Tuesday, July 17, 2007
WHAT'S NEW IN PUBLIC AFFAIRS
Make a note. Food safety will become a huge issue in American politics over the next year -- particularly as it relates to trade with China. The Wall Street Journal published a major story on the subject this week (see below), and that came on the heels of front-page coverage in the Washington Post. The Democratic-led Congress, meanwhile, is feeling the pressure of too many issues on its agenda and too few months left before the start of an election year, reports CQ Weekly. These stories and more in this edition of the Public Affairs News Monitor.
HEADLINES AT A GLANCE
"Safety Becomes a Hot Trade Issue"
"A Waning Season for Making Law"
"E-mail Overloads Hill Offices"
"What Price Reputation?"
"Good Causes: Building Capacity Still the Challenge"
"A Model Still Striving to Prove Itself"
"Seeking Global Solidarity"
"Labor Unions Without Borders"
"Crossing the Corporate Line"
"Companies Ramp Up Diversity Like Never Before"
"Companies Giving Green an Office"
UPCOMING CONFERENCES
Corporate Community Involvement Conference
July 25-27, 2007 - Chicago, IL
The largest and most comprehensive conference of its kind! At this conference, you'll have the opportunity to learn about best practices in corporate community involvement and network with over 200 of the country's top corporate contributions executives. You'll return to your office with a sophisticated collection of ideas, strategies and resources for improving your company's community involvement program. The unique sponsorship of this meeting by the Public Affairs Council and The Conference Board -- allows us to bring you the largest and best international conference for corporate grantmakers.
Public Affairs Management in Asia/Professional Development Institute
August 20-22, 2007 - Hong Kong
The Professional Development Institute is designed to help you and your staff to navigate complex political issues, refine your global management strategies, and build a network of contacts across the region. This seminar, which is cosponsored by Australian Centre for Corporate Public Affairs and the Public Affairs Council, covers all aspects of public affairs management in Asia.
Membership Orientation
Sept. 11, 2007 - Public Affairs Council - Washington, DC
Learn how to get the most out of your Council membership during this free lunchtime session. We'll review all the Council's major services, including information assistance, conferences, communications, benchmarking, networking and online services.
COUNCIL SERVICES
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copyright 2007
INFORMATION, INC.
Public Affairs News Monitor may be reproduced in hard copy form or electronically for internal circulation to Public Affairs Council member companies and associations.
"Safety Becomes a Hot Trade Issue"
Wall Street Journal (07/16/07) P. A4; Batson, Andrew; Etter, Lauren
Safety and quality standards are playing a larger part in trade negotiations and relations as more and more products that are tested contain contaminants, like salmonella and toxins. These standards are replacing quotas and tariffs as the main sticking points in trade negotiations of late as the U.S. Food and Drug Administration bans the importation of tainted toothpaste and seafood from China and China bans the importation of poultry products from the United States. Experts warn these bans of imported goods could replace charges of unfair competition and product dumping. Trade tensions between the United States and China continue to heat up beyond the general arguments of unfair competition in light of the recent tainted-food scandals. However, Roth Capital Partners' Donald Straszheim warns, "The risk is a cascade of punitive or blocking steps, misinterpretations, second-guessing, and retaliation." There are numerous standards related to food safety, and China recently adopted strict bans on certain pathogens and growth hormones. With China poised to become a large competitor in the global poultry market, some contend bans on poultry are just a means to unfairly compete on the global market. A Chinese ban on poultry imports in 2004 cost the U.S. industry $300 million. Meanwhile, developing nations contend strict safety standards unfairly keep less wealthy countries from exporting their goods to wealthier nations because they do not have the resources to meet the safety standards.(www.wsj.com)
"A Waning Season for Making Law"
Congressional Quarterly Weekly (07/06/07); Nather, David
Pressure is on the Democratic Congress to pass significant legislation before the 2008 elections, amid the public's growing discontent about slow progress on major issues. "I think it reflects a general dissatisfaction with government," reports Rep. Zack Space (D-Ohio). "It's not just the war [in Iraq]. It's also the rise of the global economy, the erosion of our manufacturing base, the uncertainties of our energy policies." Capitol Hill faces a choice to either forcing votes to limit or end the war in Iraq or to fulfill the "Six for '06" agenda the Democrats campaigned on; accomplishing both of these priorities seems unlikely. Among the bills facing heavy resistance by Senate Republicans is a measure to overhaul lobbying and ethics rules. Fifty-seven percent of respondents to a recent CNN/Opinion Research survey said Democratic control still is positive for the United States, even though nearly 50 percent disapproved of the Democrats' congressional management. The sluggish pace of the Senate, especially on hot-button issues, such as Iraq, is disheartening for many; in contrast, the House is decisive and expedient. If Democratic leaders can convince the public they are making the most of their limited time and resources, voters likely will credit them with doing the best they can in a time where government is split, according to public opinion experts.(www.cq.com)
"E-mail Overloads Hill Offices"
Roll Call (07/12/07); Brotherton, Elizabeth
While the email flooding congressional offices symbolize a robust level of communication between constituents and members, the sheer amount of email has begun to overwhelm members and staffers, undermining the quality of communication. In response, the Congressional Management Foundation (CMF) aims to help congressional offices handle their email overload and reduce the frustration felt by all involved. Advocacy groups and citizens view email as the simplest way to receive information on low-profile issues and to deliver their opinions. However, many constituents have expressed frustration with the logic puzzles they are forced to solve on many member Web sites before being allowed to send email messages. The controversial barrier was established in 2006 to attempt to stem the flood of email; some staffers suspect that databases, rather than actual constituents, are sending many of the emails.(www.rollcall.com)
"What Price Reputation?"
