Making Market Magic
The market is a lever for change. NGOs know it. And the campaigns of the future will go straight for the jugular-your brand. June 2001.
Ten Green Battles
RAFI Justice
Growth of NGOs
Put away the Molotov cocktails and demonstration placards. Put
on a suit, arrive at the board meeting on time. The rules, for many
Non-Government Organisations (NGOs) at least, are changing. With a
near fivefold increase in the number of NGOs worldwide over the
last 35 years (see Growth of NGOs), companies are beginning to
listen to the voices hailing from the other side of the tracks. The
transformation of NGO-business relationships has advanced agendas
on both sides. And with it, the role of 'insider-outsider' NGOs
happy to ride the fence between hostility and handshakes is
surfacing as the most potent form of interaction. Business leaders,
take note.
NGOs often spell acronym soup for companies. Non-governmental
organization is a grab-bag term for a vast and heterogeneous
collection of organizations. From grassroots women's groups to
international federations, they represent every special interest
under the sun. Today, though, many prefer the moniker 'civil
society organizations' (CSOs), drawing attention to who they
represent rather than what they are not-and adding yet another
acronym to the stew into the bargain.
Over the last ten years, pioneer NGOs have been trying out a
variety of tactics to engage business. Different models were tried
and tested, some thrown out, others perfected. As a result, the
emphasis today is strongly on transactional involvement. Seats at
the table are a priority. Dialogue, exchange, roundtables, policy
sessions are replacing fundraisers and case-related marketing.
The gamut of NGO-business interactions is wide-and they've
advanced immeasurably since early partnerships of the kind brokered
with McDonalds by the US group Environmental Defense. At one end of
the spectrum, NGOs are demanding time with senior managers to
influence policy on product development, ethics and product
stewardship. On the other, they are helping define and deliver
direct social and environmental services which companies cannot
provide themselves. The Shell Petrol Development Company in
Nigeria, for example, provides grants to numerous NGOs in the Niger
delta to deliver education and health programs.
"Targeting brand names, customers and investors will deliver the most bang for the protest buck."
"There's a growing recognition amongst NGOs that there's much to
be gained by being in touch with multinational companies," explains
Pat Mooney, executive director of soon-to-be-renamed CSO the Rural
Agricultural Foundation International (RAFI). Why-because industry
is perceived to have growing influence in development and
policy-making at local, national and intergovernmental levels.
Jaynati Durai, senior coordinator of Consumers International (UK),
agrees: "Companies plan for 10 to 50 years in some instances in a
way government doesn't. Many are concerned with infrastructure,
education and health and can have a more immediate impact on
development and infrastructure than the local public sector
can."
The consequence for NGOs is a highly-charged yet subtle dance
with corporations behind the scenes. "Much of what we do with
companies is quiet dialogue before an issue hits the press. For
example, if we feel a product is unsafe, we'll contact a company
and put direct pressure on management … In about 50 percent
of cases, the company changes policies and no one ever knows about
it," explains Durai.
There are still few formal dance steps, however. Most NGOs know
if and under which conditions they'll accept donations from
corporations, yet rules of engagement for partnership are still
being hammered out. "NGOs need to figure out the parameters of
interacting and staying neutral," Durai continues.
Whereas some years ago, CSOs engaging in partnerships chose to
work with business associations and third party organizations
rather than with individual companies, this is changing. As
companies start to break ranks with peers and differentiate
themselves from the monolith of industry bodies, they become more
approachable for activists.
"Just as market campaigning is the new protest paradigm,
so can corporate activism be the new business one."
Possibly the highest profile example of this during the 1990s
was Greenpeace's deviation from direct action to 'solutions
campaigning.' Its Greenfreeze campaign for ozone-friendly
refrigeration rewrote the book on dynamic tension, as Greenpeace
began to work privately with individual companies, while continuing
to attack business publicly. The internal stress to the
organization, however, was evident: high profile resignations and a
drop in membership subscriptions insinuated a split personality was
hard to manage.
