy reasons, we will treat
that decision with respect. We will also continue to stand for human
rights wherever we operate. As we do so, we will always seek to make a
meaningful and practical difference on the ground.
______
Prepared Statement of Steve Rodgers of Intel Corporation
I. Introduction
Thank you for inviting Intel to testify at the hearing of the
Congressional-Executive Commission on China. My name is Steve Rodgers,
and I am the Executive Vice President and General Counsel of Intel
Corporation. My role at Intel is to keep the company legal, ethical,
and respected in every jurisdiction in which it does business. My day-
to-day responsibilities at Intel include managing the company's legal,
government affairs, trade, ethics and legal compliance functions
globally. Additionally, Intel China's headquarters operation reports to
me. Thank you for inviting Intel to testify at today's hearing and
thank you for the Congressional-Executive Commission's continued
leadership and guidance on important issues regarding China.
Intel is proud to be a Sponsor of the Olympic Games. Our
sponsorship of the Olympics spans several Games, several cities, and
supports the Games' overarching mission to bring athletes together to
compete peacefully and to participate in the symbolism of a diverse,
inclusive, and global event. As an active participant in the Centre for
Sport and Human Rights, we engage with other stakeholders, including
other sponsors, sports bodies, governments, non-governmental
organizations, and representatives of athletes and civil society, to
address challenges, collaborate and share knowledge, as well as build
capacity in Mega Sporting Events.
Intel has a longstanding commitment to corporate responsibility,
which includes a commitment to respecting and promoting human rights,
and to maintaining global processes to prevent and mitigate human
rights violations in connection with our operations, our supply chain,
our business relationships, and our products. The United Nations (UN)
Universal Declaration of Human Rights and the UN Guiding Principles on
Business and Human Rights are the foundation upon which we build our
strong governance and management systems, and our approach is aligned
with the United States' National Action Plan (NAP) on Responsible
Business Conduct. At Intel we pride ourselves on not just complying
with the law, but on issues of human rights, being ahead of the law.
For example, under our human rights principles we have forgone hundreds
of millions of dollars in sales globally that would have been legal but
did not meet our internal standards.
Intel has led in the creation of several cross-industry initiatives
to help address global human rights issues for over a decade. We are
active in the business and human rights community, and we engage on
human rights issues through memberships, partnerships, and
participation in external organizations, as well as with leading human
rights experts. Our engagement includes serving as a founding member of
the Responsible Business Alliance (RBA) since its inception in 2004.
The RBA is the world's largest industry coalition dedicated to
corporate social responsibility in global supply chains and helps us
hold Intel suppliers to the same high expectations and human rights
standards that we have for ourselves. As a result of Intel's efforts
with global suppliers to create a framework to detect, prevent, and
mitigate risks of forced and bonded labor (such as fees charged to
workers to obtain or keep employment), Intel suppliers have returned
over $23 million in fees to their workers in Intel's supply chain since
2014.
We have also been an active member of the Global Business
Initiative (GBI) on Business and Human Rights for the past several
years, which is comprised of multinational corporations with operations
in diverse industries and regions that work to shape practices, inspire
commitment, and build capability to implement respect for human rights
in line with the UN Guiding Principles on Business and Human Rights.
GBI's expertly led staff advances respect for human rights around the
world. Intel's engagement with GBI includes regularly meeting
representatives of other businesses, government, and civil society to
provide insight and deep experience to address governance gaps and
improving our processes to demonstrate our respect for and commitment
to upholding human rights around the world.
We also collaborate with others to influence system-level,
industry-wide improvements to promote human rights in a variety of
different ways and seek to report transparently on our human rights
approach and performance, including in our annual Corporate
Responsibility Report.\1\
---------------------------------------------------------------------------
\1\ See Intel's ``Corporate Responsibility Report.''
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We respect and promote human rights and are deeply concerned when
we learn about reports of human rights abuses in any jurisdiction in
which we do business. We are aware of the determinations made by the
U.S. Department of State regarding the Xinjiang region, and the U.S.
government's ban on the importation of certain products sourced from
the Xinjiang region. We do not source from the Xinjiang region. As a
matter of global corporate concern in every jurisdiction in which we
operate, as we detail more fully below, we have taken extensive steps
to prevent and mitigate the risk of forced labor in connection with our
global supply chain, operations, and products. We have also taken steps
to prevent and mitigate the risk of our third-party business partners
using Intel products to cause, contribute, or be directly linked to
human rights abuses. Intel's sponsorship of the 2022 Winter Olympic
Games in Beijing, China, in connection with The Olympic Partner
Programme does not negate nor does it undermine our commitment to
respect human rights or our activities to prevent the risk of human
rights violations. We welcome the opportunity to discuss Intel's
approach to human rights and the Olympic sponsorship with you and our
fellow sponsors. We believe this kind of dialogue is important.
II. Intel's Unwavering Commitment to Human Rights
We believe Intel's technology has an important role to play in
making the world a better place. We also believe that information
technology can and should improve the lives of people everywhere. Intel
provides a range of technology and tools to our customers, and our
customers use that technology as building blocks to develop countless
beneficial solutions and applications across a range of industries,
including robotics, health and medical, industrial and manufacturing,
retail, and automotive. We also constantly look for and pursue
opportunities to apply our technology to support the advancement of
human rights. Customers all over the world use Intel technology. Intel
technology sold to Chinese customers has many positive applications,
including improving traffic flows in Beijing and decreasing the
response time needed for emergency first responders in Hangzhou.
Consistent with our mission as a company to create world-changing
technology that enriches the lives of every person on Earth, we remain
committed to maintaining and improving systems and processes to avoid
being linked to human rights violations related to our own operations,
our supply chain, and our products.
a. intel's approach to respecting human rights
Intel has established an integrated approach to managing human
rights across our business which includes board-level oversight. A
committee of the board oversees our human rights program, with day-to-
day responsibility assigned to senior management. In addition to board-
level oversight and senior-level management review, we have a
longstanding cross-functional Human Rights Steering Committee. Further,
there are multiple teams across our organization that coordinate and
are responsible for conducting due diligence as well as implementing
policies and procedures to address salient human rights risks.
Both the public-facing Intel Code of Conduct and Intel Global Human
Rights Principles \2\--which apply to all Intel employees, contingent
workers, and Intel subsidiaries--formalize our commitment to respecting
human rights and embody common principles laid out in external
guidelines, including the UN Guiding Principles, the UN Global Compact,
the Universal Declaration of Human Rights, core International Labour
Organization Conventions, the Organization for Economic Co-operation
and Development (OECD) Guidelines for Multinational Enterprises, and
the U.S. Department of State's Guidance on Implementing the UN Guiding
Principles for Transactions Linked to Foreign Government End-Users for
Products or Services with Surveillance Capabilities (``Dual-Use
Guidance''). Intel's annual public Statement on Combating Modern
Slavery \3\ provides detail about the steps we take to reduce the
possibility of complicity in human rights violations related to slavery
and human trafficking around the world. Furthermore, details about our
approach to navigating specific human rights issues related to our
operations, supply chain, and products are published in our Corporate
Responsibility Report.
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\2\ See Intel's ``Code of Conduct.''
\3\ See Intel's ``Statement on Combating Modern Slavery.''
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b. intel's human rights diligence assessments
Intel performs human rights due diligence assessments consistent
with the UN Guiding Principles. In 2016, we engaged a third party to
conduct a human rights impact assessment to review our processes and
assess our human rights risks. The human rights impact assessment
confirmed that Intel was addressing its most critical human rights
risks and reaffirmed our need to assess potential risks associated with
emerging technologies.
Building upon the results of the 2016 Human Rights Impact
Assessment, in 2018, we conducted an additional internal Artificial
Intelligence and Autonomous Driving Human Rights Impact Assessment,
which included an assessment of potential risks related to product
misuse, algorithmic bias, algorithmic transparency, privacy
infringement, limits on freedom of expression, and health and safety.
Between late 2020 and early 2021, we conducted another updated
Human Rights Impact Assessment to ensure that we continue to address
the most prominent human rights risks around the globe,\4\ including
those following the U.S. government's determination of human rights
concerns regarding Xinjiang and subsequent requirement on US companies
to assess their supply chains sourcing from that region.
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\4\ See Intel's Human Rights Impact Assessment from our ``Corporate
Social Responsibility Report.''
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III. Intel's Focus on Human Rights in Its Supply Chain
a. intel's supply chain strategy
For over a decade, Intel has maintained an extensive Supply Chain
Responsibility program. Through Intel's Supply Chain Responsibility
program, over 2,200 risk assessments have been conducted globally and
over 1,300 audits have been performed to validate conformance to the
Intel and the RBA Code of Conduct. We have worked with suppliers to
remediate and close over 3,400 findings and are committed to continuing
our work to advance and evolve our programs and invest resources to
further improve our global supply chain. In 2019, Intel was awarded the
Advancing Supply Chain Responsibility Award by Reuters Events.\5\
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\5\ See Reuters Events: Intel's ``ground-breaking work on human
rights in the supply chain particularly in tackling and abolishing
recruitment fees.''
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Specific to the human rights issues encountered with conditions of
forced and bonded labor, since 2014, our ongoing assessments and
efforts to reach deeper into the supply chain have positively impacted
more than 45,500 workers in our extended supply chain. Positive impacts
have included the return of over $23 million in fees to 20,000 workers
by our suppliers since 2014. The fees returned could equate to
approximately three to five months of base pay, depending on location
and situation.
We have hosted training for our suppliers and their labor agents at
dozens of sites around the world, including in Singapore, Malaysia and
Taiwan. We've also engaged extensively with suppliers in Korea and
Japan to ensure that policies and processes were put in place to
prevent instances of conditions of forced labor.
Our work to combat forced and bonded labor has earned Intel between
the number one and four positions on KnowTheChain's ICT benchmark list
of 49 public information and communications technology firms in the
three times they have performed the evaluation since 2016. This
globally well-respected resource for companies and investors to
understand and address forced labor risks within global supply chains
confirms that our work on this issue around the globe is having a
meaningful impact in driving change and addressing this critical human
rights issue.
In 2020, we set a new, ambitious goal for the decade ahead, as part
of our 2030 RISE Corporate Responsibility strategy. We will scale our
supplier responsibility programs to ensure respect for human rights
across 100% of our Tier 1 contracted suppliers and higher risk Tier 2
suppliers, which will further our work and drive ever greater
collaboration across global stakeholders to continue to assess and
remedy human rights issues in supply chains.
b. sourcing in china
Intel developed a robust supplier capacity building program in 2012
and has engaged with suppliers globally to help increase their
understanding of our expectations relative to human rights and other
critical corporate social responsibility (CSR) topics. We led multi-
stakeholder summits focused on CSR in Shanghai for several years, with
strong engagement from our suppliers, to improve supplier maturity
level and provide resources to help them increase their conformance to
the RBA and Intel Code of Conduct, which include extensive human rights
elements.
We source goods and services in China and work with many Chinese
partners. Over the past year, multiple governments have imposed
restrictions on products sourced from the Xinjiang region of China. Our
investors and customers have inquired whether Intel purchases goods or
services from the region and, after conducting due diligence, we have
confirmed that Intel does not use any labor or source goods or services
from the Xinjiang region.
Further, as required by the U.S. government determinations
regarding Xinjiang, we have placed a policy in our systems which
prohibits business units from adding new suppliers from the region to
our database. We also systematically review our global supplier base
for emerging risks and have policies and processes in place so that if
we become aware of human rights concerns, we take immediate actions to
address them with our suppliers and business partners, including
quickly halting suppliers from additional transactions in order to
conduct appropriate due diligence.
We regularly communicate expectations and policy updates to
suppliers through several channels and have been addressing and
engaging on the issue of forced labor since 2014. In March 2020, as
required by the U.S. government determinations regarding the region, we
communicated proactively with specific suppliers in China to request
data about and set expectations regarding the use of labor from
Xinjiang. We also communicated high level expectations to all active
global Intel suppliers in December 2020.
IV. Intel's Commitment to Product Responsibility
Most of Intel's products are general-purpose computing products
that can be incorporated into systems and applications that are sold to
end users by distributors, system manufacturers, and others, and not
directly by Intel. As the range of products and services we offer
broadens and changes, and as new technologies emerge and advance, we
evaluate potential concerns about how technology products may be used
to infringe on human rights. These challenges can range from concerns
around product development and deployment, such as privacy and safety
concerns, to product misuse, such as potential limits on freedom of
expression. Intel has developed a number of programs and initiatives to
address these concerns and to proactively address these challenges.
Intel's purpose is to create world changing technology that
enriches the lives of every person. Consistent with that purpose, which
is aligned with our Global Human Rights Principles and our Code of
Conduct, we do not support or tolerate our products being used to
violate human rights anywhere in the world. To that end, Intel
strengthened its Global Human Rights Principles, which has resulted in
some positive movement regarding the development of certain of our
customers' compliance programs.
Under Intel's Global Human Rights Principles, when one or more of
our customers are identified by the U.S. government (e.g., U.S.
Department of Commerce or U.S. Department of State) as having caused,
contributed, or been linked to human rights abuses, such as being
placed on the U.S. Entity List for facilitating human rights abuses, we
take action to restrict or suspend business with that party until and
unless we have gained high confidence that Intel's products are not
being used to violate human rights. Our high confidence standard is
applied globally and is designed to prevent and minimize the risk of a
third-party business partner using Intel products to cause, contribute,
or be directly linked to human rights abuses, consistent with
expectations set forth in the UN Guiding Principles as well as the
Dual-Use Guidance.
In 2020, we enhanced Intel's due diligence measures and review
processes to assist in implementing the high confidence standard as
well as complying with the U.S. Entity List restrictions placed on
certain Intel customers.
Where the U.S. government has identified an Intel customer as
having caused, contributed, or been linked to human rights abuses, we
make a determination whether doing business with the customer is legal,
ethical, in line with Intel's Global Human Rights Principles and
Intel's Code of Conduct, and how it may impact Intel's reputation. To
determine whether high confidence can be achieved, we evaluate several
factors, including the foreseeable end use of the Intel products at
issue, the customer's compliance infrastructure as well as its
willingness and ability to prevent and mitigate human rights abuses
involving Intel products, the end users to the extent known, and where
the Intel products may be used if known. We then collaborate with our
customers to align on how they can mitigate the risk of Intel products
being used to violate human rights in a manner that is consistent with
Intel's Global Human Rights Principles.
Since implementing the high confidence standard, Intel has
restricted or terminated the sale of Intel products in certain
circumstances. We have positively influenced the maturation of certain
of our customers' internal compliance programs to strengthen controls
designed to mitigate the risk of Intel products being used to cause,
contribute, or be directly linked to human rights abuses. Furthermore,
we continue to work with our customers to evaluate whether and under
what circumstances, if any, high confidence under Intel's Global Human
Rights Principles can be achieved.
V. Intel's Sponsorship of the Olympic Games
In 2017, Intel became a sponsor of the Olympic Movement, starting
with the 2018 Winter Games in PyeongChang and running through the Paris
Summer Games in 2024. Our sponsorship stems from our unwavering support
for the athletes who compete in the Games, including athletes from the
United States and around the world. We believe bringing those athletes
together to compete, to have fellowship, and to participate in the
symbolism of a diverse, inclusive, and global event helps break down
barriers and serves as a beacon for human achievement.
We are mindful, of course, of potential human rights concerns that
may exist in host countries and in connection with preparing for Mega
Sporting Events. We do not believe our sponsorship degrades our global
commitment to human rights. Our sponsorship is not an endorsement of
any specific host country or its government, nor an acceptance or
approval of domestic activities that may take place within that
country.
We actively engage with the International Olympic Committee (IOC)
regarding issues connected to the Games themselves. We also are strong
supporters of the Centre for Sport and Human Rights (CSHR). Its team
includes global leaders in business and human rights. The CSHR's
mission is to engage on issues related to human rights and sports,
including Mega Sporting Events, and it has engaged with the IOC and
openly commented on the 2022 Olympic Games. It also has commented
publicly on the Recommendations for an IOC Human Rights Strategy
produced by independent experts, including a former UN High
Commissioner for Human Rights. Like many stakeholders, we are in favor
of the Recommendations, which were published in December 2020, and very
much encourage the IOC to implement them.
VI. Conclusion
At Intel, our commitment to ethical conduct \6\ and respecting and
advancing human rights globally remains clear. We have a longstanding
commitment to corporate responsibility, which includes respecting and
promoting human rights and maintaining and improving systems and
processes to avoid human rights violations related to our own
operations, supply chain, business relationships and products globally.
For over a decade, we have directly engaged with our suppliers to
ensure compliance with our corporate responsibility expectations and
build capacity to address risks of forced and bonded labor, and other
human rights issues. Furthermore, Intel does not support or tolerate
our products being connected to human rights violations--whether
upstream in the creation of raw materials used in our products or
downstream in connection with the use of our products.
