Anne Landman's Collection
Philip Morris Incorporated 840000 Corporate Affairs World Conference Rye Brook, New York 840913 Workshop - Dealing with the Issues Indirectly: Constituencies
Fields
- Quotes
...So the whole question of getting third-party assistance and enlisting this whole third-party concept in our defense structure is to give us clout, to give us power, to give us credibility, to give us leverage, to give us access where we don't ordinarily have access ourselves...
...First, this whole business of third-party defense depends upon creativity. If you are not going to be creative about it...you can't be successful. If you're not going to be willing to create vehicles to ride on, to put things together in fact to invent things that didn't exist before, coalitions, associations, institutes, seminars, meetings, all kinds of things like that, you cannot be successful. Creativity....
It's like a savings account. The analogy is an important thing. One has to keep making deposits into the savings accounts. Goodwill deposits, deposits of getting to know people, deposits of listening to their problems...And you make those deposits into the savings account so that when you have to make a withdrawal, the bank balance is there. You can never put yourself in the position of having to go to a third party, an uninvolved party on an immediate basis and hope they drop everything and come to your defense. It isn't going to work.
You have to try to understand whom you have to neutralize in advance, who is a potential threat to you and then how do you make common cause with that category of individuals or companies or group or whathaveyou so that you can neutralize them.
Example. The self-extinguishing cigarette. Who would normally be involved in the self-extinguishing cigarette on the other side of the fence? Probably the fire-fighting community. As you know in the United States, we have put a huge amount of time into helping all the organized groups of professional and volunteer fire-fighters. They get such help from us that is monumental. And then when we need them to stand up and say, not cigarettes that cause fire in 99.9 percent of the cases, we get their cooperation. But that's because we have cultivated them and helped them achieve some of their goals and we have seen that they are a potential enemy that has real credibility. That's the greatest credibility, your potential enemy. We had turned them around and made allies, third party defenders for ourselves. All of this involves a process of logic. To find common ground, to find your natural friends; to find your natural enemies and if possible, the ways in which you can neutralize them...
- Company
- Philip Morris
- Author
- Blake, Joseph (Sr. VP Admin. Operations for Mission Viejo (PM))Sr VP Admin Operations for the Mission Viejo Company(1984). Mission Viejo was a real estate and construction company operated by PM.
- Dowling, Jeannine M. (PM USA Public Relations c. 1984)Went on to form her own company in the 1990's-J.A. Dowling & Associates, (PR, Media Relations)
- Florio, Dale (Mgr. PM Public Affairs 1984)Tobacco lobbyist from New Jersey; become director of state government affairs for Philip Morris in 1987. Operates "Citizens Against Lawsuit Abuse." PM paid for his lawschool education.
- Merritt, W.
- Miller, Alan (PM marketing dept. employee c. 1984)Alan Miller was a Philip Morris employee. (PMI's Introduction to Privilege Log and Glossary of Names, Estate of Burl Butler v. PMI, et al, April 19, 1996)
- Rothermel, Timothy (Philip Morris International)
- Woodward, G.
- Recipient
- Philip Morris
- Region
- United States
- Named Organization
- 1984 Corporate Affairs World Conference
- 7 11
- 7 Up
- American Advertising Foundation
- American European Community Assn
- Anheuser Busch
- Broadcasters Assn of Greater San Francisco
- Burger King
- BW, Brown & Williamson
- Calif. Elected Womens Assn
- Caucus for Womens Issues
- Chrysler
- Co Assn of Housing + Building
- Co Broadcasters Assn
- Co Legislature
- Co Mortgage Bankers
- Co Savings + Loan League
- Coalition of Labor Union Women
- Coca Cola
- Cora Foundation
- Dun Bradstreet
- Equity Action League
- Fao, Food and Agriculture Org
- Financial Womens Assn
- Fleet
- Ford
- General Motors
- George Washington Univ
- German Bundestag
- Gi Forum
- Girl Scouts of America
- Goolacs
- Hi Senate
- Highland Neighborhood Housing Services P
- Hugh Blind
- Intl Society for Animal Rights
- Mcclain
- Mcdonalds
- Miller Brewing
- Mission Viejo
- Moody
- Naacp
- Nanbtw
- Natl Assn Negro Business + Professional
- Natl Conference of Puerto Rican Women
- Natl Conference of State Legislatures
- Natl League of Cities
- Natl Womens Political Caucus
- NHS
- NOW
- New York Society of Intl Affairs
- Operation Push
- Republican Natl Convention
- Sir
- Southland
- TI, Tobacco Inst
- Times
- Urban League
- US Congress
- US Hispanic Chamber
- World Health Organization (Concerned with global public health)International organization concered with public health worldwide
- Women in Communications
- Womens Campaign Fund
- Womens Involvement in Politics
- Womens Research + Education Institution
- YWCA
- Litigation
- Stmn/Produced
- Type
- TRAN, TRANSCRIPT
- LIST, LIST
- Named Person
- Blake, J.