But what the Greenfreeze campaign etched most indelibly in the
campaigning mindset was the power of the market as a lever for
change. Savvy campaigners now understand the market system well
enough to seek out the weak links in a value chain or industry
sector and they are building dynamic alliances to exploit them. The
NGO sector as a whole is becoming bigger and increasingly bolder in
taking on individual corporations and entire industries. Pragmatic
activists are learning that "market campaigning" is the most
efficient means of achieving their ends. And-civil disobedience
apart-the most potent NGO tactics of the future will unquestionably
revolve around redesigning and creating markets for more
sustainable outcomes.
NGOs shifting their primary focus from governments and
regulatory regimes to the more dynamic arena of market forces face
enormous cultural and ideological challenges, however. They must
sever lingering ideological preferences for regulation as the best
way to drive change and learn to wield their new market power
responsibly.
In the face of these new campaigns, corporations can no longer
rely on Old Economy strategies like a combo of advertising, public
relations spin-doctoring and behind-closed-doors political lobbying
to secure their license to operate-as Monsanto learned only too
well when the US food industry value chain was thrown into turmoil
from farm to fork in the uproar over genetically modified foods
(see Ten Green Battles). Instead, companies need to build
their own dynamic alliances with partners from civil society,
government and other corporations-transparently.
"Smart market campaigning is a consequence of our opponents
figuring out how to bribe politicians into submission," explains
John Passacantando, the new executive director of Greenpeace USA.
"You have to skip the middleman and find a way to put on pressure
that becomes unbearable for these companies. Don't just write to
your congressman. Take it straight to the brand." Chastened market
targets have included Shell, Coca-Cola and Suncor.
"You have to inflict some pain. Otherwise they're not
going to take you seriously."
The colorful career of Mike Roselle, a forests campaigner for
Greenpeace, illustrates how the game has changed. Roselle started
out in the anti-logging campaigns of the 1970s. He engaged in
direct action to protect wilderness areas during a spell with Earth
First! Then he converted to the use of litigation to frustrate
loggers. Now he's in the thick of the current global
consumer-focused protests that have just saved up to 7m acres of
rainforest on the Pacific coast in British Columbia, Canada.
The Great Bear Rainforest - home to rich wildlife including the
rare Kermode or white "spirit" bear-was being logged by several
companies, including Interfor. The company suffered the dubious
honor of becoming the main focus of a global protest alliance.
Three months of intense Greenpeace-led actions ensued in the US,
Canada, Europe, China and Japan, ranging from blockading timber
shipments to staging protests at embassies, lumberyards and retail
outlets such as do-it-yourself stores. On April 4, a plan to save
the forests was announced, endorsed by the government of British
Columbia, logging companies, environmental groups and the First
Nations.
"You have to inflict some pain," says Roselle-a big, tough,
bald-headed man, himself not unlike a lumberjack. "Otherwise
they're not going to take you seriously. They were begging us once
they were done to stand down. You're putting pressure on every
possible place, from executives down to the secretaries."
A key lesson, says Roselle, was that loss of future markets was
the biggest fear of corporations. "You cut off their growth," he
asserts. "We're developing an entire alternative timber market
through the Forest Stewardship Council and these campaigns, moving
them to a new future." Critical in the campaign's success was the
provision of a viable market alternative-certified wood. "We had to
have a way for them to walk out," Roselle reasons. "You can't
destroy a company." But when retail giants like Home Depot and IKEA
demand timber accredited by the Forest Stewardship Council, a
company whose major source of logs continues to be old-growth
forests is flirting with the ax.
The allied NGOs of the Americas may have tasted real power with
this forests victory, but with it comes responsibility to do more
than take companies down: The public can turn on willfully
destructive NGOs-however famous their brand names-just as it does
on willfully destructive corporations.
