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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.

IN THE NEXT SEVERAL WEEhS, WE WILL BE BRINGING TOGETHER THE LOBBYISTS 1N THE 13 TARGET STATES FOR ADDITIONAL TRAINING...AND ORIENTATION TO OUR NEW MATERIALS, WITNESSES AND STRATEGIES. PH I L SCHAENMAN...OUR CONSULTANT...HAS RETURNED FROM EUROPE. THE DRAFT OF HIS STUDY 1LL BE 1SSUED PRIVATELY TO YOU IN THE NEXT FEW WEEKS. IT CONCLUDES THAT EUROPEANS HAVE LESS OF AN ACCIDENTAL FIRE PROBLEM THAN DO AMERICANS. IT DEMONSTRATES.THAT EUROPEANS BELIEVE THAT PUBLIC EDUCATION AND STRICT CODE ENFORCEMENT ARE THE REASONS FOR THEIR LOW FIRE RATES. AND IT SHOWS THAT EUROPEAN FIREFIGHTERS FEEL THAT "SELF-EXTINGUISHING" CIGARETTES MAKE NO SENSE.

WE HA1fE DRAFTED A PROMOTIONAL PLAN... LLWHICH WILL BE SHARED WITH THE COMMUNICATIONS OMM I TTEE.'. . TO GET PH 1 L.ON TALK SHOWS AND BEFORE LEGISLATIVE PANELS NATIONALLY, AS AN INDEPENDENT EXPERT. THE FOUNDATION FOR FIRE SAFETY HAS RECEIVED OUR GRANT OF $50,000 AND THE PROJECTS~; FOR WHICH THAT GRANT WAS INTENDED -- ARE ALREADY UNDERWAY. AT OUR REQUEST, THE FOUNDATION HAS BEEN ASKED TO SUBMIT ANOTHER PROPOSAL... THIS ONE DEALING WITH SMOKE DETECTORS. IN YOUR REVIEW OF OUR ORIGINAL PROGRAM, SEVERAL OF YOU EXPRESSED AN INTEREST IN PROMOTING GREATER USE OF SMOKE DETECTORS. WE AGREE. SMOKE DETECTORS APPEAR TO BE A MAJOR REASON FOR THE DOWNWARD TREND IN FIRES ATTRIBUTED TO CARELESS SMOKING.

NEW YORK...PHOENIX..'.MILWAUKEE... MINNEAPOLIS...BALTIMORE. REFIGHTING INDUSTRY WE ARE MAKING INFORMAL CONTACTS WITH THE TOP FIRE OFFICIALS OF A DOZEN AMERICAN CITIES: BOSTON...DETROIT... SAN FRANCISCO...CHICAGO...SEATTLE...PORTLAND... WILL BE REVIEWED WITH YOU AS THEY COME IN. THROUGH SOME OF-OUR NEW FRIENDS IN THE A FEW AT A TIME...THESE CITIES WILL BE ASKED TO SUBMIT PROPOSALS FOR FUNDING OF SPECIFIC FIRE SAFETY EDUCATION PROGRAMS AND WE HOPE TO BEGIN SEEING THESE PROPOSALS IN_THE NEXT 60 DAYS. :°

~ c 14 OUR CALENDAR PROPOSAL WAS PERHAPS THE MOST CONTROVERSIAL OF EVERYTHING WE HAVE ROPOSED IN THIS AREA. THE BIGGEST CONCERN WAS THAT WE MIGHT BE ACCUSED OF APPEALING TO CHILDREN. WE HAVE DECIDED TO OFFER IT TO THE NATIONAL FIRE PROTECTION ASSOCIATION FOR USE IN THEIR EXIST{NG...AND WELL RESPECTED PROGRAM. IF THE NFPA LIKES THE CALENDAR APPROACH, WE WILL OFFER TO HELP THEM DEVELOP IT FURTHER.. OR, IF THEY DESIRE, THEY CAN PROCEED ALONE FROM THAT POINT. ALL OF THESE PROGRAM ELEMENTS WILL BE CLEARED THROUGH THE APPROPRIATE COMMITTEES AND COUNSEL. BUT WE DO PLAN TO MOVE AGGRESSIVELY.

15 I CAN SAY...WITHOUT HESITATION...THAT WE WILL BE VERY LUCKY TO GET THROUGH NEXT YEAR I THOUT A SELF-EXTINGUISHING BILL BEING ADOPTED. EVEN WITH OUR PROGRAM, WE CAN NOT GUARANTEE A THING. BUT, SPEAKiNG FOR OUR LOBBYISTS AND OUR FRIENDS IN STATE LEGISLATURES AND FIRE DEPARTMENTS, THESE PROGRAMS WILL HELP CONSIDERABLY. THANK YOU FOR YOUR SUPPORT. WE ARE ALSO USING ISSUE MANAGEMENT TECHNIQUES IN PREPARING FOR NEXT-YEAR'S LOCAL EXCISE TAX BATTLES...THERE WILL BE MANY.

