At the time of the Bhopal disaster, the pesticide plant was owned by Union Carbide, which settled its liabilities with the Indian government in 1989 by paying $470 million for the victims.
Dow bought Union Carbide in 1999 and now finds itself in the firing line for its sponsorship of a temporary decorative wrap around London's Olympic Stadium.
Many victims and activists hold Dow responsible for failing to give enough compensation to victims and some have called for a boycott of the London Games.
"But even if we think Dow had an involvement, sponsoring Olympics will be redemption for them too," Narang added in a text message.
"If a company or an individual wants redemption, it should be allowed."
IOC president Jacques Rogge said in an interview on Tuesday that the IOA has been advised to talk to the athletes over the impasse.
According to the 28-year-old Narang, who won four gold medals in Delhi Commonwealth Games last year, boycotting the Games would only "hurt" the athletes who aspire to represent their country at the prestigious event.
"As an athlete we will go there as ambassadors of our country to compete, in the true spirit of sportsmanship to give our best and win medals," Narang, also the recipient of the country's highest sports award, said.
"A sponsor's deed should not hurt that."
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