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\6\ In 2021, Intel was acknowledged as a World's Most Ethical
Company for the 10th consecutive year. See Honorees 2021--Ethisphere
Institute--Good. Smart. Business. Profit.
(worldsmostethicalcompanies.com). Last accessed July 21, 2021.
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Over the years, we have emphasized this commitment by making
continuously improving internal controls and processes to avoid
complicity in human rights violations related to our own operations,
our supply chain, our business relationships and our products. We have
implemented steps that enable us to take corrective action in
accordance with Intel's Global Human Rights Principles.
Our commitment to human rights and the steps we have taken and
continue to take to promote human rights is not undermined by our
sponsorship of the Olympics Games. Moreover, Intel's sponsorship of the
Olympic Games is neither an endorsement of any specific host country
nor an acceptance or approval of every activity that may take place
within any specific host country.
Thank you for the invitation to testify concerning Intel's
commitment to the Olympic Games as a movement and to Intel's
longstanding commitment to protecting human rights.
______
Prepared Statement of Sean Mulvaney of Procter & Gamble
Chairman Merkley and Co-chairman McGovern, my name is Sean
Mulvaney, and I am a Senior Director for Government Relations & Public
Policy at Procter & Gamble (``P&G''). Thank you for the opportunity to
appear today to discuss P&G's commitment to respecting and prioritizing
human rights, including in our longstanding support of Olympic athletes
and their families. I look forward to our discussion and to continuing
to work with you and your colleagues on these and other important
issues.
P&G was founded in 1837 in Cincinnati, Ohio, as a small business
producing soap and candles. Since that time, we have grown into a
global company with household brands recognized around the world--but
we are still headquartered in Cincinnati, and we still maintain the
same business model. In particular, even as we have expanded into new
markets, we have continued to focus on providing consumers with quality
products that make every day better. This approach has allowed us to be
one of the most competitive American companies on a global scale, and
our brands are now available in more than 180 countries.
Today, in the United States alone, P&G operates 25 manufacturing
facilities and employs approximately 26,000 people. While our U.S.-
based facilities primarily make products for American and Canadian
consumers, P&G's domestic operations also support the company's
overseas business. Indeed, one in five U.S.-based jobs at P&G--and two
in five Ohio-based jobs--support our global operations.
Wherever we operate, respecting human rights is fundamental to how
we manage our business. Our approach to human rights is embedded in our
foundational Purpose, Values, and Principles, which have guided our
operations for more than 180 years and which include a commitment to
operate responsibly, ethically, and with integrity. Consistent with
these values, we have committed to supporting internationally
recognized principles for safeguarding human rights throughout our own
operations, and we extend our human rights commitments to our global
supply chain.
Our commitment to respecting and prioritizing human rights also
extends to our longstanding support for the Olympic movement. As part
of a commitment that will span more than two decades--beginning with
our sponsorship of Team USA at the 2010 Vancouver Games and continuing
through our sponsorship of the 2028 Los Angeles Games--P&G has
supported Olympic athletes and their families. We recognize that
respecting human rights is foundational to the Olympic movement and to
realizing the ambition of uniting the world through sport.
That's why, as a sponsor, we have supported various efforts aimed
at strengthening the International Olympic Committee's (``IOC'')
approach to human rights, including its efforts to implement the UN
Guiding Principles on Human Rights (``UN Guiding Principles'') into its
operations and oversight of the Olympic Games.
p&g's longstanding commitment to supporting athletes
and the olympic movement
For over a decade, P&G has supported the Olympic movement, American
athletes, and their families through our sponsorship of the IOC and the
Olympic Games. As an Olympic sponsor, P&G is and has always been
focused on the athlete experience and on the families who support
Olympic athletes and hopefuls around the world. P&G has also worked
through our sponsorship to continue to drive progress with the IOC on
the topic of human rights, including actively working with the IOC to
advance the integration of the UN Guiding Principles across its
operations and into host-city contracts.
P&G's support for the Olympic movement began with our sponsorship
of Team USA in the 2010 Winter Games in Vancouver with our Thank You
Mom campaign, which recognizes the support moms provide to their
children on their journey to achieve their Olympic dreams. This
sponsorship continues today with our participation, along with several
other American companies, in the IOC's Olympic Partner (``TOP'')
Programme, and we are committed to sustaining and building on that
essential support through the 2028 Los Angeles Games. This commitment
extends over several past and future Games--including London, Sochi,
Rio, PyeongChang, Tokyo, Beijing, Paris, Milan, and Los Angeles--
irrespective of the host city in which the Games occur.
Our focus from the very start of our Olympics sponsorship has been
on supporting Olympic athletes who work their entire lives to compete
on the world stage--along with their moms and families who support them
during their journey--before, during, and after the Games. To date, we
have supported more than 400 global athletes, including more than 100
American athletes, with sponsorships and programs that provide valuable
economic support.
This support for the broader Olympic movement is particularly
evident in our support for Olympic athletes here in the United States.
Unlike many other National Organizing Committees, the U.S. Olympic &
Paralympic Committee (``USOPC'') is a privately funded, non-profit
corporation that receives no direct funding from the U.S. federal
government. The USOPC is therefore especially reliant on private
funding to support the U.S. Olympic team.
Indeed, the USOPC reports that 33 percent of the funding for Team
USA comes from TOP sponsorships. Private funding, like that received
through the TOP program, allows the USOPC to fund high-performance
programs for athletes, athlete foundational programs, world-class
athlete training facilities, fundraising and commercial activities,
Team USA Marketing and Promotion, and Olympic and Paralympic
competition support such as travel and lodging. Simply put, it is the
support from corporate sponsors like P&G that enables Team USA's
Olympic and Paralympic athletes--for whom training is a full-time job--
to compete and win at the highest level.
Nonetheless, P&G's commitment to the Olympic movement is not
limited to financial support to the IOC. P&G also makes the Games
possible by providing other key means of support to the IOC and other
Olympic partners. In particular, P&G provides:
Professional expertise, such as consulting on marketing,
digital media capability, human rights, equality and inclusion, and
environmental sustainability, to support the advancement of the Olympic
movement;
Direct support, via athlete sponsorship, for the training
and development of Olympic athletes and hopefuls around the world;
Marketing campaigns that shine a spotlight on the
athletes and their families to bring awareness to the athletes and
inspire support in their home countries, especially in the United
States;
Activations to enhance the Olympic experience for
spectators; and
Essential services such as dental clinics, salon
services, and laundry services for athletes participating in the Games.
One of P&G's central, athlete-focused initiatives during the Games
is supporting athletes and their families at the ``P&G Family Home,'' a
``home away from home'' in host cities. The Family Home gives P&G-
sponsored athletes--including all U.S. athletes--and their families a
place to convene, relax, rest, eat, and engage with other athletes and
families.
P&G also committed to sponsor the ``Pride House'' at the Tokyo
Olympics, which was planned as a safe and supportive space for LGBTQIA+
athletes, their families, and fans. This effort was conceived during
the 2014 Winter Games in Sochi, before which there were concerns about
violence toward LGBTQIA+ athletes. P&G worked with the IOC and other
key stakeholders to ensure athlete safety at those Games. This is just
one example of how P&G has prioritized athletes and human rights,
regardless of where the Games are hosted.
We have also partnered with the IOC and others to support women and
girls in sports.
We've focused one area of our support on the accurate portrayal of
female athletes in advertising, free of stereotyping or
objectification, because we know that the images in advertising embed
memories, shift norms, and can change bias. We have also provided
expertise and technical support to the IOC for its recently launched
strategic guidelines in the area of portrayal, and we will continue to
champion the accurate portrayal of female athletes--while raising their
voices and highlighting the causes they champion--on and off the field.
In the Tokyo Olympics, 16 of 18 P&G-sponsored athletes are women, and
five of our brands are launching campaigns celebrating a diverse group
of women Olympians.
Separate from our sponsorship through the TOP program, P&G and the
IOC also jointly established the Athletes for Good Fund to further the
Olympic mission of supporting athletes and putting them at the heart of
the Olympic movement. The Athletes for Good Fund provides grants to
causes that Olympic and Paralympic athletes and hopefuls are supporting
in their communities. The Athletes for Good Fund supported 52 grant
awards to these causes--representing one for every week leading up to
the 2021 Opening Ceremonies in Tokyo.
p&g works to promote human rights protections at the olympics
These efforts to support diverse athletes, their families, and
their causes are just some of the ways P&G puts our Purpose, Values,
and Principles into practice. More broadly, P&G is committed to
respecting human rights in all our work, including our support of
athletes, athletic competition, and sponsorship of the Olympics. That's
why, when we became a sponsor of the TOP program, we ensured that our
sponsorship contract required the IOC to maintain policies concerning
compliance with applicable laws and respect for human rights. We have
also supported the IOC's efforts to implement the UN Guiding Principles
into its operations and oversight of the Olympic Games.
Further, in 2018, we became a founding member of the Centre for
Sport and Human Rights (``the Centre''), an alliance of organizations
including non-governmental organizations, sports governing bodies, and
private companies that work together to protect and promote human
rights in the athletic world. As members of the Centre's Advisory
Board, P&G and other Centre members and Olympic sponsors have requested
information from the IOC about the upcoming Olympic Games. Specific to
the Beijing 2022 Games, the Centre has engaged with the IOC regarding
supply chain considerations, free speech protections, and protections
against displacement of local communities.
We have also, both directly and via the Centre, urged the IOC to
implement the ``Recommendations for an IOC Human Rights Strategy''
authored by human rights experts Rachel Davis, founder of the SHIFT
non-profit center for business and human rights practice, and Prince
Zeid Ra'ad Al Hussein, former UN High Commissioner for Human Rights and
chair of the IOC's Human Rights Advisory Committee. These
recommendations call for the IOC to:
Articulate its human rights responsibilities by amending
the Olympic Charter to explicitly address human rights and
incorporating human rights into the IOC's key governing documents;
Embed respect for human rights within the IOC, including
by building its human rights expertise and capability;
Identify and address human rights risks, including by
strengthening due diligence;
Track and communicate progress on human rights issues to
stakeholders; and
Strengthen the ``remedy ecosystem'' in sports by using
its leverage to improve grievance mechanisms.
Both individually and together with other TOP sponsors, we have
consistently engaged with the IOC to offer support as the IOC
implements these recommendations. And we are encouraged to see that the
IOC has taken initial steps towards implementation. Nonetheless, we are
continuing to urge the IOC to build its human rights expertise and
capability and to implement standards and practices to identify,
mitigate, and address human rights impacts that may occur across its
global operations.
p&g's commitment to protecting human rights
Our commitment to respecting and prioritizing human rights is also
fundamental to how we manage our business. In particular, we support
the U.N. Guiding Principles, a commitment which we extend to our global
supply chain through our Responsible Sourcing Guidelines for External
Business Partners and Supplier Citizenship Program.
Under the UN Guiding Principles, companies have a responsibility to
act with due diligence to avoid infringing on the rights of others and
to address any potential adverse impacts caused or contributed to by
our work. We act on this responsibility. We regularly review our
adherence to our human rights commitments through rigorous self-
assessments. And we take every report of a potential human rights
violation seriously.
To that end, we have set up a 24/7 help line to enable confidential
reporting of any human rights concerns, and we encourage anyone aware
of potential human rights concerns related to our business--whether
employees, business partners, non-governmental organizations, or other
stakeholders--to share information that will enable us to investigate.
We are committed to reviewing all reports with trained teams who can
ensure impartial and fact-based investigations.
Beyond adopting our own policies and procedures to protect human
rights, we have extended our human rights commitments to our global
supply chain by adopting our Responsible Sourcing Expectations for
External Business Partners. These expectations explain the global
standards to be followed in business activities on behalf of P&G and,
among other things, include prohibitions on the use of forced or child
labor; prohibition of discrimination based on factors including race,
gender, religion, and other protected characteristics; prohibition of
coercion, harassment, or punishment of workers; and respect for
employee and consumer privacy. We also encourage our external business
partners, including the IOC, to set similar expectations with their own
suppliers.
To ensure compliance with our Responsible Sourcing Expectations, we
reserve the right to conduct audits of our suppliers or supply chains.
Our audits assess partners' labor standards, health and safety
practices, and environmental and business practices, among other
things. And we target our audits in particular to high-risk industries
and geographies. If issues arise, we assess the problem and use our
resources and expertise to come to a better solution or business
practice--or exit our relationship as necessary.
All this said, we acknowledge that achieving respect for human
rights around the world can be an enormous challenge. We can make
meaningful contributions in our shared objectives only through
consistent collaboration and engagement with others. That's why we seek
consultation from important external stakeholders, including critics
and recognized human rights thought leaders, and we strive to work
cooperatively with governments, civil society organizations, and
industry and business associations to promote human rights.
conclusion
Chairman Merkley and Co-chairman McGovern, thank you again for the
invitation to testify this morning. P&G values our partnership with you
and this Commission, and we look forward to working with you to
recognize and protect human rights while supporting the Olympic
mission.
______
Prepared Statement of Andrea Fairchild of Visa Inc.
Good morning Chairman Merkley, Co-chairman McGovern, and members of
the Commission. Thank you for the opportunity to appear before you
today to discuss Visa and the Olympic and Paralympic Winter Games
Beijing 2022.
My name is Andrea Fairchild, and I am the Senior Vice President of
Global Sponsorship Strategy, where I am responsible for leading Visa's
global sponsorship portfolio.
Visa Inc. (``Visa'') is proud to be a longstanding supporter of the
Olympic and Paralympic Games and the athletes who dedicate their lives
training to compete at the highest levels of their sport. We view the
Games as one of the most important global movements that bring people
together to promote peace, friendship, and mutual understanding. We
also welcome the opportunity to discuss our efforts related to human
rights, including serving as a founding member of the Centre for Sport
and Human Rights.
One of the wonderful things about the Games is that every two years
America comes together to take pride in our country and our incredible
athletes, whose dedication, talent, and sheer will embody universal
hopes and dreams. After such a difficult year and a half for so many
across our country, the Olympic and Paralympic Games will surely
deliver a sense of hope, optimism, and renewed faith in the future that
lies ahead of us.
For more than six decades, Visa has been a trusted engine of
commerce. As a global payments technology company, we enable fast,
secure, and reliable digital payments across more than 200 countries
and territories. Our mission is to connect the world to enable
individuals, businesses, and economies to thrive.
We have earned a reputation as one of the most trusted brands
globally and have been named as one of the world's most ethical,
responsible and sustainable companies.\1\ Visa publishes an annual
Environmental, Social and Governance (ESG) report,\2\ which provides an
update on progress against our commitments to corporate responsibility,
sustainability, and ethical leadership against Visa's most important
ESG goals. The report is publicly available, and it summarizes and
assesses our efforts to be an industry leader in environmental, social,
and governance excellence.
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\1\ Morning Consult, Most Trusted Brands 2021; Ethisphere, 2021
World's Most Ethical Companies
\2\ ``Visa 2020 Environmental, Social and Governance Report''
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At Visa, we recognize our responsibility to respect, advance, and
maintain global human rights across our company and operations, and in
connection with our global sponsorship programs.
Our approach to respecting human rights in our company is guided by
international frameworks, including the United Nations Guiding
Principles on Business and Human Rights.
In 2020, we completed our triennial Human Rights Impact
Assessment--a global review of salient human rights risks resulting
from our business operations and activities--conducted in accordance
with the United Nations Guiding Principles on Business and Human
Rights, which we fully support.
We are a founding supporter and Advisory Council member of the
Centre for Sport and Human Rights, which is dedicated to advancing a
vision of a world of sport that fully respects and promotes human
rights through knowledge sharing, capacity building, and stronger
accountability among stakeholders involved in the sports ecosystem.
We are also committed to addressing sustainable development
challenges--as guided by the United Nations Sustainable Development
Goals (SDGs)--in helping to create inclusive economies and a thriving
planet. As shared in our public ESG report, through business
activities, partnerships and initiatives, Visa is contributing to many
of the SDGs, including those around promoting inclusive and sustainable
economic growth, empowering women and girls, and taking urgent
sustainability action.
As we strive to create a more inclusive and equitable world, we
remain focused on our longstanding efforts to uplift economies
everywhere through our support for micro and small businesses,
particularly women-owned businesses; expanding financial access; and
promoting sustainability in our operations and commerce more broadly.
As part of this work, we are proud that we met our goal--ahead of
time--of helping 500 million unbanked and underserved people have
first-time access to financial services as part of the World Bank's
Universal Financial Access by 2020 goal.
Financial literacy has been a priority at Visa for more than 20
years. In the United States, our award-winning Practical Money Skills
program strives to link consumers, educators, financial institutions,
and governments to the tools and resources they need, helping people of
all ages develop their money management skills. Visa believes that
great financial knowledge can empower people to better manage their
money and improve their quality of life. Our success in the United
States has helped drive our financial literacy efforts around the
world.