16 AS WITH THE ACCIDENTAL FIRE SITUATION... WE HAVE MET EXTENSIVELY WITH OUR LOBBYISTS EA DIRECTORS TO GATHER INFORMATION, ASSESS THE PROBLEM. AND TO DISCUSS THE EFFECTS OF DIFFERENT LOBBYING STRATEGIES. AS YOU PROBABLY KNOW, THE STATE ACTIVITIES POLICY COMMITTEE HAS ASKED STAFF TO SEEK PROPOSALS FROM LOCAL PUBLIC RELATIONS1 ADVERTISING AGENCIES IN FOUR STATES...MICHIGAN GEORGIA, MISSISSIPPI AND ARIZONA. 0 w =916 , ~ ~ ~ N ~ ~

17 WE DO NOT KNOW IF LOCAL ADVERTISING AND PUBLIC RELATIONS STRATEGIES WILL HELP... OR HURT. BUT WE HAVE SELECTED THE FOUR AGENCIES IN THOSE STATES ON -THEIR REPUTATIONS AS EFFECTIVE POLITICAL ADVISORS. THEIR PRELIMINARY FINDINGS...WHICH ARE BEING GATHERED DISCREETLY...WiLL BE PRESENTED TO THE COMMITTEE AT ITS MEETING NOVEMBER 19. IF THEIR RECOMMENDATIONS MAKE SENSE, WE PLAN TO HAVE .CREATIVE MATERIAL READY FOR USE WHEN... AND .IF... IT IS NEEDED IN 1983... PERHAPS IN THOSE STATES OR WHEREVER IT IS NEEDED. AN EFFECTIVE ATTACK AGAINST EXCISES LOCALLY...'WILL ALSO HELP US NAT.IONALLY AS WE FACE THE POSSIBILITY OF ANOTHER ROUND OF FEDERAL INCREASES NEXT YEAR.

x C C 18 THE SAME COMMITTEE IS ALSO DEALING WITH A FAR MORE IMMEDIATE CHALLENGE...MEASURE " A,t WE HAVE THIS MORNING THE TELEVISION AND IN KERN COUNTY; CALIFORNIA. RADIO SPOTS WE'VE BEEN USING IN KERN COUNTY... AND SOME RECENT RESEARCH ON VOTER PREFERENCE. TO REFRESH YOUR MEMORIES...LET ME FIRST GO OVER A'FEW BAS I C FACTS. • KERN COUNTY VOTED 60-40 AGAINST BOTH PROPOSITIONS 5 AND 10 ... CLEARLY ONE OF OUR BOARD OF SUPERVISORS. IF IT PASSES WE CAN EXPECT PUBLIC SMOKING RESTRICTIOKS IN THE INCORPORATED SECTIONS OF KERN COUNTY. STRONGEST SHOWINGSSTATEWIDE BOTH TIMES. THIS VOTE IS ON AN "ADVISORY" TO THE COUNTY

19 OUR R_ESEARCH SHOWS THAT VOTERS THERE THE LAST TWO CAMPAIGNS. THERE ARE FEW ARE WELL INFORMED ON THE ISSUE AS A RESULT OF UNDECIDED VOTERS. i_WE CAN NOT AFFORD TO LOSE KERN COUNTY...A MANDATE FOR PUBLIC SMOKING RESTRICTIONS IN OUR STRONGHOLD WOULD ENCOURAGE THE PROP.10 PEOPLE TO TRY AGAIN STATEWIDE. LET ME NOTE THAT THESE SPOTS HAVE RUN FROM OCTOBER 15 TO NOVEMBER 2. JACK,.lNOULD YOU RUN THE SPOTS... (RUN SPOTS) GENTLEMEN...WE EXPECT TO WIN. IT MAY NOT BE BY THE 20 POINT MARGIN WE ENJOYED THE LAST TWO TIMES IN KERN COUNTY, BUT I AM CONFIDENT.

C C 20 I WOULD LIKE TO CONGRATULATE THE STATE ACTIVITIES POLICY COMMITTEE FOR THE QUALITY. AND THE,QUANTITY....OF THEIR INVOLVEMENT IN OUR_STATE ACTIVITIES FUNCTION. MANY EXAMPLES OF THAT KIND OF COMMITMENT WERE FOUND AT THE TWO MEETINGS WE'V JUST HELD WITH OUR LOBBYISTS. I'VE ALREADY MADE LIMITED MENTION OF THOSE MEETINGS...LET ME BE MORE SPECIFIC. BY DESIGN, WE HELD TWO -- ONE_FOR`OUR ,SOUTHERN AND WESTERN REGIONS AND THE OTHER FOR OUR NORTHEASTERN AND MIDWESTERN REGIONS-. SEVERAL RECOMMENDATIONS CAME OUT. 1. IT WAS URGED THAT WE PROCEED WITH POLITICAL CONTRIBUTIONS IN THOSE STATES WHERE C'ORPORATE CONTRIBUTIONS ARE ALLOWED. I AM PLEASED TO NOTE THAT...W1TH YOUR KIND SUPPORT.. THIS HAS BEEN DONE AND WILL REMAIN A POTENTIAL TOOL FOR THE FUTURE.

