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OU WERE TO LOOK BACK OVER THE PAST 20 TO 30 YEARS,.~YOU WOULD SEE A PATTERN. PROFESS.OROLITICIAN, SCIENTIST OR JOURNALIST TYPICALLY .ENOUGH,.. SOME OBSCURE COLLEGE RA I SES :A'N ;.:1 SSUE.-:_ THE ARGUMENTS ARE WEAK, ; INSTANCES, THE WHOLE MATTER IS FORGOTTEN IN A THE DOCUMENTATI"ON IS NONEXISTENT AND IN SOME MATTER OF WEEKS. GOOD MORNING, GENTLEMEN. BUT,`IN OTHER INSTANCES, THE ISSUE CAPTURES_THE IMAGINATION OF THE PUBLIC... --: ::'. H. ..~++ ~+...: ...-. . ' - .:... . . . . . , AIDED BYTHE MEDIA. THE "ISSUE" TURNS INTO A SNOWBALL=OF CRlTICiSM...POLITICIANS SEE :. ~:. . _ - LEGISLATIVE SOLUTIONS... AND CONSUMERS LOSE 9 CONFIDENCE IN WHATEVER INDUSTRY OR INSTITUTION

c BY EXAMPLE, THE PUBLIC SMOKING ISSUE WHICH WAS COMING A LONG TIME... IT HAD ALL.OF THE CLASSIC, EARLY CHARACTERISTICS. TODAY, 70 PERCENT OF THE PUBLIC BELIEVES CIGARETTE.SMOKE IN THE AIR IS HARMFUL TO NONSMOKERS, AND MOST OF THE STATE LEGISLATION WE FACE INVOLVES PUBLIC SMOKING. THE PUBLIC SMOKING ISSUE IS AN EXCELLENT EXAMPLE OF AN ISSUE THAT WAS ALLOWED TO MANAGE US. BUT, WE ARE NOW... FOR THE FIRST TIME... BEGINNINGTO MANAGE IT. MAKING THE TRANSITION FROM ISSUE 'F I REF 1 GHT I NG" TO 1 SSUE MANAGEMENT ;lS A :: - -- : DIFFICULT PROCESS... NOT ALTOGETHER DIFFERENT FROM SWITCHING FROM A MANUFACTURING TO A MARKETING ORIENTATION. NOT ONLY MUST THE ORGANIZATION BE DIFFERENT... THERE MUST BE CHANGES:IN ATTITUDES... WORKING RELATIONSHIPS

3 OVER THE PAST YEAR, WE HAVE BEEN MAKING THAT TRANSITION. WE HAVE IDENTIFIED KEY, TALENTED, KNOWLEDGEABLE PEOPLE WITHIN THE ORGANIZATION...AND HAVE ATTRACTED OTHERS. VE_..:.TO AN INCREASING EXTENT...BROKEN DOWN SOME DF THE TRADITIONAL COMMUNICATIONS AND OPERATING BARRIERS...AND WE ARE TRACKING 1SSUESAND WE ARE BRINGING TOGETHER OUR LOBBYISTS...OUR PUBLIC RELATIONS PEOPLE... OUR CONSULTANTS AND ANALYSTS...OUR ATTORNEYS... AND OUR PROFESSIONAL MANAGERS IN WAYS WHICH PROMOTE COOPERATION AND RESULTS. - THIS MORNING...MY COMMENTS WILL FOCUS ON THE WORK OF OUR ISSUES MANAGEMENT TEAMS.

c 4 SO...LET ME RETURN TO THE PUBLIC SMOKING ISSUE. IT IS A DIFFICULT AREA BECAUSE FRANKLY...WE ENTERED"THE BATTLE WELL AFTER I_T STARTED.'AS YOU KNOW, THE APPROACH WE HAVE TAKEN,:HAS BEEN SIMPLE, HIGHLY VISIBLE AND IRECT. FORµEXAMPLE: ' OUR NATIONAL ADVERTISING PROGRAM HAS FOCUSED ON THE PUBLIC SMOKING ISSUE. NEXT YEAR...WE PLAN TO DO THE SAME AND MORE. PARANTHETICALLY...THE COMMUNICATIONS OMMITTEE AND THE COMMITTEE OF COUNSEL WILL E REVIEWING OUR RECOMMENDATIONS AND IF THEY CO_NCUR...YOU WILL-BE ASKED TO APPROVE OUR 1983 NATIONAL ADVERTISING PROGRAM AT YOUR MEETING, DECEMBER 9. WE HAVE DEVELOPED ISSUE PAPERS, PAMPHLETS A FILM AND PUBLICATIONS...WE WILL BE CONDUCTING A SEMINAR...AND AS I'VE JUST MENTIONED, OUR NATIONAL ADVERTISING...ALL OF WHICH DEALS 'WITH THIS.IMPORTANT ISSUE.