In China, Visa has conducted financial literacy programs for the
past decade. As of December 2020, we have helped more than 10 million
rural residents live and work better through our financial literacy
initiatives.
Visa is also partnering with the China Women's Development
Foundation to ensure that the Beijing 2022 Games help advance rural
revitalization and leave a strong legacy of economic development in the
region. This initiative includes providing comprehensive business
skills training to help an estimated 5,000 women-led small businesses
in connection with the Games.
Visa's mission has never been more important than over the last
year and a half as the world has collectively faced a public health
crisis of unprecedented magnitude. Since the onset of the pandemic, our
focus has been to provide stability amid such a difficult and uncertain
time. For example:
Visa pledged to help 50 million small businesses globally
get back to business by 2023. We are doing this by introducing a range
of locally designed programs and solutions that include building online
businesses, increasing the acceptance of digital payments, and
incentivizing neighborhood support. We are well on our way to achieving
this goal, having reached 16 million small businesses at the end of
June.
Through the U.S. Treasury Department's Debit Card
program, Visa helped to deliver economic stimulus payments to millions
of American families. We also partnered with governments in the
Dominican Republic, France, Guatemala, Italy, and Spain to deliver
economic relief payments to struggling families during the pandemic.
The Visa Foundation announced a 5-year, $200 million
commitment to support small businesses, particularly those owned by
women or serving historically underserved communities which have been
disproportionately impacted by the pandemic.
The Visa Foundation allocated $10 million to provide
urgent humanitarian relief to local communities in North America and
globally.
The Visa Foundation granted $4.5 million to the COVAX
Advance Market Commitment and $500,000 to Civic Nation to promote
greater access and adoption of vaccines.
Visa's mission to uplift individuals, businesses and economies
everywhere also underpins our approach to sponsorships. For more than
35 years, our partnership with the International Olympic Committee
(IOC) has been rooted in a shared commitment to make a positive,
transformational impact on the world, and in supporting the athletes.
We are aligned with the Games' vision to build a better, more unified
world through sport. We believe strongly in the Games' core values of
excellence, friendship, and respect and in the vision of the Paralympic
Movement to make an inclusive world through sport.
Visa is a founding member of The Olympic Partner (TOP) program, a
global sponsorship program which was founded by the IOC in 1985 with
the goal of establishing long-term partnerships that would directly
benefit athletes, who are at the heart of the Olympic Movement. Visa
also became the first global partner of the International Paralympic
Committee (IPC) in 2003.
The TOP Program is the highest level of Olympic and Paralympic
sponsorship, through which a select group of global partners support
the Summer, Winter, and Youth Olympic Games and Paralympic Games as
part of a long-term, multi-Games partnership. Funding from these
sponsorships goes directly to support all 206 National Olympic
Committees (NOCs), dozens of International Sports Federations (IFs),
and every Organizing Committee of the Olympic and Paralympic Games. In
addition, sponsors develop global marketing campaigns that promote
Olympic and Paralympic values, encourage participation in sport and
build support for athletes and teams.
Sponsorship activation enhances the Olympic Games experience for
spectators and provides people around the world with opportunities to
experience the Olympic ideals. Sponsorship support also contributes to
the success of the educational, environmental, cultural, and youth-
oriented initiatives of the Olympic Movement, including the IOC Young
Leaders development program, career mentoring programs, job
opportunities, and financial literacy programs. TOP partners support
athletes 365 days a year, not just the 17 days of the Games, including
by supporting athletes with career and economic empowerment
opportunities, as well as mental health and well-being programs.
I would like to address the issues that bring us here today.
It is important to make clear that sponsors like Visa have no say
in the countries selected by the IOC to host the Games. It has been
that way for the entirety of our 35-year partnership and remains that
way today.
Indeed, the foundation of our sponsorship has always been
supporting the incredible Olympic and Paralympic athletes and hopefuls
in their journeys to achieve their dreams. And, as long as governments
allow athletes to participate in the Games, we will be there to support
the athletes.
Without the contributions of the Olympic Partners, the world's best
athletes simply would not have the opportunity to compete at the Games.
In fact, 90 percent of all IOC revenues are redistributed to support
athletes and sports organizations globally, including the 206 National
Olympic Committees and International Sports Federations.
This support is even more critical for Team USA athletes, as the
United States Olympic and Paralympic Committee (USOPC) relies solely on
private funding to deliver on their mission of empowering American
athletes to achieve sustained competitive excellence and well-being.
We have been told by the IOC, IPC, USOPC, and countless athletes
that our unwavering support over the last eighteen months has been
particularly important to athletes who have faced immeasurable
challenges and uncertainty caused by the pandemic.
In addition to our sponsorship of the Olympic Movement, Visa
created its own athlete support program, called Team Visa, more than
two decades ago, which has become a blueprint for other private sector-
sponsored athlete initiatives. Focused on supporting athletes before,
during, and after the Olympic and Paralympic Games, we are proud that
more than 500 Olympic and Paralympic athletes have joined the Team Visa
roster to date.
Athletes from around the world are selected based on athletic
achievements, as well as their character, personal journeys, and
embodiment of Visa's values.
Olympians and Paralympians representing the United States have
generally had the largest representation on Team Visa. And, more than
half of Team Visa athletes have been women.
Many Team Visa athletes have had to overcome significant challenges
to rise to the highest levels of competition. They have shared stories
about not having the financial resources to cover their basic needs--
let alone have proper equipment to train with. They have overcome
childhood diseases and potentially career-ending injuries. Others have
recounted how personal and emotional hardship--like a lack of family
support--nearly ended their careers before they started.
We also have athletes that have had to flee their countries due to
conflict and violence. During the 2016 Rio Games, for example, Team
Visa proudly included 10 refugee athletes, who beat great odds to reach
the top of their respective sports and were an inspiring addition to
the Team Visa family.
Overcoming these challenges to pursue a career in sports has not
been easy. The Olympic Games have been a bright spot for many athletes
and allowed them to achieve their lifelong dreams. The world has
watched as these athletes have accomplished the unimaginable--win
medals for their countries for the first time in history, break world
records, leave lasting legacies in their sports, and inspire future
generations to follow in their footsteps.
Amazingly, these challenges and victories don't even tell the
complete story of our Team Visa athletes. While training, many of our
athletes are also pursuing academic degrees, running non-profit
organizations to give back to the communities where they grew up, and
raising families.
They also proudly represent a multitude of life experiences and
beliefs. Their perseverance, dedication, and character are truly
admirable.
The Team Visa roster for Tokyo 2020 is comprised of 102 athletes
from 54 countries and 28 sports--it is our largest, most diverse, and
inclusive roster in our history. Team Visa includes Olympians and
Paralympians representing the United States in soccer, gymnastics,
surfing, beach volleyball, mountain biking, para cycling, and
wheelchair basketball.
We look forward to naming our Team Visa athletes for the 2022
Winter Games later this year.
Visa's financial contributions support Team Visa athletes on and
off the field. On the field, financial support helps to fund equipment,
training, and travel costs, and competition fees, among other expenses.
Off the field, Visa provides athletes with a range of tools and
resources to help athletes reach their highest potential in sport and
in life. Our efforts include supporting athletes to:
Gain access to financial literacy education and
resources.
Build their brand through exposure and integration into
global and regional Visa advertising campaigns.
Access our network of clients and partners. For example,
a Team Visa athlete recently joined a panel at Visa's ``She's Next''
event focused on female-owned small businesses, while two other Team
Visa athletes shared insights on mental and physical health and
resilience, as part of a `well-being webinar' hosted by one of Visa's
major global financial institution clients.
Build a sense of community through our Team Visa Summit,
which brings athletes together from different countries and
backgrounds.
As Olympic and Paralympic athletes transition to the next chapter
of their lives, our support continues by giving them the opportunity to
participate in a two-year business rotational program at Visa to
explore a professional career beyond sports. We are also currently
working in partnership with the IOC to extend the financial literacy
program available to Team Visa athletes to all Olympic and Paralympic
athletes.
Visa's drive to help build a better world through sport is
reflected in our longstanding Olympic sponsorship, and our broader
commitment to connect the world to enable individuals, businesses, and
economies to thrive.
We know that when we empower someone--whether a local shop owner
who is accessing much-needed funds to build their business or an
athlete competing for the first time in the Olympic Games--we can bring
about positive change to uplift everyone, everywhere.
Chairman Merkley, Co-chairman McGovern, members of the Commission,
and fellow Olympic Partners, thank you again for the opportunity to
represent Visa today. I am happy to address any questions you have.
______
Prepared Statement of Hon. Jeff Merkley
Good morning. Welcome to today's hearing of the Congressional-
Executive Commission on China entitled ``Corporate Sponsorship of the
2022 Beijing Olympics.''
As the world watches the Olympics currently unfolding in Japan,
this Commission remains deeply disturbed that in less than seven months
another Olympic Games is scheduled to begin in the shadow of some of
the world's most egregious human rights abuses. The Olympic Games exist
to uplift the human spirit. Yet unless something dramatically changes,
in a few months' time the Games will be held in a country that
continues to mercilessly crush the human spirit, in Xinjiang, in Hong
Kong, and in Tibet; among human rights activists and civil society; and
anywhere where defenders of freedom stand up to the Chinese
government's bullying.
This hearing will explore how Olympic corporate sponsors can
leverage their influence to insist on concrete human rights
improvements in China and how they will manage the reputational and
material cost of being associated with an Olympic Games held in the
midst of genocide. It follows up on recommendations made at a May 18
hearing we held jointly with the Tom Lantos Human Rights Commission
titled ``China, Genocide and the Olympics.'' That hearing demonstrated
just how deep the bicameral and bipartisan congressional concern is on
this issue. I am especially grateful to Representatives McGovern and
Smith for their partnership and leadership.
For this hearing, we have invited the U.S.-based companies who
sponsor the Olympics through The Olympic Partner Programme (TOP) of the
International Olympic Committee. We are pleased that all five companies
whose TOP sponsorships run through the 2022 Beijing Olympics have
agreed to testify. These companies are some of the most well-known and
respected brands in the world. This hearing is not meant to attack or
embarrass individual U.S. companies but rather to explore how key
Olympic movement stakeholders, corporate stakeholders, can use their
influence to ensure that the Olympics lives up to its values.
Holding the 2022 Winter Olympics in China and allowing its
authoritarian government to reap the rewards in prestige and propaganda
of hosting this globally beloved event does not uphold the Olympic
spirit. There is a parallel. That parallel is Berlin in 1936, when
Hitler used the Olympics to put a real shine on his country at the same
time he was already engaged in horrific acts against his own citizens,
and worse was to come. But in this situation it's worse than Berlin in
1936 because the genocide is already underway.
As my co-chairman said in our last hearing, this is not the time
for business as usual. We want to hear how TOP sponsors can help us
deny the Chinese government its propaganda coup; support inspirational
athletes without channeling the money through an IOC that has
demonstrated little regard for internationally recognized human rights;
influence the IOC to improve its policies so that the Olympics are
never again awarded to a country engaged in genocide and gross
violations of human rights; and embrace Olympic ideals of diversity and
inclusion without supporting Olympic organizing committees that plan
opening and closing ceremonies that will cynically display religious
and ethnic minorities that in reality are being subjected to the
cruelest forms of mass internment, slavery, forced sterilization,
religious repression, and destruction of cultural practices.
Prepared Statement of Hon. James P. McGovern
Thank you, Mr. Chairman, for convening this timely hearing entitled
``Corporate Sponsorship of the 2022 Beijing Olympics.''
We hold this hearing as the Summer Games are ongoing in Tokyo. We
wish the athletes the best of luck. But the Tokyo Olympics are being
held under a cloud. In Japan there is strong domestic opposition to
Games being held during the COVID crisis. No fans can attend. Some
athletes, including Americans Sha'Carri Richardson and Becca Meyers,
were denied the ability to compete due to arcane or obsolete rules.
This cloud is so heavy that Toyota, perhaps the best-known Japanese
company in the world, pulled its Olympic TV ads to stop its brand image
from being tarnished. Its CEO joined executives from Panasonic, NTT,
NEC, and Fujitsu in choosing not to attend the opening ceremonies in
their host country.
In less than seven months, the Winter Olympics are scheduled to
take place in China. Unless things change quickly, the Beijing Games
will be held under a cloud as well--a different cloud--of genocide,
crimes against humanity, gross violations of human rights, and denial
of religious freedom. The Congressional-Executive Commission on China
has documented these abuses. Our work helped lay the foundation for a
legislative response.
In the last three years, we have passed major human rights
legislation on the Uyghurs, Tibet, and Hong Kong. My CECC colleagues
and I are working to pass our Uyghur Forced Labor Prevention Act.
Both the Trump and Biden Administrations have taken action to
respond to Chinese abuses, including a ban on certain imports from
Xinjiang made with forced labor and sanctions against complicit Chinese
officials. Congress and the executive branch are doing our part. Now we
ask you, as American companies, to do your part.
Congress and the executive branch are acting because, when it comes
to the Chinese government committing atrocities, we do not accept
business as usual. Today we ask whether you will treat the Beijing
Olympics as business as usual.
As U.S-based Olympic sponsors, your companies represent America on
the world stage. We ask whether you are willing to stand up for
universal values and use your leverage against genocide and crimes
against humanity.
Last week, Senators Merkley and Rubio, and Congressman Smith and I,
asked the International Olympic Committee to postpone the Beijing
Olympics and relocate them if China does not change its behavior. If we
can delay an Olympics for a year for a pandemic--that's what we did in
Tokyo--we can delay it for a year for genocide. We received the IOC's
response. They said they would do nothing, not even acknowledge the
atrocities in China.
Today we ask you, as American companies, if you will stand with
human rights principles to take action against the abuses in China. Or
will you side with the IOC and do nothing.
We hope you agree that your company's reputational risk--noting
that each of your testimonies cited your company's human rights
values--is not worth the association with an Olympics held in the midst
of genocide. If Toyota can do it, why can't you?
What is particularly galling about the IOC's response is its cold
indifference to genocide. This is not a policy disagreement, this is
not a trade dispute, this is not about politics, this is not even a
question about a particular system of government. This is about
genocide.
We all appreciate all that your companies contribute to our country
and our economy, providing jobs and all that you produce. But we are
here because we are genuinely horrified by what is happening. We hope
you are, too. The question is what you are going to do about it.
______
Prepared Statement of Hon. Chris Smith
Today's hearing is the second in a series which began with a
hearing I chaired joined by Co-chair McGovern and Chairman Merkley on
May 18, 2021, entitled ``China, Genocide and the Olympics.''
While that hearing featured testimony from civil society human
rights experts, today's hearing will focus on the corporate sponsors of
the Beijing Olympics--in effect those who underwrite and help
legitimize the ``Genocide Olympics.''
For let's be very clear what we are talking about here, and why
multiple hearings and concrete action on this topic are called for--
first and foremost we not only see genocide and concentration camps
directed against Uyghurs and Kazakhs in the Xinjiang Uyghur Autonomous
Region in particular, but also the ongoing eradication of the culture
of Tibet, the harvesting of organs of Falun Gong practitioners, the
destruction of Christian churches, and the dismantling of freedom in
Hong Kong.
And yet for many American corporations, it is business as usual
when it comes to China, notwithstanding the Communist government's
repeated unwillingness to abide by its obligations and written
agreements, including, in the case of Hong Kong, a bilateral treaty
with the government of the United Kingdom.
And while I appreciate that several corporations have sent their
representatives to testify at this hearing, I cannot but shake my head
in dismay when I read the preening about compliance with Environmental,
Social and Governance (ESG) principles and the virtue signaling about
their support for Olympic athletes.
For example, we have a submission from Visa's Andrea Fairchild
which touts ESG compliance, yet not once mentions Xinjiang or the
underlying violations of human rights which have prompted this series
of hearings. Nor is she the only one. In fact, unless I overlooked
something, the only submission that even mentions Xinjiang, and makes
an attempt to deal directly with at least some of the underlying
issues, appears to be the submission of Intel's Steve Rodgers.
To help clarify the issue before our witnesses begin speaking, what
we are talking about are State crimes up to and including genocide--a
determination made by two Secretaries of State in succeeding
administrations, one Republican, one Democratic. And if it helps
crystalize the issue further, unlike 1936 and the Berlin Olympics where
Hitler sought to showcase the superiority of Nazism, much as the
Chinese Communist Party is seeking to use the Olympics as a platform to
tout its alternative vision of global governance--the world in 2022
cannot claim that the extent of the PRC's genocide remains unknown.
In light of this, my colleagues and I--Senators Merkley and Rubio,
Lantos Commission Co-chair Jim McGovern--wrote to the International
Olympic Committee's President Thomas Bach last week, stating
unequivocally that ``No Olympics should be held in a country whose
government is committing genocide and crimes against humanity.''
