reputation management for the pork industry dallas hockman ... · 8 0 200 400 600 800 1,000 1,200...

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1 Dallas Hockman VP Industry Relations Reputation Management for the Pork Industry

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Page 1: Reputation Management for the Pork Industry Dallas Hockman ... · 8 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 1999 2000 2001 2002 2003 2004 2005 2006 News

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Dallas Hockman

VP Industry Relations

Reputation Management

for the Pork Industry

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The power of your national and state

organizations working together on your behalf

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A World of New Vulnerability

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News articles containing a reference to global warming

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A World of New Vulnerability

“Global Warming”

Source: Google News archive

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News articles containing a reference to trans fat(s)

A World of New Vulnerability

“Trans Fat(s)”

Source: Google News archive

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News articles containing a reference to product recall

A World of New Vulnerability

“Product Recall”

Source: Google News archive

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News articles containing a reference to “green business”

A World of New Vulnerability

“Green Business”

Source: The Motus Group, Google News archive

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News articles containing a reference to animal welfare

A World of New Vulnerability

“Animal Welfare”

Source: Google News archive

The Social Responsibility Movement

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Hold the Bacon: Pacelle hopes to ease the suffering of farm animals

HSUS & Wayne Pacelle

• 10 million members/supporters

• 569 professional staff

• $130 million annual revenue

• “Voice of Reason” Strategy

– Attack the weakest opponents

– Ballot initiatives

– Animal Law

– Brand outreach

– Schools & Universities

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Detractors’ Strategies

• Opposition has been very effective at taking Baby Steps” toward true material change in our business

• “Targeting the industry’s most visible and/or influential customers/gatekeepers– The largest players (McDonald’s, Wal-Mart, etc.)

– Food influencers

– The press

– Lawmakers/regulators

• Generally more consumer emotion-oriented

Production

The Industry (A Simplified View)

Lawmakers/Regulators

The Press

Packing/Processing

Retail/Foodservice

Consumer

FoodInfluencers

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Production

The Primary Points of Vulnerability

Lawmakers/Regulators

The Press

Packing/Processing

Retail/Foodservice

Consumer

FoodInfluencers

Primary Focus

• Targeting the industry’s most visible and/or influential customers/gatekeepers– The largest players (McDonald’s, Wal-Mart, etc.)

– Food influencers, the press, lawmakers/regulators

– Packers/processors

• Generally more consumer emotion-oriented

• Large players in virtually all categories are tripping over themselves to be recognized as being socially responsible– Environmentally friendly, “green”

– Health/diet/nutrition

– Product safety/security

– Employee care/safety

Detractors’ Strategies

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Pacelle on PETA

• “We’re demanding ethical consistency in the way people live their lives,” said Pacelle. “Once you move into the domain of intimidation or illegal conduct beyond civil disobedience, you’re moving into a dangerous pile of quicksand.”

• “The message is watered down by what I call stupid human tricks.”

Wayne Pacelle, HSUS CEO from the HBO documentary

I Am an Animal: The Story of Ingrid Newkirk and PETA.

Moving Forward on Moderate,

Common Sense Reforms

That Already Enjoy

Widespread Public Support

1. Requiring that calves and pigs be able to turn

around and fully extend their limbs.

2. Requiring that laying hens be able to fully spread

their wings.

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HSUS Core Strategy is Predatory

Safeway to give preference to animal-welfare-friendly suppliers2/11/2008 for Meatingplace.com

• In response to discussions it had with the Humane Society of the United States, Safeway announced new policies to work with pork and poultry suppliers that prioritize animal welfare.

The Pleasanton, Calif.-based retailer has begun an initiative to increase the amount of pork it purchases from North American suppliers that are phasing out gestation crates to confine sows. The company said it will give buying preference to vendors who are moving away from gestation crates, with plans to purchase an additional 5 percent of pork from such vendors in year one, 10 percent in year two and 15 percent in year three of its initiative.

Safeway also said it will give buying preference to poultry processors in North America that use controlled-atmosphere slaughter systems.

"This initiative will make Safeway one of the first major retailers to undertake such an effort and sends an important message to suppliers and customers about these critical issues," Brian G. Dowling, vice president of external affairs, wrote in a letter to HSUS.

Last November HSUS filed a shareholder resolution regarding Safeway's animal-welfare policies, but it has withdrawn that resolution in light of the retailer's announcement.

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HSUS INVESTIGATION PROMPTS USDA

BEEF RECALL; CONGRESS REACTS

• February 19, 2008

• HSUS Undercover Video shows cows unable to walk being pushed and run over with a forklift at Hallmark Meat Packing in California.

• The video footage, which The HSUS shared with USDA investigators, was one piece of evidence that led the agency to instigate the largest beef recall in U.S. history… 143 million pounds.

• Today, members of Congress joined HSUS President and CEO Wayne Pacelle in calling on USDA to ensure that food produced for the school lunch program is safe and crippled cows aren't slaughtered to feed schoolchildren.