BusinessWeek (07/09/07)
While a company's reputation has long been considered an intangible, reputation management experts are striving to measure reputation in a scientific manner and to calculate how image shifts influence a company's share price. While public relations cannot solve underlying problems such as a poor safety record, savvy communications can enhance companies with worthy stories to share. An increasing number of businesses are acknowledging that a strong reputation is a valuable asset and many large companies now allocate $2 million annually for image research. Companies are hiring reputation management firms to scrutinize databases of print, Internet, and broadcast news for relevant coverage. Modern technology makes it possible for such firms to unearth "every scrap of information on what is said about a company, second by second, and correlate that to movements in the share price," says Warren Weeks, CEO of Cubit Media Research. While some companies say that new communication strategies based on such methods have been extremely helpful, other companies have yet to see results. Others, like investment professionals, are suspicious of image management and believe, as stock analyst Raymond F. Neidl does, that "the markets are smarter than that." Despite having an excellent reputation, Southwest turned to consulting firm Communications Consulting Worldwide (CCW) for help determining whether it was emphasizing the right subjects. CCW found, after analyzing years' worth of information, that Southwest's focus on budget fares was an overly familiar story to customers, and that the company might want to consider stressing their extensive schedules and routes instead. Since doing so, Southwest's shares have fallen by only 5 percent, in comparison to the 15 percent drop airline stocks have experienced so far in 2007.(www.businessweek.com)
"Good Causes: Building Capacity Still the Challenge"
Financial Times (07/05/07); Tiernan, Ross
Nongovernmental organizations (NGOs) are becoming increasingly open to the idea of partnering with companies and, as a result, such collaborations are growing in number and are becoming more meaningful. The nine-year partnership between Starbucks and Conservational International is one example of the boom in sustainable coffee production corporate-charity collaborations. Because NGOs raised public awareness about commercial coffee productions consequences, some consumers are willing to pay more for coffee produced in an ethical way. Such projects benefit the environment, farmers, and the companies, which can offer a unique product for consumers to enjoy guilt-free. In addition, collaborations between brands and charities have generated standards with which the businesses now strive to comply. NGOs are drawn to large corporations not for their money and expertise, but in the hope that an NGO's ideals will be incorporated into business practices, including into supply chains, as a way to circulate responsible best practices. In the partnership between WWF and HSBC, for example, the bank is not only donating money to shield major rivers from climate change, but it is also reshaping its lending policies with WWFs help. The result, HSBCs Responsible Lending Practices, will prevent the bank from lending to initiatives that harm communities or the environment. The environment is a keystone issue for NGO and corporate collaborations, though human welfare is also a popular cause. However, less concrete causes are challenging to market, which may be why topics such as forestry and capacity building have attracted little attention to date.(www.ft.com)
"A Model Still Striving to Prove Itself"
Financial Times (07/05/07); Jack, Andrew
The concept of corporate citizenship is gaining momentum as both companies and nonprofit groups realize that they can achieve more through partnerships than individually. Companies are increasingly looking past the bottom line, whether to manage risks as they expand into less stable emerging global markets, or simply to support issues that have become mainstream, such as global warming. Companies have discovered that collaborating with nonprofit groups to solve social problems can boost status, streamline operations, and even yield more revenue. De Beers, for example, has many reasons for fighting AIDS, as the disease is prevalent among the companys workforce in Africa. Companies are also feeling pressure to conduct business ethically because of high expectations from government and institutions that have adopted standards for responsible investment. Moreover, business donors seem increasingly eager to take proactive approaches to solving social problems rather than performing traditional charitable giving. As distinctions blur between nonprofit and for-profit groups, and as public and private groups converge, new roles are emerging, such as social entrepreneurs and venture philanthropists. Google.org, one such intermediary, has taken on a hybrid legal status that endows the company with the flexibility to support a range of charitable endeavors. Still, many challenges to corporate citizenship remain. In a survey conducted by the Conference Board, U.S. businesses describe their main priority as linking corporate giving to business needs. However, the desire to align economic value with social responsibility endangers nonprofit groups with limited capacity for delivering quantifiable outcomes in the short-term and could also cause transparency problems in terms of publicizing best practices.(www.ft.com)
"Seeking Global Solidarity"
National Journal (07/14/07) Vol. 39, No. 28, P. 52; Rosenberg, Alyssa
