Philip Morris Corporate Affairs World Conference 84

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PNIL.IP .MQW S Imc t u t "TlL1

1984 MP UTB Al7AIAS W MLA G CMnSEI+xB
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S8P'nMiR i3, 1984
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m AIAH MILtOt
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I CZQ= WOMrIARD
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~ iiILLUM 1+UtIT?
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!JCEPEILAKE g
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~ DALE FLC>RIO
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Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/jrlm0128
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: Good morning everyboCy,
Actually,th2s bell is kind of' funny . I'm suppossd to
keep on time today . And Emily said that if anybody
starts talking Icmg, I -T m supposed to ring the bell .
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But those of you who work for me knows that the bell
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~ hde another signifiance, right? It means to gat cof-
7 7 I fee .
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~ I'd like to first introduce our panel
u
9 O membera . Dale Fiorio is Manager of Public Affairs for
10 zU .y' .A . ; Bud Quinby a the end here is Director of Ccxn11
~ munications for Philip Morris U .S .A . Joe Blake is Senior
12 z V .Pi Administrative Operations for the Mission Viejo

13 r-
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

17 9
0Industry 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
d
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na ilnly set the stage for what I hope wilL ba a very ati_r*u21 ~
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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
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pr o~ .~'.'?3R1 .
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The case study is Eascirating, Now I' Z1
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7 u $t
s tio
ovsr it I]~J''~d do
y JLu
can
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th it~" ki 11
a~.? v4?t I . t q
1.
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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,0 job is going to be to cme up with creativs ideas that,

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6 G? the costeeticc company can use to help reach out for third
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7 I
narCy support to help defend itsel .f.. And whatIs int3r~
8 esting about this, again to have you think about this,
9 0 it's truly an emotionally-charged issue . And if you re10
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zmes;ber what was talked about yesterday, I thnk Mr . Pittman
~ from St . Louis . Our opponents are using issues subh as

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z the drivin g while intc~xicated issu to link that with
13 ~
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~ every sordid type of thing you can thinkh o:f such as

C111
~ child sauleeting an d things like that . S -;me bo cty chit d -
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~ molesting somebody was drunk at the time or ma}y have
16 z driven to the place where he mulested the chiid . Jeat

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0 to make it worse for us . And this '_s a re&L tough chalw
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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 .

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Ruder, we'il go into some deep presentations by each

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of the panelist . I'll begin by giving a brief overview
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of the constituency system . Can you hear me back there?
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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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z At the end of the presentations, we~12

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have e ome time f or quetions and answers . Anf if you

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12 z have an important question you want to ark whfle pe ople
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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
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z studies, give you soeie time to think about it, and then
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0 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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TAPE
P1AYED
: In the first place,
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as youhave already heard this w ing, we are as we all

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know working in a beleagured industry . We get hit every
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way and from nine different sides . And we never know

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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

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t.aoh
you
on
ag- the
raogs, soaft,
fisifire, 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 aI5,0 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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z need for the third-party defense .
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~, We have that need because we can't be selfM

~ serving, because we are a great industry . Because every-
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~ body knuws that by in large and total, we are a profit16 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 third20 z
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 lever23
age, to give us access where we d on't ordinarily have
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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
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irxvolv.s udderstandig, 4"h .t. wherever we are, whatever

I c O##tTti y iXf whit't h we w o wk, th ef s oc i8ty and the ec on i my is
~ Like a punching bag . You punch it in here and it's goa)

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iog to pop out scmplace elsa : Wr job is to under~

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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
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s tructure of the beginning of 1 ogical thinking ab out

third-party defense .
And Let sie run ttucough some of tbase key

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F points that I've made notes an .
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First, this whole business of third15
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party dgfense depends upon creativity . If you are not

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z 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
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create vehicles to ride on, to put things together in

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fact to invent things that didn't exist before, coali23
ti ons, associations, institutes, seminars, meetings, ali

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kinds of things like that, you cannot be successful .

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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 coe on too hard .
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Ywu. have to UWk hard to uud.rstand their busin .ss and

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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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0 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 in the punching bag where it's going to

~ pop out aod Ct~at'~e where you concentrate and you do it
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~' continuousl,y .
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3'lkerere an old story about that family
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~ that was hired to paint 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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0 paint tbs bridge . And by tbe;, time they got to the other
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~ side of the bridge, they would come bakk to the front

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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
fun ct i on .
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And then sbaondiy, within the came aont.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 thirdparty d.fettse, the clout and the invIvement and the int.rest and thu-credibility, vnless you're going to show
them that itts important at the very top of your organisation, 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 deposits into the savings acc ounts . G oodwill deposits, deposits 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 deposits 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
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third-party, an uninvolved party on an immediate basis

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and hope them drop everythig and c ame to your defense- .

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It isn't going to Wot'It,

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Then the question of building friends --
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not just logical pragipatic a1,Iiea, but friends . And

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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-
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plr who look like they are the logical candidates to
be third-party defenders, whrr~' 2ook tilRe they can m .ke

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I common cause iith ycru . And bit by bit, bring them
a lmg,
You have to aeake them understand that
we$ re tnterested in their prcAles just as much as we
hope thst tli by- interested in our pYoblems . You have
z to caake them undorstand that What wesre ta3king to them

ab out is something in their interest, not just selfserving fo r us .
When you look at your esinZife, try and
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Z eraumerate for yourself the people who are really in17

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terested in you, I dnresay you . will not come up with
~ 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 neutra liae thom .
Example . The seli-exti.nguiehing cigarette . Who would normally be involved in the seif-extinguishing cigarette on the other side of the fense? Probably 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
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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 potential enemy that has realveedibility . That's the
greatest credibitity, your patentiai eneaW . We lasd
turned them around andrsde allaes, third-party defen-
ders for ourselves . And all of this involves a proa .ss
o f iogic .
To
find
the comm oa-
gr ound,, to fi nd yaur
netural friend . ; to find yaur;naturai en.roies and if

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~D pteible, the ways in which you can neutralize the .
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o this and it involves the fact that I have five chiidren .
I have a story ;.that I always tell about
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9 p Now when you have 5 small ch&-ldren at any given tims,

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10 W one of them has lost somsthing, o we used tv make
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11 ~ that child stasti d in the middle of the f i oor -- he I os t
12 ~ his hat - and he would have to say if I were a hat,
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.< where would I be? keil if I'd were a hat, I ;d get

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I stuffed in my sleeve, I'd get jammed in my pocket ; I'd
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. And if you keep on thinking like a hat,

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~ under the sink
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get thrown under the refrigerator ; IId get kicked up
Q yousll find the hat . I'll guarantee it . Try it with

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~ your own kids .
o Now that hat story, if I were a hat is

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M the kind of logic and process that you have to go through
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21 z in
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understa nding
how to reabh these third-party defender
audiences and potential allies .

: Think of yourselves as
hats . As I mentioeed eariier, for the past year I0ve
been working with our, ooperating companies and with our
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osloputar people to develop a hompvteris .d constituency
sys;tw that would help us star4
identigy all o9 the potentiai :s.souroes, including eo-
csosa-reiersnce and'
pioyes, that we could bring 'to bear an Issues that

'00 would affect any part of Phillip Morris anywhere in the
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tatmtry* The system is now sMady to accpt data and
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waIYe beginning obviously with priority areas . We ire
beginning by putting in orgaoisations, businesses, associationa, people we do business with who have a veted
interest in the well-being of Philip Marris .
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We're starting off with such groups as
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major vendors . THose vendors with whom the corporation
or any of its operating divisions generally do at least

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$100,000 or more in business through the purchase of

materials, goods, or services . Wetre also including
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_ minority bankers, an impurtant group which Bill will
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0 talk dout or allude to a little bLt .
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Other groups that will be a priotity
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entry into the system will include Miller Beer distributors, 7-Up bottleas, PM U, :+ .A . direct buy 3ccc,unts, '
bankswith whom we do business, trade associations whi4h
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we work with, and organizations which we contribute money
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tO .
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Ifl each inatacice, we want to be able to

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identify certain inforation . We want to be able to know
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who the senior person is . We want to be able to know

the address . We want to knoat; the phoae number . We
wat to knw what it is they sell to us or what it is
we sell to them .
We also want to know who the Philip
Morris pe ople are that msy have direct contact with
these organisations, so that if the nesd should arise
to make a contact, we w ould do It with the best possible
person .
And conversely, if weire making a contact,
we want to be able to reahh the one or two people who
can make things .happen . So i# youlre dealing with a
ma j or venlt'sMb may not want to go to the purchasing persor~
or to the sales person, but you may want to go directly
to the top . Ahd in some instances and the system is built
to do this, for acompany thatts a subsidiary of another
company -- I'll give you an example . 7-Eleven is the
convenience stores that we do business with, we sell
them cigarettes, beer, soft drinks . They'reowned by
the b outhland C orp ora ti on . A"d if the r wesst a need t u
activate 7-Elevens to get letters written from store
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managers all over a state, in .upposition to a forced

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deposit bill, for example, you wouldn't want to go dir24
ectly to that 7-Eleven store manager, but makes sense

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rather in my optinion to have a letter or phone call from
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Sasd;sh Maxwsil, from Dii1 Rowsll,, lroo somebody at

that level to tbe hsad of Southland .aplAieing what
the situation is, seeisg if thsy would be able to
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help, and one way that they rr .culd be able to help would
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be .to Lst the store managsrs know that this issue afCO
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02, facts them as well as us .
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~ The system aiau has another unique

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8~_feature in it in that - I like tocsll it the cato in

9 o the hat program sometimes because if y'u think of the
10 z cat' in the hat book by Dr . Seuss, vns level uncovers
tt ~' another level . And what wairs talking about here is
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12 z' ths example Vin Buccellatu mentioned this morning was

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~ quite interesting . And that was the iScCla#.n Company

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14 ~i which is a wholesale grocer came to us and asked us how

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~ can they help ue'?defend oursetves against tobacco issuers?
16 z This is the kind of thing where obviousxy

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0( McClain may have vendors that they buy from . They sell
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~ other suppiierA, they may have edvertsing companies that
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F do businesa wibh them . They obviously have employees .
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~ We could put all of that information on
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our system and it would be another way of identifying

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people who could help us . Again, you*re taking it one

step beyond scxnethingdLrect .
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The key feature of the whole system is
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an autcxmated process that will identify in which congressional

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district, which county, which stat. senate district,

: ad whicb state assembly distticE .ach and avesy eatry
iD that system residaio .
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What this means is you caa:- pinpoint an

~ entire state senate districtr #or wcample and id .ntify
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C? very pot.ntia l Philip Morris 'resaurrcqs .
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Boployees, broken down by operating
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ocompany, v.ndors broken down by operating aompany, organ-
9 o,izations we give money to broken down by operating canlo ~:

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z pany . And notice what I'm saying here -- operating cam-
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pany . We in corporate are not going to be activating

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z vendors, employees of any division of Philip Morris .
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F We'rehere in the support capacity . What we're doing is
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~ culLecting all of the inforation so that if an issue

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~ should arise, where Miller quickly needs to be able to
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z_ pvill out all of its employees in a particular state,
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2 c ounty, city, congressional dittrict, they'll be able
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~ to do it .
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~ We~re here only to support the other
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~ operating cumpanies . Now you can perceive an issue
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so huge where there may be a decision made at the high22
est levels in this company to activate the entire country,

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A nd somethisg similar to that happened two years ago when

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we were faced with a doubling of the Federal excise tax .

