Tobacco Documents Online

PM - USA Funding for Social Projects

Abstract

This 1988 memo lays the groundwork for Philip Morris/Altria's "social responsbility" public relations programs, like feeding the hungry and funding domestic violence shelters. Far from engaging in these pursuits for altruistic purposes, the memo says that these programs could "provide [PM with] access to political decision makers" and "Enhance PM-USA's position with legislative bodies who might be considering marketing sanctions, advertising bans and public smoking restrictions."

Fields

Quotes

One of the 1989-1993 Five Year Plan issues included under "Deteriorating Socio-political Environment" is the proposed use of PM Credit Corporation to finance public projects to improve the Company's public image. Undertaking similar strategies, many companies are currently getting involved in projects that promote the general welfare of the economically disadvantaged. In today's Wall Street Journal, Better Homes and Gardens Magazine has taken an advertisement to promote a program they are undertaking to help homeless families. Another company, Drexel Brunham Lambert, recently ran a series of television commercials touting the company's underwriting of innovative financial instruments that helped finance public projects and improved the quality of life in many cities.

As many social problems increase in severity, government assistance programs at both the state and federal level are being strained as a result of cuts in funding. This presents PM-USA with an opportunity to become more involved in efforts to provide assistance for some of the Nation's biggest social problems, as well as, addressing a strategic need to enhance our position within the socio-political environment.

PM-USA in conjunction with PMCC or Corporate Contributions may want to consider becoming involved in these or similar undertakings:

Underwriting low interest financing for middle and low income housing.

Develop and finance a program to retrain workers in areas of high unemployment.

PMCC and PM-USA may be able to lend financial assistance to public projects that involve education, emergency services, utilities or recreational facilities.

Benefits PM-USA may realize from a program of this type include:

Enhance Company goodwill within each community served as well as Nationally.

• Provide access to political decision makers.

Provide concrete evidence of PM-USA's commitment towards responsible corporate citizenship that can be translated into a positive company image by consumers.

Enhance PM-USA's position with legislative bodies who might be considering marketing sanctions, advertising bans and public smoking restrictions.

I am ready to discuss aspects of this program at your earliest convenience.

Company

Philip Morris

Author

Lembo, L.

Recipient

Piskor, S.

Named Person

Steele, H.G.

Xxdavid

Named Organization

Better Homes

Drexel Burnham

Gardens Magazines

Wall Street Journal

Type

MEMO, MEMORANDUM

Litigation

Stmn/Produced

Subject

Corporate philanthropy (Company giving behavior)

The giving of money to causes by a company, usually in a manner that makes the company appear altruistic to the public. Corporate philanthropy is usually done to achieve public relations or political gains.

Corporate strategy