QUEBEC -- The Cirque du Soleil is doing what few foreign companies can do in China: laying down the law. The famed circus is in the midst of establishing a permanent new show in the Chinese gambling enclave of Macau.
The successful Quebec company is concerned with the working conditions in Asia and is asking its partners to sign contracts with a "social responsibility" clause. By doing so, Cirque is asking its direct partners, such as hotels and casinos, to provide employees with decent wages and good working conditions.
The Cirque du Soleil, which started as a group of street performers in Quebec, keeps dazzling the crowds with its worldly themes and mesmerizing acrobatics.
This winning formula has turned into a multi-million dollar business and an entertainment juggernaut, with five shows in Las Vegas alone.
"The Cirque is one of the few companies that have the power to impose their conditions in China," explained Zhan Su, a professor of business strategy and international management at Laval University.
"The balance of power between the two is very interesting," said the China native who specializes in business in Asian countries.
According to Su, the Cirque is giving a powerful lesson to organizations that struggle to reconcile commercial and social responsibility.
"Too many companies close their eyes to do business with China at low cost. If we want the world to be cleaner, it's up to everyone to do some cleaning," he added.
The timing also favours the Cirque, Su pointed out, because China is growing more aware of the importance of providing better working conditions for its citizens.
"The Chinese government is under a lot of pressure to make changes and therefore, it is open to suggestions such as the Cirque's social responsibility clause," said Su.
Morency has indeed felt that the Chinese were keen to discuss the clause and the working conditions of their employees.
"It's a lot of discussions and we do it with humility. They definitely are open to our suggestions... because they really want us to be there," he said.
The new permanent show in China will be presented at Macau's Venetian casino that opened in August. Macau wants to mirror Las Vegas and has built a strip where a new Cirque du Soleil show will open in the spring of 2008. The Sands Corporation, who owns the Venetian, has agreed to pay for the brand new 1,800 seat theatre and the production of the Cirque show. The bill: $200 million.
The Cirque is not only discussing social responsibility with China, but also with the United Arab Emirates where it plans a show in Dubai in 2010. And it will keep on adding that clause to every upcoming contract.
This winning formula has turned into a multi-million dollar business and an entertainment juggernaut, with five shows in Las Vegas alone.
"The Cirque is one of the few companies that have the power to impose their conditions in China," explained Zhan Su, a professor of business strategy and international management at Laval University.
"The balance of power between the two is very interesting," said the China native who specializes in business in Asian countries.
According to Su, the Cirque is giving a powerful lesson to organizations that struggle to reconcile commercial and social responsibility.
"Too many companies close their eyes to do business with China at low cost. If we want the world to be cleaner, it's up to everyone to do some cleaning," he added.
The timing also favours the Cirque, Su pointed out, because China is growing more aware of the importance of providing better working conditions for its citizens.
"The Chinese government is under a lot of pressure to make changes and therefore, it is open to suggestions such as the Cirque's social responsibility clause," said Su.
Morency has indeed felt that the Chinese were keen to discuss the clause and the working conditions of their employees.
"It's a lot of discussions and we do it with humility. They definitely are open to our suggestions... because they really want us to be there," he said.
The new permanent show in China will be presented at Macau's Venetian casino that opened in August. Macau wants to mirror Las Vegas and has built a strip where a new Cirque du Soleil show will open in the spring of 2008. The Sands Corporation, who owns the Venetian, has agreed to pay for the brand new 1,800 seat theatre and the production of the Cirque show. The bill: $200 million.
The Cirque is not only discussing social responsibility with China, but also with the United Arab Emirates where it plans a show in Dubai in 2010. And it will keep on adding that clause to every upcoming contract.
"It's our philosophy, it's part our genetic code," said Morency.
Morency stressed that the Cirque has always been a socially responsible company. He recalled the Cirque's decision in 1993 to build its international headquarters, in St. Michel, Montreal's most deprived neighbourhood. The company chose a site where the $30 million investment would make a real difference to the community. Now 1,500 people work on site, supporting a number of surrounding businesses.
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