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And I think Dale was around at that time and Dale and I
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received a call and said activate the entire nation .
We didn't have computers theo`' ;:to do this, We had lists,

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we had thiings in different fites . We contacted our shippera, we contacted our distributors . We obtiousiy contacted our employees .~ But hsel we had a system such as
this, we would have been able to do this much more
quicker .
Nvw security iaabvionsly important to

the whole system ., For it to I work, there has to be a
guarantee that there will be no violation of any buiinss relationshps or in some cases personal reiatipnships w ith any of the information in the system .
I'1l give y ou an example of hav this
could get fouled up . We have an issue pending in some
state legislature and it's bef ore the Environmental
Committee . Itts a forced deposit bill . The six members
on the committee, two of them : favsr our position, two
are opposed, two are undecided, The decision ismade
to try to put pressure on the two undecided state senators
who serve on that committee . And so we go to thesystem
and we find out that there are 16 major vendors totally
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in both of those districts . Naw if we wouidntt check

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with the designated clearance person at Miller and went
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ahead and contacted them and ask f or their help, we might

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not have known that two of those vendors were in the process
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of renegotiating their contraict with Philip Mnrris4

And sure, they'd be delighted ; to write aletter and
then come back and say, okay, . I wrote that letter,

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nor I want maw mvasy . Y msa~; that a an extreme example
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o!. soM t.hl.ng like that happo n' >pg,but obv#~aU sI y Me ao
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~ not want anything like that to happen.

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7 I So we've worked especially hard wit h

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8 0 our computer people and ws continue to work with them
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to-assure total security of the system . We're assured

that the information in tbat system will be as secure as
our personnel and finance rec ordi, And again, we have,
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designated clearance people in each operating company

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from the Public Affairs DeperCent to whom ie would go if
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an other opera ting c ompany reques ted a search of an other
operating c ompany's inf orati on
For the wh+ole thing to work with undertaking what I could consider an enormous task here, because fif this works the way we know it will work, the
data base will grow large quite Auickly . But one of the
problems of a large data bass is hdw do you mat'ritain the
accuracy of such a massive file .
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We may have information in there that

we put in two months ago and it's time to use it . And
if we havenIt checked and kept that system up-dated, we
may be sending a letter or making a phone caIl to the
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wrong pers oo, from th. wrong persun . And s o one of
the biggest jobs weire going to have with this is to
set up a pr ocedure to regularly up-date fi#e and sash
segment of that file to, iflclnding employees that will

be inc 1ud.d in the fi le .
I1' very eacited ab out this and I hope
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that by the next tiise we gather and cae together, I

Wixll be able to stand up here and give you lot s of exx-
9 o amples of how this has vorked,~ Although I hope we never

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have to use it .
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George will naw talk a little bit ab out
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M#,llerfs ccostitutency system . Qae thing I just want to
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add before George starts is that what we're doing is
H
~
I
14
nothing new because the company has been doing this all-
15 ~
~
~
16
0
z
_
17 2
0
w.
18 [
~'.
19 p'
F'
20 x
z.
w.
F
21 z
22
23
24
25
along, Every time we have an issue, we always reach out

to third parties wherever we can . Besides that, the
oparating companies themssives,have sophisticated constituency programs . And I think Miller has perhaps the
best and I think you'll be delighted to hear George talk
ab out it .
GEMGE WQCOWARD : Thank you Alan . Can
everyone hear? I j otted a few notes down on the back
of an envelope when I was riding here cin th' train this
morning . Xs$; me just, to make a point, tell you about
an acquintaine of mine who is an avid golfer . He also
G-19
is the babbi of a synogogue in my neighbcwhood .

aa2ph GiAnsb.rg is the ost avid golfer
that I have overknown in my life and nothing stops him
4
5
6
7
from the pursuit of golfing, Nothing including the
~ highest Jewish holy days . In fact, he has joined a

Cl)
CO
~ golf club that is about 30, 40 miles away from tho naiN
I ghb orhooi and the congre$atian, And as I said, even on
:5t
8 the highest Jewish holy days Ralph goea golfing . And
~
9 0' he 'ras out golfing one cky and it was the higheat tnly
10 ~
z
day . And one of the angels happened to spot Ralph on
ir
the golf course . And he called to the attention of Goc3
12 ~
w th fact thAt the rabbi was c7ut golfing on the highest
z
13 ~ holy day . And God looked dvwn and saw that it was true
..
~
14 I
and snapped his fingers and as itaiph was teeing off .
15 ~
~ Ralph teed off and the ba1L went through the air anc'd right
16 0
z into the cup - a hole in one . . And the angel looked at
17
0 God and said that's punishment? And God said, who can he
lg a
~ teli?
19
0 And what I'm saying is when we have a

20 z
W
r probtem and when we have an issue, and I work for the
21 z
II' company thatmaices the product that causes child atotes22
ting and sexual abuse and drunk drivers and all those
23
other horrible things, who da we tell? Who do we enl .:st?
24
Let me jast briefly give the structure of

25
our Miller Brewing Company government affairs department .
VNi
10
0o
~
ON
Vi
-+
10
OD
INTERNATIONAL RECORDING GUILD - STATEN ISLAND, NEW YORK 10314 - 761-3838
E~siz~szoz
c-2o
1
we
have
a very_ very small bome office
2 - s taff oec 4, 5 professionals atdae have a field force

3 of 7 of the most talented pro{essional government af4 fairs managers that anyone coutd ever be blessed with .
5 ao Airai each of those seven field people ho anywhere from
a)
~
6~ 7 to 8 states that they are responsible f or .
~
7 ~ I've been one, and youtrve a hearing
v
8 in Idaho today and a vote in the senate in Hawaii to9 0 orrvw and an issue on the floor in Alaska this afternoon
10 z and these 7 people are spread very very thin .
11 $ We say We"re lean and mean and that's

12 can
~
z true . But there's only so s~uch that one , nonatter huw
13 talented, how dedicated, how professional, person only

~
14
~! s ouch that one perscm can do .
15~~
So
you
must
enlist
others . And let me
16 C~
~ just talk about that briefly . .
17
8w
Part of our government affairs program
18 a
:~ requires - requires and it is a part of the annual per-
z
p
F formance appraisal, requires those seven people to make
20 z
x ca,lls . When you're not dealing with the legislature toH
21 z
day because they're not in session or for whatever rea22
son, you are out makig calis .

23
24
25
In anticipation of problems, my industry

wi11 also always have probiems . The day that mrp.yindustry
no longer has protiams, I wiZl be unempioyed . I mean itts
G-2I
, that aiwpie . W. work in an industry which will always

2 have probiema . we want to aati.cipate them. I don't
3 want to have to start cold today with crsnking up our
4 friends
out there to deal with an issw . I want to start
;
500 orankiag up those friends to ioork with an issue that I
CO
~
606 think is going to come up six months from now or may
7 ~
I cooe up a year fraia naw. ` They are making calls and I'lI
~
82 gat into who they'Ae calling on,
9 o Wa ,have a plan '. This is a dapartment-
10 ~ e~o~rked plan as I said, And part of that plan is to

11 ~ identify early on potential f,'riends, And a friend un
a
12 z this issue may be an enemy on that issue . That Es fine .

13 ~?hat fine . And we recognize that in our particularline
EO
14 ~' of work .
15 ~
~ We publish every year our department
16 ~ publishes every year and o~sr field people and other in17
18
19
0 terested folks are supplied with theazost up to date

w
a
~ list of our vendors, our bankers, our suppliers, our dis0
E_ tributors, our retailers and others . i)ur people are

20
21
1<
~ required to call on suppliers, on labor, on distributors,
C11
z retailers, other natural alliss and this varies . Our own
~
N
22
emp loyees , consumers if we can identify them .

23
Other mem-
bers of the Philip Morris family and stockholders . And
24
I'm sure
there l s more
on
the
list.
25
I've just passd out to you a form that

GR ~
~
022
we use when we are making that aall . And a copy of

2 this fotm goes into the gwernm.nt affairs mrnagergs
3 notebook in his office and a copy ooases to our office
4 f or our notebook .
5
~, Let me give you an example . Last year

co
6
D'
~ in the state of indiana, we bed an isaue tbst bas been
~
7 1 bui iding our way f or severa l years and perhaps this Mi.il
~ 8 o be our year ?om, itut last year we aere getting very
9 o close . We needed I believe two or three more votes in
10
z one of the houses . Tom Beed opened his b'ook, found that
11 ~ we had a major supplier in the State of Indiana, a call

12
vi
'~
13
~ is very friendly with a legislator . gas served on his

~
14
15
16
'"
z. was made to this supplier an we find that this supplier
~ caomittee, has done other things, very friendby . It is

!
~ in the supplier's beat interest to help us . The more

~ beer we sell, the more of whatevr that supplier supplies
17
18
a
~ stituent .
19
20
z
~ particular huuse . We lost in the other house, but this
21
22
23
to us
will
sell,
we
had a natural friend, a natural con-
~ We swung the vote and we won in that
C11
as I said may be our year to get both of them .