Critical Issues for HSUS

• Gestation Stalls

• Veal Stalls

• Battery Cages

• Force Feeding of Ducks

• Poultry Processing

– Controlled Atmospheric Stunning

• Animal Transportation

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HSUS Vulnerability & Threat Assessment

Threats to Us

• Ethical high ground

• Proven models –Momentum

– Ballot initiatives

– State legislation

– Local bans

– Public purchasing policies

– Brand leverage

• Legal front – Animal Law

• Contrast with extremists

Their vulnerabilities

• A reasonable ethics-based opponent

• Too many fronts

– Pets

– Wildlife

– Farm animals

– Research animals

– Horses

• Budget allocations

– Perception Vs. Reality

• Underlying vegan agenda

Industry Reputation Management

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Times Have Changed

Times Have Changed

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• 30+ years of industry consolidation

– Much of the industry’s focus has been on efficiency

• Most consumers today are generations removed

from agriculture

– They have an image of farming from decades ago

• Major Shifts

– The way we produce our product

– The way products are processed

– Lack of awareness of how foods are produced

– Where our foods come from

A World of New Vulnerability

Industry Reputation Management

• Common Bricks

• Trucking

• Plastics

• Forestry

A Few Examples

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The Question?

What do we Propose

vs..

What do we Oppose

Industry Reputation Management

1. A universal understanding of the

common problem … and the desired

outcome2. A real solution … on the audience’s terms

3. An understanding that the best defense is often a

strong offense

4. Making it news

Successful Reputation Management Program Characteristics

© 2007 The Motus Group

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5. Participation across the entire industry

6. Involvement of the channels of distribution when

appropriate

7. A commitment to a long-term solution … and

continuous improvement

© 2007 The Motus Group

Industry Reputation Management

Successful Reputation Management Program Characteristics

Reputation Managementfor the

U.S. Pork Industry Trust and Image Initiative

Re-defining the messageTaking control of our destiny

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Reputation Management

• Demonstrating “We Care”

– Product

– Production Practices

– Producer

• Development of strategic plan for a total U.S. Pork industry program (NPPC/NPB/State Organizations/Allied Industry)

• Intended outcome (Preliminary):– A sustainable, self-regulated U.S. Pork industry,

achieved through the confidence in instills in various key audiences resulting from its demonstrated competence

– The industry’s customers and other influencers will ultimately define what gives them confidence

Reputation Management Initiative

Cooperative Effort NPB/NPPC

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• Credibility

– Science

– Ethics

• Relevance

– Emotion

Industry Reputation Management

The Foundation

PRIMARYIndustry Practices/

Responsibility

SECONDARYDownstream

Marketing Advantage

Industry Reputation Management

Prioritizing the Common Problem and Desired Outcome

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Responsibility

• PQA, PQA Plus

• TQA

• Take Care

• Premise ID

• Ethical Principles

• Operation Main Street

• LEADR

Industry Reputation Management

Credibility Relevance+

From the Perspective of the Audience(s)

(Science) (Emotion)

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Reputation Management Initiative

Required

“The Industry”• Producers

• State Organizations

• Allied Industry

NPPC/NPB

Key Audiences, Priorities, Responsibilities

Reputation Management Initiative

Required

“The Boardroom”• Packers/Processors

• Food Service

• Retail

“The Industry”• Producers

• State Organizations

• Allied Industry

“Lawmakers/

Regulators”• National

• State

• Local

NPPC/NPB

Primary

NPPC/NPB

Primary

NPPC/States

Key Audiences, Priorities, Responsibilities

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Reputation Management Initiative

Required

“The Boardroom”• Packers/Processors

• Food Service

• Retail

“The Industry”• Producers

• State Organizations

• Allied Industry

“Lawmakers/

Regulators”• National

• State

• Local

“The Consumer”• Reasonable Majority

NPPC/NPB

Primary

NPPC/NPB

Primary

NPPC/States

Secondary

NPB/States

Key Audiences, Priorities, Responsibilities

2. Future

Identity and

Position

Discovery

Direction Development Deployment

The Process (A Simplified View)

Moving Forward

Industry Alignment

Confidence Campaign

Three Phases of the Initiative

RedefiningRepositioning

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• Industry Buy In – Getting the Word Out

– Presentation of Reputation Management at State Meetings

• First Advisory Group meeting – February 27th

• Coordination with States

• Presentation of initial plans – March (Pork Forum)

– Approval of Process

• Initial dialogue meetings with influencer groups

• Announcement of new long-term program– June

(WPX)

Moving Forward – Short Term

Initial Timeline

• Isolation of potential issues

• Development of response plans/protocols

• Development of messages

• Identification of key response contacts and potential

spokespeople

• Key industry/influencer contact notification

Medium Term

A Plan to Deal with Potential Next Issues

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1. Retaining producers’ ability to raise animals

in a profitable manner and control their

industry’s destiny

1. Reduced potential threat to the industry’s customers

2. Reduced potential of industry practices becoming a

public discussion

3. Reduced risk of new regulations and/or legislation

2. Maintaining a competitive position for the

products of the U.S. pork industry

3. Becoming recognized as a socially responsible

industry capable of policing itself

The Longer-Term Vision

Desired Outcome

Food Safety/Security

• Socially responsible practices and

sound business decisions can

coexist

• Earning and retaining the public trust

• A comprehensive orientation

– Primary

• Food safety/security

• Environment/sustainability

• Animal care

– Secondary

• Diet/health/nutrition

• Labor issues

AnimalCare

Environment/Sustainability

The Longer-Term Vision

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OffenseDefense

The Longer-Term Vision

Shifting the Industry’s Orientation