Nor should this be any surprise, as in October 2018, Senator Rubio
and I had also written IOC President Bach, asking the IOC ``to review
and ultimately reassign the location of the 2022 Winter Olympics given
credible reporting of the mass arbitrary internment of one million or
more Uyghurs or other Muslim ethnic minorities in China's Xinjiang
Uyghur Autonomous Region (XUAR) and other ongoing human rights abuses
by the Chinese government.''
Did any of you convey opposition to the IOC regarding Beijing as
host of the 2022 Winter Games, and if so, can you provide the
Commission with that documentation?
In the early 1990s, when China was seeking to host the 2000 Olympic
Games, I met the father of the Democracy Wall Movement Wei Jingsheng in
Beijing who had been released from prison to help the CCP persuade the
IOC to select Beijing for the 2000 Games. After the PRC was denied the
Games, he was promptly rearrested and tortured, before eventually being
released and allowed to come to the United States in 1997.
Wei Jingsheng testified in 1998 before my human rights subcommittee
and said that the bullies in the Chinese Laogai and prisons beat and
torture prisoners of conscience more when U.S. officials kowtow and
appease--and less when we are resolute and serious and penalize
barbaric behavior.
The PRC was eventually awarded the Olympics in 2008--over the
rigorous protests of me and many others--so immediately prior to the
beginning of the Games, Congressman Frank Wolf and I traveled to
Beijing to raise the issue of human rights and highlight the fact that
the CCP was arresting dissidents in and around Beijing to prevent
contact with journalists.
It is these issues which our corporate witnesses need to squarely
address today, and how they can reconcile their ostensible commitment
to human rights with subsidizing an Olympics held in a country which is
actively committing human rights abuses up to and including genocide.
Moral posturing notwithstanding, they need to squarely address why we
should not conclude that their motive is the short-term pursuit of
profit, and not the loftier aspirations their submissions are cloaked
in.
Granted, these corporations are not as directly complicit in
China's abuses as, say, Thermo Fisher Scientific, whose DNA sequencers
were used to collect the biometric data of Uyghurs. Further to that
point, in 2006, I held a hearing where representatives of Google,
Cisco, Yahoo! and Microsoft testified as to their role in assisting the
repression in China.
The year before, Yahoo! had shared information with China's secret
police which led to the arrest and imprisonment of cyber dissident Shi
Tao. Yahoo! also handed over data regarding one of its users, Li Zhi,
who had criticized corrupt local Chinese Communist Party officials in
online discussion, for which he was sentenced to eight years in prison.
While your complicity might not be so direct, your corporate
involvement in the Olympic Games nonetheless does further the interests
of the government of China, which will utilize the Olympics as a
platform to showcase its governance model, all while signaling that
crimes up to and including genocide should not interfere with business
as usual.
I also want to address a claim that we often hear when the issue of
an Olympic boycott is broached--what about the athletes who have
sacrificed so hard to make it to the Olympics? Yes, their willingness
to sacrifice is admirable, exemplified by their commitment to rigorous
training regimens and time spent away from family and friends. But
sometimes greater sacrifice is called for, from each of us, athletes
too.
I think of Ted Williams, the last baseball player to hit .400. He
sacrificed about six years during the prime of his career to serve his
country in both World War II and the Korean War. He flew a jet fighter,
a Navy F9F Panther, in 39 combat missions in Korea. On one of those
missions, his plane was hit and badly damaged, forcing him to crash
land.
Finally, I want to close by mentioning where this genocidal mania
against the Uyghurs and other Central Asian Muslim minorities like the
Kazakhs originates--at the very top. In 2014, Xi Jinping, labeling all
Uyghurs who dissented as terrorists, told his officials to ``wipe them
out completely. Destroy root and branch . . . show no mercy.''
This has led not only to massive internment in concentration camps
in Xinjiang, but also to the tracking down of Uyghur dissidents from
around the globe and seeking to have them extradited or renditioned
back to China, often from Muslim countries such as Egypt and even
Turkey, which in the past had provided refuge.
One particularly egregious example of this came to my attention
yesterday--a 34-year-old Uyghur activist named Yidiresi Aishan, who had
landed in Morocco from a flight originating in Istanbul, was arrested
by Moroccan authorities, apparently at the request of Chinese
government officials. I understand Yidiresi is in imminent danger of
being repatriated to the People's Republic of China. I intend to reach
out to the Moroccan foreign ministry to ask that they withhold any
removal proceedings, given the danger that Yidiresi faces in the PRC.
Perhaps my colleagues would like to join me.
One reason I mention this individual is that I would like our
witnesses to keep in mind that at the end of the day, in this case as
in so many others, it is a person, with a name, who is being oppressed.
The fanfare of the Olympics cannot drown that out.
With that, I look forward to your testimony.
Submissions for the Record
------
Uyghurs and Tibetans Locked Out of Airbnb in China's
Latest Crackdown on Ethnic Minorities
[From The Telegraph, July 27, 2021]
(By Sophia Yan)
Accommodation listings on Airbnb in China at times explicitly ban
ethnic minority groups such as Uyghurs and Tibetans, a move that rights
groups say runs counter to the company's non-discrimination policy of
``inclusion and respect.''
Some properties also exclude renters from politically sensitive
places including Hong Kong and Macau, where China has been working to
snuff out opposition, and Taiwan, a democratically governed island with
its own leader, currency, and military that Beijing deems a runaway
province.
``This apartment is not able to receive Uyghur visitors due to
restrictions by the local police,'' reads one listing for a place in
Sanya, a resort town on an island in southern China.
Another listing for the city of Chongqing says that it's not able
to ``receive foreigners, visitors from Hong Kong, Macau, Taiwan,
Xinjiang and Tibet.''
Ethnic minorities from Tibet and Xinjiang, where most Uyghurs in
China reside, ``should contact us in advance,'' writes another Airbnb
host for a place in the coastal city of Qinhuangdao.
These details are peppered within descriptions from hosts that list
other basic house rules and information about the properties, such as
``no pets,'' ``no smoking,'' ``free toiletries,'' and ``hair dryer
available.''
The Chinese government has ramped up a crackdown against ethnic
minority groups, including Uyghurs and Tibetans, and has also exerted
pressure in Hong Kong and Macau, as well as over Taiwan.
Human rights violations in Xinjiang--where more than one million
Uyghurs are estimated to have been detained in `re-education' camps--
have been so severe that the UK, US, EU and Canada announced
coordinated sanctions against Chinese officials in March.
As such, rights groups have been calling for companies to rethink
their footprint in China.
Firms like Airbnb, a corporate sponsor of the 2022 Winter Olympics,
to be held in China next February, have come under additional pressure
to pull their support for the Games.
On Tuesday, the US Congressional-Executive Commission on China will
hear testimony from American firms sponsoring the Olympics including
Airbnb, Coca-Cola, Intel, Visa and Proctor & Gamble, a major consumer
goods company that makes everything from Tide laundry detergent to
Crest toothpaste.
``The fact Airbnb is still deciding to go ahead and sponsor the
Olympics should make users question whether Airbnb's values of
inclusion and diversity truly are universal or only apply in regions
where that's popular socially, where it's considered trendy to be
inclusive,'' said Pema Doma, campaigns manager at Students for a Free
Tibet, an advocacy group.
Airbnb is ``contributing to furthering the repression,'' said
Zumretay Arkin, program manager at the World Uyghur Congress. ``It
would be unacceptable in the US, or any other country, if for example
Airbnb banned black people from booking their listings.''
``Uyghurs are already very limited in their freedom of movement;
many of them don't have passports,'' she said, adding that
``discriminatory listings'' create yet another hurdle.
Airbnb said in a comment to the Telegraph: ``Everyone who uses
Airbnb must agree to our Community Commitment and we apply these
standards around the world, including in China.
``Language in listing descriptions that discriminates against
members of different minority groups is an unacceptable violation of
our Community Commitment and we take action to address it.
``We regularly scan for discriminatory language in China, and where
we encounter hosts who are unwilling to remove the language or abide by
our Non- Discrimination Policy, we have and will remove their listings
or accounts.''
For Uyghurs, travelling domestically can mean getting approval from
the police and constant monitoring while on the go, while travelling
internationally has before been enough to land a person in a detention
camp, based on former detainees' testimonies as told to the Telegraph.
There's a ``tendency from companies like Airbnb to say `we're just
following local laws,' but what happens when those local laws directly
discriminate and violate the rights of certain ethnic groups or people,
like Tibetans and Uyghurs?'' said Ms Doma.
``There is clear responsibility for domestic and foreign firms
under the UN's guiding principles on business and human rights to
ensure their business practices don't create or contribute to human
rights violations, like discrimination on the basis of ethnicity, and
if and when they find it, they are expected to provide some kind of
remedy,'' said Sophie Richardson, China director at Human Rights Watch.
Airbnb first entered the China market in 2015, and has encountered
a number of challenges since as detailed in documents filed by the firm
before listing publicly in New York last year.
One issue was how Airbnb would balance the Chinese government's
data-sharing requirements with consumer privacy concerns, which
eventually led to one executive resigning, according to a report by the
Wall Street Journal.
Airbnb has previously noted before going public that it would be
difficult to be profitable in China.
The company website details a nondiscrimination policy saying it's
``committed to building a world where people from every background feel
welcome and respected, no matter how far they have traveled from
home.''
The policy also says that the company recognises ``some
jurisdictions permit, or require distinctions among individuals based
on factors such as national origin, gender, marital status or sexual
orientation, and it does not require hosts to violate local laws or
take actions that may subject them to legal liability.''
Questions and Answers for the Record
______
Questions for David Holyoke of Airbnb from Senator Lankford
Question. As a large corporation that conducts business and has
locations in countries throughout the world, you have a unique
opportunity to ensure that human rights, particularly the right of all
people to have a faith, live that faith, change their faith, or have no
faith, is respected by and within your workplace. What policies does
your company have in place to ensure that religious freedom is
protected for your employees?
Answer. Airbnb is committed to ensuring that our place of work is
free of all forms of harassment and discrimination. This is embodied in
our Code of Ethics as well as our Global Harassment, Bullying,
Discrimination, and Retaliation Prevention Policy, which prohibits
discrimination, harassment, or unwelcome conduct based on religion.
Airbnb also provides reasonable accommodations to candidates and
employees with religion-based work limitations. Finally, our Beijing
office features a multi-faith prayer room open to all employees to use
to practice their faiths.
Question. Further, as corporate sponsors of the Olympic Games in
Beijing, you have a unique responsibility and honor to leverage your
sponsorship to uphold and promote human rights, religious liberty, and
human dignity. All of your written and oral statements expressed your
company's commitment to human rights. Given the rampant human rights
violations and the deterioration of freedom in China, how does being an
International Olympic Committee (IOC) TOP Sponsor of the 2022 Beijing
Olympic Games fit with Airbnb's commitment to human rights?
Does Airbnb intend to make a public statement condemning the
genocide and crimes against humanity happening in China?
Does Airbnb intend to provide a platform to individuals whose
unalienable rights have been denied by the Chinese Communist Party? If
so, how?
What are the minimum human rights standards for athletes, workers,
and spectators that Airbnb requires in order to participate in or
sponsor an event?
Once you were aware Beijing would be hosting 2022, did Airbnb
consider removing its sponsorship as a participant in the IOC's TOP
Programme?
Answer. As a sponsor of The Olympic Partners (TOP) Programme, we
are committed to a unique partnership to support both the economic
empowerment of individual athletes and the role that the Olympics and
Paralympics have historically played as a global movement to foster
people-to-people connections. Our partnership, including any
traditional global marketing campaigns, is designed to support
athletes, not any particular city or Games. Our approach is based on
three pillars:
1. Supporting and empowering athletes, particularly via the
creation of a specific category of Olympian and Paralympian Hosted
Experiences to provide them with a platform to share their voices and
earn extra income.
2. Providing accommodation support to the Olympic Family.
3. Supporting the Refugee Olympic and Paralympic Teams.
To date, we have committed millions of dollars to direct support
for athletes, including through the creation of the Airbnb Athlete
Grant, which supports up to 500 athletes a year with direct travel
credits to help meet their accommodation needs when they travel to
train or compete. We are proud that more than fifteen different Team
USA sports teams are finding ways to connect with each other and
continue their training while staying with Airbnb.
We are proud to do our small part through this partnership to
support Olympic and Paralympic athletes as they strive to achieve their
dreams and inspire the world.
Question. Does Airbnb's CEO intend to attend the Games?
Answer. Given the unique nature of our partnership, we will have a
limited staff presence on the ground in Beijing, just as we had in
Tokyo. We will continue to monitor the situation, including COVID-19
related travel restrictions, to inform our staff presence at the Games.
Question. The IOC has claimed that it cannot be held accountable
for the domestic policies of the host countries and that it has a
policy of noninterference. While I understand the desire to remain
neutral on global political issues, I would argue that Beijing's
nefarious actions in recent years--from the erosion of Hong Kong's
autonomy to genocide in Xinjiang--fall outside the scope of domestic
policy concerns. As an IOC TOP sponsor, has Airbnb asked the IOC to use
the findings from the March 2020 Recommendations Report to vet host
countries?
Has Airbnb asked the IOC to consider another host for 2022?
Answer. Prior to becoming a sponsor, we discussed a variety of
issues with the IOC, including human rights. We maintain an open
dialogue with the IOC on these issues, and we continue to encourage the
IOC to raise difficult issues directly with host governments and engage
with relevant stakeholders. This includes the importance of integrating
human rights into the Games. We have also urged the IOC to be more
transparent about the host site selection process.
Question. Does Airbnb take human rights into account before
deciding whether to sponsor an event in a certain country or whether to
expand or establish offices or facilities in a certain country?
Answer. As a company, our values, and principles have long
reflected our recognition of and respect for human rights, and we are
committed to enforcing our non-discrimination policies and our
Community Commitment around the world. Prior to becoming a sponsor, we
discussed a variety of issues with the IOC, including human rights. We
maintain an open dialogue with the IOC on these issues.
Before launching an operating company in China, we evaluated human
rights impacts with an outside expert and established some foundational
principles and safeguards for operating in China, like we do in other
parts of the world. We have continued to consult with human rights
experts, and we have staff with human rights expertise.
Question. As a sponsor, what factors informed your decision to
participate in the IOC's TOP Programme rather than providing direct
support to U.S. athletes through the United States Olympic and
Paralympic Committee?
Answer. We partnered with the IOC because we want to empower the
Olympic athletes who make the Games great and embody the best of the
Olympic spirit around the world. Our partnership with the IOC spans
nine years and encompasses five Olympic and Paralympic Games. It is
organized around programs that provide dedicated support to individual
athletes on an ongoing basis, including through the U.S. Olympic and
Paralympic Committee. Additionally, a key element of the partnership
includes developing programs to provide longer-term support for refugee
athletes and the Refugee Olympic Team. And we are proud that nearly 100
U.S. Olympians and Paralympians have benefited from Airbnb's Athlete
Travel Grant and more than fifteen Team USA sports teams are finding
ways to connect with each other and continue their training while
staying with Airbnb.
Question. For the 2008 Beijing Olympics, Chinese residents were
displaced to construct the Olympic venues, while the CCP detained human
rights demonstrators, censored the internet, restricted media access,
and limited speech. Although corporate sponsors do not have a direct
role in the selection of a host country, their tremendous financial
sway can be leveraged to influence the final outcome. Has Airbnb raised
concerns directly with officials in the Chinese Communist Party to
express expectations for human rights leading up to, during, and after
the Olympic Games?
What pressure has Airbnb applied to the IOC to date to influence
the selection of host sites for future Games?
How does Airbnb intend to leverage its position in future site
selection processes?
How does Airbnb intend to apply this same approach to other
international sporting events?
Answer. In general, we do not comment on our private conversations
with governments. Our operations in China are guided by several
principles, including transparency with our community and being
thoughtful about safeguards in our product and operations. We have also
been clear about our non-discrimination policy in China. Everyone who
uses Airbnb must agree to our Community Commitment, and we have applied
these standards around the world, including in China.
Prior to and since becoming a sponsor, we discussed and continue to
encourage the IOC to raise difficult issues directly with host
governments and engage with relevant stakeholders. This includes the
importance of integrating human rights into the Games. We have also
urged the IOC to be more transparent about the host site selection
process.
Question. You have already been asked about the uniforms of the IOC
staff, which were contracted by a Chinese company that uses Xinjiang-
sourced cotton and manufactures its products at a factory in Xinjiang.
To the larger issue of forced labor in China, what procedures does
Airbnb have in place to ensure that its representatives do not receive
or use any product made with forced labor in China?
What procedures are in place to make sure Airbnb is not
manufacturing, selling, or trading products made using forced labor?
What procedures does Airbnb have in place to ensure that none of
the products or services you provide during the Olympics are used
directly or indirectly to further the systemic human rights violations
in China?