Last year in povember we had forced deposit
~
II initiatives on two ballots or in two state ballots --
24
Colorado and California . Every Philip Morris stokhdier
25
ine those two states and every Pbilip Morris tamily,

Q~_
G-23
2
3
4
5
Miller, 7-Up, Mission, received a letter from George

Weissman br3ef ly outlining the situati on, our side of
the issue and asking for their vote, tv'e received two
negative replies which aintt bad . Two negative replies .
The rest were certain made the estra eff ort because we
made the extra offort and you know all thedifferent levels
~
~
of appr wai and legal and whatnot to get a letter fram your
own company but to gb aiI the way up and get a letter
from Mr . Weisaman to stockholders is a few caoie levels .
But it 's worth it, it paid off .
Our charge right now to the 7 government
affairs managers is we see as you've heard the past
several days, our issue that is building is the removal
of alcohol advertising frooc radio, television, and perhaps welve heard them talking about billboard bands and
no more signs in the window of a bar and s o f orth . The
advertising, the electronic advertising ban and the restrictions on advertsing at other levels has to be our
number one issue and cur number oee priority, right now,
sltarting this coming Monday when our people are back in
their regions is to contact the natural allies first .
Wh o are the natural allies? The local
23
ad club . The broadeasters association of gretater San

24
Francisc o . The Colorado Broadcasters Association . The
25
local regional American Advertising F'mndation . Even
G-24
1 thoa*h so and s, such and euch an ad agency or PR

2
.hop doesn't have any cvatosrs oc,ciients in the
3 aicahoi industrY, they're stiZl natural allies bsisuee

4 they saty luck out next year and land an acc ount . So
5 I these are our laaturai aliiee .` And between nok and the
~
6 Ocon
~ end of the year, we wiii havRs coctacted every sf.pgle
~
7
I ane . of those groups nation+ride, all 50 - s#ates .
~
=
8 0.
~
Now what do we contact them with?

Again this goes back to have a plan . We will contact
them with positive infcra~atianabout our company and the
rest of the alcohol imdustry .. We ara not pr_omoting
drunk driving . We are not prsamoting alc3oholism, We are
not promoting sexual abuse and all of these other things
that we .hgve been acused of . Rather we are spending a
huge amount of money on the education, the education of
consumers to enjoy our products reasonably and in moderation . The drunk dtiver is not a good Miller Brewing
Company customer because he's, going to wipe himself tonight and werve lost himforever and so forth . You knuar,
the alooholic is not a good 'customer because he's going
to die next week of *sorosis of the liver or whatnot .
22
23
We are focusing on the aeterage person who

enjoys our product in moderation . We've got a ton of
24
literature to lay on these folks, We are contributing

25
thousands upons thousands upon thousands ~f dollirs tc
Go
Ct- 25
otganisatioos eho promote th+e reasoeabieness in the
V" and en# eymsut . c+f ai+sobaitA, bewragew.
'TR. bilibtstrds ;; firie"s do not let
friends driw drunk . We're pnttitg 33 ftg?0 dollars

00 #ar", $50, :400 there into those orgauiaations . THat's
CI)
6
7
OD
22 tbo - stos3t that wr lve gaing aut rith. -
~i Fioaiiy, r b.a
it 00080 time to testify
$2 brfws a partiQular gomrnment bo.*y car some type of
9 0 other group~ of
10
gdo
13
14
ieaders .
As
tai.nted and as
pro-
z#essioiaal as our people are, we prefer that they do not
tt
12
civic
he test Uying . They are representatives of a multi-
F~n
~ m111ion dol2ar aas naay that i~~t ca ned by a s~itizbiilion
~ dollar oprptscation . It's obvious diat we have a vested

~
~ interest .
15
~ I want to see Joe BooW who owns ABC
16
~?rucking Company add lives in that cc~munity and is a
17
Q respected member of that commuaity and get up and tes18
19
:~tify and say if Miller goes uader, I go under . 1'twtts

Z
0
F going to get the attention, rather than if one of us

20
1
Z
W
, Ii ke
a carpetb
agger
bcomes
i r.ea
in
ng to
he
t state
od
t ay
z
and makes some kind of a presentation before the legis22
lative body and breeses out tosorrom .

23
So that be4ftaily is the Miller method,

24
the Mitiersystem arf building dsieods, building cansti25
tueocies in anticipation prtt", Thank you .

N
~
N+ .
Cd.
G1t`
~
G-26
ALADi llILURt Thank you George a lot .
~1~ ~rritt .
3
w2LUAI1 XMtUi : I n=eading the book
rge~ rytwo
inipartarkt
points caught my attention,
4 l~ Traad,
ve
5 ~CO fltia was mat In eho, aWe blacks and hirpanios
~
00
6~*iii nalc. >urp about 23 pr>ro .nt- of the D .ge population,
~
7 I And the second point was tbatAwfncaeasing number, they

~
8 aa going to want to do busi>Ewss with corporations such
9 o as they can form their wrn companies and becraoe capital10 ~
z ists, etc,
11 ~
When Pey approach corporations and they
12 c~n
~
z are notst with Qp .n amr , th~y h~tve certaits ' ~pons
13 E_ that they can use against those corporatisnms . One of

~
14
1I which is a boycott which is used primarily by blacks
15 9
~ and by definition, it means w ithdraaing economic support
16 z from that firv and then d .mou*trating against that firm .

17 ~
T'4e other m .4hoddbSy or weaponry used
18 ~
~ against the corporation is selective patronage wtWh is
19 ~
F primarily used by hisOanics and that is a more positive

~
20 z
weapon . They chose to do business with those who who
21 z choose to do business with th . . And they say itis either
22
7-Up day or it's coke day, that-kind of thing .
23
24
?hir en lightensd corporations including

the 7-Up company ac d Mi il.t b rewing have been doing
25
business with blackssnd hispanics for anuber of years

C-27
and nA/
capgnant With"4peration Fnsh : on 1u ly .17, 1982 in Charles-
the eo!?ging -tri nd oR thsse organi8at I otls
Qaoing forward and -aslcims fW--BoEw+snants, vesigned e
with
too, South Catoliwt and that inAivded a lot of different

'0 a+tpp.ats that . do busin.irs Mith':.blacks and hispaaics . And
T)
CO
~ thsru Ilill .r loiiwed suit isi June I, 1984 .
N
~,I
When
we
sigo.tt:. our oavenant, it was to
82 accelierate the amount af bna~ness tre were doing with

u
9 o b tacks and bis panics . And as ;: such, we did f orm the
10 z Industry Affairs Department which I head up and its
11 ~objectives are to Ameber oq.,= :avoid the possibility of
12 z both boycotts and selective patronage, aversee esecwtion
w
13 ~ of all facets of our covenant ; improve trade relations

~
14 ~' between 7-Up and minority coastituencs ; and maitain a
15
~
~ positive image in both black and hispanic marketplaces .
16 z And then assist management by all departments in the

17 ~
0 development of pro-active total marketing plans that
lg a
~ will insure the continued sales and profit growth within
19 ~
~, the fast-growing ssgaa .nds of hispanics and blacks .

20 ~
~ dur systes in industry affairs as many

H
21 z many parts and I'll broad-brush them and I want to kind
22
23
24
of isolate on a conpls +Qf areaa . We have a system of

ccsaaitrosut which starts from the G80 . Wr system doesn't
work untii. Ms . tranteZ first and foremost goes for it and
25
caakes his statement of commitment and then by all levels
G-28
everybody is ioilowing suit, from the top dwm . We
wil l sssf st him in awarowss ~tnd o ontaat _elsd tha tls
kind of a third-party cosliCion thing . It involvas
our raatioships with the :&UlCP, the Urbab Leagvw,
5
6
7
~ Operation Push, the OIC amon; ,blacks and then for

~
CO
~ i3ispanitts the U .S . Hispa~nic -C#~aa~b.r, GGf~tACS, Sir,
N
I GI Fvnmt . And our methodology is just to find out
IT
qC)) Wh
at is needed in the conmity and find om bcso that
~4
9 o r.lates to what we can provids and how it mete our

10
z needs tou,
11 ~ We have a system of responsa, If we're

12 z cottGtacted by minority suppliers, we guarantee them a
13 1~
response that we ha ve received your inquiry within

En
14 ~ three days by utilizing the 5520 IBM computer add also
15 ~
~ linking with Caomodore 64's, we have a 99 percent per-
16 z tcrmsnce level in getting a response back to that per17 ~ son within three days . THat's important to minoritieo,
w
tg ~
They do not want to be ignored and they want to know
19 Z
~ that we have received their inquiry .

20 z
w Within ten working days, we have looked
H
21
z int o that inqliry and have taken our pos iti on and al g o
22
23
responded back to everybody .

That*s just good business .
24
We have a system of f ollow-up whereas

25
we put our dollars, our manpower and a1.l of our support

G-29
behind those pieces of business that `+e elect to go
tnt:o. We have s sysat em of `repvrting,in oisnagemsnt
to mEice sure that the aomratfianents that ae'vemade are
aateallybeing done . We meet.'aace a month in a review

boadd aod masagere from all the various dspartments
to
N
that are iov olved are there to give their piece .
We also have a syatem of recognitioa .

If our people are helping to `t1) forestall any of the
bad things and also to promote the good things about
7-Up in teYms of its comamitments, then we want to reward
them by recognizing them . So when you see our Pg in
the papers ab wt a nj or pi .ecee of business we're d oiag
with blacks and hispanics, you'll see a white face or
two in there, a manager who went out of his way to make
sure that that contract was actually executed .
We have what we call the President's
Hreakfast . c7nce a month, the president meets with
employees to give them top hand inf ormation abut our
commitment across a broad spectrum of issues . We have
what we call the president's award f or outstanding
performance . In that way, we can also recognize peo-
22
ple .
23
We have a system of cross-cumunications

24
and networking . If we've made a covenenjt with Operation

25
Push and with blacks and hispanics and so baa Miller,
G-30
well also has HcDoaaids, -Burgber Kin, Coke, Rugh
BItnd, Bouthland have made tR0 aaaoe kind of cassait-
wmtr, the saas; type s of cav+sWuti .
Well, 7-Up and, Xi1i.r are ia the sams
5
6
~ family . ~io~aalds is +~cre of ~y biggest cuiatoooers .

Q? ' Burgher King is a huge customer and Hugh Blind is we11,
~
~
1!, ca the boarderliw and we waa't talk about Coke .
~
8 o Naar ae've chosen to fletWark with friendly

9 p companies like Hiiier ad ~d also with customer campanies .
10 z NoN what this means is in tha case of Burgher King, we
11
12
~ actually export it to Burgher King our entire execution

a
z f os~mat . And within one week, they were up and running
13 1~
~ with the same system tbet y-Up ha;d developed in order
14
I to execut* its covenant .

