Stop the Presses

A recent Dennis K. Berman column in the Wall Street Journal seems to confirm the realization of what many boards fear most in a sluggish economy – activist shareholders are taking greater control of corporate governance.

Berman points out that since 2006, activist shareholders have been awarded board seats at 218 companies – of which only 28 were the result of proxy fights. He goes on to point out that activist shareholders “have already won or wrestled concessions in nearly 60 percent of 78 completed or threatened proxy contests of 2008, the highest percentage ever.”

All indications point to a continuation of this trend in 2009, which poses a significant question for boards of directors moving forward: How can boards remain relevant in what Berman calls “the post-revolutionary period of the Shareholder Era?” (more…)

A few days ago, we discussed how making allies of your public relations adversaries can significantly neutralize their attacks. By engaging NGOs and other interest groups that question your business practices, you not only mute their criticisms, but annex part of their leadership position for yourself as well.

Today, we’d like to look at another approach that achieves the same result. It’s called the jiu jitsu strategy – and it’s all about using an opponent’s strength to your own tactical advantage. (more…)

When the leadership of Africa’s 53-nations held their closed session summit in Sharm El Sheik last week, they were presented an opportunity to publicly and emphatically denounce the maelstrom of violence and corruption that has been Mr. Mugabe’s tenure as President of Zimbabwe – and in the process, show a new, more compassionate face to the world.

As such, the result of the two-day gathering was somewhat less than many hoped for – a resolution urging, among other things, the continuation of mediation efforts led by South African President Thabo Mbeki. (more…)

Anyone who has witnessed organized labor movements or environmental demonstrations would find it hard to believe that companies and activist groups can actually get along from time to time.

But as NGO’s increasingly exert greater influence around the world, CEOs on the global stage are taking note and recognizing that sometimes the best way to neutralize an adversary – especially when that adversary is perceived to have right on its side – is not a fight, but rather to transform the adversary into an ally. (more…)

There was a time not so long ago that Bill Clinton was the Dali Lama of Democratic politics. Even after Whitewater, the Lewinski affair, the controversial pardons, and his conspicuous absence from the 2000 campaign, when he spoke, Democrats listened. When he led, they followed.

Now, as Hillary’s campaign for the White House has been reduced to a political postmortem, many of her supporters are wondering whether they’d have been better off if Bill had simply opted for the part of statesman and supportive husband – rather than the highly political and controversial role he played in the end.

Once again, the former President has an image issue on his hands. But if there’s anyone in the world that’s capable of putting the luster back on the Clinton brand, it’s the Comeback Kid himself. (more…)

In the wake of the largest produce-related salmonella outbreak in the United States, the Food and Drug Administration is admitting that it may never find the cause of the mysterious infection, first linked to tomatoes. The outbreak has already cost the food industry at least $100 million and is threatening to re-ignite a long-simmering trade dispute between tomato growers in Florida and Mexico.

Since 1998, when reports of food-borne illness began exploding under increased scrutiny by health authorities, there have been hundreds of food-related outbreaks of E-coli, salmonella, campylobacter and other illnesses. In the past decade there have been 13 salmonella outbreaks linked to tomatoes alone.

Why the increase in outbreaks? Three reasons:

1. Our current global, volume-based system of food production now often relies on just a few large farms or global distribution centers for different food products, which can transform one handling mistake at a farm, food plant, or distributor into a national outbreak;
2. Testing and tracing methods have vastly improved and health officials are on the lookout for any sign of an outbreak that 15 years ago might have gone undetected; and
3. Consumer expectations and sensitivity have been heightened by gains in disease-detection methods and inflamed by plaintiffs law firms.

Smart food companies need to be prepared to respond to unexpected outbreaks with effective communications plans and product recall strategies that minimize losses and rebuild sales in the post-crisis marketing phase after an outbreak has passed. Otherwise, they risk being left holding onto a lot of rotten veggies.

As the Financial Times recently reported, the international business landscape is undergoing some fascinating transformations. Cities that were once universally regarded as the foremost financial centers of the world – New York, London, and Hong Kong, to name just a few – are now vying with cities like Beijing, Shanghai and Shenzhen for recognition in the global marketplace.

The emergence of this competition cannot be wholly explained by evolutions in global markets. Communications strategies have played an integral role in framing these cities as financial juggernauts where new business comes to thrive. (more…)

With the July 4th weekend just around the corner, Americans can still rely on the old saw: “This Bud is for you!” – at least for now.

Two weeks ago, we examined InBev’s offer to buy Anheuser-Busch and the public uproar that was brewing as a result. With last week’s announcement from Anheuser-Busch Chairman Patrick Stokes that A-B has formally rejected the $46.3 billion offer, A-B now stands on the threshold of taking back control of the communications element of this global business battle. (more…)

Kermit the Frog’s signature phrase is taking on new meaning these days, as consumers attempting to adhere to an eco-friendly lifestyle find themselves bombarded with conflicting messages about what to eat, how to live, and how to use energy.

Andrew C. Revkin’s recent New York Times article “‘Green Noise’ and ‘Destructive Interference’” sheds light on the issue. With activists campaigning for environmental change and businesses capitalizing on the trend towards living green, the overwhelming amount of discordant information is having an adverse affect on the public.

In fact, instead of inspiring consumers to choose paper over plastic, or stock their kitchens with organic food, these mixed messages are driving consumers to tune out green messages altogether.

For example, the diversion of corn for use as fuel has grown into a major international issue at a time when food costs are soaring and farmers in developing countries are destroying forests at prodigious rates to create more crop land.

So what’s a consumer to do? Even the experts feel bogged down with information. Carl Pope, executive director of the Sierra Club had this say:

“We all understand that today’s media environment is an extremely crowded one, and message overload is the order of the day.”

There is good news, however. In order to help consumers filter all of this “green noise,” scientists will have to dig deeper to find eco-friendly solutions with lower opportunity costs and organizations will have to do a better job refining and tailoring their messages –which we can only hope will deconstruct the confusion that currently exists.

When the colossal implications of the credit crisis first began to sink in with the American public, financial analysts, journalists, and stakeholders that run the gamut were asking “Where was the SEC?” Today, as the credit crunch continues to put tremendous pressure on Wall Street and Main Street alike, the question on the minds of those looking for solutions has evolved to “Where is the SEC?”

Financial crises breed financial uncertainty. And in uncertain times, Wall Street looks to its regulators for guidance. When the regulators are nowhere to be found, the crisis is amplified for the simple reason that more anxiety is factored into the system. When anxiety reaches fever pitch, public frustration shifts from the institutions at the root of the crisis to those who are responsible for overseeing them.

Now, the SEC’s abiding silence is leading influential lawmakers and industry insiders to begin speculating about the agency’s demise. And the longer that Chairman Christopher Cox remains mum on the topic of what to do next, the bigger the hole from which he and the other commissioners will eventually have to try and dig out becomes. (more…)