Answer. Our business is different from many companies with more
traditional supply chains operating in China. We do not manufacture
products in China or elsewhere. Stays in China have accounted for
approximately 1 percent of revenue for the last few years. While China
has been a very minimal part of our financial success, our current
presence in the country reflects our purpose of enabling individual
economic empowerment and bringing people together from communities and
neighborhoods around the world to bridge cultures. In this context, we
believe that travel can be a transformative and powerful experience--it
can break down barriers, help people get to know one another, and
foster acceptance and belonging, including in China, which is home to
roughly 20 percent of the world's population. Airbnb has a long track
record of economically empowering individuals, and we're proud that
hosting on Airbnb is an important source of income for our Hosts.
Question. Specifically, how will Airbnb ensure that no person is
excluded from receiving or purchasing your goods or services based on
ethnicity or religion?
Answer. Everyone who uses Airbnb must agree to our Community
Commitment, and they are expected to understand and comply with local
laws and regulations, as applicable. We have applied these standards
around the world, including in China. When we encounter Hosts who are
unwilling or who fail to abide by our Non-Discrimination Policy, we
have and will remove their listings. We are constantly working to
review and improve our policies and procedures.
Question. How will Airbnb ensure that none of the equipment it is
using at the Olympics will be used for surveillance purposes by the CCP
for further human rights abuses?
Answer. Airbnb will have a limited staff presence on the ground in
Beijing. We do not anticipate use of any equipment that could be used
for surveillance purposes.
Question. During the hearing, many of my colleagues have brought up
domestic issues where Airbnb has been vocal. While these issues may
impact Airbnb directly, as it is a company based in the United States,
it is puzzling why Airbnb chooses to remain silent on the genocide and
crimes against humanity in China yet engages in politically
controversial discussions in the United States. Please explain more
fully why Airbnb engages on domestic matters in the United States but,
despite being a company that sells its product around the world, does
not engage on other important international human rights issues and
abuses.
Answer. As a global company operating in more than 220 countries
and regions around the world, we strive to combat discrimination
anywhere that it exists on our platform. Everyone who uses Airbnb must
agree to our Community Commitment, a global standard that requires all
members of our community to affirmatively agree ``to treat everyone in
the Airbnb community--regardless of their race, religion, national
origin, ethnicity, skin color, disability, sex, gender identity, sexual
orientation, or age--with respect, and without judgment or bias.'' This
Commitment reflects our principles and applies to everyone who uses
Airbnb around the world, including in the U.S., China, and all the
countries where the Olympics are scheduled to take place over the
course of our partnership. On an ongoing basis we have removed listings
and people from the platform when we find they violate this Community
Commitment. This is an important part of our work to address bias and
discrimination on our platform, which are antithetical to our mission
and values.
We also work with a range of international organizations to ensure
that we are promoting belonging and fighting bias and discrimination.
For example, we are proud to support the UN Standards of Conduct for
Business on Tackling Discrimination against LGBTQ People. Our core
values and policies reflect our recognition of and respect for human
rights, as informed by internationally recognized standards such as the
Universal Declaration of Human Rights and the United Nations Guiding
Principles on Business and Human Rights (UNGPs). We plan to build on
this commitment by ensuring that our policies and procedures continue
to respect human rights.
______
Questions for David Holyoke of Airbnb from Representative Chris Smith
In your written testimony, you stated:
Everyone who uses Airbnb must agree to our Community
Commitment, a global standard that requires all members of our
community to affirmatively agree ``to treat everyone in the
Airbnb community--regardless of their race, religion, national
origin, ethnicity, skin color, disability, sex, gender
identity, sexual orientation, or age--with respect, and without
judgment or bias.'' This Commitment applies to everyone who
uses Airbnb around the world. On an ongoing basis, in markets
throughout the world--including in all the countries where the
Olympics are scheduled to take place over the course of our
partnership--we have removed listings and people from the
platform when we find that they violate this Community
Commitment. This is an important part of our work to address
bias and discrimination on our platform, which are antithetical
to our mission and values.
Yet there are credible reports, including a July 20 article
published by The Telegraph, that Uyghurs and Tibetans still face
significant discrimination on Airbnb's platform. For example, one such
listing cited in the article said: ``Another listing for the city of
Chongqing says that it's not able to `receive foreigners, visitors from
Hong Kong, Macau, Taiwan, Xinjiang, and Tibet.' ''
Question. Can you address the accuracy of The Telegraph's reporting
that racial, ethnic, and religious discrimination is still widespread
on Airbnb's China platform?
Answer. We strive to combat discrimination anywhere that it exists
on our platform. Everyone who uses Airbnb must agree to our Community
Commitment, and they are expected to understand and comply with local
laws and regulations, as applicable. We have applied these standards
around the world, including in China. Listings that discriminate
against racial, ethnic, or religious minorities have no place on our
site, and we work hard to identify and remove them.
More broadly, when we encounter Hosts who are unwilling or who fail
to abide by our Non-discrimination Policy, we have and will remove
their listings. We are constantly working to review and improve our
policies and procedures.
Question. Given your non-discrimination policy, what would you
advise an Airbnb Host that didn't want to discriminate against a Uyghur
or other minority solely on the basis of race, ethnicity, or religion?
Answer. Please see the response to your previous question. Our
Community Commitment is a global standard that requires all members of
our community to affirmatively agree ``to treat everyone in the Airbnb
community--regardless of their race, religion, national origin,
ethnicity, skin color, disability, sex, gender identity, sexual
orientation, or age--with respect, and without judgment or bias.'' This
Commitment applies to everyone who uses Airbnb around the world,
including in China.
Question. Corporate statements to the effect that Airbnb supports
athletes and not governments notwithstanding, would you agree that the
willingness of Airbnb to remain a corporate sponsor of the Olympics
allows the PRC to use the reputation and incredible good will that
Airbnb and other sponsors have built up over decades to legitimize its
genocidal acts and create a climate of indifference to their crimes?
(Per The Telegraph, Zumretay Arkin, program manager at the World Uyghur
Congress, stated that Airbnb is ``contributing to furthering the
repression,'' and ``It would be unacceptable in the U.S., or any other
country, if for example Airbnb banned black people from booking their
listings.'')
Answer. As a sponsor of The Olympic Partners (TOP) Programme, we
are committed to a unique partnership to support both the economic
empowerment of individual athletes and the role that the Olympics and
Paralympics have historically played as a global movement to foster
people-to-people connections. Our partnership, including any
traditional global marketing campaigns, is designed to support
athletes, not any particular city or Games. Our approach is based on
three pillars:
1. Supporting and empowering athletes, particularly via the
creation of a specific category of Olympian and Paralympian Hosted
Experiences to provide them with a platform to share their voices and
earn extra income.
2. Providing accommodation support to the Olympic Family.
3. Supporting the Refugee Olympic and Paralympic Teams.
To date, we have committed millions of dollars to direct support
for athletes, including through the creation of the Airbnb Athlete
Grant, which supports up to 500 athletes a year with direct travel
credits to help meet their accommodation needs when they travel to
train or compete. We are proud that more than fifteen different Team
USA sports teams are finding ways to connect with each other and
continue their training while staying with Airbnb.
We are proud to do our small part through this partnership to
support Olympic and Paralympic athletes as they strive to achieve their
dreams and inspire the world.
Question. Does Airbnb have a plan to mitigate the potential for its
sponsorship of the 2021 Beijing Olympics to help enable or normalize
the PRC's genocide against the Uyghurs?
Answer. Prior to becoming an Olympic sponsor, we discussed a
variety of issues with the IOC, including the importance of values such
as human rights, and we continue to discuss these issues. We encourage
the IOC to raise difficult issues with host governments and to engage
with relevant stakeholders.
As a TOP Partner, Airbnb's partnership, including any traditional
global marketing campaigns, is designed to support athletes, not any
particular city or Games. Airbnb has no formal agreement regarding the
Beijing 2022 Olympic and Paralympic Games, nor with any of the host
city governments of the Games.
______
Questions for Paul Lalli of The Coca-Cola Company
from Representative Chris Smith
Question. You stated in your testimony that you are proud that you
have sponsored every Olympics since 1928. In retrospect, would you say
that Coca-Cola is proud of its sponsorship of the 1936 Berlin Olympics?
Can you provide us with a complete description of your advertising
campaigns for the 1936 Berlin Olympics?
Answer. The 1936 Olympic Games were sponsored by The Coca-Cola
Company's local German operations. This was a highly localized Games
and there is no record of promotion outside of Germany.
Question. In your written testimony, you noted that ``to date, we
have conducted more than 35,000 human rights assessments at supplier
and bottler sites, including 2,279 in 2020.'' How many have you
conducted in China since Beijing was selected as the host city in 2015?
How many were in Xinjiang?
Answer. Since 2015, The Coca-Cola Company has conducted
approximately 1,736 full third-party audits and 951 reassessment audits
in China. The Company has also conducted 11 third-party audits in
Xinjiang. The Company has limited operations in the province but has
audited all bottler, supply chain, and packaging sites in line with its
Supplier Guiding Principles program and protocols.
______
Questions for Paul Lalli of The Coca-Cola Company
from Senator James Lankford
Question. As a large corporation that conducts business and has
locations in countries throughout the world, you have a unique
opportunity to ensure that human rights, particularly the right of all
people to have a faith, live that faith, change their faith or have no
faith is respected by and within your workplace. What policies does
your company have in place to ensure that religious freedom is
protected for your employees?
Answer. Respect for human rights is a fundamental value of The
Coca-Cola Company and is embedded in our culture and strategy. The
Company's Human Rights Policy expressly prohibits discrimination of any
type within our own operation, including religious discrimination. This
prohibition is applied to our supply chain through the Company's
Supplier Guiding Principles and enforced through a global audit
program.
Question. Further, as corporate sponsors of the Olympic Games in
Beijing, you have a unique responsibility and honor to leverage your
sponsorship to uphold and promote human rights, religious liberty, and
human dignity. All of your written and oral statements expressed your
company's commitment to human rights. Given the rampant human rights
violations and the deterioration of freedom in China, how does being an
International Olympic Committee (IOC) TOP Sponsor of the 2022 Beijing
Olympic Games fit with Coca-Cola's commitment to human rights?
Answer. The Coca-Cola Company has been a sponsor of Olympic
athletes for nearly a century. We take seriously our role in helping
embed respect for human rights in the lifecycle of the Olympics and
other mega-sporting events which we sponsor. As a sponsor, our
influence is limited. We therefore seek to collaborate to drive
meaningful change. We do so through direct engagement with sports
bodies, other sponsors, and civil society, as well as through critical
multi-stakeholder initiatives such as the Centre for Sport and Human
Rights, of which we are a founding member and initial sole funder. We
also do so by ensuring that our own participation as a sponsor is in
line with our Human Rights Policy, including the sourcing of any
products provided by the Company for such events.
Question. Does Coca-Cola intend to make a public statement
condemning the genocide and crimes against humanity happening in China?
Answer. Respect for human rights is a fundamental value of The
Coca-Cola Company and our commitment is embedded in our culture and
strategy. Our policies clearly and publicly state our position against
any type of human rights violation, regardless of where they may occur.
In line with the United Nations Guiding Principles on Business and
Human Rights, our human rights program focuses on ensuring that our own
operations and those of our business partners avoid negative human
rights impacts. We do this through a robust policy and training
program, a vast global audit program, and constant stakeholder
engagement focused again on our value chain.
Question. What are the minimum human rights standards for athletes,
workers, and spectators that Coca-Cola requires in order to participate
in or sponsor an event?
Answer. Our touchstone is the United Nations Guiding Principles on
Business and Human Rights. The Coca-Cola Company was among the first
companies voluntarily to commit to the Guiding Principles, under which
businesses are expected to do their best to identify and address human
rights risks to individuals and communities across their value chain--
from supplier to consumer. Realizing these ideals requires constant
vigilance for continuous improvement.
In the context of global sporting events, we strive to align our
actions with the Guiding Principles through the Centre for Sport and
Human Rights. The international world of sport is vast and complex,
with many stakeholders, including governments, civil society, and the
private sector. The Centre provides a unique multi-stakeholder platform
to galvanize engagement and meaningful progress in the ethical conduct
of global sporting events.
Question. Once you were aware that Beijing would be hosting 2022,
did Coca-Cola consider removing its sponsorship as a participant in the
IOC's TOP Programme?
Answer. The Coca-Cola Company has no impact or vote on site
selections made by the IOC. Our sponsorship is contractually agreed
until 2032.
Question. Does Coca-Cola's CEO intend to attend the Games?
Answer. We will continue to support athletes across the globe while
Coca-Cola China will activate locally as the host market of the 2022
Winter Olympic and Paralympic Games.
Question. The IOC has claimed that it cannot be held accountable
for the domestic policies of the host countries and that it has a
policy of noninterference. While I understand the desire to remain
neutral on global political issues, I would argue that Beijing's
nefarious actions in recent years--from the erosion of Hong Kong's
autonomy to genocide in Xinjiang--fall outside the scope of domestic
policy concerns. As an IOC TOP sponsor, has Coca-Cola asked the IOC to
use the findings from the March 2020 Recommendations Report to vet host
countries?
Answer. The Coca-Cola Company has long been engaging the IOC and
other sports bodies on the importance of embedding respect for human
rights into the lifecycle of mega-sporting events, and we were pleased
that the IOC implemented many of the recommendations included in the
2020 report as part of its future host city selection process.
Question. Has Coca-Cola asked the IOC to consider another host for
2022?
Answer. The Coca-Cola Company has no impact or vote on site
selections made by the IOC. As a sponsor, The Coca-Cola Company is not
involved in the selection of the host country for Olympic events or in
any decisions to relocate Games. We recognize the importance of the
Games being run in a responsible manner and respecting the human rights
of all involved regardless of where they are held. We remain active in
multi-stakeholder efforts to embed respect for human rights in all
facets of the event.
Question. Does Coca-Cola take human rights into account before
deciding whether to sponsor an event in a certain country or whether to
expand or establish offices or facilities in a certain country?
Answer. As a global company, we seek to provide our beverages in
all markets where the U.S. Government authorizes American companies to
do business. Respect for human rights is a fundamental value of The
Coca-Cola Company and our commitment is embedded in our culture and
strategy. Our touchstone is the United Nations Guiding Principles on
Business and Human Rights, the global benchmark for corporate human
rights responsibility. The Coca-Cola Company was among the first
companies voluntarily to commit to the Guiding Principles, under which
businesses are expected to do their best to identify and address human
rights risks to individuals and communities across their value chain--
from supplier to consumer.
The Coca-Cola Company embeds respect for human rights across our
system with a coherent and comprehensive framework of policies, due
diligence, and remediation processes aligned with the Guiding
Principles. Our Human Rights Policy captures our overall commitment to
human rights and applies to all our operations. We expect the same of
all our suppliers and bottling partners. Our Supplier Guiding
Principles and our Principles for Sustainable Agriculture are
contractually binding on suppliers, with clear and strict human rights
expectations.
Question. As a sponsor, what factors informed your decision to
participate in the IOC's TOP Programme rather than providing direct
support to U.S. athletes through the United States Olympic and
Paralympic Committee?
Answer. The Coca-Cola Company has supported Olympic Games around
the world for over 90 years. The vast majority of our sponsorship, 90
percent, goes directly to national Olympic committees--like Team USA--
and the IOC Refugee Olympic Team. Our support for sport comes from a
commitment to athletes and we ensure that most of our funding flows to
the participants--and aspiring participants--themselves.
Question. For the 2008 Beijing Olympics, Chinese residents were
displaced to construct the Olympic venues, while the CCP detained human
rights demonstrators, censored the internet, restricted media access,
and limited speech. Although corporate sponsors do not have a direct
role in the selection of a host country, their tremendous financial
sway can be leveraged to influence the final outcome. Has Coca-Cola
raised concerns directly with officials in the Chinese Communist Party
to express expectations for human rights leading up to, during, and
after the Olympic Games?
Answer. The Coca-Cola Company's Human Rights Policy unequivocally
states our unwavering commitment to respect for human rights in our own
operations and throughout our value chain. We demonstrate this
commitment by operating in line with our policy around the world and
requiring our business partners to do the same. With respect to the
Olympics and other mega-sporting events which it sponsors, the Company
has made clear to sports bodies its expectations that such events
respect human rights throughout their respective lifecycles. This
expectation is made both through direct dialogue with key stakeholders
and, most importantly, through active involvement with the multi-
stakeholder initiatives such as the Centre for Sport and Human Rights.
Question. What pressure has Coca-Cola applied to the IOC to date to
influence the selection of host sites for future Games?
Answer. With respect to the Olympics and other mega-sporting events
which it sponsors, the Company has made clear to sports bodies its
expectations that such events respect human rights throughout their
respective lifecycles. This expectation is made both through direct
dialogue with key stakeholders and, most importantly, through active
involvement with the multi-stakeholder initiatives such as the Centre
for Sport and Human Rights.