A
~s
16
17
18
The
same
is
the case with Southland,
0
z And there was a way where we had increased our relatinnP
o ship with our customer companies and given them a way

w
x
of s olving the ir pr ob lem .
Further, we're beginning to share input suppliar information by linking our computers wit h
theirs . If they've got a good supplier for chemicals,
22
23
24
25
they'll call us up and say, hey take a look at this guy .

If we have a good supplier of packaging, we networ*
bakk and forth .
co mpanies .
S o the netw orking is between custflmer
But we
also
do
the same kind of networking
N
Q
N
C1I
~
mph
G-31
t for blacks and hisINania snppUers . If I can't do

2 b>l#iaeas with a bLaek sugplist at its bank snppUar, .
3 1tlaa1t just tu=o twrr aft and say n0, rs can#t do itt
4 because tey believe qwt wo buy so mue ;h, that why- cantt
5 0o you buy fro us? But V111wa Chen around and sa Y r
~
6 2.0.
~ pisase contact so and so at Soathland, t thi n c ns wght
~
7
f b.r able to use your buainess14 3
Shis approach 'enlorcee a much closer
~
9 o relationship with our customer comp .nies and at the
10
z same tiose, it helps promote 9-Dp .
11 ~
1.111 give you d a aupie of examples of
a12 z'' ho+ this t*ird party coalition kind of works ia the aoar13
14
~ ketplace . For example, with McDonald's in St . Louis, we

Cn
~ go' into a program called the A11 American 1lighschool
15
16
~ Beview . It's an entertainment program for highschool
student in their general ass~blies . A~d there ' s a lot
17
a of dancing and music and whatrot . But it provides an
18
a
;~ atmosphere where leading black opinion makers and busi-
19 0
~ nessenen can come in and address students and say why
20 ~
~ they should stay in school ; talk about their particular
21 z
22
business . We also have the opportunity there to get

increased distribution on vending in the high school .
23
If Coke has a vendor there, we get the 7-Up vendor . Or

24
we got a like vendor .

25
We also pass out McDonald's coupons so

G-32
ttat if youvr+r going to go ta 3fto .clnalds to look for

tis best ha+ebvtgh.r;, but also. :;J .t a . 7-np and it faN
worked vsryreli in St . Lc+Uist. AndMS losh fovward to
3
4
exploring that kind of a program to cth.r m.rkets . as
5 1' slsll .
c',
6'.,C.0:. ?h! General Motors stovsy . is another

7 I exa'nple of haw the third-party coalition with your cus~
8
o toers works out very xitl . With BoethLands= represen-
9 o tative, the guy who dv .s the aase job as Ida and with
10 z the guy from Hugh Blind, at the CyIC convention we jumped
11 ~ on General Motors to sa y that Bg we ares
oin to
~lever
+ g&, .;:~12 z t~ purchas, of _ automobiles bacause ~r .e do buy thrcx~gh
13 1-'
Fioet, but we can have an influence on where the fleet

CD
14 1 or the lease company will buy their cars . We wanted to
15
~ buy more cars from minorities, And we do not want the
16 z cars coming in late ar the trucks coming in late with the

17 2
~ door handles in the wrong place . And what happens is
w
18 a
:~ the companies then jump on the minority dealers and say
19 0
z
you didn't do your job right, or the leasing company and
20 ~
~ say you didn't do your job right, when in effest, it's
21 ?
22
General Motors ford, or Chrysler who didn't give us and
the minority dealers a priority status . And that's what
23 we aiere trying to influence . So here's three or four

24
25
maa j or corporati ons who went to General Motors at one oime
and within three days, we had on our desk a c amplete map

C-33
of all minority dealers, af aasmitmeat on the part of

General Motors to holp .
We have a syate'of concentrated market-
5
6
ing and corpotrate affairs at_7~Up that I'd like to touob

CO on, Itts another example ot a third-party coalition.
~
CO
We have 465 bottlers and what' we do is that we recogcn
~
~ niz that whn v give to the minority c oassunity, we
8 o a Is p get . ANd we give whers we can get .

9 p We ask for the order Wheneverpossibla
10
W and we tend to do business close to hoaus and where we

z
tt ~ havp oparating plants . And then thtrdiy, in key high
12 ~ minority population markets, _ So we channel our meager
z
13 P- corporate affairs resources into thoseearkats that haw ~
V)
14 1 been mutually determined by brand management and corport5 Q ats affairs to be high-priority markets . Therefore, to
0
16 z~ us social sense can make better business sense in our

17
18
19
o_ social program doiLars are working, ,ia concert with msrw
~, keting efforts for maximum impact and leverage against

z.
0 black and hispanic cvnstituents .
d'.
20 w' An example of how that vorks, I wight

N
2t z' hold media dollars, let's say 4 or 5 hundred thousand
22
23
24
25
dollars worth of media dollars off to the side .. Go forward to key market bottlers and ssy look, in order for you
to help us to achieve our goals, if you will co-op with us
an a 50/50 basis on these five minority promotions, which
G-34
are g+si# give you increased aales and profits and us

._R
CQo, ws haw an offer for youi : We will at 10D psrceat
out a+ost,- .put faa an additimal minority media in your
smket with creative that Me mutually agree upoa . And
5 1i! you go Mifth that, ae have anoths :r gilt . Aur corpor4n

~
6CO ate af!'airs datlars for sponsorships will alao be tuoa .led
~
7 1 through to your markets and gjve you a high priority .
8 Q Basically in "icago, Haltimore, Wash9
o iaatM, Philadelphia, Dew York vaac bottlers are not going
10 ~
z to . say no,
11
We
also have a:'syste of 7-tip and I ' 11
12 z end with that, of saying

~~'t you . And :to us it's
13
V.
~ very very important whenever we address our constituency,
co
14
~ to say tbs nk you f or being the layal patrons of 7-Up

15
~'
16
~ products that you have baen . 'Thank you .

z
17
M . MbLER : Bill, thank you . I think
0, i t reinf cnwes everything wlve hsard so far, particularly

w
18 ~
:~ what Bi l 1 Ruder said at the beginning -- getting to knoe

19 0
~ our third parties, getting to finding out from them what

20 z
1W is of interest to them . What'is their concerns . And I
21 E-
~ ~ think what Bill just talked about with the last example
22
with the hispanic esam* of wbat Bi11 Ruder was talking

23
about .
24
Jeannine DoMliug . . .
25
,IBANNINB .DWLIl6 : Thsnir you Allan . Can

e~ -35
1 yuu hegr me, T hope?

2 I}m supposed tp tekle about Philip
3 Morris Inc . Es overall involvement with women's org,an4 izatiEma . And I must preface all of this with saying
5 ICO that I work in c orporaLe and, that I work very closely
~
~
6 ~ with some women throughout tha corporation and that
~
7 I what I am going to talk ebvutw nve+ is a cornpilati .,)n and
~
8~ a concurrence of our opinions . and our ecperiescea with
9 ~-w umen 1 s organ iaa ti ona thr oughou t the c ountry . They
10 zwauld be the Philip Morris U .+'A people Kisrsty ThrArsrr_i ,_i,
11
12
EiLesen Robert8 and Maria Harrera, and at Miller Sonnie
z J~nes .
13 ~ i'd 1ike to firat begin by sayin- thrst

~
14 ~we have bakica LZy categorized the w cmen t s urgaRirat i on
15 ~ and Philip Morris' involvement into three diflerent
16 z areas of women . Aud those would be those grupe Lhst are
17
P
0 politically identified ; those groups that are profesw
18 4
~ sional in raature . That means the people are coaZtessing
19 ~
F, a:. ounci' a particular profession such as comouaiti .atima or
20 ~
~aLvernajent relatYuns and the third group f~Yr 3 acic of s
21 ?
11 betiber pharase I would call the activist groups and those
22
23
24
25
a re the one s y uu read ab out the news pa per s . T`ha t's N ClGT
and the National Women's Political Caucus .
Beginning first with the political groups
since they are the most obvious targets fur ias in tgn,or of
;;~.virng us an i~di~e return on why we ~rae:t to c~ :~ ~..
with therQ thera are tbose urganiaatiuns that have w+eneas
groups within them such as Nationa 1 C unfer .nce ui State
LegLalaturee . They have a wamenf s network which is

fairly n~r)ly-f ormed, probabl.k -4 4r 5 years . Within the
co
P.aCionaL League of C3 .tiea they have a woments orgsniza-
I tion alsU, ALmost all of the major gwerrnaoent organiza:r

8 0
~ tions whicn Dale will talk about have avumenlrs grwp .
5 oocs of thow ara ac tive and s ome a$ thsm
are worth pursuing and some of them are just 1;ict2e coffee
c iutches . 4e'rre learning wore about them as we gu a1ong,
They are new to the organi .aations and they are new to us,
:hen you have the groups such as T'ae
Womens aesearh and Education Ynstiturii;l whi.cii is diz ec;tly i~elated to the congressional Caucua A'or Wvnen'a
I3sues . These are members of Congress wbu have loMaad
a caucus just as you have the hispanic caucus and the
alacis caucus and aee have been working c :ioisly with thum .
~
19 p
a :-iuti3err exampLe wuul :i be the 1darr-Junai
F
20 z
x %1+x~~t~ie ?clwti :al Cdu,:us, thvse the iu<yu3 0~ ~ ;illci aruup
w
21 z
is to basically eleCt more wowa :7 tu legia2ai:i :aa ?osie:3:uvis
22
,)n che national, state and I,ocak levela Ch--coug :n .Rit tha
23
; c7i9.''.1t1^y .
24
25
Similar to tnat would Ibe tiia t7joeo ' a

Campaf.gn Fund which is a political action c :>mittee that
G-37
is dedicated only to electing women to office . That's

broad brushed look at tha pollticai groups-.
The profesriaaal groups include as I
4 11 said before Women in Communcations, Financial Women rs

5
~ Asscfciations . Therefs the Cara Foundation which is

V)
~
6~ dealing, we're involved with them through a Ieadershp
~
~ training proSram for hispanic women . Y ou have the c o~
82 alition of 100 B&RO Women, -?iou have the National

9 0 Conference of Puerto Rican Women . You have the Coalition
10 ~:
of Labor Union Wumen . The list is endless .
11 2
12 ai
~
z
.5.me of thest aXe very ac t ive , s oma of

tb.em yvu've seen in t1~e newepaper . :3ome of them are
13 1~
~ receptive to cprporate donatiuns, some of them are not,
rn
14
~ 5Oone of othem like dealing with corporations,
some of
..
~
15 ~ timm solicit corporations, most of them solicit corpor16
0
z ations .
17
9
0
w
a
18
Then there's the old stand-bys such as
~ the YWCA, the Girls :bouts of America, etc .