This doesn't seem to phase CSOs. At the recent annual conference
of the Coalition for Environmentally Responsible Economies, Union
of Concerned Scientists executive director Howard Ris warned: "Many
organizations like ours are going to look outside Washington. We're
going to look to companies."
New market-focused campaigns are springing up around the world.
In South Africa, humanitarian groups Oxfam International and
Medicins Sans Frontières are using market campaigning tactics
pioneered by environmental activists to bludgeon the pharmaceutical
industry over the price and availability of HIV/AIDS treatments. A
group of NGOs is moving to study the global mining industry's value
chain, probing for weaknesses and seeking market leverage ahead of
a campaign that could mirror the impact of the Forest Stewardship
Council on the logging industry. And big US-based global computer
firms like Compaq, Intel and IBM are set to face a "take it back"
campaign around computer hardware. Orchestrated by the Silicon
Valley Toxics Coalition, the formative campaign is enlisting, from
the outset, socially responsible investment (SRI) houses as well as
NGOs, maximizing the opportunities to pile on pressure in the
marketplace.
Drivers for the big protest campaigns of the future will
undoubtedly be social inequality and environmental crises, with
core issues including wealth distribution, clean water, safe food,
personal security, health, energy and mobility. Sophisticated and
well-networked protest infrastructure will extend from direct
action at the factory gates to the heart of the market-based
democratic system-the financial markets.
Litigation, letter-writing campaigns to politicians and an array
of other tactics will continue to be used in today's comprehensive,
cover-all-bases campaigns, but targeting brand names, customers,
investors and other flexpoints of corporate vulnerability will
deliver the most bang for the protest buck. The lessons of the
great anti-corporate campaigns of the past decade are shaping those
of the new.
The next major campaign, no doubt, will be a push on climate
change propelled by the March decision of the new US administration
to dump the Kyoto Protocol. In the days after the Bush
announcement, there was plenty of anger directed at politicians,
but the tactical talk in high-level green circles was mainly about
the targeting of corporations. The same buzz was rampant among
NGOs, their Global Greens political allies who were meeting in
Australia in April and the fast-growing SRI industry. Their aim: to
hit corporations, inflict pain and get them to put pressure on
politicians. The critical question is who gets targeted.
On April 5, Amsterdam-based Greenpeace International wrote to
the leading 100 US companies on the new Fortune 500 list, currently
topped by Exxon Mobil. The message was clear: Within a week,
publicly support Kyoto as a "minimal, but essential first step" on
climate change action, or face our wrath and that of the whole
global environmental movement.
"The American people can register their opinions at the ballot
box," explains Greenpeace International executive director, Gerd
Leipold. "But for the rest of the world … all we can do is
register our opinions via the marketplace." It will be a year and
half before Americans get to vote again in mid-term congressional
elections, but if protesters can move the consumers of Earth's
biggest, most powerful and worst-polluting economy before then, its
voters may be left dead in the water.
Next year, NGOs and perhaps progressive corporations will be the
key players challenging governments at the Rio+10 Earth Summit to
be held in Johannesburg. NGOs are certain to claim the moral high
ground at this international gathering, but where will corporations
stand, both individually and collectively?
Just as market campaigning is the new protest paradigm, so can
corporate activism be the new business one. Corporations must forge
new relationships in a marketplace that now includes NGOs-or
CSOs-as active and well-networked players. They must provide
solutions instead of creating problems. Corporations have the
ability and the opportunity to deliver far more on sustainability
than governments have, or ever will. Either way, the market will
decide.
Ten Green Battles
Over the decade, ten corporate targets learned some hard lessons
about doing battle with NGOs in the court of public opinion. The
NGOs learned a thing or two as well-and they're putting that
knowledge to work designing the next generation of campaigns.
SHELL: In 1995 the oil giant was hit by a double whammy of
attacks over plans to sink the old Brent Spar oil rig in the North
Sea and over its alleged complicity in the execution of Ogoniland
indigenous leaders by Nigeria's military regime. Shell suffered
painful sales losses in Germany, and a barrage of criticism forced
a far-reaching company transition towards sustainability.
