840000 Corporate Affairs World Conference Rye Brook, New York 840912 Plenary Session

Philip Morris

840000 Corporate Affairs World Conference Rye Brook, New York 840912 Plenary Session

Date: 12 Sep 1984 (est.)
Length: 55 pages
2025421658-2025421712
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Author: Clephas, V.R.; Maxwell, H.; Pittman, D.; Sapolsky, H.; Scott, S.S.; Zahn, L.
Type: TRAN, TRANSCRIPT; LIST, LIST
Area: CORPORATE AFFAIRS/CARLSTADT
Site: N100
Named Organization: 1984 Corporate Affairs World Conference; 3rd World Corporate Affairs Conference; 4th World Conference on Smoking + Health; 5th World Conference on Smoking + Health; 7 Up; Alcohol + Drug Abuse Comm; American Assn for Cancer Research; American Cancer Society; American Heart Assn; American Lung Assn; Center for Science in the Public Interes; Civil Aeronautics Board; Conference on Business Opportunities; Ctr, Council for Tobacco Research; Diab; Distilled Spirits Inst; Fortune Magazine; Miller Brewing; Mission Viejo; Mit; Mothers Against Drunk Driving; Natl Conference of State Legislatures; Natl Heart Lung + Blood Inst; Natl Inst on Alcohol Abuse + Alcoholism; Natl Inst on Drug Abuse; NCI, Natl Cancer Inst; Ny Post; TI, Tobacco Inst; Tobacco Advisory Council; US Brewers Assn; US Congress; US Senate; Washington Univ St Louis; Who, World Health Org; World Health Assn Subcomm on Internation
Named Person: Aristotle; Boley, J.; Clephas, V.R.; Colman, H.; Cullman, J.; Donohue; Galbraith, J.K.; Hathaway, W.; Hawkins, P.; Jacobsen; Koop; Maxwell, H.; Mccormus, P.; Murphy, J.; Pittman, D.; Ruder, W.; Sapolsky, H.; Scott, S.S.; Surgeon General; Weissman, G.; Xxemily; Zahn, L.
Request: Stmn/R1-006; Stmn/R1-020
Litigation: Stmn/Produced
Master ID: 2025421657/2239
Date Loaded: 05 Jun 1998
Brand: Benson & Hedges; Marlboro; Peter Jackson; Players; Raffles; Virginia Slims
UCSF Legacy ID: kxz88e00

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A-1. 1 2 1984 CQILPtBATE A"AI>ft8 WOQi.D CtHrBR=CR 8YE BStCK,. I= Y QRC . S9PV"U 12, 1984 YLBmw SBsSIOl1 3 4 bTAD18Y SC t7lT 2 - 12 5 !II ~ ~ IMgli alA7tWgt,i, 00 12 - 26 6 c? CD t" 7 VINCBNT R. CLRPbAS 27 - 29 I ~ LBMBD 2A8'N 29 - 36 8 Q HARVI9Y SAPCLSSK 36 - 42 9 Q ~ DAVID PITt'MAAi 42 - 51 10 ~ w z. 11 Q QUESTIONS & ANSWERS 51 - 55 12 v~i w z 13 ~ 14 I Q 15 ~ ~D ~ 16 C~ z_ 17 R O U W 18 ~ z . 19 Q, ~' 20 z. ac. ~ . E- 21 ~ , 22 23 24 25

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A -2 1 2 3 4 a) 6 ~ 7 MJL. STANLEY S. SCtn"!: Good morning. We shoaed those commsrcials because they weneresponses to challenges. They were opportunities seieed. As you know, challenge and opportunity are what we're trying to sort out this week. Aeturning challenges into opportunities Philip Morris w uund up 35th an the F urtune 500 list in revenues -- 15th. Among the 500 in that earings. Corporate affairs played a mQ j or role in Philip MJrris t achievement of that rec ord. Jim B oley is a hard act to f ollow. But let's look again at some of the iaa- mages we just saw. We're learning to live with that and naybe we'xe uecming a bit complacent. That could hap- pen in a year or two if you ask anti-alcohol extremists are not blocked at achieving the goals they announced this spring. ~ ~ Even that isnet out of the question, be- 22 23 24 25 cause iegislaturs thirsty for revenues have started slap- ping taxes un suft drinks. I don't have to tall you there is an intensifying squeeze on c onsuers freedom to purchase our products. The fact is in 1984 our industries have all been hit wc-xld-wide with more chAl$nges and more opposi- tion in ,rwre places, at more levels of government, than