19
20
p
With all of these urgan ;.zations, we try
P
~
~ to do what Bill eiuder referred to .
If we are involved
21 z
with them, we try and be creative in our involvement and
22
we try and sc ope out their priorities and see how they
23
mlteh our priorities,
24
In all of this, we try and ccmle up with

25
programs that will aid them, aid us, give soane of us, all '
of us saree press cqroerage . give us access, make friends

to .essenae stnd lead us to due> other peple who are in .
ess.nae tbr, . public cpinian keraders and the peaple who

are regsitag and affocting the a .le of all of our pro-
5 I ] dua:ts .
0D
(1)
6 ~
(D
~
7
I
A couple of .xa .pLes of the artsn unique
pr opsas tha t we lvs a 11 become iav, olved in w ou id be s

~r
-
1 . ?trs 14tion#Itl Woven "s Politica 1 Caucus,
9 6 we publish teir director with ;'Wouen Slscted Officials .

~
to zThis begayn I guess we're in our third printing . We do
11 ~ it about every other year now;, This is an actual direc-
t2 z~ tary . ~'i~e first time it s .ver been put togehter . They

13 ~ approached us . We were glad to have the opportunity .
rn
14 1 It ts a directory of every woaian legislator, every woman
Q 15 ~ who's a county official, every woman who's a major, Por-
~
t6 z swr rmbers of Congres and present mebe*s ofCongress .
17 o Itta a very iopressive direct'+sry . That in and of itself

w
18 ~ is not nearly reason enough for Philip Morris to have

19 o become involved in it .
F
~
20 ~ We distribute
it . The copywrite bmloogs
H
21 z to the National Women's PKitical Caucus and you talk
22 abopt priorities . Their priority was that they get

23 credit for it, That's fine with us . Ouc priority is
24 tttat we set to distribute it, and open pathways of com25 munications with the people who are listed within the
C --39
diractory,
To that aQd, . 00 send it- out under dif-
ferant peoples' signatures to every woman listed there-
4
5
6
in so first of all the first time they gat it they

~wore amazed, Most of all, they were just thrilled, no
N)
CO one had ever pOt their name In a book . This book was
7
alI their awm . There tad:fi~t been another corporation

who had singled them out f or that kind of rec ogniti cm .
A brief asside ;lwoments Involvement in
10 ~
w
2 :'~litics very much vbviously i9 i :~ the news rigI it
11
~ But just to give you an example of haw new it is or hnw

12 vai
z much of a concentrated issue it ia, they have only been
w
13 ~ compiling facts of wcmmn in Iegislatures, w ::men who have

..
W
14 ~
actualLy 9erved in state leg ;slatures for ten years . We

15 ~
~ couidn't g8t any facts that went beyondten years ago .

~
16 0
Z
17 P
O
U
w
We've gone up 12 percent . There mre probably L0t?0 wcssan

legislatures nvw, and it's increasing obviously . In
18 G
a members ofcungress there are I think on the average about
~
19 z
P
20 Z
rx
30 women running for -- we1ll the primaries jvsr happehad

andI haven't been able to keep up, but apprtziA-ately 2C
21 z
to 30 women who are running for federal positions 3s

22
;aeL1 . So it'e new . The women are new to politics and

23
corporations are new to courting the women in politics

24
and the w omen in the arga bizati ons . S o by our bec uming
25
involved and signing up early with the Vat :i.onal 19vmen's
G-40
Political Caucus, it helped our image as a sucially-
respunsibbe corporation playing on what Bill had said -
before . It gave us a tremendous edge with many of the
5
6
women listed wilhin the book . ANd most of all, it helped

CO us with a very very active political arganiaation , the
a)~ Natio~tl Wco~s Political Caucus . T4ey lobby, they
N
7 I
~
8 0
have their o3sn agenda . They have active contacts .

They have s tate caucuses in all 50 so*es . And they l~re
9 0
active very much in federal affairs . So they are a good
~.
10 ~
w ally for us to have, a new ally but a good Ally .
z
11 A'.
Another example I mentioned bef ore would
~
12
be the C ongressional Caucus for W omen's Issues . They do

z
13 ~
H fellowships . They actually take women who have been
~
14 I
involved in various appect of pubiic service and bring
Q
15 ~
~
16
them to Washigton, assign them to a member of Congress
0
z to work for that member of Congress, to research Women"s
_
17 0
R
issues on that congresspersoii'.s staff in conjunction with
w
18 ~
George Washingtun University .

We sponsor two of these fello,rships . We've
dune this for thaee yeers so we've had 6 pe opie . Presently three of them have been offered permanent positions
22
with the members of congress with whom they have worked,

23
24
That is access right there . Y ou can't ask f or better

access . ThatTs a creative, we think, way of dealing
25
with and gaining access and getting to kn ac thepeople
C-4l
who are making decisions .
Wealao have bepan a policy where we
bring the feliows up to Phili.p Morris headquarters
i.a New York . Eventually we'd like to bring tboa
armmd to the operstirtg asoptn;Lss as reYl . So that
CO
6
01)
O
they can mqat the exoutives and they get an idea of
co
what corporations are like .
Again, I will go back to this several

9 p times, these W aaoEsn, many of thees, th.ir legis lative
~
10 z experierce far Outraches any kind of business experience
11 ~ they mght have had . Saw of ; : them used to werrk for NQrT ;
12 ~ s os,e of them used to work f or their local ERA campaign ;
z
~
13 E~
~ s oaue o f them work or meatb ers f or c ongress w ithin thair
~
14
~ own districts . But a business enterprise, a capf.talis-
15 n tic corporation such as Philip Morris is not something

0
16 z that they have very much information about or they just
17
18
o don't care . You bring them to New York and you show them
w
. your line of products . S+xne not happy to say, but it's
19 z 0' getting to say, but some of them donrtG even know our full
~
20 W line of products . You bring them in ; you talk to them ;
F
21 z yuu talk about your issues ; yuu ipt and know them and all
22 of a sudden lights go on . They understacid what it's all
23 about . They're new to it and we 're helping to hopefully
24
~ acquaint them with the quid pro quo system of how govern
25 1'i went and busine9s can work to,getber effectively .

G^42
Another "asip3e would be ths N .tionrl

; Association of Negro gvsia .as and Professional Wcso.n.
i1a just had a, we have be .s i;Avolved with this group
4
5
6
for a very long time . Just "aedtly, actually it was

~ust last month . in Atlanta in Oorki,ng . mitb this particular
~
CO
~$ rot1P, Ne sponsored an aMasds:" progsa m . Zheystnted to in~
~I itiat . an awards prqgiram so we did the aKard, did . the

~
$ r.iwEeption, helped plan the speakers prQgram, got some
9 0 of our Miller people down there toe p,i .ve the presintatica .
10 z Actually Rev . Jessie Jackson was there and ended up as the
11 ~ speaker which was a nioe touab, kut. yu . can't always count
12 ai
~
z on that kind of luck ,
13 1~
~ At any rate, it was another creative

~
14 ~
approach . We made a lot of friends and obviously awards
15 ~
~ programs are not necessarily noM, but .that you can begin
16 0
one and thereby make your relationship or your c antri-
17 ~
0 bution to the organization substantive in nature helps
18
~ a lot.
19 ~
F In that particular instance, the payAff

20 z
w was even better . I mean the return on our investment

F
21 z
there, we had an idsue in Washington, D .C . and the presi22
dent of the NANBZyi went to testify on behalf of Philip

23
Morris in Washington, D .C . She has good feelings about

24
the coapany and obviously was willing to put them on the

25
line .
G-43
2
3
4
Another exampie would be working even

wi,th tb. VWQ . -'!bOr a pParoachrid wo an3 they sa id ms
need sameone to do a presenkatiou for ` our annual
Luncheon. Very qiiekiy we put togetlaer a video tape

xe had Mar feoe Baudrrs c ame aod interview three M omma
about M+omen in> leadership . 'lhis was two years ago,
fis.;ve since publiaised that .tap. . We have 35 of them
in distribution, It was a very ineppensive project but
vne that has incredible outrmaoh . It's being shoau in
other corporations . It's being shown by political candidates, It's being shown ici government agencies throughout the country . We 'w - it's nvt juat aome and we give
you the tape . It's that we ask f or their c omments back
and we keep a communication line open with them . That's
another example . We should probably up-date the tape .
People are amazed . Tbeyfre very very happy to have that
kind of involvement from us .
On the activist side, Weive been involved
with the waoen's Equity Action League just as one example .
This is a ivobying organization on, based in Washington .
It''s a membership organization and an its face you would
22
think that this would not be a natural ally for Philip

23
Morris or why are we are involved? Tgatis the question

24
that happens often and often .- Fvu~`rs involved with them

25
because they s"e, while you may not agree with them in all
c- "
1 of their is .sae.s, . obviously you try aAdd fiod those .
2 ~ is#u .s on vhicD you can agsad . Av:d from thsir ;per3 syl+ativa, th.y needed e .rly c4rpocate s.upport . We
4 Merf ., let's see we begie vut`' ;relati onship with them
5 S qc 6 yeeira ago, 'fhrough t"ir dian .r, tbey also
OD
CO
6 o give awards to w om .n in beslooiss and . achievement .
~
That
has
bean ;s relationship that has
8 o~paid off very very oicaly'al1 aloag, becanse they th .9 o se2ves are lowsts, and they .have ,personal toucbes and
~
10 W personal ties with mebars of Congress in Washiagton,DC,
z
11 ~ and throughout the country . When re hrve a problem as we
12 En did . on the excise tax, we cao',call th .on . NoW they are
z
13 ~ a small group so their impact- is not going to be felt
F
~
14 ~ widely, but you can also hsk them for their suggestions,
15 QYftu can say to them, this is the problaffi . This is the
~
16 z situatioA . And just, it's just what we want . We get
17
p them to listen to us, A~d we .get access to other people

w
18
0';by virtue of our association with them,

z
19
20
o Those are a cauple of the examples, and

H
1<
z I've epplained the benefits as I've gcx along . But
21
E-z I'd like to say that those are the immediate payoffs .
22
That's what we get automaticslly . And talking with
23
Sounie, Y.iersty and ev.rytodyelft thsy've said that
24
their interaction with women,_ . ;especia ily women in the
25
polittal are.na has . gotten ttem access c another 1eve1 .
G-45
Sonni,e was talking to e about the California elected
Woo" ;s Assaaiatiioa . Ca liioftials a :big state . Sannie

