Adidas says image still unharmed by Olympic protests

MUNICH (Reuters) - German sports goods maker Adidas sees no immediate harm to its image from Olympics protests but cannot rule out negative effects in the future, its chief executive told shareholders on Thursday.

Adidas, the world's second-biggest sports goods maker, is one of 12 official sponsors of the Beijing Games, with the right to use the Olympic logo globally.

It has been swept into a debate about the role of sponsors after anti-Chinese unrest broke out in Tibet last month and pro-Tibet protesters disrupted the Beijing Olympic torch relay in London, Paris and other cities.

"We do not see damage to our image at the moment," Chief Executive Herbert Hainer told the annual general meeting, but he acknowledged this could change.

Hainer added that Adidas was committed to China by providing employment and this was the way it gave support.

Adidas has said it is aware of the "exceptional importance of the protection of human rights" but that Olympic sponsors should not be expected to solve political issues and boycotting the Games is counterproductive.

Critics used the annual meeting to voice their concerns.

"Adidas is a globally recognised sports brand, whose logo will be on display throughout the Olympics," press rights watchdog Reporters Without Borders, which attended the AGM, said in a statement.

"In order for this trademark to avoid being linked to human rights abuses in China, the company's management must not hesitate in publicly condemning the repressive methods of the Chinese government," its Asia expert Vincent Brossel said.

Advertisers believe companies committed to spending millions to advertise at the Games will not withdraw but could come under pressure to speak out over the host country's human rights record and pro-Tibet protests.

The chief executive of Germany's Volkswagen, the first foreign automaker to enter the Chinese market and a sponsor of the 2008 Games, has already urged the host nation to open up its society, he told shareholders last month.

(Reporting by Kathrin Schich, Writing by Sylvia Westall; editing by Sue Thomas)

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