- Brown, W.
- Buccellato, Vincent J. (PM Marketing &Sales, Sr. VP)Senior Vice President of sales for Philip Morris U.S.A. from October 29, 1990 to April 25, 1991.
- Collin, D.
- Dowling, Jeannine M. (PM USA Public Relations c. 1984)Went on to form her own company in the 1990's-J.A. Dowling & Associates, (PR, Media Relations)
- Florio, Dale (Mgr. PM Public Affairs 1984)Tobacco lobbyist from New Jersey; become director of state government affairs for Philip Morris in 1987. Operates "Citizens Against Lawsuit Abuse." PM paid for his lawschool education.
- Frantel, Edward W. (VP, Philip Morris, Inc. 1979-85)
- Fry, J.
- Ginnsberg, R.
- Harrera, M.
- Howell, W.
- Irish, Michael K. (Director, PM Government Affairs, 1986)
- Jackson, J.
- Jones, S.
- Leonard, E.
- Mathias
- Maxwell, Hamish (PM President c.1984)Took over at time of Cippolone. Cleaned house. Carried company into a strong defensive position.
- Merritt, W.
- Miller, A.
- Moore, R.
- Pittman
- Quinby, Ernest P. (Bud) (PM Scientist)Defense
- Reed, T.
- Roberts, E.
- Rothermel, Timothy (Philip Morris International)
- Ruder, W.
- Sanders, M.
- Shipper, J.
- Sykes, L.
- Thompson, K.
- Weissman, George (PM Chairman & CEO '79-84)Vice President of Philip Morris from 1954 to 1956. Vice President and Assistant to the President in 1957. Vice President of Marketing from 1958-59. Executive Vice President of Marketing in 1960. Exec. VP Overseas in 1961, Exec. VP PM International 1962-66. President from 1967 to 1972. President and Chief Operating Officer in 1973. Vice Chairman from 1974-78. Chair and CEO from '79-84 and on the Board of Directors from 1959-84.
- Woodward, G.
- Xxemily
Document Images
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: Good morning everyboCy,
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Actually,th2s bell is kind
of' funny. I'm suppossd to
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keep on time today. And Emily said that if anybody
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starts talking Icmg, I-Tm supposed
to ring the bell.
5 1 But those of you who work for me knows that the bell
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6 ~ hde another signifiance, right? It means to gat cof-
7 7 I fee.
8 o I'd like to first introduce our panel
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9 O membera. Dale Fiorio is Manager of Public Affairs for
10 zU.y'.A. ; Bud Quinby a the end here is Director of Ccxn-
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~ munications for Philip Morris U.S.A. Joe Blake is Senior
12 z V.Pi Administrative Operations for the Mission Viejo
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C`,wipany. Ti~r, :cothermel is Director of Public Affairs.
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14 PM Internatiunat. Ce orge Woodward to my {i ght is
15 ~' the Manager of Governmental Aftfqire, Field :;pe,qt3.ons,
16 z Milwaukee for Miller. Bi1I Merritt to m,y left is Director
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Industry Affairs on the issue of third party support, how
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~ to 3;dent'rfy them, how tc, develop them, hi.;a to ciltivate
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F, them, And I think i you listen cqrefu11y tc. Bili, not
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na ilnly set the stage for what I hope wilL ba a very ati_r*u-
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Iating discussion, but it will also give yuu some things
to think abuut when we do the case study 1ater c.n in the
pr o~.~'.'?3R1.