Mas new to Milierr and gostrnm.otalfairs dvsn there . Aed
5
6
00
CO
00
she spons orsd a couple of receptions for them . A ii of

;
a sudden, she .,"s got phone contact with th . psopie that
. And she might
are making the decisions in ttuse,etate
.
co
~
~ not have ttad that contact without the 3nteraction r+e had
~
8 Q with the women's group as a Mhole .
~
9 p Throughout all' +o! this, Sonnie and a
10 ~ couple of other have said that in some instances, the
z
11
P w aaen might be more of our natrual enemies instead of
12
13
14
15
~aL Iies .. . The strain of anti-alc oholism . is certai nly with

z
~ a l l of the gre s s ab out women and smrsking runs pretty
F
~
I strongly in them . So if you can neutralize that and

~
5 better than that,trve them appreciate you and understand

your motives by going sort of'around the sensitive issue,
17
then youlve .even made a bettei friend, youlve made bettOr
18
use of your corporate affairs and your pubiic affairs
19
dollars,
N
20' w' Also, it helps again I have to say this,
21
z a lot of the wcaewn are not familiar with business . They
22
look at we and they say Philip Morris and you say Miller
23
Beer and 7-Dp and aZi of a sudden they relax in some in-
N
~
N
CD
24
stances . You're able to give them something else to hang
25
their hat on . You neutralize . sase of the amoiring, if they
CD
G-46
1
2
3
have anti-tobaccv feelings, yeu neutraLias that and

T g3.ve ttr.m a: way to support . ya3. Soip them understand
I what you'Ere about, put a steae and afaoe on the name
ol: .tChs aorpoaatioa so that i!'`you need them orevao if
5 1they see our name in the paper, ycu . kant the0 talking
a)
a0i
~
t
CO about you even Mhen ycu re not thetre . That s truiy the
~
I betr.#it . The Woen's netaork, all of these groups at
Ir
~: oae point or another loteract . Wb.ther it 's a t conter~
9 o encer io Washington or what tiave you . Philip Morris to

10
z them is pretty much a househcid word .
1t
12
13
14 14
Z
a
Ws have Philip Morris of course, ha .s
z had the foresight to be as inpovative as it has been

~ and to identify theee organizations and women as a con-
~ stituency do .be dealt with .
15 ~ When I first began with the National

16 ~WQmen~s political causus, there were very few other
17 Q companies there . All of a sudden Brown Williams and
18
~ Anheiser Busch, you can ' t even get in . I mean they
19 Q
F have more sponsors than they know what to do with . But
20 z
~ Philip Morris because of our early involvement, we get
21 z
22
23
the choice pick, If we want it, that's fine . They come

to us first . Which is nice .
MR . M.II,Iiit : Gene, if you could just
24
wrap up because we're running a little behind,

25
,JgAHNINE AtWLING : Okay . The ody other

G-47
thing I wanted to say is thatMe anticipate that there
will be more payoffs as the *doi>a themselves mature, as
.hs orgaaisatio ns oae.re and as we work r we closely
with them for a Xongernuober of ye .rs . We have to
5
6
7
tttw3Erstand that tb.ir ariori,t~tes as ttiay have to underCDco

~ sta~ld ours . Abd you dsve to temmmb .r that a lot of
N
legislators, they cars
~I thes" wvmsn, including the state'
.
o_ fYote hoo .. They didn=t come ftom business . So you isv.

a~
9 o to g.C to their s>fddaet and try and help them and try
10 z to get the businosses of the country to understand where
11 ci
they're caning fres so that you can appeal to them and
12 can
z to their needs . Thank you .
13
Mt
. MiLLBR : 'l~iat was exsellent . I wish
~
14 ~ we had more time to continue _because obvious)r once we
15 ~
~D start theprocess of talking about constituencies, we can
16 z talk about hours about . And I hope that we can conti>~iue

17 ~
0 this in private discussions and in questions and answer
18
19
w
a
;~ period afterwards . An excellent presentation .
0
~
Now we~ze going to hear from Joe Blake
20 w from Mission Viejo in Colorado . Ba*s going to bring
F
21 z
22
23
the perspective on constituency building in the home

butlAing indw try .
JOBBPg BLAKE : Thank ycw, Allan is very
24
nervous this morning because he knows that we're going

25
to sedate you if we keep on going and you won't be paying

0 "
!
~ attention to the csse study that he has ev care!`ully
davsiflped . 3o I~m gaing to b. as quick as I can gettiag
3'
thz ough my part of tb3,s .
5
6
7
fie ire talkieg &bout iadirsct o+onstitu~ eDGy dev.lapmeat, not direot . Because tha p .ople who
~
~
~ deal in indirect third-psrty devsl op~o .At are shy, they
~
I are too carefut and they ar-e pr- vhlabiy too macavelian
~
$n
0 to be involved with the world of direct invoive .nt' .
9
o' The direct -invalvemsut bas a bo,rrisb
to z stoacy whibh mey be somewhat approcriful, I don't know .
tt
~ Frank Saunders would,knoa whether tlais is appror~ciful
12
z' ac n .ot . But it involves the meeting that was heid ita
13 H
14
~, Laike Wolbigaae, Minnesota in March of this year where

Cn
I the National Cheese Board met to have their annual price
15 ~
~' fixing meeting . ANd following the price fixing meeting,
16 0
z the executive director had a chart and he pulled it out
17
0
u and he said I want to shcw you what's happening to tl~e
w
18 a
y share of the chaese market in the nibbling market . He

19 z
r, said it is absolutely guing down . 1980 we had aout 38 per20 z
~ cent and ncyw with the rise of peanuts and nachos and all
21 z .
these other little finger fuods, we':rre down to about 18

22
percent of the nibbling market . And if things keep going

23
this way, ae're going to be out of business in the chaese

24
business . What do we think we ought to do about it, Well

25
they had a clever group of people sittig around somewhat
G-49
like this. And after a m+omest of Paus ., acmtond

rais .d
their hand aod aid I have a spectacular idaa .. tibst is
it? And the feliwr Said I think it would be terrific
it' re oould go the direct 1ea ;is iative route and get a
sia.pie amendm.nt to 1de Lord's Phrayar 'so that the Lord 's
Prayer would read give us this day oar daily braad and
.
ch.es. . Spectacular idea, tbey calied their Qoucby
alad lobbyst down in Washington and suggested this and
the laWst allowed as he was oeii-connected with the
cardinal in charge of liturgy in Rome . Sotfry said a1AS&t Frank, you oan go up to $300,000 . See what you can
do. So off he went . iie meets the Cardinal in charge of
liturgy in the Piaza . They ait down to have a little
lunch . The cardinal caeeful3 :y tucking in his red robes
over the top of his broganse, ge's leading into the pasta
and our friend says, Cardinal, I have a very simple request .
We are prepared to offer up to $2#'g},000 to the Pope's lavorite charity if we can get this simple amendment s o that
it will read give us this day our daily bread and cheese .
At which point the cardinal spews out the pasta, bec omes
quite agitated and pulit him back and site him d avn and
22
says airight, actually he said, cardinal, I'm prepared to

23
go up to $300,000 . Which point the cardinal spews out his
24
wine that he'a been able to sit f or a minute, start leaving

25
the table and friend, the lobbyst puim him back and says,
v50
cardinal, sit dc" . tst ;s talk abuut this as gertieaan. First of ala, how much did the bresd peapZe give
We're talking about constituency build-
5
ao
cO
i~
in.g; third-party supporC, thisd-party defenses . And I
CO
C? thiuk the approach that I r+ruid 1ike to take briefly
~
~
I this morning is the question to develop and to b#did
$,R a cuastituency, I think it'rs iopoartant that you contider

~4
9 o becoming a part of that constituency . Too ofen I think

10
z we are not pe~ceivod as becoming directly involved in
t1 [l
interests and efforts that are not only important to us
~
12 c'~n
but are important to our coamunities, to the people with
z
13 ~
E cThvm we work and try to seiI our products .
U)
14 I
T'rom Mission's point of view, from a

15 ~
home commmnity developers poitit of view, I think it's

~
16 0
z important also that you would see that ordinarily this
17 P
0
c orporation bas problems taking its products to people .
w
18
. W+ot
~ We have,a problem of bringing people to our products
19 O
F have got to legitimatIze those comunities . We have got
20 z
x
N
21 z
to make those communities Iauk like heighb orhood,iike

communities ehat are well-blanced, well organized, well
22
planned and predictable . Aad communities in which people

23
are happy to live .

24
So our efforts are to bring people to

25
our c ommunities . Jnce in a while we '11 Iuck out and

if we've done our job right, we'11 find as we found
this sumasr, that naticaal'te :ievi.siou carriee the
atysopica from Mission Viejo Caiifornis . And millims
4
5
6
7
and milii ana of people heard Siaring third-party tri~ bute from ai'"_si1 tributes, td~meadia, talking about
~
00
~ what a delightful-well-planned, wei2-thought-out
N
~ cameunity Mission Viejo, Caitfornia is . That is when
~
$ yw rvs done the job well and don8 it historically as

x,
9 a, bflst you can .
10 W
z
11
think
sameti .~es we aUo tend to forget
.
~ the fact that as the politicians kctow, there is no such
12 r~n
z thing as a_permanent ally . There are permanent inter13 E~~ ests . And around those perinatuants interests, you develop
~
14
your a2lies . Once in a while, our foreign policy becames

15 Q
~ incoherent because people forget the fact that wa no

16 0
z longer have concurrent permanent interest with people
17 ~
0 we thought were our ailies, a0d therefore, we find our-
18 "~
~ selves embarrassed orcannot understadd why they're not
19 z
0
r- helping us do certain things,
20 z
~
If
you
know
what
your
permanent
inter-
21 z
ests are, if you unfderstand what their permanent xnter22
eats are and you try to talk together about how you can
23
make those alliances, then it's amazing . gometimee it's

24
serrendipity, but scnreticaes it's just plain good work

25
that you find third-party defenses coming from people
1
2
3
4
that you did not expect to have happen .