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A-3 I 2 3 ever before. In ttis country in 1984 for the first time, Congress has been considering multiple bills that could severely damage our cigarette business 4 through taxation, stiffer warning labels, and self- 5 extinguishing cigarettes. CO q) 6 ? Just this year four states have already ~ ~ 7 ~ passed cigarette excise tax increases. And five states ~ 8 o are considering bills restricting smoking in the aork- ~.4 9 o place, ~ 10 W The drone beat of municipl regulations z 11 z and referendums is louder than ever. Right now 22 pend- d 12 ? ing bills call for workplsce restrictions. z 13 ~ bince January, seven others have passed. H ~ 14! 'Eiaht lucaliti©s have considering sampling ba;;s including 15 ~ major cities like Boston, Philadelphia, New York and ~ 16 z' Chicago. 17 o' Jur U,6, cigarette adversaries 9me11 18 ~' blood,, and are nuw unified around their new rallying cry d' 19 o of a smuke-free society by tha year 20f9U. ' P '. KC 20 Z In the 13te 197C?'s tha anti-smoka crusader- w ~ 21 z' ilas centered primarily in North America. In Norway, 22 23 24 25 Sweden, the U.K., Germany, and Australia. But a turn- around came in 1979 at the 4th WoridCanference on Smoking and Health in Stockholm. This milestone conference stren- gthened aworlci-wide network of anti-smoking professionals

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A-4 I 2 3 4 5 6 7 who a=e-in a position to dictate policy, And dictate they -U3. Within a year, for sample, virtually every- Kiddla-Eastern country required warning Icbels on cigarette packs. Within three years, those same ~ countrias in the Middle East restricted or bannad tr3- ~ 'No ditional forms of cigarette advertising. I IT 8 o The fifth World Conference took place 9 uor. in Winepe ; last sumeaer and that conference eccellerated O 10 ~ the chain reaction. w 11 12 ~ campaign. ... We re now facing a global anti-amoking z Just as passive smoking got a hiblier pri- 13 1- 14 ~ cnority, tisan it h-ad before in the last 5urgeon Genpra1's I 15 ~' rupcrt, passive smoking has gotten an increasingly high c~ d d. A J 16 0 apan ar. ,ustYa~.ia. priority in uther caIntries, inclu ing z 17 P Here and abroad passive smoking is a parti- O 18 ~ cula-r1y dangercus issue because it suppbrts restrictions ~ 19 0 on soF.:d:ir.g where spoke-,s spend nearly half of their wak- ' ing h1au: s ir. the workpiacQ. 20 z, 21 z Perhaps a chief weapon against consumars 22 23 24 25 all our pr.oducts is the excise tax. People used to think of excise taxes as mostly revenue-raisers. Nuw the antis are usirg excise tax as weapons to curb the use of our products to try and put us out of business.

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A-S 1 2 3 4 7 22 23 24 25 8ere in the US thereEs talk of heighten- irtjj the federal exxcise tax to 32 cents per pack. At the name time, state taxes are spiraling upward. As if it weren't enough, we face pr oposals for targetted taxes on cigarettes, besr and soft drinks to pay for l+jeedicade and alcohol abuse treatsent. Beer is beginning to be the target f or so®® other familiar attacks like the demands for health warnings and ingredient labela, The iegitimate concern with alcohol abuse ::s turning to a tax on alcohol use. We see more and more proposals to restrict beer advertising, hours of sale and campus.marketing. Environmentalists are putting pressure on Philip Morris Industrial and which is sune- thing our people in soft drinks and beer can underatand too, Our soft drink and beer people of course, the principal environmental issue is a forced deposit beverage laws or b ottle bills. In the cigare4te ware are seasoned domestic federal troops in the United Statea have had to learn todo battle in the state trenches. Now in beer, our state forces are having W learn the federal terrain. ~ ~ Today, wetre also facing strains in our U,S, tobacco coalition of farm+irs andasnufacturers. I Oq

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R-6 1 2 3 4 part, because the imported leaf issue threatens the farmers. Clearly, we ive got a lot of cultivating to 35. Our tobacco family has topu12 together. We 've 5 1gat to organiae our most obvious constituency. Those 00 Go ~ 6 ~ people who enjoy our products. N 7 I Not unl,y lthat, but we ive got to change ~ 8 o the climate of opinion that opposes our products and the x 4 O ge uplcs that ch oose to enjoy them. 10 z Peuple may ask why our industry {s aL=t~ays 11 9 uvder attack. The answer is sisiple. Weere easy to pick 12 vi z 13 ~ ever since folks lar.ded at Jaeneatowr~ in the ~Ie~,, ?.T~~irlci U) 14 fvhere ttibacou was actualty used as cash currency. 15 2 ~ What were the issues then? AcRaz-S n;. Tax- 16 z_ ation, prciduction and health. 17 P & , Our adversaries would have our consumers w 18 ~ beiieve that the case is clused, that the juries verdict 19 z O' Lq in. Well, we knuw that's ni".kt true. Anj i:u;. job i.s H ~ 20 z - =w ` w = a keep thuse cases open anci scuzes more at*~ t~o win 3 21 z victories and we think we can. 22 Our outreach tv the inveetcuent c.m:unity 23 is respected here and abroad. The views --)f our executives 24 cx=nrnl a hearing. Our good re Iati ons with the plant cum- 25 II munities get results. And the fact is, yL,4z s.ru the very - on because wee re highly visible. And weive been that way