. M c 5 AND THE INSTITUTE'S FOUR SPOKESMEN... WHO WILL REACH MORE THAN 40 MILLION PEOPLE PUT FORTH T.HE SAME ARGUMENTS, OFTENIN DEBATES WITH ANTI-SMOKERS. WE ARE SPEAKING WITH LEGISLATORS... REGULATORS.'..BUSINESS AND RELIGIOUS LEADERS. LABOR ORGANIZATIONS... THE GENERAL PUBLIC... ANYONE WHO WILL LISTEN. LAST WEEK IN BRUSSELS, I HAD THE OPPORTUNITY TO REVIEW A NEW FILM PREPARED BY PHILIP7MORRIS AND BEING OFFERED BY INFOTAB. THE FILM MAKES MANY OF THE SAME POINTS WE CONTINUE~'-T0 MAKE... IT DOES SO IN A FORCEFUL ., ~ A FEW MODIFICATIONS, IT WILL .WAY. AND WITH MAKE AN EXCELLENT ADDITION TO OUR ARSENAL. LET ME SHOW 1T TO YOU... IT IS IN ROUGH FORM.AWAITING FURTHER EDITING AND POLISHING. (SHOW F ILM) V w t

THE PUBLIC SMOKING ISSUE IS PERHAPS THE LARGEST... MOST SEVERE... CHALLENGE WE FACE. IT HAS -MANY -SUB-ISSUES. ONE OF THOSE SUB-ISSUES, "SMOKING IN THE WORKPLACE,". IS STILL EVOLVING. L1KE SO MANY ISSUES, IT TRACES ITS ORIGINS TO AN OBSCURE PROFESSOR... DR..WILLIAM WEIS OF SEATTLE WHO BELIEVES THAT EMPLOYERS WOULD SAVE THEMSELVES A GOOD DEAL OF ANGUISH AND MONEY IF THEY SIMPLY STOPPED HIRING SMOKERS AND THEN BANNED SMOKING OUTRIGHT. THE AMERICAN LUNG ASSOCIATION HAS - I DE-IT I F I ED "SMOK I NG I N THE WORKPLACE" AS THEIR PRIMARY "NONSMOKER'S RIGHTS" ISSUE OF THE YEAR.

A RATHER IMPRESSIVE LIST OF CORPORATIONS ARE ADDRESSING THE ISSUE. TO NAME A FEW:. AMERICAN EXPRESS...XEROX...AT&T... BURGER KING...MOB1L...THE NEW YORK TIMES... SALOMON BROTHERS...JOHNSON & JOHNSON...AND HARVARD UNIVERSITY. ALL OF THESE ORGANIZATIONS =-- AS WELL AS MANY GOVERNMENT AGENC 1 ES .-- EITHER RESTRICT SMOKING OR ENCOURAGE EMPLOYEES TO QUIT. THERE HAVE BEEN LAWSUITS AND LEGISLATION REGARDING SMOKING IN PLACES WHERE PEOPLE WORK. JUST LAST WEEKEND, THE AMERICAN RED CROSS FORMALLY CONSIDERED THIS MATTER...AND, AS YOU KNOW, ITS BOARD VOTED TO.

C c 8 ALMOST TWO-THIRDS OF THE PUBLIC -- AND BETTER THAN HALF OF ALL SMOKERS -- THINK THAT THERE SHOULD BE SEPARATE SMOKING AND NONSMOKING SECTIONS WHERE PEOPLE WORK. AND AMAZINGLY ENOUGH..'.ONE IN FIVE AMERICANS BELIEVE THAT AN EMPLOYER HAS THE RIGHT TO DENY EMPLOYMENT TO A SMOKER. WHAT ARE WE DOING? ONCE AGAIN...WE HAVE AN ISSUES MANAGEMENT TEAM ON THE JOB. IN THE SHORT TERM, THEY HAVE PiCKED APART DR. WEIS' WORK AND WILL SOON PROPOSE SPEClFiC RESEARCH TO COUNTER WEiS' ARGUMENTS.

~ ~ 9 AT THE SAME TIME...RECOGNIZING THAT WE OUR TEAM HAS MET WITH A SIMILAR= 1SSUES NEED MORE_THAN JUST ONE PIECE OF RESEARCH... ARGUMENTS ALONE WILL NOT BE ENOUGH. PLAN CAPABLE OF OVERSHADOWING DR. WEIS. MORE ON VOLUME AND VISIBILITY THAN ON INTELLECT. SO WE ARE DEVELOPING A PROMOTIONAL THAT EFFORT TO MAKE SURE THE WORK IS MUTUALLY SUPPORTIVE. MEN, IT DOESN'T TAKE AN ISSUES MANAGEMENT TEAM TO KNOW THAT DR. WEIS DEPENDS OUR OWN. -WE ARE KEEPING IN CLOSE TOUCH WITH PONSOR RESEARCH WHICH WE HOPE WILL COMPLEMENT MANAGEMENT GROUP FROM INFOTAB WHICH PLANS TO THIS ISSUE IS STILL AT A REASONABLY EXAMPLE OF WHAT ISSUES MANAGEMENT TECHNIQUES EARLY STATE. I EXPECT IT TO PROVIDE A GOOD CAN ACHIEVE.

WE ARE ALSO APPLYING THE ISSUES MANAGEMENT APPROACH TO THE ACCIDENTAL FIRE OUR PROGRAM...'. I NSUPPORT OF F I RE SAFETY AND FIREFIGHTERS... HAS-BEEN APPROVED IN CONCEPT. WE ARE MOVING AHEAD QUICKLY WITH THE PROGRAM... IN ANTICIPATION OF "SELF-EXTINGUISHING" CIGARETTE BATTLES IN AT LEAST 13 STATES NEXT YEAR. LET ME REPORT ON OUR PROGRESS... WE HAVE GIVEN ALL OF OUR LOBBYISTS A THOROUGH REVIEW OF THE ISSUE... AND A CHANCE ?O EXAMINEOUR PROPOSED PROGRAM. THEIR REACTION WAS ENTHUSIASTIC.