Let me give ycxu ansample . A year or
so ago in the Colorado legislature, a bill was offered
to try to extract development fees for a developers
f or the purpose of constrcuting ners residential houa-
ing . Now the ordinary course of things would say that

~
~
that would be terrific, that the constituency would say
new growth ought to pay its way and that is a debate that
we have all the time because they would love to have
new growth pay f or everything . AN the last peraon
in is free to go without having to psy any fee at all .
That was gaining s ocie currency . . A1d we
said how can we deal with this a little bit more effectively?
It turned out that some had bad a goud
and Iong-te7rm relationship with an inner-city housing
program, the High2and Neighborhood Iiouaing Services
Program and NHS programs were taLced about a little bit
yesterday by the major of Uouisville . We haa developed
a good' relationship with those people, not only servirg
on the board of Jirectors, volunteering our tir~,e and money,
both personally and a little bit of the corporate money to
22
23
24
show good faith in the inner-city, and so when the tima

came that this bill wae being touted ab out as the panacea
to development and making development pay its way, cie wefat
25
L o those pe opland said hey l ook, if there' s new hous ing
G-53
going on in Denver, thatts going to hit the problem

of aff ordabiiity . And if we 'lsy vn additiooai costs
oa gifordability for housing :for the laM-incoma people, .
itlFs goig to ake it Iaaposeible for people to live and
work in Z3spsr in o .w housing .

4'hsy jumped on that. gere was a mutual
~
~
igtetrestt . And weatre able tawork with t1qt group togetber with the Colorado Mctartiege Bankers together with
the Colorado Savings and Loae>~~~-League Ixogether with the
Colorado Assogiation of Housing and Buildig to turn that
-issue completely away from now- housing and nep developOet'1t,
So what I'm suggesting in terms of dealing with permanent issues is that it can be done positively
and it can be daoe in advanca if youIll be working with
sne of the commvnity groups .
John Shipper who is here and who represents
Milier very effectively in government relations in Colorado
is aware of the facethat in Color#do, and George, we have
the benefit of being able to work in one state rather than
in 5 or 6 or 7 . But in Colorado we have a governor who is
22
a democrat and a very strong`repub2ican legislature which

23
is c onstantty contending against the goernor . The governor

24.
was able through sare very ad>Rtoit appointments, to create .
25
sse planning groupt that were dealing with business issuOs

snd future piaaning. Aod ths .Repub13"as w.re gettiag

g~ctumpy about that subject beeause they were sayiug our
aatwral allies we thought weve the business ooaesrlnity .
4
5
6
We weQR to them and said you kaow, it is

ycisnr natural aonstitnste,ty, 1at ' Ift . Speakete, what ws . think
CO
q)
' enke# so.e san se is that you honght to be trying to appoint
co
~
I aa.e business people to various interium stndy groups and
~
o atddycummittees, that are caeated by the state 1egisLature .
9 0' And tbeipsakes` thought that was a super

10 w idea . And we said Me'li go we stap further . We'll
z
11 ~ supply . you with snase names of business groups and names
12 ~ of sars people who are influential In the Denver business
z
13 r- comunity daarn the line vill undoubtedly be of help to
14 I yQUO
15 ~ Great idea, the speaker bought it and

~
16 z for the first tiee we have a sitnation or had a situation
~
17
0.
w
two years ago w here the inteon ee mmittees had non - isgis -
ts ~ lative maaabers suppiied with business 1eaders, the nass

19 z
a of which we had given to the speaker .

~
20 W The govern.x is keenly interested in
H
21
z the matters of state personnel refore . We worked to
22 g*t an that coaittee b organize the effort to develop
23 an initistive to overturn the exiating system on state
24
25
personnel matters, procedures . Then official to,us because we studied what it was: that was Important to the
G-g5
goveraor. We studied what it was that was important
ta the S,tate p.rsoarlt directot and tt worked out very
effectiveiy that .ws were able to sbawt that we bad more
ttisn just housing and ccsamnnity development at interest .
5
6
CO iie :bad community imrotves.nt at interest .*

n
CO
C?
oss of tbe other tbgsgs that I perceive
CO
N
7
I and it may oac may not be appropriate at this point to
~ .8~ whea we have the chance to have questions later on, but
~
.
9 0 ons of the things that I have perceived from working with
10
z state legislators and particularly the Colorado Legisla-
11 ~ turs is the lack of politicalt irnrolvemsnt by employees of

12 vwi
z our companies to see that they are (a) registered . How
13 F
F many people bere are registesred? 0kay . Hoqv many people
~
14
( went to the party caucus this year, or the first point?
.
~
15
~ How many people? Two, three . How many people went to
16 0
-z as a deiegate, how many people went to tbeir county con-
17
~ vention? How many pe ople went to the congressiona l conw.
18 a
;~ vention within your area? Great . How many people as a
19 0'
delegate went to the state ccmvention from your area as

~
01a delegate? Did you go on ta the national as a delegate?
20 Z
21 z
We 11 there are three of out of thi s gr oup
22
who went either to the county, congreasional, or state

23
24
two of whom of are from Colorado George, and I hope you

noticed tbst John was one of thom . My point being that
25
often times we are not perceived as being involved in the

political process . And I think that that is a problee
2 ti~at I perceive in terms of dev.bpiasg, the third-party

3 netMortr . Period.
4
MR . MILbERt Thank you . iie have a little
5 problem, 'T'is been ioterestiag, but vhat ; s happening here

00
q)
6Oc ia we did start at 11 ol-alock . and I tboqght we bad until
G
7 N I o'fctock but Hamish Maxrell is beginning to speak at

~
8 o i s 30, whiohm.ans that we havr to cut thi s short . Which
9 o apa-os atho that we tad a very interesting tape that we
~
10 w mantod to show you from USA which was a presentation to
z.
11 ~ our most imporeaat constituents, our employses in ?
12 EnA pres,atatian made last #aI1, by]lJce Irish, Sob Moore and
z
13 ~ soaae other people, Jim F#y about public affairs issues
~~
14 . ~ and the need to get involved in those issues through the
15 Qtobacco acti an program . Unfortunately, we 'Iia not going to
0
16 z have time for that and what I'd like to do in the interest
~
17
0 of getting onto at least a few ideas that you might have

w
18
"'~for this case study is if Dale and Tim could talk for
19
21
oabout three minutes apiece, is that possible? It's proE~

~bably too much f or him .
w
F
z DALE FLORIO: Well I wanted to practice my
22
political career today, but when you're last and peopie
23
are hungry, it's easy to take credit for everything that's
24
said before you and also be short and have everybody think
25
you were the best speaker . So Philip Norrie USA doeenit
20
G-57
have the luxury of a regional system .- And for us,
ccuatituency oosana quit pro quo and I t4ftlc wa pro-
bably listened to cse of ctie esperts of quit pro quo
yesterday, speaker Willie Brown . iio laid it on the
1Um and I hope nobaiy here was offended :by his re-
00
Cr)
6 ~ marks because I think that we'rs professional enough
CD
that we understand that that's what it's all about .

But it is quit pro quo and I think
ie1
. rhat
too often
0 Bi11 Ruder mentioned it in h3~aapeta
10 ~w we are out
there with our hands out, but we forget that
11 ~ we need to be available to our constituency friends .

d
12
~.,
But at Philip Morris USA not having a
z
13 Ew field force, we rely heavily on our third-patty cand
F
EO
14
I stituenci,es, especially those developed already by our
Q
15 ~ sales department, by Larry Sykes in our lead depart16 zment and other areas of Philip Morris USA that have
~
17 p worked with outside vendors, etc .
18
U
w
~
19
~
O any legislative battle because our mission of course
S o very brief 1q the way we approach
H
d
20 z
a is to defeat anti-tobacco legislation . If you just
21
~
z Y ouk
a t t eh
f
i nverse
o a triangle and start on the
22
top and have a broad base . You start at the top and
23
you identify all the pe ople in that particbiar that
24
might be able to help you . Then you get get duwnto dse
25
bottan of the triangle, you 9lowly assess those folks
c-5 8
1
that can be the most eff.otivsfor you .
A brief exsmplio.', so I can kasp under
my 3 minutes . Io 1981 iin t4s Tidewates region of
Virgiaia, 6 cities, Portseitlt, Hampton Rotds, several
5 11
00
CO
6 c.O.
oCherf, all agreed at cas time to raise their cigarette
tax by 5 ceats . We started out at the top of our tri~

~
angle. We identified baokers' in ths area, f oEkt that
shipped tobacco, folks that aarried tobacco to and from
major cities across the count%7 . We +88entified the major
business associations and as we came down the triangle,
we finally realized that the people-that could press
M
the right button and talko to the mayors of those cities,

there could suggest to them that they not raise their
cigarette by 5 cents were the people that actually bring
the tobacco in and out of the Hampton Roads rgion, the
major shipping lanes for tobacco in the United States .
And
once we finally got to the bottom of
y,
our triangle, and we realized that those were the people
and we got them on board, within a couple of weeks we
were able to turn the whole thing around from a situation
that looked completely hopeless and where all the c4ayors
22
agreed again not to raise their cigarette tax by 5 cents .

23
24
25
So here Wssa situation where we identified

our constituents . We cummuni,cated our message and we finally
won .
G-S9
l~+~w on -the fifp side of that as Bill
Aud.r iudiaated., there !s t1~;-quit pro qe~~r andsfnce :
then we hrve be.n very respotsltive to thos, f olks that
~
hsv.r helped us out . We've . also maintained lifelong
5
ao
ca
allies for us in the futvre . :
6 ~
7
Thank s Alian,. .
co
~
1+~ . hQLta& : S~cellent . Mow three minutes

fs~om Ti Rothsrmel aboutL~r rest of the World . ;
MR . ?IMt~t H~Lt A l lan, it E s going
to be 2t, I'll surprise you .
What I find fascinating is this listing
of the presentations here along the table and there's

z
13 H such a coaeon theme, the techniques of our very much alike
.
F
CO
14' I
And the same thing I think applies to Philip Morris, InterQ

15 ~ national, even though we're Involved in 170 markots . And
~
16 z some of those markets present ; much more difficult problema
17 oU than the U .&, market in terms of taxation or s oone of thea

w
18 4 we ere even esc luded fr caa or wo "re jus t s ti 1 I kn oc king on

a
z
19 O
the dJor .
E-
~
20
21
22
23
24
25
Z
W The techniques that Bill Ruder had been
N
z
menteioned earlier and that had been discussed up here
this morning are the same . And I want to give three very
quick and brief examples .
fJne of them, we've heard the word creatvity an awful lot . Qne thing that we have begun about
c-60
14 monfhs ago in Philip Morris, itstrxuational was the

creatiom sE a nsw i,ntermatiaaial orgMmisatioa add- assoaiatfoa calied the American Bctrsrpsar Ca.emuaity Agaoaiation,
b. 14aw York Bociety of International Affairs . And through
those vabicles we have brought scme 25 leading woW statesw
6
7
8
9
10
11
12
13
14
15
16
msir to l4eir York . We'vs had . a chance to not ooly help

Philip Morris business from pithin their reapectivs countriss, but we've also eosbW the business c+vmmunity,
tAs larger bu sines s c ommunity ; "- banks, ~ law #irms, etc . ,
to gat invoived with these statewaen, and it has served
a pretty good public intsreot_ purpups of better understanding .
Bill Ruder talked about the use of
existing organizations . So did Jeatnine . One of the
existi>7g organizations at International scale we have
to deal with is The World Health Organiaati .on where we
17
gst hit ovesthe head quite frequently.

