[Intl-tobacco] Essential Action Report on 2002 Philip Morris Shareholders Meeting
Robert Weissman
rob@essential.org
Thu, 09 May 2002 19:01:52 -0700
From: Anna White <awhite@essential.org>
Date: Wed, May 1, 2002 6:36 pm
To: awhite@essential.org
Dear Friends,
Last Thursday, 24 GPTC participants attended the 2002 Philip Morris
shareholders meeting. Our goal was to represent the voices of people
around the world and to demand real change -- change that saves peoples'
lives, rather than meaningless cosmetic name changes. We wanted the
company to know that whatever its name, Philip Morris or Altria, we will
be monitoring its practices worldwide and holding it accountable.
Judging from CEO Geoffrey Bible's strong reactions to our statements, the
company is highly vulnerable to public exposure of its misdeeds around
the world. So keep your ears and eyes open and don't let the company get
away with anything!
Below, please find a full report on the meeting. Another email will
follow with the full text of the statements made by GPTC participants.
Enjoy!
Anna
Global Partnerships for Tobacco Control
Essential Action
P.S. We would like to take this opportunity to extend a BIG THANK YOU to
Infact, a veteran organizer of PM shareholder meeting demonstrations, for
covering housing, food, training, and proxies for GPTC folks. Infact is
the regional coordinator for the Network for Accountability of
Tobacco Transnationals (NATT). For more information about Infact and
NATT, see http://www.infact.org
******************************
PHILIP MORRIS
ANNUAL MEETING OF STOCKHOLDERS
Thursday, April 25, 2002
******************************
On the morning of Philip Morris' Annual Meeting of Stockholders, the
weather was appropriately cold, wet, and gloomy. This year marked the
company's 100th anniversary. In the last century, tobacco killed 100
million people worldwide, a deadly legacy that Philip Morris seems intent
on expanding exponentially.
Here is an account of our experience. Other GPTC participants will be
sending additional reports and photos, which we will post at:
http://www.essentialaction.org/tobacco/event/pm2002/
For a full transcript of the "Philip Morris Companies Inc. 2002 Annual
Meeting of Stockholders: Remarks by Mr. Geoffrey C. Bible Chairman and
Chief Executive Officer and Mr. Louis C. Camilleri Senior Vice President
and Chief Financial Officer" go to:
http://www.philipmorris.com/docs/investor_rel/2002_AnnualReports/remarks.pdf
(thanks to Stan Shatenstein for pointing out this link)
"ALTRIA: A NEW NAME FOR GLOBAL LEADERSHIP"
That's what a display on Philip Morris' proposed new name proudly
proclaimed. The text read:
"Altria is derived from the Latin "altus," meaning "high," and conveys
our company's constant desire to reach even higher -- a philosophy that
has guided our decisions. The name Altria reflects our commitment to
strive for peak performance and to embrace innovation, growth, and new
[challenges]."
Perhaps Altria IS a good name for a company committed to spreading higher
rates of lung cancer, emphysema, and death around the world?
HUMAN TOLL IS "ALMOST INCOMPREHENSIBLE" SAY PHILIP MORRIS CEO
What, a confession from the CEO of the world's largest "Merchant of
Death"?! Think again. A new addition to this year's pre-stockholder
meeting coffee hour was a large display on Philip Morris' response to the
terrorist attacks of September 11, 2001. A wheelbarrow filled with
bricks and topped off with a hardhat stood before a black and white image
of the destruction of the World Trade Center. A television
monitor replayed scenes of PM employees helping out at Ground Zero and
delivering free water and Kraft food products; Geoffrey Bible announcing
that the company would donate $10 million to the relief efforts; and a
Red Cross employee praising PM's efforts. Also included on the display
was the quote from Bible's remarks to PM employees (9/18):
"This is a disaster of historic proportion. The toll in human terms
is almost incomprehensible. But even in the darkest
times, the selflessness of our employeers is truly
[inspiring]. We will grieve for those who are [lost], we will weep
with those who are left behind, and we will never
forget."
Of course, Bible failed to mention that by 2030 the tobacco industry
itself will be responsible for the deaths of 10 million people annually
-- the equivalent of 70 [Boeing 747] planes full of passengers crashing
each and every day. Apparently the company's selfless acts stop when the
"disasters of historic proportion" become profitable.
"DEMOCRACY IS NOT A SPECTATOR SPORT"
....so a Philip Morris brochure for PHILPAC, its political action
committee, proclaims. "PHILPAC is our vehicle to support the election of
candidates who understand and support our businesses. We are
competing with more than 3,400 other federally registered PACS
representing thousands of companies, trade associations and labor
unions, all of whom are trying to get their candidates elected as well."
PHILPAC is "cost-effective," says the brochure, because every dollar
contributed "goes directly to the campaigns of candidates who understand
and support the Philip Morris companies." Democracy, according to Philip
Morris, means government "of, by, and for corporations."
AS THE MARLBORO MAN CONTINUES TO "LASSO" NEW SMOKERS...