~ C 21 SPECIFICALLY, CONTRIBUTIONS WERE MADE TO `lq CAND ID ATES FOR STATE OFF I CE I N2-o TATES. THE AVERAGE CONTRIBUTION WAS $Zf~-... S AND, I N TOTAL, WE SPENT TO MY MIND...THIS IS ONE OF THE BEST INVESTMENTS WE'VE MADE. NOT ONLY WILL THESE CONTRIBUTIONS HELP US WITH SOME OF'OUR IMMEDIATE PROBLEMS, BUT THEY WILL SERVE US IN THE FUTURE AS WELL. ROUGHLY HALF OF THE MEMBERS OF CONGRESS WERE MEMBERS OF STATE LEGISLATURES FIRST...AS WE FOLLOW THE CAREERS OF STATE LEGtSLATORS, CAMPAIGN CONTRIBUTIONS TO THEM'.NOW MAY BE REMEMBERED LATER I N WASHINGTON.

22 2. THE LOBBYISTS ALSO OFFERED THEIR CONTINUED HELP WITH OUR ON-GOING FEDERAL RELATIONS EFFORT. MANY OF OUR STATE LOBBYISTS PITCHED 1N DURING THE FEDERAL CIGARETTE EXCISE TAX FIGHT...THEY DID AS GOOD A JOB AS WAS DONE BY ANYONE. AND THESE GENTLEMEN HAVE OFFERED THEIR CONTACTS AT THE FEDERAL LEVEL... AN OFFER WE NEED TO TAKE THEM UP ON. 3. RECOMMENDATION NUMBER THREE DEALS WITH THE CONTINUED NEED FOR ALLIANCES. THE TWO GROUPS HAVE UNDERSCORED THE NEED FOR STRONGER RELATIONSHIPS...AT THE NATIONAL AND LOCAL LEVEL... W I TH 000. BUS I NESS , PROFESS 10NAL, LABOR AND COMMERCIAL ORGANIZATIONS. AGAIN, I=:ENDORSE THEIR RECOMMENDATION. COAOTION BUILDING WILL CONTINUE TO BE A PRIORITY AT TI FOR THUFORESEEABLE FUTURE.

r 23 THE TWO MEETINGS WERE BOTH PRODUCTIVE. NOT ONLY WAS A GOOD DEAL OF INFORMATION , SHARED...BUT I BELIEVE WE ARE NOW FUNCTIONING AS A TEAM, EVEN THOUGH OUR TEAM MEMBERS ONLY SEE EACH OTHER OCCASIONALLY. THE CONCEPT OF HAVING TWO MEETINGS RATHER THAN ONE MADE THE SESSIONS MORE MANAGEABLE... ALL IN ALL...I BELIEVE JACK AND HIS STAFF DID A FINE JOB. I HAVE TWO FINAL ITEMS... F1RST...AND AGAIN USING THE ISSUES MANAGEMENT TEAM APPROACH...WE HAVE ANALYZED OUR TRADITIONAL WAYS OF DEALING WITH THE ANNUAL REPORT OF THE SURGEON GENERAL.

24 LAST YEAR, ALL OF OUR EFFORT PRODUCED TOO FEW RESULTS. OUR DETAILED AND WELL- DOCUMENTED BOOK -- WHICH TOOK SIX MONTHS TO PRODUCE--- WAS OVERSHADOWED BY THE SURGEON GENERAL'S ONE HOUR WITH THE PRESS. IN THE NEXT FEW WEEKS, WE WILL BE REVIEWING OUR IDEAS WITH BOTH STU SPENCER AND BOB GRAY. 1 AM QUITE HOPEFUL THAT THIS YEAR WE WILL BE MORE EFFECTIVE. FINALLY, I WANT TO EMPHASIZE THE IMPORTANCE OF THE COMING WORLD HEALTH ORGANIZATION CONFERENCE ON SMOKING AND HEALTH. THE ANTI-SMOKERS ARE COORDINATING THEIR EFFORTS WELL INTERNATIONALLY. REST ASSURED, WE WILL WORK CLOSELY WITH INFOTAB AND THE OTHER MANUFACTURERS ASSOCIATIONS TO PREPARE FOR THAT CONFERENCE. ; ,1+a

25 GENTLEMEN...THANK YOU AGAIN FOR YOUR ADVICE AND SUPPORT.

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