Question. How does Coca-Cola intend to leverage its position in
future site selection processes?
Answer. With respect to the Olympics and other mega-sporting events
which it sponsors, the Company has made clear to sports bodies its
expectations that such events respect human rights throughout their
respective lifecycles. This expectation is made both through direct
dialogue with key stakeholders and, most importantly, through active
involvement with the multi-stakeholder initiatives such as the Centre
for Sport and Human Rights.
Question. How does Coca-Cola intend to apply this same approach to
other international sporting events?
Answer. With respect to the Olympics and other mega-sporting events
which it sponsors, the Company has made clear to sports bodies its
expectations that such events respect human rights throughout their
respective lifecycles. This expectation is made both through direct
dialogue with key stakeholders and, most importantly, through active
involvement with the multi-stakeholder initiatives such as the Centre
for Sport and Human Rights.
Question. You have already been asked about the uniforms of the IOC
staff, which were contracted by a Chinese company that uses Xinjiang-
sourced cotton and manufactures its products at a factory in Xinjiang.
To the larger issue of forced labor in China, what procedures does
Coca-Cola have in place to ensure that its representatives do not
receive or use any product made with forced labor in China?
Answer. We expect our global suppliers and system partners,
wherever they operate, to embrace responsible workplace practices and
uphold the principles of our Human Rights Policy, including an express
prohibition on any form of forced labor. We communicate these
expectations through our Supplier Guiding Principles (SGP). The SGP are
aligned with our Human Rights Policy and are a part of all contractual
agreements between The Coca-Cola Company and our direct and authorized
suppliers. We expect our suppliers to develop and implement appropriate
internal business processes in compliance with the SGP. We closely
monitor the implementation of the SGP by direct, authorized suppliers
and apply the equivalent audits to independent bottlers. The Company
utilizes independent third parties to assess supplier and bottler
compliance. Assessments include confidential interviews with employees
and onsite contract workers. If a supplier or bottler fails to uphold
any aspect of the audit requirements, including failing to abide by our
express prohibition on any form of forced labor, the failure must be
systemically corrected, and remediation conducted where applicable, to
continue doing business with the Company.
The SGP program also includes regular training of suppliers and
bottlers on the Company's human rights principles, with a focus on
forced and child labor. The Company also triangulates information from
audits through regular engagement with civil society stakeholders and
government officials, to ensure that its program is continuously
improving in its quest to detect and prevent human rights harm within
the Company's value chain.
Question. What procedures are in place to make sure Coca-Cola is
not manufacturing, selling, or trading products made using forced
labor?
Answer. We expect our global suppliers and system partners,
wherever they operate, to embrace responsible workplace practices and
uphold the principles of our Human Rights Policy, including an express
prohibition on any form of forced labor. We communicate these
expectations through our Supplier Guiding Principles (SGP). The SGP are
aligned with our Human Rights Policy and are a part of all contractual
agreements between The Coca-Cola Company and our direct and authorized
suppliers. We expect our suppliers to develop and implement appropriate
internal business processes in compliance with the SGP. We closely
monitor the implementation of the SGP by direct, authorized suppliers
and apply the equivalent audits to independent bottlers. The Company
utilizes independent third parties to assess supplier and bottler
compliance. Assessments include confidential interviews with employees
and onsite contract workers. If a supplier or bottler fails to uphold
any aspect of the audit requirements, including failing to abide by our
express prohibition on any form of forced labor, the failure must be
systemically corrected, and remediation conducted where applicable, to
continue doing business with the Company.
The SGP program also includes regular training of suppliers and
bottlers on the Company's human rights principles, with a focus on
forced and child labor. The Company also triangulates information from
audits through regular engagement with civil society stakeholders and
government officials, to ensure that its program is continuously
improving in its quest to detect and prevent human rights harm within
the Company's value chain.
Question. What procedures does Coca-Cola have in place to ensure
that none of the products or services you provide during the Olympics
are used directly or indirectly to further the systemic human rights
violations in China?
Answer. We expect our global suppliers and system partners,
wherever they operate, to embrace responsible workplace practices and
uphold the principles of our Human Rights Policy, including an express
prohibition on any form of forced labor. We communicate these
expectations through our Supplier Guiding Principles (SGP). The SGP are
aligned with our Human Rights Policy and are a part of all contractual
agreements between The Coca-Cola Company and our direct and authorized
suppliers. We expect our suppliers to develop and implement appropriate
internal business processes in compliance with the SGP. We closely
monitor the implementation of the SGP by direct, authorized suppliers
and apply the equivalent audits to independent bottlers. The Company
utilizes independent third parties to assess supplier and bottler
compliance.
Question. Specifically, how will Coca-Cola ensure that no person is
excluded from receiving or purchasing your goods or services based on
ethnicity or religion?
Answer. The Coca-Cola Company is a global business that operates
locally in every community where we source, produce, and sell our
products. We are proud that The Coca-Cola Company's value chain spans
to more than 200 countries and territories across the globe. That scale
is possible because consumers the world over--of all backgrounds,
beliefs, and income levels--can and do enjoy our array of drinks.
Question. How will Coca-Cola ensure that none of the equipment it
is using at the Olympics will be used for surveillance purposes by the
CCP for further human rights abuses?
Answer. The Coca-Cola Company markets, manufactures, and sells
beverage concentrates, syrups and finished beverages (including
sparkling soft drinks; water and sports drinks; juice, dairy, and
plant-based drinks; and tea and coffee). We do not produce equipment
that could be used for surveillance purposes.
Question. During the hearing, many of my colleagues have brought up
domestic issues where Coca-Cola has been vocal. While these issues may
impact Coca-Cola directly, as it is a company based in the United
States, it is puzzling why Coca-Cola chooses to remain silent on the
genocide and crimes against humanity in China yet engages in
politically controversial discussions in the United States. Please
explain more fully why Coca-Cola engages on domestic matters in the
United States but, despite being a company that sells its product
around the world, does not engage on other important international
human rights issues and abuses.
Answer. As a business, we recognize that our role is important, but
it is also inherently and appropriately limited. While Coca-Cola
operates in 200+ countries and territories, we were founded and remain
headquartered in the U.S. The Coca-Cola Company has been engaged in the
public policy debates surrounding voting rights in the United States
since 1965.
______
Questions for Steven R. Rodgers of Intel
from Senator Lankford
Question. As a large corporation that conducts business and has
locations in countries throughout the world, you have a unique
opportunity to ensure that human rights, particularly the right of all
people to have a faith, live that faith, change their faith or have no
faith is respected by and within your workplace. What policies does
your company have in place to ensure that religious freedom is
protected for your employees?
Answer. Intel respects, values, and welcomes diversity in its
workforce. We strive to provide an environment where employees from
diverse backgrounds--including religious backgrounds--are valued,
respected, acknowledged, and rewarded so they can achieve their
potential and fulfill their career aspirations. We encourage employee
connection and engagement through our network of Intel Chartered
Employee Resource Groups, which include a number of faith-based groups.
These groups unite around a significant common affinity or element of
their personal identity and are focused on internal and external
activities that build an environment of inclusion.
This year, Intel was proud to be recognized as the most religiously
inclusive workplace among the United States' 200 largest companies,
according to the 2021 Corporate Religious Equity, Diversity and
Inclusion (REDI) Index.\1\ This award also earned Intel a Gold Medal
and the highest award among the 2021 Global Business and Interfaith
Peace Award Winners.
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\1\ https://religiousfreedomandbusiness.org/redi
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Further, Intel does not discriminate based on race, color,
religion, religious creed, sex, national origin, ancestry, age,
physical or mental disability, medical condition, genetic information,
military and veteran status, marital status, pregnancy, gender, gender
expression, gender identity, sexual orientation, or any other
characteristic protected by local law, regulation, or ordinance.
Specifically, Intel maintains an Equal Employment & Opportunity
Guideline which sets forth Intel's commitment not to discriminate
against employees or applicants on the basis of religion. Intel
maintains the following additional policies and tools designed to
ensure that religious freedom for Intel employees is protected and that
individuals have mechanisms to report concerns or potential violations
of law or company policy, including discrimination.
Intel's Code of Conduct
Intel's Global Human Rights Principles
Intel's Anti-harassment Policy
Intel's Non-retaliation Policy
Intel's Integrity Line, which serves as an anonymous
mechanism that individuals can use anywhere around the world to report
any allegations of misconduct, including potential violations of law.
Question. Further, as corporate sponsors of the Olympic Games in
Beijing, you have a unique responsibility and honor to leverage your
sponsorship to uphold and promote human rights, religious liberty, and
human dignity. All of your written and oral statements expressed your
company's commitment to human rights. Given the rampant human rights
violations and the deterioration of freedom in China, how does being an
International Olympic Committee (IOC) TOP Sponsor of the 2022 Beijing
Olympic Games fit with Intel's commitment to human rights?
Answer. Intel's sponsorship of the Olympics supports the Games'
overarching mission to bring athletes together from every corner of the
world to compete vigorously and peacefully, to experience fellowship,
and to participate in the symbolic nature of a diverse, inclusive, and
global event that celebrates excellence among us. Consistent with our
mission to create world-changing technology that enriches the lives of
every person on earth, our sponsorship of the Olympics provides Intel
with the opportunity to develop technology that delivers unique
experiences to the Olympic athletes and those who support them.
Intel respects and promotes human rights globally, has a
longstanding record as a leader in human rights, and condemns all
abuses of human rights anywhere they occur. Intel's Global Human Rights
Principles were first adopted in 2009 and apply to all employees and
contingent workers, employees of our subsidiaries, our products and
services, and our business relationships, including our partners and
supply chain. They embody common principles reflected in international
frameworks such as the United Nations (UN) Global Compact, the
Universal Declaration of Human Rights, the UN Guiding Principles on
Business and Human Rights, core International Labour Organization
Conventions, and the Organization for Economic Co-operation and
Development Guidelines for Multinational Enterprises. We regularly
assess human rights-related risks and potential impacts, review our
policies and management processes, and seek input from stakeholders on
our approach. We also support the advancement of human rights through
our global efforts to help bridge the digital divide, expand education
and technology access, promote social innovation, and improve
conditions in our supply chain. We are committed to being a responsible
member of the communities in which we live and work.
Question. Does Intel intend to make a public statement condemning
the genocide and crimes against humanity happening in China?
Answer. Intel is aware of the U.S. State Department's
determinations regarding the Xinjiang Region, and we are also aware of
the U.S. Government's ban on the importation of certain products
sourced from the Xinjiang region.
Intel's commitment to respecting human rights is set forth in
Intel's Global Human Rights Principles, which are publicly available on
Intel.com. \2\ Intel does not condone human rights violations anywhere
in the world, and we follow the rule of law and seek to operate
ethically everywhere we do business. This includes taking steps to
ensure that we work to prevent, detect, and mitigate the risk of Intel
being complicit in human rights abuses globally.
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\2\ https://www.intel.com/content/www/us/en/homepage.html
Question. Does Intel intend to provide a platform to individuals
whose unalienable rights have been denied by the Chinese Communist
Party? If so, how?
Answer. Intel provides channels for any individual to report
concerns of possible violations of law, the Intel Code of Conduct, or
other company policies or procedures via Intel's anonymous reporting
line, available publicly from Intel's website. \3\
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\3\ https://secure.ethicspoint.com/domain/media/en/gui/31244/
index.html
Question. What are the minimum human rights standards for athletes,
workers, and spectators that Intel requires in order to participate in
or sponsor an event?
Answer. We hold ourselves, our suppliers and business partners to
high ethical business standards, including to our Global Human Rights
Principles, and we engage in cross-industry organizations and with
external human rights experts to continuously improve our processes in
order to mitigate the risk of human rights violations in our
operations, supply chain, business partnerships, and products.
Our Global Human Rights Principles formalize Intel's commitment to
respect human rights and embody common principles reflected in the
United Nations (UN) Global Compact, the Universal Declaration of Human
Rights, the UN Guiding Principles on Business and Human Rights, core
International Labour Organization Conventions, the Organization for
Economic Co-operation and Development Guidelines for Multinational
Enterprises, and the laws of the countries in which we operate.
Question. Once you were aware that Beijing would be hosting 2022,
did Intel consider removing its sponsorship as a participant in the
IOC's TOP Programme?
Answer. Intel's sponsorship of the Olympics spans across multiple
Games and cities, including PyeongChang, Tokyo, Beijing and Paris.
Our Olympic partnership is not an endorsement of any specific host
country. We're supportive of the Games' mission to bring together
athletes from all over the world to compete, peacefully, and of the
symbolism of such a diverse, global event.
Question. Does Intel's CEO intend to attend the Games?
Answer. At this time, Intel's CEO plans to attend the opening
ceremony of the Games, conditions permitting.
Question. The IOC has claimed that it cannot be held accountable
for the domestic policies of the host countries and that it has a
policy of noninterference. While I understand the desire to remain
neutral on global political issues, I would argue that Beijing's
nefarious actions in recent years--from the erosion of Hong Kong's
autonomy to genocide in Xinjiang--fall outside the scope of domestic
policy concerns. As an IOC TOP Sponsor, has Intel asked the IOC to use
the findings from the March 2020 Recommendations Report to vet host
countries?
Answer. Earlier this year, Intel's CEO met with the President of
the IOC and raised the issue of human rights concerns and the 2022
Beijing Games directly, as well as the pressure created for Sponsors of
the Olympic Games overall. More recently, Intel has reinforced the
issue of human rights with the IOC in several follow-up conversations.
Additionally, Intel participates in the Centre for Sport and Human
Rights (CSHR) as a way to collaborate across many stakeholders and
engage on issues related to human rights and sports globally.
We will continue to engage with the IOC and other stakeholders on
the topic of human rights.
Question. Has Intel asked the IOC to consider another host for
2022?
Answer. We respect the mission of the Games and the role of the
IOC, and have spoken to the IOC concerning human rights. The IOC is
better positioned to determine the status of the Games as it relates to
host countries.
Question. Does Intel take human rights into account before deciding
whether to sponsor an event in a certain country or whether to expand
or establish offices or facilities in a certain country?
Answer. Intel respects and promotes human rights globally, condemns
all abuses of human rights, and does not support or tolerate our
products being used to violate human rights. Intel's Global Human
Rights Principles first adopted in 2009 apply to all employees and
contingent workers, employees of our subsidiaries, our products and
services, and our business relationships, including our supply chain.
We regularly assess human rights-related risks and potential impacts,
review our policies and management processes, and seek input from
stakeholders on our approach. We have established an integrated
approach to managing human rights across our business which includes
board-level oversight.
Intel conducts human rights due diligence globally consistent with
the UN Guiding Principles on Business and Human Rights. As a company,
we focus on our most salient human rights risks, some of which include
forced labor in our supply chain and ensuring the responsible use of
Intel's products. Multiple teams across our organization coordinate and
are responsible for conducting due diligence and risk assessments,
remediating any findings, and implementing controls and procedures to
prevent future issues. We hold ourselves, our suppliers and business
partners to high ethical business standards, and we engage in cross-
industry organizations and with external human rights experts to
continuously improve our processes in order to mitigate the risk of
human rights violations in our operations, supply chain, business
partnerships, and products.
Question. As a sponsor, what factors informed your decision to
participate in the IOC's TOP Programme rather than providing direct
support to U.S. athletes through the United States Olympic and
Paralympic Committee?
Answer. Intel's sponsorship of the Olympics supports the Games'
overarching mission to bring athletes together to compete vigorously
and peacefully, to experience fellowship, and to participate in the
symbolic nature of a diverse, inclusive, and global event that
celebrates excellence among us. Our sponsorship of the Olympic Games
provides Intel with an opportunity to deliver unique experiences to the
Olympic athletes and those who support them.
In addition to our support of the Games and athletes as a TOP
Level Sponsor, Intel supports and sponsors athletes directly through
our Athlete365 program, \4\ by which we provide mentoring and
professional development training to athletes worldwide.
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\4\ https://olympics.com/athlete365/intel/
#::text=Athlete365%20supports%
20athletes%20on%20and%20they%20are%20on%20their%20journey
Question. For the 2008 Beijing Olympics, Chinese residents were
displaced to construct the Olympic venues, while the CCP detained human
rights demonstrators, censored the internet, restricted media access,
and limited speech. Although corporate sponsors do not have a direct
role in the selection of a host country, their tremendous financial
sway can be leveraged to influence the final outcome. Has Intel raised
concerns directly with officials in the Chinese Communist Party to
express expectations for human rights leading up to, during, and after
the Olympic Games?
Answer. Intel respects and promotes human rights globally and does
not condone human rights violations anywhere in the world. We conduct
human rights due diligence consistent with the UN Guiding Principles on
Business and Human Rights.