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A-7 1 2 3 4 5 00 CO best at what you do. Wei*re expanding our contacts with Ieb ing internationaletatesmen and with leaders in Washingt the states and the cities. Abroad we've had some success recently, in holding the difficult line on excise taxes in places I like Argentina, canada and France. In England we f ound ~ 8(2 out how to make headway with the tobacoo Advisory Council*s tough tell the taxman campaign. We're increasingly sophisticated at reaching minority constituencies. Our pace setting sup- port for the softens our controversial edges z w 13 ~ with influentiaZ friends. ~ 14 ~ What we've got to learn to do better is Q 15 ~ ~D 0 16 0z_ 17 ~ O U w 18 Cz ~ z 19 p F K~ 20 z w 21 z 22 23 24 25 ask those friends' for support when we need them. And weire also learning from some of our negative expariences, In San Francisco recently, we lost our first ballot initiative. Well we've learned from that. We i ve sharpened our weapons and th9nelt time around, we did in fact, preclude similar Iegisiation in other cities in this nation and we'll do even better in the future because w;aire counting on aLI of yw, That# s what we've got to do over and over, year in and year out in city after city, state after state, country -- sharpen our tooLs, do battle,

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A-8 1 2 3 4 7 22 23 24 25 and hopefully win wre victcrries, I have a few 3;deas about how we can win. And ftse of you who know me know that I'll welcome your ideas because on any given day,we need as many ideas as we can muster, First, I think that we rve got to further strengthen our partnerships between our operating.cam- paniea, and between them and corporate. In July for example in the United States, Miller Brewing Company, CO N Philip Morris, U.S.A* and corporate kept a committee of the National C onference of State Legislatures meeting in Boston from endoxed,ng a prohib'ition on beer and wines ad- vertised on television. That pr oposal cuuld have been a f oot in the d'oor to banning of all of televised beer advertising on television. This summer we got similarly outstanding collaboration from our operating companies including in- ternational at both of the national political conventions, The plain fact is if we don't communicate well internally, weire going to do a lousy ,job externally, Communicatiuns tatcea memos, it takes phoneca4.18, it takes time, we've got to stay in close tough, The partnerships and good communications should help us with the third task I see ahead. And thb t's expanding our constituency base. That's a buzz w ord and'

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# -9 wv're facing a buzz saw. Add third-party defenses as Bill Ruder 3 csiis them are poserful. All the old techniques wiil 4 have to go into overdry. Especially searching out 5 1groups with whom we can make commun cause and common n ~ 6 ~ causes around whichwe can meke groups. We ~re in fact N 7 I taiking about coalitton buildng. Our years of build- v$5-~. ing expertise in computers are over in the United x. 9 O States. 10 z yor example, n+xa we can track our history 11 fziof relationships with leaders and with future leaders 12 ~ who graduate from staff jobs to state legislatures, to 13 ~ 14 ~ governor ships to the C ongress and to the White House. CO ~ We can push computer buttons and tell who's with us and 15 ~ wh+~ls opposed to our efforts. The information is there. 16 z We have t o d o an even better j ob of using it. Q 17 O ~ Another fact of life is that fewer and w 18 ~ y fewer legislators come from the tobacco business. I 19 0 , have large numbers of tobacco people among their consti- 20 20 Z tuenciee. They are just as Pikely to be teachers, lawyers, F- 21 z or real estate agents. So as these legislative bodies 22 change, we rve got to keep adapting our tactics. 23 11 Our U.S, plant employees are a great re- 24 25 $ ource. They gst involved in issues affecting us. And these employees plus the sales forces in our plant communities

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A AU 1 2 3 4 5 were there when the Civil Aeronautics Board proposad to ban smoking on f iights of two hours duration. We got :5f?,000 petition signatures in four days. As a matter of fact, our company effort generated 45 per- ~ cent of 1he industry ' e support. CO 6 ~' Our uni uns in Phi Ii p Morri s, U. SA4 have ~ IN ~ I give us the green light of their memberi to join TAP, ~ 8 0 our Tobaaoo Action Program. By the and of this year, 9 o TAP could more than double from 6,000 members to 15,000. 10 z Tbis means 9,000 more employees available to help support 11 ~ our enlightened self-interest. 12 c'~n z 13 ~ big direct-buy customers across the U.5. Jn issues of ~ 14 ~ common concern from restrictions on sampling to tax in- 15 ~ ~ creaaes. 16 z I say to you support for our industries is 17 ~ 0 out there if we go out there and get it. We can find w 18 ~ friends. We can make common cause with third partiAs. 19 Z p We can build pawerful. coalitions. But we have to approach 20 z ~ the task with vision and creativity and 9taying pa~rer. F 21 z ~ We soon will be collaborating with our I d F f' ourth we ve got to use every orm an , 22 every presentation we can find to keep hammering our key 23 I themes. We 've got to raise the public 's awareness of how 24, discriminatory and regressive excise taxxes are. We 25 111 need to keep emphasizing that our interest importance is

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