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Of Corporations Behaving Badly

As we discuss ethical and public policy issues related to promotions, a spate of stories concerning corporate and political behavior arrived. Anheuser-Busch, which makes Budweiser among other beers, has a promotion campaign that is truly bizarre. In the story linked here, St. Louis-based A-B erroneously criticizes Molson Coors and SAB Miller for being based outside the U.S. At the same time, A-B champions its ability to take profits out of the Chinese market and return them to the U.S. Cake meet ice cream. What’s more bizarre? Budweiser has long running sponsorships with the largest international event, the Olympics, and the second largest international event, the World Cup.

Meanwhile, Sun sees competitors where others would see opportunity. In the story linked here, the petroleum giant decided to spend its ever-increasing revenues not on developing new energy sources such as biodiesel and ethanol, but to ensure such information is kept away from customers. How is Sun using its superior financial returns? To ensure that its resources lead to future superior financial returns? Or to badger a non-profit?

Wal-Mart claims it respects community wishes and standards. In this story linked here, what standards are being upheld? The world’s largest retailer should find a balance between looking for opportunities and ignoring community opposition. Obviously, this issue should show how society impacts a firm’s strategy.

Finally, the 2008 presidential campaign is underway as Senator Hilary Clinton (D-N.Y.) wants hearings into alleged sex scenes in the current Grand Theft Auto game. According to the NBC news story, (click link here and look for title “Sen. Clinton seeks video game probe”) 50% of software titles rated M are sold to male teens under the age of 14. Not mentioned in the story but more a valid point, 74.5% of all statistics are made up. Clinton’s press conference is reminiscent of her husband’s attack on rapper Sister Soulja. Senator Clinton gives a sop to socially conservative Democrats and Grand Theft Auto sells a few more video games. Truly a win-win situation for all concerned. In this instance, though, should there be government intervention?

The unifying themes to these stories lies in firm ethics in promotion activities (Wal-Mart, and A-B), and how public policy influences promotion activities (Sun, Wal-Mart, and Clinton). What are your thoughts on these themes?

posted by Michael @ 6:00 PM