Question. What pressure has Intel applied to the IOC to date to
influence the selection of host sites for future Games?
Answer. Intel respects the mission of the Games and the role of the
IOC in the site selection process. Our sponsorship of the Games spans
multiple years and multiple cities, and our sponsorship is not an
endorsement of any specific host country.
Intel has spoken to the IOC concerning human rights. Earlier this
year, Intel's CEO met with the IOC President and raised the issue of
human rights concerns and the 2022 Beijing Games directly, as well as
the pressure created for Sponsors of the Olympic Games overall. More
recently, Intel has reinforced the issue of human rights with the IOC
in several follow-up conversations.
We will continue to engage with the IOC on these issues.
Question. How does Intel intend to leverage its position in future
site selection processes?
Answer. Intel's sponsorship of the Olympics supports the Games'
mission to bring athletes together to compete, experience fellowship,
and to participate in the symbolic nature of a global event that
celebrates diversity and excellence among us. As mentioned in the
previous response, we respect the role of the IOC in the site selection
process, and our sponsorship of the Games is not an endorsement of any
specific host country or of any of the activities that may occur in any
specific host country.
Per our previous response, we will continue to engage with the IOC
on issues related to human rights.
Question. How does Intel intend to apply this same approach to
other international sporting events?
Answer. At this time, Intel does not sponsor other international
sporting events at this scale. Should Intel sponsor another
international sporting event, we would hold ourselves, our suppliers
and business partners to high ethical business standards, including to
our Global Human Rights Principles, and engage in cross-industry
organizations and with external human rights experts to monitor and
mitigate the risk of human rights violations in our operations, supply
chain, business partnerships, and products.
Question. You have already been asked about the uniforms of the IOC
staff, which were contracted by a Chinese company that uses Xinjiang-
sourced cotton and manufactures its products at a factory in Xinjiang.
To the larger issue of forced labor in China, what procedures does
Intel have in place to ensure that its representatives do not receive
or use any product made with forced labor in China?
Answer. Intel conducts human rights due diligence globally
consistent with the UN Guiding Principles on Business and Human Rights.
As a company, we focus on our most salient human rights risks, some of
which include forced labor in our supply chain and ensuring the
responsible use of Intel's products.
For over a decade, Intel has maintained an extensive global Supply
Chain Responsibility program which includes many risk assessments and
audits of suppliers globally to validate conformance to the Responsible
Business Alliance (RBA) and Intel Code of Conduct. Through this effort,
we have worked with suppliers to remediate and close forced labor
findings. Intel developed a robust supplier capacity building program
in 2012 and has engaged with suppliers globally to help increase their
understanding of our expectations relative to human rights and other
critical corporate social responsibility (CSR) topics. We led multi-
stakeholder summits focused on CSR in Shanghai for several years, with
strong engagement from our suppliers, to improve supplier maturity
level and provide resources to help them increase their conformance to
the RBA and Intel Code of Conduct, which include extensive human rights
elements.
After conducting due diligence, we have confirmed that Intel does
not use any labor or source goods or services from the Xinjiang region.
Question. What procedures are in place to make sure Intel is not
manufacturing, selling, or trading products made using forced labor?
Answer. Over the past decade, we have directly engaged with our
suppliers to ensure compliance with our corporate responsibility
expectations and build capacity to address risks of forced and bonded
labor and other human rights issues. Our 2030 goals significantly
expand the number of suppliers covered by our engagement activities to
deepen accountability for human rights throughout our global supply
chain. As mentioned in the previous response, Intel has maintained an
extensive global Supply Chain Responsibility program which includes
many risk assessments and audits of suppliers to validate conformance
to both the Intel and the RBA Code of Conduct, and we have worked with
suppliers to remediate and close forced labor findings.
At Intel, we believe that collaboration is key to addressing broad,
longstanding issues. Intel cofounded and serves on the working group of
the multi-industry, multi-stakeholder Responsible Labor Initiative
(RLI), which aims to protect and promote the rights of vulnerable
workers globally.
Question. What procedures does Intel have in place to ensure that
none of the products or services you provide during the Olympics are
used directly or indirectly to further the systemic human rights
violations in China?
Answer. Intel's focus is on developing technology that can improve
people's lives, such as by supporting education, medicine,
transportation, scientific research, commercial Internet services and
more. Our sponsorship of the Olympic Games provides Intel with an
opportunity to develop technologies to deliver unique experiences to
the Olympic athletes and those who support them.
While we do not always know nor can we control what products our
customers create or the applications end-users may develop, Intel does
not support or tolerate our products being used to violate human
rights. Where we become aware of a concern that Intel products are
being used by a business partner in connection with abuses of human
rights, we will restrict or cease business with the third party until
and unless we have high confidence that Intel's products are not being
used to violate human rights.
Question. Specifically, how will Intel ensure that no person is
excluded from receiving or purchasing your goods or services based on
ethnicity or religion?
Answer. Inclusion is a core Intel value. While we do not always
know nor can we control what products our customers create or how they
will be deployed, Intel does not support or tolerate our products being
used to violate human rights. Where we become aware of a concern that
Intel products are being used by a business partner in connection with
abuses of human rights, we will restrict or cease business with the
third party until and unless we have high confidence that Intel's
products are not being used to violate human rights.
Question. How will Intel ensure that none of the equipment it is
using at the Olympics will be used for surveillance purposes by the CCP
for further human rights abuses?
Answer. The Olympics presents an opportunity for Intel to showcase
and deploy our technologies for the benefit of athletes and spectators.
None of the technologies deployed at the Games track or enable
identification of individuals. The technology that will be deployed at
the Games includes:
broadcasting technology (5G-based wireless cameras used
in TV broadcasts; 8k broadcasting/streaming);
a VR entertainment center;
a digital education platform for schools;
autonomous driving systems (mapping/sensing) for use on
buses (these cameras can classify objects by categories but cannot
identify individuals);
AI that can analyze athlete performance and body motion
based on images (without being able to identify individuals); and
laptops provided to Team USA athletes.
While we do not always know nor can we control what products our
customers create or the applications end-users may develop, where we
become aware of a concern that Intel products are being used by a
business partner in connection with abuses of human rights, including
surveillance, we will restrict or cease business with the third party
until and unless we have high confidence that Intel's products are not
being used to violate human rights. This policy applies to all
technology deployed at the Olympics.
Question. During the hearing, many of my colleagues have brought up
domestic issues where Intel has been vocal. While these issues may
impact Intel directly, as it is a company based in the United States,
it is puzzling why Intel chooses to remain silent on the genocide and
crimes against humanity in China, yet engages in politically
controversial discussions in the United States. Please explain more
fully why Intel engages on domestic matters in the United States but,
despite being a company that sells its products around the world, does
not engage on other important international human rights issues and
abuses.
Answer. Intel engages on social issues in the United States because
we are an American company, and half of our global workforce and more
than half of our manufacturing and R&D is in the U.S.--far more than in
any other country.
______
Questions for Sean Mulvaney of Procter & Gamble
from Senator Lankford
Question. As a large corporation that conducts business and has
locations in countries throughout the world, you have a unique
opportunity to ensure that human rights, particularly the right of all
people to have a faith, live that faith, change their faith or have no
faith is respected by and within your workplace. What policies does
your company have in place to ensure that religious freedom is
protected for your employees?
Answer. The Procter & Gamble Company (``P&G'') recognizes diversity
as a source of strength and is committed to providing equal
opportunities in employment. P&G's Non-Discrimination Policy states
that it does not discriminate on the basis of religion or other
protected factors in recruiting, hiring, training, salary, and
promotion. Likewise, we set the same non-discrimination expectations in
our Responsible Sourcing Expectations for External Business Partners.
We have an anonymous reporting system, including a helpline staffed 24/
7 by an independent third party, that we encourage employees, partners,
NGOs, and other stakeholders to use to report potential violations of
these policies.
Question. Further, as corporate sponsors of the Olympic Games in
Beijing, you have a unique responsibility and honor to leverage your
sponsorship to uphold and promote human rights, religious liberty, and
human dignity. All of your written and oral statements expressed your
company's commitment to human rights. Given the rampant human rights
violations and the deterioration of freedom in China, how does being an
International Olympic Committee (IOC) TOP Sponsor of the 2022 Beijing
Olympic Games fit with Procter & Gamble's commitment to human rights?
Answer. P&G believes in the promise and potential of the Olympic
movement to unite the world through sport. That is why we initiated our
long-term global IOC sponsorship in 2012, and it is that promise we
stand behind as a sponsor. As part of a commitment that will span more
than two decades--beginning with our sponsorship of Team USA at the
2010 Vancouver Games and continuing through the 2028 Los Angeles
Games--P&G has supported Olympic athletes and their families. We
recognize that respecting human rights is foundational to the Olympic
movement and to realizing its ambition. As an Olympic sponsor, we have
supported various efforts aimed at strengthening the IOC's approach to
human rights, including its efforts to implement the UN Guiding
Principles on Business and Human Rights.
Question. Does Procter & Gamble intend to make a public statement
condemning the genocide and crimes against humanity happening in China?
Answer. P&G supports human rights all around the world in our
operations. We believe it is the role and responsibility of government
to make these determinations.
Question. Does Procter & Gamble intend to provide a platform to
individuals whose unalienable rights have been denied by the Chinese
Communist Party? If so, how?
Answer. Respecting human rights is fundamental to P&G's business,
and P&G believes that freedom of expression is an essential human
right. As an Olympic sponsor and a founding member of the Centre for
Sport and Human Rights, P&G has urged the IOC to provide protections on
free press and expression rights in the IOC's work with all host city
Olympic organization committees.
Question. What are the minimum human rights standards for athletes,
workers, and spectators that Procter & Gamble requires in order to
participate in or sponsor an event?
Answer. P&G expects our external business partners to maintain
policies that respect internationally recognized human rights, ensure
compliance with all applicable laws, and operate consistently with the
UN Guiding Principles on Business and Human Rights.
Question. Once you were aware that Beijing would be hosting 2022,
did Procter & Gamble consider removing its sponsorship as a participant
in the IOC's TOP Programme?
Answer. P&G's longstanding support for the Olympics has always
focused on supporting athletes and their families in the United States
and around the world. We believe in the promise and potential of the
global Olympic movement and that is why we initiated our multi-game,
global IOC sponsorship in 2012. Our focus from the very start of our
Olympics sponsorship has been to serve athletes and their families, who
rely on this funding to compete--before, during, and after the Games.
As an Olympic sponsor, P&G has no role in choosing where the
Olympic Games take place, nor are we able to force the IOC to make any
particular decision or choice about its own operations. Nonetheless,
our sponsorship contract requires the IOC to maintain policies
concerning compliance with applicable laws and respect for human
rights. In particular, both directly and in our work as a founding
member of the Centre for Sport and Human Rights, we have urged the IOC
to maintain human rights policies consistent with international
standards, including by integrating the UN Guiding Principles on
Business and Human Rights into the IOC's operations and host city
contracts and adopting human rights policies, practices, and
recommendations authored by internationally recognized human rights
experts.
Question. Does Procter & Gamble's CEO intend to attend the Games?
Answer. P&G has not yet determined whether members of the company's
senior leadership team will attend the 2022 Olympic Games.
Question. The IOC has claimed that it cannot be held accountable
for the domestic policies of the host countries and that it has a
policy of noninterference. While I understand the desire to remain
neutral on global political issues, I would argue that Beijing's
nefarious actions in recent years--from the erosion of Hong Kong's
autonomy to genocide in Xinjiang--fall outside the scope of domestic
policy concerns. As an IOC TOP Sponsor, has Procter & Gamble asked the
IOC to use the findings from the March 2020 Recommendations Report to
vet host countries?
Answer. Both directly and as a founding member of the Centre for
Sport and Human Rights, P&G has urged the IOC to implement the March
2020 ``Recommendations for an IOC Human Rights Strategy'' authored by
Rachel Davis and Prince Zeid Ra'ad Al Hussein. Specifically, these
recommendations include:
Articulating the IOC's human rights responsibilities,
specifically by amending the Olympic Charter to explicitly address
human rights and incorporating human rights into key IOC governing
documents;
Embedding respect for human rights within the IOC
organization, including by building human rights expertise and
capability within the IOC;
Identifying and addressing human rights risks, including
by strengthening due diligence;
Tracking and communicating progress to stakeholders; and
Strengthening the remedy ecosystem in sport.
Question. Has Procter & Gamble asked the IOC to consider another
host for 2022?
Answer. As an Olympic sponsor, P&G has no role in choosing where
the Olympic Games take place, nor are we able to force the IOC to make
any particular decision or choice about its own operations.
Question. Does Procter & Gamble take human rights into account
before deciding whether to sponsor an event in a certain country or
whether to expand or establish offices or facilities in a certain
country?
Answer. Yes. Respecting human rights is fundamental to our business
at P&G. Addressing human rights issues is not optional or a ``nice to
have,'' but a critical part of how we operate and manage our business.
Our commitment to respecting and prioritizing human rights is central
to our values as a company.
We have adopted policies to identify, mitigate, and address human
rights impacts that may occur across our global operations. We assess
direct suppliers on a number of parameters to identify high-risk
suppliers. We use independent third-party auditors and an industry-
standard methodology to conduct targeted supplier audits focused on
labor standards, health and safety, and business practices. We
encourage reporting of human rights concerns and take every report of a
potential human rights violation seriously.
Question. As a sponsor, what factors informed your decision to
participate in the IOC's TOP Programme rather than providing direct
support to U.S. athletes through the United States Olympic and
Paralympic Committee?
Answer. Our decade-long support for the Olympics has always focused
on supporting athletes and their families in the United States and
around the world. We believe in the promise and potential of the global
Olympic movement and that is why we initiated our multi-game, global
IOC sponsorship in 2012. Our focus from the very start of our Olympics
sponsorship has been to serve athletes and their families, who rely on
this funding to compete--before, during, and after the Games. As an
Olympic sponsor, we have provided sponsorships and programs that give
valuable economic support to more than 400 global athletes, including
more than 100 Team USA athletes and their families--wherever they
compete.
Question. For the 2008 Beijing Olympics, Chinese residents were
displaced to construct the Olympic venues, while the CCP detained human
rights demonstrators, censored the internet, restricted media access,
and limited speech. Although corporate sponsors do not have a direct
role in the selection of a host country, their tremendous financial
sway can be leveraged to influence the final outcome. Has Procter &
Gamble raised concerns directly with officials in the Chinese Communist
Party to express expectations for human rights leading up to, during,
and after the Olympic Games?
Answer. As an Olympic sponsor, P&G has no role in choosing where
the Olympic Games take place, nor can we force the IOC to make any
particular decision or choice about its business operations. However,
our sponsorship contract requires the IOC to maintain policies
concerning compliance with applicable laws and respect for human
rights. Both directly and in our work as a founding member of the
Centre for Sport and Human Rights, we have urged the IOC to integrate
the UN Guiding Principles on Business and Human Rights into its
operations and host city contracts.
Question. What pressure has Procter & Gamble applied to the IOC to
date to influence the selection of host sites for future Games? How
does Procter & Gamble intend to leverage its position in future site
selection processes?
Answer. As an Olympic sponsor, P&G has no role in choosing where
the Olympic Games take place, nor can we force the IOC to make any
particular decision or choice about its business operations. However,
our sponsorship contract requires the IOC to maintain policies
concerning compliance with applicable laws and respect for human
rights. Both directly and in our work as a founding member of the
Centre for Sport and Human Rights, we have urged the IOC to integrate
the UN Guiding Principles on Business and Human Rights into its
operations and host city contracts.
Question. How does Procter & Gamble intend to apply this same
approach to other international sporting events?
Answer. As a member of the Centre for Sport and Human Rights'
Advisory Board and Mega-Sporting Event working group, P&G has worked
with other private companies, non-governmental organizations, and sport
governing bodies to increase awareness of human rights issues in the
sporting world and to build capacity to address them.
Question. You have already been asked about the uniforms of the IOC
staff, which were contracted by a Chinese company that uses Xinjiang-
sourced cotton and manufactures its products at a factory in Xinjiang.
To the larger issue of forced labor in China, what procedures does
Procter & Gamble have in place to ensure that its representatives do
not receive or use any product made with forced labor in China?
Answer. Respecting human rights is fundamental to our business at
P&G. Addressing human rights issues is a critical part of how we
operate and manage our business. Our commitment to respecting and
prioritizing human rights is central to our values as a company.
In particular, P&G's Responsible Sourcing Expectations for External
Business Partners include prohibitions on the use of forced or child
labor, as well as a prohibition of coercion, harassment, or punishment
of workers. We have implemented protocols to help us identify
violations of these expectations, including an open and anonymous
reporting line, a self-assessment process, an investigations process,
and targeted risk-based auditing of suppliers in industries with
potential negative human rights impacts. We also encourage our partners
to set similar expectations with their own suppliers.