MONSANTO: In the second half of the 1990s Monsanto dramatically
failed to walk the talk on sustainability as it launched
genetically modified crops onto the market and it was met with a
global campaign that coined the powerful term "Frankenfood."
Ongoing fallout has included the breakup of the company, serious
damage to the whole life-sciences sector, threats to the US-style
industrialized food system and the rapid growth of a vibrant
organic farming industry.
NIKE: Even after ten years of campaigning against Nike over
alleged abuse of workers in 'sweatshops' of its developing world
subcontractors, NikeWatch and its cohorts are still going strong.
This reinforces how much harder it is to restore a reputation than
to lose it. Nike is still demonized by many despite impressive
sustainability initiatives, including workplace monitoring.
PHARMACEUTICAL INDUSTRY: The HIV/AIDS drug campaign, which has
risen to prominence over the past year, shows how 'best practice'
protest tactics have spread among different types of NGOs. It also
shows that community outrage can be generated on behalf of people
as well as whales. Dozens of pharmaceutical companies now face the
kind of pressure once felt primarily by the likes of miners,
loggers and furriers.
McDONALD'S: The long-running "McLibel" defamation case pitting
the world's biggest fast-food company, US-based McDonald's, against
two activists from Greenpeace London (not related to Greenpeace
International) demonstrated the folly of applying corporate might
against tiny, persistent opponents. Perhaps the biggest lesson was
the public relations power held by the underdog.
WORLD TRADE ORGANIZATION: The Seattle riots in 1999 showed how
decentralized, powerful protest coalitions could be formed and
coordinated in the era of email and cell phones. The
anti-globalization fallout has continued in protests around the
world against other players such as the World Economic Forum and
the World Bank. Seattle-style coalition-building is now occurring
in many arenas.
TOBACCO INDUSTRY: The anti-tobacco-industry campaign came of age
in the 1990s, with governments and lawyers taking up the mantle
from consumer health activists, legislating and litigating the
tobacco companies and smokers themselves into new behavior. This
followed the pattern of Old-Economy social movements: progression
over decades from radical fringe protest to broad community
engagement to 'establishment' campaign. In the New Economy, this
process tends to be far faster and more chaotic (witness
Monsanto).
FOREST INDUSTRY: A decades-long effort to save old-growth
forests was revolutionized in the 1990s by market campaigning
tactics, culminating in the humbling of Interfor in Canada by a
Greenpeace-led global coalition. Creation of the Forest Stewardship
Council to foster a market for timber from sustainably managed
forests was critical to this campaign, underscoring the potential
for market creation or redefinition.
SUNCOR: Greenpeace scored an early victory against Suncor in a
climate change campaign that still has a long way to run. The
Canadian-based oil and gas company was forced to walk away from a
potentially massive oil-from-shale industry in Australia in April
2001, apparently because of greenhouse gas emission concerns and
costs. It's being touted by Greenpeace as the first fossil fuel
development in the world to be "killed by climate change."
COCA-COLA: Coca-Cola buckled within weeks after its precious
brand and Olympic sponsorship were embroiled in a campaign against
the company's use of greenhouse-polluting HFCs in refrigeration
units. A Canadian-based group called Adbusters launched "culture
jamming" attacks on the company's logos and slogans, demonstrating
novel and creative approaches that can be a key feature of
successful market campaigning.
RAFI Justice
Rural Advancement Foundation International (RAFI) is a fitting
icon for the new breed of NGO characterized in part by positive,
constructive engagement with corporations and in part by direct
action against them. Call it organizational schizophrenia. Call it
"solutions campaigning." Whatever you call it, the effects can be
potent.
