If It's Not True, It Can't Hurt Us
MYTH NUMBER ONE: "ANTI-CORPORATE CAMPAIGNS NEVER IMPACT PROFITS"
Fact:
Boycotts have a corrosive impact that can dangerously erode brand equity.
Examples:
Monsanto lost over 50% of its market capitalization due to conflicts with European stakeholders over genetically modified organisms.
Coors' market share in California dropped from 40% to 10% when a long boycott created a pattern of deep and persistent negative impressions about the brand.
MYTH NUMBER TWO: "IF IT'S NOT TRUE, IT CAN'T HURT US"
Fact:
One fallacious accusation can destroy a brand, product, company, or industry.
Example:
When 60 Minutes covered an activist campaign against the pesticide Alar, the resulting hysteria devastated the apple industry and destroyed one of the safer pesticides on the market.
MYTH NUMBER THREE: "OUR EXCELLENCE IN ONE FIELD WILL PROTECT US IN ANOTHER"
Fact:
One weak link can damage the whole company. You may have a superb workplace health and safety program. But it won't help you if the media attacks you for a chemical spill.
Example:
Decades of global reputation building were damaged with the disastrous Shell Oil allegations over human rights abuses in Nigeria.
MYTH NUMBER FOUR: "ONE LITTLE CAMPAIGN CAN'T HURT US"
Fact:
Once a company is target by one group, others pile on. It's easier to make a charge credible if others have made prior accusations. Once a company is typecast, the media will reinforce the negative image.
Example:
After one group targeted Nike over child labor issues, a wave of new campaigns followed. Despite model performance in many cases, one analyst called Nike the "poster child" for globalization protest.
MYTH NUMBER FIVE: "WE HAVE PR AND LEGAL PROFESSIONALS HANDLING IT"
Fact:
Public relations and legal professionals are vital, but they are not considered credible by the media or public.
To have credibility where it counts, companies must have independent third party organizations that can testify to the legitimacy of their efforts.
Experienced PR and legal counselors always make sure their client is working with a qualified, credible, not-for-profit partner, and building productive relationships with stakeholders.
Example:
Coca-Cola, Coors, General Motors, Mitsubishi, Nike, Procter & Gamble, and Weyerhaeuser have all developed key strategic relationships with credible third party stakeholders.
These engagements give them an edge that reduces risk, eases regulatory threats, and creates business opportunities.
Coke and P&G, for example, avoided packaging restrictions by allying with third parties in support of superior alternatives.
Weyerhaeuser united with NGOs in support of new forestry regulations that made economic and environmental sense.
Mitsubishi and Nike gained credibility for social responsibility initiatives that would have been questioned without the third part support.
More Information: To learn more about Future 500's services, contact Alison Wise at awise@future500.org, or U.S. (510) 708-2398.
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