18 Jun Unit 6_LS311_Discussion response
13520Respond or elaborate on response below:
iHiker’s contract with the United States Olympic Committee and USA Climbing is legally binding, but moving the Olympic Games to a country facing widespread human rights criticism raises serious ethical concerns and reputational consequences. While withdrawing could be seen as a breach of contract, iHiker may argue anticipatory repudiation. As Cheeseman (2021) explains, if one party indicates—through words or conduct—that it will not fulfill its contractual obligations, the other may treat the contract as breached (p. 289). iHiker could claim the Olympic Committee failed to uphold the agreement’s intent, particularly positive brand association. The new venue undermines the contract’s value and purpose, especially if the sponsorship now generates negative publicity.
If iHiker chooses not to withdraw from the agreement, it avoids potential lawsuits or damages. However, by remaining a sponsor, the company can be seen as complicit or indifferent to the ethical concerns. This could lead to public criticism and distrust among customers. The long-term harm to the brand could outweigh the short-term legal issues of challenging the contract.
Rather than pulling out completely, iHiker could remain in the contract, but make it clear it doesn’t support the host country’s actions. This could include issuing a statement condemning human rights violations while showing continued support for the athletes and the sport itself. They could also partner with advocacy organizations or launch a campaign that emphasizes its core values. This allows the company to honor its contractual obligations while taking an ethical stance and protecting its public image.
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