American and overseas unions are attempting to boost the influence of the labor movement by forging international alliances, and one example is United Steelworkers and U.K.-based Amicus' plan to combine into a trans-Atlantic union. "It seems we are no longer capable of fully dealing with and confronting and negotiating with ... global companies unless we ourselves are organized globally," declared Amicus General Secretary Derek Simpson at an April conference call announcing the merger. He added that unions lack members "because all too often unions cannot deliver on behalf of the members, no matter how they try ... it's an unequal match between a multinational company and a national union." U.S. unions that are trying to convince companies to comply with uniform labor and environmental standards have gained a lot of insight by learning about conditions in other nations. More and more unions draw connections between environmental and globalization issues and, as a result, are bolstering the need for international links. "Those of us who labor every day in the fight for fair trade understand that it's next to impossible to think that we can have an economy in America and in Canada that wants high environmental standards and then be told that we have to compete somewhere with no environmental standards," noted United Steelworkers President Leo Gerard.(www.nationaljournal.com)
"Labor Unions Without Borders"
U.S. News & World Report (07/16/07); Rayasam, Renuka
Some union leaders in the United States believe that unions should start reaching out globally. Companies no longer "see borders as obstacles to their future," says Andy Stern, president of the Service Employees International Union, and unions should adopt the same view. But skeptics such as Kimberly Elliott, a senior fellow at the Peterson Institute of International Economics, says overseeing workers across borders has traditionally failed, and that trying to pressure global firms through international strikes is implausible. Rather, she says, unions can benefit by swapping data and enhancing their negotiation tactics, as well as providing services such as childcare and healthcare. Other experts suggest that unions should focus on efforts to train members to keep their skills up to date amid technology changes. Christy Hoffman, organization director at Switzerland's UNI Property Services Global Union, asserts that the Internet and reduced air travel costs are facilitating the creation of worker networks. In 2006, for example, the United Food and Commercial Works Union (UFCW) strengthened its links with its European counterparts, says Gene Bruskin, a UFCW organizer. Bruskin adds that the UFCW is now seeking to unionize a Smithfield pork processing plant in Tar Heel, N.C., as well as a new plant in Romania where he fears workers will be underpaid; Smithfield recently purchased Sara Lee's meat division in Europe. However, union membership in both the United States and Europe is declining; the Labor Department says that just 12 percent of paid workers in the United States belonged to a union in 2006.(www.usnews.com)
"Crossing the Corporate Line"
San Francisco Chronicle (07/05/07); Kopytoff, Verne
Google Account Planner Lauren Turner incited an Internet debate so loud that her employer was forced to distance itself from her comments on several occasions. Turner expressed displeasure with "Sicko," a Michael Moore movie regarding the shortcomings of the healthcare industry, but her comments were not well received by other bloggers. In her post, Turner suggested that healthcare companies counter the claims in the movie with advertisements on Google. Critics argued the post took sides in a political debate and violated Google's motto, "Don't be evil." Corporate executives continue to adopt blogs as a means of communicating directly with customers and partners, but the Google debacle illustrates how one post can damage a firm's reputation. Corporate blogging consultant Debbie Weil suggests corporations keep blog entries close to corporate issues, product developments, and other non-controversial items to protect brand images from damage. Google has over 50 corporate blogs and maintains that the tools are one of the best ways to communicate with customers. Turner and Google posted blog entries stressing that the opinions in the controversial blog post were Turner's exclusively and not those of Google.(www.sfgate.com)
"Companies Ramp Up Diversity Like Never Before"
USA Today (07/08/07); Iwata, Edward
U.S. firms continue to revamp their diversity programs as the economy becomes more globalized. Virtcom Consulting CEO Douglas Freeman notes, "Diversity is at the heart of globalization." Companies are learning new languages to improve their interactions across the globe, and many firms require workers to learn more about other cultures and religions as well. Rather than establish a branch in a nation and then communicate with local workers, many U.S. firms are taking a partnership approach to global expansion. Gaining the trust of local communities can help firms foster brand loyalty and larger talent pools of workers. Firms such as Texas Instruments continually establish programs aimed at helping religious workers fit into the corporate dynamic, offering prayer rooms, social networking and support groups, and other incentives. The economy continues to expand quickly, and many firms are now forced to seek top talent from universities outside the United States in locations such as Asia, Europe, and Latin America.(www.usatoday.com)
"Companies Giving Green an Office"
New York Times (07/03/07); Deutsch, Claudia H.
The executive suite grew larger in the last two years with the addition of chief sustainability officers, who spend corporate dollars, save corporations money, and get a deciding vote in product development and marketing. These new executives are exploring partnerships with vendors, suppliers, and customers in order to address regulatory and green growth strategies for their firms. Some firms, like DuPont, review every acquisition to ensure it meets green policies, while others, such as General Electric, focus on the development of green products. Experts note these corporate environmental advocates come from a variety of locations within and outside these firms. Some hail from marketing, while others started in research, and still others worked with the U.S. Environmental Protection Agency. The message is the same: meet the needs of consumers and the market in a global-warming environment without adding to the pollution that currently exists. Not only do these chiefs have to engage in regulatory concerns, but they also must have the skills necessary to green the brands and corporate reputations in a way that is not too technical for consumers to grasp. (www.nytimes.com)
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