The case study is Eascirating, Now I' Z1
7u$t stio ovsr it I]~J''~d do yJLu can St£i?:t thit~"ki11¢ a~.?v4?t I.t q
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little bit. It involves a cosmetic coaQpany th3C is
under attack by a group of humaue sociaty people whc
3 are up in arms at the fact that the coecsetic coppanyta
4 I uaing" rabbits to test various new oroduLta.. And our
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6 G? the costeeticc company can use to help reach out for third
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narCy support to help defend itsel.f.. And whatIs int3r-
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8° esting about this, again to have you think about this,
9 0 it's truly an emotionally-charged issue. And if you re-
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zmes;ber what was talked about yesterday, I thnk Mr. Pittman
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~ from St. Louis. Our opponents are using issues subh as
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while intc~xicated issu® to link that with
the drivin
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~ every sordid type of thing you can thinkh o:f such as
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~ child sauleeting and things like that. S-;mebocty chitd-
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~ molesting somebody was drunk at the time or ma}y have
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to make it worse for us. And this '_s a re&L tough chal-
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~ isnge. And I want everybody to give it suse thougbt and
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r- hopaiuliy we'il cuma up with sxne Ways to save this
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industrv,
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After we watch the video tape of Mr.
Ruder, we'il go into some deep presentations by each
of the panelist. I'll begin by giving a brief overview
of the constituency system. Can you hear me back there?
I'll begin by g,ving an overview uf th3. crxipeatsriwed
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c onstitueAcy System; why it was developed, how i,
and how we think it might be -able to help the compai.,
over the next year and over the next 20 years.
Each of the panel members will then talk
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' about s ome of the c ons tituqnt organiaati ons that they 've
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6~ been working with. Why we work with them; how theyfvs
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~ helped us in the past; how they may help us in the
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$~ futursand why in some caaes we work with certain groups
9 O to neutralize them.
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have e ome time f or quetions and answers. Anf if you
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,y are talking, go right ahead, It's just Shat I'm supposed
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II t o keep on schedule and I'm going to try to do that.
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what I'll then do is pass out the case
z studies, give you soeie time to think about it, and then
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we'll take down your suggested remedies.
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~ Okay, I think we can shut dcvn the Iights
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F and roll the tape.
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w TAPE P1AYED
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: In the first place,
as youhave already heard this w ing, we are as we all
know working in a beleagured industry. We get hit every
way and from nine different sides. And we never know
when the nett hit is ccnmin ;, But in my unin3.on, this
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1 is kind of like that old sayiAg when tbsy used to
2 t.aoh you on the fisi-
ag- raogs, soaft, fire, ai.v. And
3 then you would draw ths target around where he hit.
4 And that's us, We are alsays.-; tbe ta=get. We are aI-
5,0 ways the thing that is looked at and then after Ne''re
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602 hit, people draw the circle aroumd us,
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7 ~ We are in a sense so big that weire
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8° like the elephant that nobody can hide. And we knoe
9 o that a wadition of life for as long as you and I are
10 z going to be in this business together is that we wiil
11 ~ be a beleagured industry. And that's why we have this
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~, We have that need because we can't be self-
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~ need for the third-party defense.
~ serving, because we are a great industry. Because every-
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~ body knuws that by in large and total, we are a profit-
16 z_ able industry. And, therefore, we are a sitting duck.
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0 And theref ore, what we say about ourselves has to be
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~ received within a self-serving context.
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P , So the whole question of getting third-
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W party assistance and enlisting this whole third-party
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concept in our defense structure is to give us clout, to
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give us power, to give us credibll.ity, to give us lever-
age, to give us access where we d on't ordinarily have
access ourselves. Those are the kinds of things that
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weI re looking for. And to make them useful, we have to
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cultivate them, we h.ve to build them, we have to stay
with tbe®. Aad we have to usa . proasrls aE 2.ogi.c that
irxvolv.s udderstandi©g, 4"h.t. wherever we are, whatever
I c O##tTtiy iXf whit't h we w owk, thef s oci8ty and the ec on imy is
~ Like a punching bag. You punch it in here and it's go-
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iog to pop out scm®place elsa: Wr job is to under-
I sta>fg that when we are punched hese, where else is it
going to pop out? Where els*is !tR' going to be felt.
Who +ltlse is it going to impsct on? Then we have the
s tructure of the beginning of 1 ogical thinking ab out
third-party defense.
And Let sie run ttucough some of tbase key
points that I've made notes an.
First, this whole business of third-
party dgfense depends upon creativity. If you are not
going to be creative about it, if yotke not going to
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stretch your mind to understand this business of where
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~ the punching bag c umes out, you can't do it, y ou can it
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p be successful.
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If you're not going to be willing to
create vehicles to ride on, to put things together in
fact to invent things that didn't exist before, coali-
ti ons, associations, institutes, seminars, meetings, ali
kinds of things like that, you cannot be successful.
Creativity.
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1ttmber two, it's got to involve hard
aad aaAri.tnnt work. - Yau've got to tili tde soil. You
have to s.at people. You bev+s to lot them understand
your busioass, but JOntly' --- don't co®e on too hard.