Question. What procedures are in place to make sure Procter &
Gamble is not manufacturing, selling, or trading products made using
forced labor?
Answer. P&G is committed to respecting and prioritizing human
rights in every area of the world in which we operate.
More broadly, we have adopted policies to identify, mitigate, and
address human rights impacts that may occur across our global
operations. We assess direct suppliers on a number of parameters to
identify high-risk suppliers. We use independent third-party auditors
and an industry-standard methodology to conduct targeted supplier
audits focused on labor standards, health and safety, and business
practices. We encourage reporting of human rights concerns and take
every report of a potential human rights violation seriously.
Question. What procedures does Procter & Gamble have in place to
ensure that none of the products or services you provide during the
Olympics are used directly or indirectly to further the systemic human
rights violations in China? Specifically, how will Procter & Gamble
ensure that no person is excluded from receiving or purchasing your
goods or services based on ethnicity or religion?
Answer. P&G is committed to respecting and prioritizing human
rights in every area of the world in which we operate. P&G supports the
human rights of all people and strives to ensure that all people,
regardless of ethnicity or religion, have equal access to our products.
P&G encourages anyone who is aware of a potential human rights concern
related to our business to report those concerns, and we take every
report of a potential human rights violation seriously.
Question. How will Procter & Gamble ensure that none of the
equipment it is using at the Olympics will be used for surveillance
purposes by the CCP for further human rights abuses?
Answer. P&G is committed to respecting and prioritizing human
rights in every area of the world in which we operate. This includes
respecting employee and consumer privacy.
We have adopted policies to identify, mitigate, and address human
rights impacts that may occur across our global operations. We assess
direct suppliers on a number of parameters to identify high-risk
suppliers. We use independent third-party auditors and an industry-
standard methodology to conduct targeted supplier audits focused on
labor standards, health and safety, and business practices. We
encourage reporting of human rights concerns and take every report of a
potential human rights violation seriously.
Question. During the hearing, many of my colleagues have brought up
domestic issues where Procter & Gamble has been vocal. While these
issues may impact Procter & Gamble directly, as it is a company based
in the United States, it is puzzling why Procter & Gamble chooses to
remain silent on the genocide and crimes against humanity in China yet
engages in politically controversial discussions in the United States.
Please explain more fully why Procter & Gamble engages on domestic
matters in the United States but, despite being a company that sells
its products around the world, does not engage on other important
international human rights issues and abuses.
Answer. P&G's efforts to promote human rights, equality, and
inclusion are fundamental to our business worldwide. With 65 brands
operating in 70 countries, and products available in 180 countries, our
engagement may not look the same in every country. As an American
company, we are and will continue to be actively engaged in our home
country. In the context of the Olympics, we believe that we can best
advance our human rights work by shining a light on the varied and
diverse experiences of athletes and their families. This includes
working as an active partner with the IOC and other TOP sponsors to
support the human rights of athletes as they engage in sport and
encouraging and supporting the IOC's efforts to integrate the UN
Guiding Principles on Business and Human Rights into IOC operations and
host city contracts.
______
Questions for Andrea Fairchild of Visa Inc.
from Senator Lankford
Question. As a large corporation that conducts business and has
locations in countries throughout the world, you have a unique
opportunity to ensure that human rights, particularly the right of all
people to have a faith, live that faith, change their faith or have no
faith is respected by and within your workplace. What policies does
your company have in place to ensure that religious freedom is
protected for your employees?
Answer. At Visa, having a diverse and inclusive workplace--enhanced
by the varied backgrounds and perspectives of our worldwide teams--is
critical to having a competitive advantage in the global economy. We
embrace a broad definition of diversity that includes religion, race,
ethnicity, and gender. We are strongly committed to equal opportunity
in all employment decisions and promote a culture where everyone is
treated with dignity and respect.
Our approach to respecting human rights in our company is guided by
international frameworks, including the Universal Declaration of Human
Rights (UDHR) and the United Nations Guiding Principles on Business and
Human Rights. Article 18 of the UDHR addresses religious freedom,
providing that ``[e]veryone has the right to freedom of thought,
conscience and religion'' and the right ``includes freedom to change
[a] religion or belief, and freedom, either alone or in community with
others and in public or private, to manifest [a] religion or belief in
teaching, practice, worship and observance.''
Finally, Visa prohibits any form of harassment or discrimination on
the basis of religion, creed, race, color, sex, sexual orientation,
gender identity or expression, age, marital status, national origin,
ancestry, pregnancy, medical condition, veteran status, citizenship,
physical or mental disability, and any other characteristic protected
by law.
Question. Further, as corporate sponsors of the Olympic Games in
Beijing, you have a unique responsibility and honor to leverage your
sponsorship to uphold and promote human rights, religious liberty, and
human dignity. All of your written and oral statements expressed your
company's commitment to human rights. Given the rampant human rights
violations and the deterioration of freedom in China, how does being an
International Olympic Committee (IOC) TOP Sponsor of the 2022 Beijing
Olympic Games fit with Visa's commitment to human rights?
Does Visa intend to make a public statement condemning the genocide
and crimes against humanity happening in China?
Does Visa intend to provide a platform to individuals whose
unalienable rights have been denied by the Chinese Communist Party? If
so, how?
What are the minimum human rights standards for athletes, workers,
and spectators that Visa requires in order to participate in or sponsor
an event?
Once you were aware Beijing that would be hosting 2022, did Visa
consider removing its sponsorship as a participant in the IOC's TOP
Programme?
Does Visa's CEO intend to attend the Games?
Answer. For more than 35 years, our partnership with the Olympic
Movement has been rooted in a shared commitment to make a positive,
transformational impact on the world, and in supporting the athletes.
The foundation of our worldwide sponsorship has always been supporting
the incredible Olympic and Paralympic athletes and making sure they
have the support and resources to compete. As long as governments allow
athletes to compete in the Games, Visa will be there to support them.
Visa supports human rights and the rule of law in every market
where we operate worldwide, and supports the UN Guiding Principles for
Business and Human Rights. Visa conducts a corporate-level human rights
impact assessment to identify salient human rights issues across our
business. Our human rights strategy, informed by these assessments,
focuses on our role as an employer, a purchaser, an e-payments enabler
and a business partner and sponsor. The assessment is conducted on a
triennial basis by an independent third party. The last assessment was
conducted in 2020 and confirmed that Visa is focusing on addressing
risks in the right areas.
Specifically with respect to sports, Visa is a founding supporter
and Advisory Council member of the Centre for Sport and Human Rights,
which is dedicated to advancing a vision of a world of sport that fully
respects and promotes human rights through knowledge sharing, capacity
building, and stronger accountability among stakeholders involved in
the sports ecosystem.
Visa has not yet decided which company officials might attend the
Beijing Games.
Question. The IOC has claimed that it cannot be held accountable
for the domestic policies of the host countries and that it has a
policy of noninterference. While I understand the desire to remain
neutral on global political issues, I would argue that Beijing's
nefarious actions in recent years--from the erosion of Hong Kong's
autonomy to genocide in Xinjiang--fall outside the scope of domestic
policy concerns. As an IOC TOP Sponsor, has Visa asked the IOC to use
the findings from the March 2020 Recommendations Report to vet host
countries?
Has Visa asked the IOC to consider another host for 2022?
Does Visa take human rights into account before deciding whether to
sponsor an event in a certain country or whether to expand or establish
offices or facilities in a certain country?
As a sponsor, what factors informed your decision to participate in
the IOC's TOP Programme rather than providing direct support to U.S.
athletes through the United States Olympic and Paralympic Committee?
Answer. Visa is a founding member of The Olympic Partner (TOP)
program, a global sponsorship program that was created by the IOC in
1985 with the goal of establishing long-term partnerships to directly
benefit athletes, who are at the heart of the Olympic Movement. Visa
also became the first global partner of the International Paralympic
Committee (IPC) in 2003.
The TOP Program is the highest level of Olympic and Paralympic
sponsorship, through which partners support the athletes competing at
the Summer, Winter, and Youth Olympic Games and Paralympic Games as
part of a long-term, multi-Games partnership. Our sponsorship extends
through 2032 and supports the Olympic Movement broadly, and it is far
broader than any particular Games in a particular city. Visa does not
sponsor individual Games. Furthermore, as a sponsor, Visa has no role
in the site selection process of where the Olympics are held. This has
been true for the entirety of our 35-year partnership with the IOC and
is true today. That decision sits entirely with the IOC.
Funding from these sponsorships goes directly to support the 206
National Olympic Committees (NOCs), dozens of International Sports
Federations (IFs), and every Organizing Committee of the Olympic and
Paralympic Games. In addition, sponsors develop global marketing
campaigns that promote Olympic and Paralympic values, encourage
participation in sport and build support for athletes and teams.
As noted in Answer 2, Visa supports human rights and the rule of
law in every market where we operate, as well as the UN Guiding
Principles for Business and Human Rights. Visa conducts a corporate-
level human rights impact assessment to identify salient human rights
issues across our business. Our human rights strategy, informed by
these assessments, focuses on our role as an employer, a purchaser, an
e-payments enabler and a business partner and sponsor. The assessment
is conducted on a triennial basis by an independent third party. The
last assessment was conducted in 2020 and confirmed that Visa is
focusing on addressing risks in the right areas.
Along with other TOP sponsors, Visa has had engagement with the IOC
regarding human rights. We have encouraged the IOC to adopt the
recommendations contained in its December 2020 report on Human Rights
Strategy.
Question. For the 2008 Beijing Olympics, Chinese residents were
displaced to construct the Olympic venues, while the CCP detained human
rights demonstrators, censored the internet, restricted media access,
and limited speech. Although corporate sponsors do not have a direct
role in the selection of a host country, their tremendous financial
sway can be leveraged to influence the final outcome. Has Visa raised
concerns directly with officials in the Chinese Communist Party to
express expectations for human rights leading up to, during, and after
the Olympic Games?
What pressure has Visa applied to the IOC to date to influence the
selection of host sites for future Games?
How does Visa intend to leverage its position in future site
selection processes?
How does Visa intend to apply this same approach to other
international sporting events?
Answer. We agree that TOP sponsors have an important role and voice
in supporting policies that advance our values. For that reason, Visa
has encouraged the IOC to adopt the recommendations contained in its
December 2020 report on Human Rights Strategy, which require an
intentional embedding of human rights into the culture and structure of
the organization and more accountability and transparency on this
issue.
Visa is a founding supporter and Advisory Council member of the
Centre for Sport and Human Rights, which is dedicated to advancing a
vision of a world of sport that fully respects and promotes human
rights through knowledge sharing, capacity building, and stronger
accountability among stakeholders involved in the sports ecosystem. We
have encouraged the IOC to join the Centre and actively engage with
relevant stakeholders on human rights issues, including sponsors, human
rights groups and government bodies. As noted above, our sponsorship
supports the Olympic Movement broadly, and not any particular Games at
a particular location.
Question. You have already been asked about the uniforms of the IOC
staff, which were contracted by a Chinese company that uses Xinjiang-
sourced cotton and manufactures its products at a factory in Xinjiang.
To the larger issue of forced labor in China, what procedures does Visa
have in place to ensure that its representatives do not receive or use
any product made with forced labor in China?
What procedures are in place to make sure Visa is not
manufacturing, selling, or trading products made using forced labor?
What procedures does Visa have in place to ensure that none of the
products or services you provide during the Olympics are used directly
or indirectly to further the systemic human rights violations in China?
Specifically, how will Visa ensure that no person is excluded from
receiving or purchasing your goods or services based on ethnicity or
religion?
How will Visa ensure that none of the equipment it is using at the
Olympics will be used for surveillance purposes by the CCP for further
human rights abuses?
Answer. Through our global Supplier Code of Conduct, we outline our
expectations in areas including human rights, employment practices,
environmental impact, supplier diversity, conflicts of interest and
other areas of responsible business. Further, we expect our suppliers
to champion these values in their own supply chains.
Visa does not have any facilities in the Xinjiang region.
Question. During the hearing, many of my colleagues have brought up
domestic issues where Visa has been vocal. While these issues may
impact Visa directly, as it is a company based in the United States, it
is puzzling why Visa chooses to remain silent on the genocide and
crimes against humanity in China yet engages in politically
controversial discussions in the United States. Please explain more
fully why Visa engages on domestic matters in the United States but,
despite being a company that sells its products around the world, does
not engage on other important international human rights issues and
abuses.
Answer. Visa has earned a reputation as one of the most trusted
brands globally and has been named as one of the world's most ethical,
responsible, and sustainable companies.\1\ In markets where we operate,
Visa regularly engages with governments and stakeholders on a range of
matters important to the company. Visa also publishes an annual
Environmental, Social and Governance (ESG) report,\2\ which provides an
update on progress on our commitments to corporate responsibility,
sustainability, and ethical leadership against Visa's most important
ESG goals. The report is publicly available, and it summarizes and
assesses our efforts to be an industry leader in environmental, social,
and governance excellence.
---------------------------------------------------------------------------
\1\ Morning Consult, Most Trusted Brands 2021; Ethisphere, 2021
World's Most Ethical Companies.
\2\ ``Visa 2020 Environmental, Social and Governance Report.''
---------------------------------------------------------------------------
At Visa, we recognize our responsibility to respect, advance, and
maintain global human rights across our company and operations, and in
connection with our global sponsorship programs. Our approach to
respecting human rights in our company is guided by international
frameworks, including the United Nations Guiding Principles on Business
and Human Rights.
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Witness Biographies
David Holyoke, Head of Olympics and Paralympics Partnerships,
Airbnb
David Holyoke leads the strategic direction, execution and
operation of the company's Experiences, Airbnb for Work, and the
Olympics/Paralympics Partnership teams. Under his leadership, his teams
power the growth and development of the Experiences platform to ensure
that the best accommodations solutions are built for the professional
community. He also oversees the team behind the IOC/IPC partnership to
ensure that the company's economic empowerment goal extends to the
athlete community. Prior to Airbnb, Mr. Holyoke established and built
Travel Leaders Corporate into one of the nation's largest travel
management companies. He began his career in sales at American
Airlines, eventually leading international sales and marketing efforts
at the airline's Boston, New York, and Miami hubs.
Paul Lalli, Global Vice President for Human Rights, The Coca-Cola
Company
As Global Vice President for Human Rights, Paul Lalli sets company
policy, leads engagement with civil society on human rights issues, and
oversees the Company's global value chain due diligence program. He
regularly engages with the Board of Directors on the company's human
rights and supplier auditing programs. Lalli also serves as the
Manufacturer Co-chair of the Consumer Goods Forum Human Rights
Coalition--Working to End Forced Labour (HRC). Prior to joining The
Coca-Cola Company, he served as GE's Global Counsel for Labor and Human
Rights. He is a graduate of Emory University and the University of
Pennsylvania Law School.
Steven R. Rodgers, Executive Vice President and General Counsel,
Intel Corporation
Intel's legal, government, and China groups report to Rodgers. He
also serves on Intel's senior executive team and reports to the chief
executive officer. Before joining Intel, Rodgers was a litigation
partner at Brown & Bain, P.A. After completing law school, he served as
law clerk to Chief Judge David K. Winder of the U.S. District Court for
the District of Utah. Rodgers received his bachelor's and law degrees
from the University of Utah. During law school, Rodgers was elected
editor-in-chief of the Utah Law Review. Rodgers is a member of the
American Law Institute.
Sean Mulvaney, Senior Director, Global Government Relations and
Public Policy, The Procter & Gamble Company
Before joining Procter & Gamble, Sean Mulvaney served as a member
of the Board of Directors of the Export-Import Bank of the United
States from June 2011 until July 2015. Prior to his service at the
Export-Import Bank, Mr. Mulvaney served as director of the Economic
Policy Program at the German Marshall Fund of the United States. During
the Administration of President George W. Bush, he worked for the U.S.
Agency for International Development as Assistant Administrator for
Management. In addition to his service in the executive branch, Mr.
Mulvaney has ten years of legislative experience on Capitol Hill,
serving various members working on trade and other policy issues. He
received a B.A.S. in Economics and French from Washington University in
St. Louis in 1990 and a master's degree in International Management
from Thunderbird, the American Graduate School of Global Management in
1997.
Andrea Fairchild, Senior Vice President of Global Sponsorship
Strategy, Visa Inc.
Ms. Fairchild joined Visa in 2021 as the SVP, Global Sponsorship
Strategy where she is responsible for leading Visa's global sponsorship
portfolio and activity to deliver Visa's brand, product, and client
objectives, in order to drive business and brand outcomes. Prior to
joining Visa, she provided brand building services for elite athletes
and for businesses that work with athletes, such as The Players'
Tribune. Ms. Fairchild led the effort to grow the Kobe Inc. multi-media
company aimed at using sports stories to inspire and educate young
athletes across multiple platforms. She previously spent over five
years with Gatorade and over ten years with Nike.
[all]