RAFI, a small, soon-to-be-renamed CSO based in Winnipeg, Canada,
has seven staff members on three continents working to promote
sustainable agriculture, preserve rural ways of life and protect
biodiversity and intellectual property rights. It's a low-cost,
well-wired operation with high-class knowledge management-and
chutzpah by the shovel-full. The group's efficiency and ability to
propagate ideas should make marketing companies drool with
envy.
Witness the public relations ruckus RAFI caused by coining the
"terminator" label to describe biotech developments that leave
second-generation seeds sterile. While work on the technology
hasn't stopped, several biotech companies reacted to the fervor by
publicly stating they would not engage in related research.
Battling against "unfair" intellectual property rights on plant
varieties is a mainstay in RAFI's workload. Recently the group
forced a private research institute in Australia to drop two
patents on cowpeas because RAFI discovered that the germ plasma
originated from a public trust gene bank. This discovery led to the
reversal of the patents and the investigation of a subsequent 147
similar patents. According to RAFI executive director Pat Mooney:
"The value of the action was in education and awareness-building
about [intellectual property rights]. Industry was shocked by the
revelations. They were embarrassed, but didn't disagree that the
patents were bad."
One of RAFI's finest tools is a sharp tongue and the willingness
to use it. Most business people get disgruntled with the emotional
rhetoric and apparent hyperbole coming from some NGOs. But Mooney
is anything but apologetic for his group's show-stealing antics.
"We're obnoxious and that's part of our strategy. It gets us
attention," he explains.
A saving grace is RAFI's masterful use of wit and humor in
making its points-whether posting cartoons on the Web, holding
"name-calling" contests or coining new terms in its ongoing war of
words. In addition to "terminator," the group takes credit for
coming up with "bioserfdom," "traitor tech" and "gene giants."
Yet RAFI works with members of the business community as often
as it aims campaigns against them. "We need to talk things through
around lots of tables," explains Mooney. "It's not that one party
'wins.' We don't want bad things to happen to poor people and the
companies don't want bad things to happen to their reputation or
profit. We say: 'We may hate you guys, but we agree on this
statement.' Our willingness to work with companies shakes up
governments and can help move the debate along."
RAFI's grasp and command of complex issues is key to its
effectiveness. "I don't always agree with them, but am more
sympathetic to their view because they're an intelligent
development NGO, not crazy environmentalists," says Tim Roberts, a
charter patent attorney who has represented chemical giant ICI at
many intergovernmental negotiations. "Much of what they say doesn't
help, but the intentions are good and I agree with the ends, not
the means."
Such respect has opened impressive doors. RAFI's official
presence at the FAO's intergovernmental negotiations for the
International Undertaking on Plant Genetic Resources marks the
first time an NGO has been invited into a closed-session
negotiation process and it speaks volumes for RAFI's
professionalism.
RAFI's in-depth knowledge and 22 years of experience allow it to
play the 'insider-outsider' role. This is a key characteristic of
the new breed of NGOs. They know the players-the scientists,
politicians, business leaders-and can glide amongst them
comfortably. Yet they also stand apart and are free to either
strike against or work in tandem with companies.
As an 'insider-outsider, RAFI is either the grit in the oyster
or the wolf howling outside the door. It depends on your
perspective. And sometimes the hour of the day.
Growth of NGOs
|
1966 |
1986 |
2000 |
|
Africa |
4239 |
20,738 |
21,129 |
|
Americas |
7471 |
15,956 |
27,096 |
|
Asia |
5194 |
13,625 |
26,040 |
|
Pacific |
1083 |
3013 |
5866 |
|
Europe |
18,212 |
34,503 |
73,981 |
|
Total |
36,199 |
79,586 |
154,112 |
Source: Yearbook of International Organizations, Union of International Associations.
Paul Gilding is a former executive director of Greenpeace International and Chair of Ecos Corporation. Murray Hogarth, a former journalist, is a consultant with Ecos Corporation.
Republished with kind permission from
Tomorrow Magazine. Originally published September/October 2000.