Ywu . have to UWk hard to uud.rstand their busin.ss and
then you bave to stay in touch with them. And you have
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I to understand priorities so tpat`whenever a problem
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c amas up or whenever you have ' an opportunity t o chose
between people whom you're going to cultivate, because
z after alltfte is not infinite, you pick the people, you
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~ pick the pLacea
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in the punching bag where it's going to
where you concentrate and you do it
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~ pop out aod Ct~at'~e
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3'lkerere an old story about that family
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the bridAe in Scotland and the
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z father and son Worked on it and it took a Whole year t o
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paint tbs bridge. And by tbe;, time they got to the other
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r end and start all wer again. And that*s the kind of
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W consistency that we have to vedertake.
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Within your organisation, there has to
be fixed responsibiiity, "l'his cannot be eveybody:s job.
Y ou have t o put s oaoeb ody in charge of it v j ust the way
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y ov put so®.b ody in charge of every other staff and itne
function.
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And then sbaondiy, within the came aon-
t.atst, tE has to have the visible partioipatian of you,
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the top aars in the argaoisatt~qn when necesaary. And
tHett is fairly regularly becuuse unless you can show
thee+s peopie,fro® whom yvu'r.:: goig to get the third-
party d.fettse, the clout and the inv®Ivement and the in-
t.rest and thu-credibility, vnless you're going to show
them that itts important at the very top of your organ-
isation, tbey*re not going to have that same kind of
priority to the problem that you do,
Its like a stvvings accouat, TU analogy
is an important thing. tkne.has to keep on making depos-
its into the savings acc ounts. G oodwill deposits, depo-
sits of getting to know people, deposits of listening
to their problems, deposits of gently bringing them
abng about what our problems are and how our problews
impinge upon their livelihood, their well-being, their
economic futures and so forth. And you make those de-
posits in the savingsaccount so that when you have to
make a withdrawal, the bank balance is there. You can
never put yourself in theposi.tion of having to go to a
third-party, an uninvolved party on an immediate basis
and hope them drop everythig and c ame to your defense-.
It isn't going to Wot'It,
Then the question of building friends --
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not just logical pragipatic a1,Iiea, but friends. And
thr-oniy` way you build friends I thidcis not to ask
fnar anything f or a i ong tia.. Y w have t o stast way
wsy . up front wnd you have to start talking to the pe o-
plr who look like they are the logical candidates to
be third-party defenders, whrr~' 2ook tilRe they can m.ke
common cause iith ycru. And bit by bit, bring them
a lmg,
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You have to aeake them understand that
hope thst tli by- interested in our pYoblems. You have
to caake them undorstand that What wesre ta3king to them
we$ re tnterested in their prcAle®s just as much as we
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ab out is something in their interest, not just self-
serving fo r us.
When you look at your esinZife, try and
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Z eraumerate for yourself the people who are really in-
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u terested in you, I dnresay you. will not come up with
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~ a lot of people. And it's the same organizationally and
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F in this third-party defense structure. The organiaations,
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~ the people, the variety of interests that are involved
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bump into someone who is interested in what is good for
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titem is relatively infrequent. And wehave to show them
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that thatis how we feel about it and that's how we
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make lrf.ends.
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ou ttave to be; organised. This isnot a
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h.lter skeitar operatciota. ==hiia is as organized as
yous r.rket3.ng planr It is #~t organized as your
producti na Operatl.oos are. Y-qn are great managers.
Fbaxls Nby Youlpre heca. And. this has to be a managed
opfretion.
You.haw to try to understand whom
you have to neutralize in advanae, who is a potential
threat to you. Not only who is a potential ally. Who
is a potential threat to you snd then haw do you make
csemcn cause with that category of individuals or
companies or group or whathavsyou so that you can neu-
tra liae thom.
Example. The seli-exti.nguiehing cigare-
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tte. Who would normally be involved in the seif-extin-
guishing cigarette on the other side of the fense? Pro-
bably the fire-fighting cvaounity. As you bcnow in the
United Btates, we have put a huge amount of time into
helping all the organized groups of professional an4
volunteer fire-fighters. They get such help from us
that it is monumontal. And then when we need them tu
stand up and say, not cigarettes that cause fire, in
99.9 percent of the cases, wt get theri cooperation. But
that's because we have cultivated theip helped them achieve
some of their goals.and we have seen that they are a po-
tential enemy that has realveedibility. That's the
