6 Tobacco Companies’ Public Relations Efforts: Corporate Sponsorship and Advertising Tobacco industry advertising and promotional efforts often are aimed directly toward the sale of industry products. However, corporate public relations activities also can have an important impact on the public images of and attitudes toward individual tobacco companies. This chapter examines the nature and potential impact of such efforts, including n Corporate sponsorship of events and organizations, the latter of which often target key segments of the public in areas such as the arts, minority interests, or community relief n Corporate advocacy advertising in areas such as youth smoking, which has been shown to favorably influence public attitudes toward individual tobacco companies n Corporate image advertising, ranging from spotlighting charitable assistance to rebranding the image of a tobacco company and/or its parent corporation, which has also been shown to favorably influence public attitudes toward individual tobacco companies Further research is needed on the impact of these types of public relations efforts on antismoking efforts and public attitudes, as well as on how such activities affect global markets for tobacco products. 179 6 . To b a c c o C o m p a n i e s ’ P u b l i c R e l a t i o n s E f f o r t s Szczypka and colleagues,11 Philip Morris’s Introduction first campaign began in October 1999 with the slogan, “Working to make a This chapter describes the tobacco industry’s difference: The people of Philip Morris.” use of sponsorship, corporate advertising, It portrayed the company as providing and public relations advertising in the charitable contributions to community- United States, particularly when it is intended based organizations and preventing the to cultivate a favorable image of corporate sale of cigarettes to minors. Another social responsibility. It complements the campaign, with the slogan, “Things are discussion of the industry’s relationship with changing,” began in July 2000, one day the news media provided in chapter 9. after the punitive damages verdict in the Engle class-action trial in Miami, Florida.12 Since the 1988 Master Settlement In June 2003, a series of advertisements Agreement (MSA), corporate sponsorship focused on www.philipmorrisusa.com, and corporate advertising have become directing viewers to Philip Morris’s increasingly important for tobacco corporate Web site for information about companies. Tobacco companies, as with youth smoking prevention, quitting many companies, are interested in furthering smoking, and the health effects of smoking. their public images and interests, as well Corporate image advertising of Philip Morris as in building their corporate and product was considerably greater in 1998 and 1999 brand identities. Corporate image campaigns as compared with advertising of its leading have been on the rise among U.S. companies. brand, Marlboro.13 Examples of corporate Corporate social responsibility initiatives, image campaigns used by Philip Morris are such as corporate philanthropy, community discussed throughout this chapter. involvement, cause-related marketing, and support for minority programs,1–4 have The relative newness of the topic posed increased in particular. This trend is also certain limitations in preparing this chapter. described in Fortune magazine’s cover story First, corporate expenditure data are difficult in 2004 on “Corporate America’s Social to determine. A footnote to the Federal Conscience”5 and the billions spent annually Trade Commission’s (FTC’s) annual report by companies on social causes.6 The Web on cigarette advertising and promotion sites of more than 80% of Fortune 500 summarizes the tobacco industry’s companies were found, in 1998, to address expenditures on public entertainment corporate social responsibility issues,7 events that display corporate brand names and efforts have increased since then. but not cigarette brands or logos ($806,000 The perception among business leaders is in 2005).14 The FTC report also includes that corporate social responsibility is an sponsorship of sports teams and athletes economic necessity in today’s national and ($30.6 million in 2005)14 but does not international marketplace.8,9 Compared with distinguish dollars spent on events bearing product-based advertising (discussed in the name of a company (e.g., Philip Morris chapters 3, 4, and 5), these types of public Mixed Doubles bowling championship) from relations efforts generally focus on raising those bearing the name of a cigarette brand the visibility of and defining how the public (e.g., Virginia Slims Women’s Legend Tennis views the organization itself.10 Tour). As Cruz15 reports, sponsorship data for individual tobacco companies can be Although corporate advertising by tobacco obtained through commercial marketing companies has been around for many firms, but such data are expensive to decades, corporate image campaigns have customize and are frequently incomplete. become more integrated. As reviewed by Other sponsorship sources (e.g., newspaper 180 M o n o g r a p h 1 9 . T h e R o l e o f t h e M e d i a advertisements, corporate Web sites, and trustworthiness, social responsibility, and/or state tobacco control programs) do not attitudes concerning tobacco companies; reflect systematic monitoring of events.15 (2) whether enhancing these perceptions Another difficulty is separating corporate of tobacco companies increases sales of advertising from brand expenditure data. tobacco products or reduces the likelihood Although tobacco company names typically or urgency of quitting among smokers; differ from their cigarette brands, in and (3) whether corporate sponsorship and some cases the corporate entity and its corporate advertising have effects on jury products share the same name (e.g., Fortune perceptions and public or legislative support cigarettes, sold outside the United States, for tobacco control policies. This chapter are manufactured and sold by the Fortune also describes how some of the industry’s Tobacco Company). public relations messages are tailored and targeted to opinion leaders, ethnic In addition to accurately accessing minorities, and women. The perceptions expenditure data, the newness of the topic of these groups could improve tobacco of corporate image campaigns poses the companies’ success with the financial problem of limited academic research. Unlike community, in state legislatures, during many of the tobacco topics addressed in trials, and in the court of public opinion. other chapters of this monograph, answers This chapter examines these key questions to questions about the effectiveness of these in the context of two elements of corporate campaigns are often inconclusive. In fact, brand image and public relations that are only recently have companies (whether in becoming increasingly common among tobacco or other industries) shown increased U.S. companies and that represent two of interest in promoting their company images, the more visible approaches used by tobacco and most of the available academic research companies: corporate sponsorship and occurs outside the domain of tobacco corporate advertising. marketing. To provide additional insight into corporate public relations strategies for For this review, the literature in electronic which tobacco industry data are lacking, this databases such as PsycINFO and MEDLINE chapter includes a description of research was examined by using the search terms, findings on corporate social responsibility “tobacco industry attitudes,” variations of about companies other than those in the “tobacco corporate industry with image,” tobacco industry. A call for more research “public opinion sponsorship,” “social on the tobacco companies’ public image responsibility,” and “corporate advocacy.” campaigns is emphasized throughout this The same search terms were used in chapter as well as in chapter 15. tobacco industry documents until the term PM21 (“Philip Morris in the 21st Century,” Despite the limitations of reviewing research a public relations campaign) was obtained, on corporate public relations campaigns, and then that name was searched as well. this topic and its potential impact on Other source materials were forwarded tobacco product sales and on resistance to by knowledgeable reviewers. Advertising tobacco policy legislation warrant careful expenditure data came from Advertising Age attention. In addition to an analysis of and the annual FTC reports on cigarette expenditures by tobacco companies on marketing. To locate research outside of the public relations campaigns, key questions tobacco industry on corporate sponsorship, to be addressed in this chapter include corporate advertising, and corporate social (1) whether tobacco corporate image responsibility, the three primary journals campaigns are successful in improving in the marketing discipline (Journal of the public’s perceptions of the credibility, Marketing, Journal of Marketing Research, 181 6 . To b a c c o C o m p a n i e s ’ P u b l i c R e l a t i o n s E f f o r t s and Journal of Consumer Research) were tobacco industry are Philip Morris USA searched for the 1995–2005 time period. (owned by Altria Group); R.J. Reynolds, The search was supplemented with a small which bought Brown & Williamson to number of additional papers referenced in form Reynolds American; the Lorillard selected marketing and advertising articles. Tobacco unit of Loews Corporation; and Liggett Group, owned by Vector Group. Few Americans