18
19
20
21
22
23
24
25
Again about a year ago, we decided to

intertalce advantage of the national organiatioo, the Food
N
and Agriculture Organization . And through a gradual
process of beginning to meet delegates from tobacc o
growing developing countries to educate them and sur-
N
t11
~
N
4"
~
pr is ing ly they wsren 't sdutatsd ab oult Bbe ec ou cmic

significance of tobacco with a couple offolLow-up viisits,
we ire now at the stage where we are talking to ministers
~A
G-61
of agricdit<a-e ie capitals, milaisters of economy in
fimnoe, +iaut standing up av* ` being aounted in the
6ttadd Hsatth OtganisatioA wllrsar' ; issnv involving our
products mre up .
thaa last thing is take advatitage of
same opportunities as they asise and one of the eidwr~
~
pirs happened about three weeks ago at the Republican
National Convention when we had the good foactunte to
be able to arrange a meeting with 30 of the leaders of
the majority party inthe Gersain Sundastag and f or a very
1ow cost arrange a breakfast meeting with Senator Kathias .
It was as far as the ZS German parliamentarians, it was
ths~highlight of their week in Dallas .
We have some friendo that can be called
on . We have a constituency .
I I guess to summnrise it, A llao, I would
say thatone element of impoactanae to o . is that nothing
has to be terribly costly . You can put on a breakfast
pretty cheaply . Y ou can charge somebody $50 or $100 to
come to a luncheun, you pretty aell c over your cost .
So it's more creativity and less cost,
22
23
24
25
I have one final comment, and that ia

that you should ai#knoN that the cha"n and I have
discussed the case and we both love bunnies .
MR, .MQLi.BR : I'm sure you have a couple of
G -62
questions and ae have until s, quarter till cme . *Jer-
wise you pe opi. miss lunch .
as the persao, that caused 63 people to aist lunch because
that wouLd be awful . But Z'0 sure you have some questions
5
6
And I doia't imt to be icnoam
to and we can handle questions for a few minutes and then

CO
00
~+Ule you were doitg that, you aoW be thinking of iosas

~
7 I for thtrd-party support over the aosmetic company issue .
~
8 9 Any quesiEioos?
~4
9 ~0
10 ~
z
qj8S?Inlt : ()DtR0lw) asot heard) .

'
Uow do ae deal aith
t t that with the forum? itm not certain that I understand

12
13
14
15
16
17
the question completeiy . A good example is labor .

1~
Good
point, maybe the forum needs revising .
~
~D
BIS : (Not heard) .

M t . MILLER :
I just want to underscore
z the point Bob made about retirees . When I was in USA,

0
0 working in the Tobacco Action Program, we used to invite

w
18
19
20
21
22
~ retirees of U64 to get invoived in the issues . And most

~
~, of .the retirees that we uncovered were located in the
~
W tobacco-producing states . And you wouldn 't believe
F
z the ietters you would get, ths idas that they would
come up rith, the things that they would be willing to
23
do -- rerite Letters to the_ editor, launch petition drives,

24
please iet ma knoa what I cando to help the industry .

25
And I'm sure it's true of most of our companies where you
~,
G -63
1
2
tatve these people that have time on their hands, they

I Men~t to get invotved . And tho ' interesting thing it that
the older you g .t the sace likely you are to register
5
6
7
8
and vote . And so theytre alao quite pwrerful .

00 I"m nait going to go into the case study .
CO
~ I think yoa$ve a1l had a charAe to look at the case study .
~
IOne of the things I just wanted to add before we begin

V.
o sis Dorothy Coi,lin pointed this out to oae, you may not have
u
9 o sen this in Mcmdayt a paper, but it was in Monday's Times
10 z aod it was as if Emily Leaoard bad planted this in the
11 ci
paper, but it's a rather jrusme .:ad put out by the Inter- .
:
..a
12 z estionai Society for Animal $igDts, Inc, pointing out all
13 ~ of the horrors of what cosmetic caanpanies are doing with
m
14
15
I regard to testing of rabbits, And itis interesting, they're

~ not threatening legislation as the case study does, but
16
z
_ what they're doing is they's urging readers to write to
17
~
0 the Trade Association, the ?obacco Institute if you will,
w
18
19
14
0
of th. cosmetic industry and to let them lcno w that you as

a citizen are not impressed by the industry's grants to
20 z
w search for alternatives . The industry in ttb article

21
~~ has made grants to search for alternatives to using rabbits .

22
23
24
25
-Demand that the use of animals for the testing of c osmetic

praducts and ingredients be stopped now .
Any ideas on who cosmetic company can reach
out to to defend Itself and prevent passage of a bill that
G-64
would put it out of businesst

Spsttsern's otwisatioos .
(pot heard) .
-Aae of the things in the artids, again
~I it's iri44. of interesting bee* se tw aase study Lieoits

CO
6
~ to just one company, but as you can see there are many
~
~ companies that ooske coe0et3.cs. . And cae of the thigns
~
8 we did prior to this study is that Dorothy and I looked
9 o at Modyls and Dunn And Dradatreetls and_iooked out and
10 ~ covered a whole diew of cwep .nies . So we aiuid assume
11
~ that all of these companies belong to that trade associa
12 ~ ation . So this would probably not be a uni?ateral effort,

13 E-
~, it would be an industry-wide eff ort . So what would you

Ch
14
~ do first?
15 And within yourawn industry, who would
16 C~
~ you go to first? Your employees . And we want to of course
17 0 educate tbem . And all of this assumes that you would have
~
18 ~
~ fte sars homework prior to thing bursting oo the scenes .
19 ~
p You would have fact sheets, you would have arguments that
20
~
~ you could give your people, not only your employees but
21 z
22
23
24
25
people outside the coppany, not necessarily condoning this

but saying there are arguments and they"re fine . But you
go to your employees first . Who e1seY
*vt 1aRtd ) .
The answer there was veterenarians associations
C-65
and get them to testi/y .
: All t4 . -ioput s>srppliea-
2
3
tbat are benefittisg by se3ltng goods and ssrrvices to
ths c oslpMRtic f izms .
5
II
MR . MILLBRg : Suppliers? Could you give
OD
Cl)
6S~ swe exxxmples of some kind of suppliers?
(D
~
7 ~ ~ ?he bunny breoders
.
8 o Associatio7n, the food that r4irbits sat . Lettuce . Carrots .
9 0
: Customers .
~
10 W
MR. MLLEgB : I knew this would degenerate .
z
11 ~ tBsay, what you're talking about as I said-at the beginning,
12 ~it's an iateresting issue . And I wish we had more time to
13
14
15
16
z
5-taik about it because it is an emotionally charged issue .
EU)
~ And it Is a tough fight . When you read the ad here, who
,:)'talks about rabbits not having eyelashes and so that they
0
zd~'t have any tear ducts and they can't withstand this .
~.
17
o?bat in fact many mare of them are than cosmetic
18
~c ampanies would like to ., . .
19
o And the other interesting poibt,

E'
20
d
~does not inquire or require c osaeRic companies to go through
w
H
21 zthis kind of testing on these auimais . But you're dealing
22
with an appl& pie motherhood issu.. And (not haard) . .*
23
and the argument is evident is that they did not test
24
thse prducts sufiiciently . Oat there e ould be danger to
25 I ~uwaa health .
G66
t
2
And are thank you very much . I wish we

bad are ti .we to do this, but . (App].aure) .
3
4
22
23
24
25

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G-1

PNIL.IP .MQW S Imc t u t "TlL1

w ORMCW - DSALD 6 W ITS TIM ISStiSS

I NDuUCrLY : cc NSV rYVMIN S

: Good morning everyboCy,

Actually,th2s bell is kind of' funny . I'm suppossd to

keep on time today . And Emily said that if anybody

starts talking Icmg, I -T m supposed to ring the bell .

~ munications for Philip Morris U .S .A . Joe Blake is Senior

12 z V .Pi Administrative Operations for the Mission Viejo

C`,wipany . Ti~r, :cothermel is Director of Public Affairs .

16 z Milwaukee for Miller . Bi1I Merritt to m,y left is Director

Iating discussion, but it will also give yuu some things

The case study is Eascirating, Now I' Z1

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

,0 job is going to be to cme up with creativs ideas that,

~ from St . Louis . Our opponents are using issues subh as

~ every sordid type of thing you can thinkh o:f such as

~ molesting somebody was drunk at the time or ma}y have

16 z driven to the place where he mulested the chiid . Jeat

0 to make it worse for us . And this '_s a re&L tough chalw

After we watch the video tape of Mr .

Ruder, we'il go into some deep presentations by each

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 .

~ helped us in the past ; how they may help us in the

$~ futursand why in some caaes we work with certain groups

z At the end of the presentations, we~12

have e ome time f or quetions and answers . Anf if you

what I'll then do is pass out the case

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

1 is kind of like that old sayiAg when tbsy used to

3 then you would draw ths target around where he hit .

602 hit, people draw the circle aroumd us,

~, We have that need because we can't be selfM

0 And theref ore, what we say about ourselves has to be

W 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 credibll .ity, to give us lever23

age, to give us access where we d on't ordinarily have

access ourselves . Those are the kinds of things that

weI re looking for . And to make them useful, we have to

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 udderstandig, 4"h .t. wherever we are, whatever

~ Like a punching bag . You punch it in here and it's goa)

iog to pop out scmplace elsa : Wr job is to under~

s tructure of the beginning of 1 ogical thinking ab out

And Let sie run ttucough some of tbase key

party dgfense depends upon creativity . If you are not

stretch your mind to understand this business of where

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, coali23

ti ons, associations, institutes, seminars, meetings, ali

kinds of things like that, you cannot be successful .

1ttmber two, it's got to involve hard

have to s.at people . You bev+s to lot them understand