....Philip Morris is expanding its bogus "Youth Smoking Prevention"
programs around the world. This year's display featured examples from:
Argentina, Australia, Bahrain, Belarus, Czech Republic, Ecuador, Egypt,
Guatemala, Israel, Japan, Kazakhstan, Kuwait, Lebanon, Lithuania,
Malaysia, Mexico, New Zealand, Panama, Pan-Europe, Philippines,
Portugal, Russia, Switzerland, Turkey.
A Russian PM employee, who worked in PM's corporate affairs office
in Russia for 7 years stood by to answer questions. We grilled him on the
double standard between what PM says and does. He denied that the company
gives out free cigarettes. He said that the company requires employees to
sign documents saying that they will not engage in
practices like this, and fires any that do. He added that PM has a
worldwide company policy on the matter. All companies with which it does
business must abide by the policy or risk paying fines of up to $20,000,
as written into their contracts. He claimed that the company checks ID's
at every concert and promotional event. Furthermore, he said, the
company no longer advertises on radio, television, and print media with a
readership of less that 70% adults, and that it no longer produces any
branded items, other than smoking-related paraphanelia, e.g. ashtrays,
lighters. Anything else, he said, is "old" or "fake."
We handed him a copy of last year's New York Time's article on PM's
targeting of kids worldwide
http://lists.essential.org/pipermail/intl-tobacco/2001q3/000577.html that
clearly reports to the contrary.
CAMILLERI GIVES THE BUSINESS REPORT
Louis Camilleri, who will replace Geoffrey Bible as CEO later this year,
boasted of the company's continued global expansion. He cited, in
particular, the geographic expansion of Virginia Slims (cigarette brand
marketed to woman). Sales of the brand have doubled in Russia. Female
emancipation through cigarette smoking? And in the last year, sales of
the company's L & M brand grew 18% worldwide. Through acquisition, joint
ventures, and new licensing agreements the the company's global cigarette
business is strong, said Camilleri. He also mentioned the company's
growing "health and wealthness" line of nutritional,
sugarfree, reduced fat products, e.g. Boca Burgers and Balance Bars.
BLAMING THE MARLBORO MAN WOULD BE "NAIVE"
During the Question & Answer period, Eva Kralikova, well known for her
role in exposing Philip Morris' infamous "Czech" report last year,
highlighted the company's double standard between its practices in the
U.S. and abroad. She called on the company to change more than just its
name. In particular, she challenged Philip Morris to get rid of the
Marlboro Man. Bible called Kralikova "naive" to think that the Marlboro
Man is to blame for youth lighting up around the world. It's all
parents' fault, he said. They need to stop leaving their cigarettes
where kids can find them. As always, the company that claims to be
"responsible," refuses to take any responsibility.
GIVE OUT FREE CIGARETTES TO MINORS? NOT US!
In Niger, Inoussa Saouna SOS Tabagisme has done an admirable job of
monitoring the tobacco industry's misdeeds, at considerable personal
risk. He tipped off a New York Times reporter re: how PM targets tens of
thousands of young people in his country through concerts and free
cigarette distribution. As a result, he was fired from his job at a radio
station (which PM paid to promote the concert). Most recently, he has
taken the five tobacco companies in his country to court for
violating Niger's tobacco advertising ban. One of them, SODENI, markets
and sells Philip Morris brands in Niger. SOS-Tabagisme's single lawyer
is up against 12 industry lawyers! Inoussa reports that he has received
menacing telephone calls and members of his organization have been
offered bribes to oust him from the organization (they smartly
declined!). Laurent Huber of Action on Smoking and Health spoke on SOS
Tabagisme's behalf and demanded that Philip Morris abide by laws abroad
and stop free cigarette distribution. Predictably, Geoffrey Bible called
Laurent's statement "inaccurate" and "absurd." He claimed that the
company only gives out samples in "adult areas" where age is
checked. Hmmm, so how does he explain that kids as young as 10 were
offered Bond Street cigarettes in Niger?
"PREGNANT WOMAN" EXAMPLE DRAWS SHARP REBUKE FROM BIBLE
In comments to Bible and shareholders, GPTC Coordinator Anna White read
three statements from around the world regarding Philip Morris' name
change. The third, sent in by Lisa Houston (a Peace Corps Volunteer in
the Ukraine) read: "Philip Morris recently made headlines in the Ukraine
after releasing a billboard featuring a pregnant woman. Philip Morris is
probably hoping that by hiding behind a new name it can gloss over such
crass advertising tactics." Bible immediately interrupted and tried to
cut off the rest of the statement. The microphone was pulled away from
Anna, as the video screen switched back to Bible. Anna
followed the microphone and contested the time limit. After finishing her
question, Bible categorically denied that the company used a
pregnant woman in a tobacco advertisement in the Ukraine. Furthermore, he
insinuated that Anna made up the example and was a liar. As
Konstantin Krasovsky responds: "Certainly we can not prove that the model
on the L&M ad was really pregnant. However everyone who looked at the ad
had that strong impression, stressed by the model's pose and the position
of partner's hand on her belly. And if the model is not
pregnant why was the ad so quickly removed? And why did Philip Morris
office in Ukraine refuse to comment on the removal to all journalists who
tried to get the comments?"
BIBLE CLAIMS THAT SMOKING = DEMOCRACY
Mark Breaux of Smoke Free Maryland spoke on behalf of Cornel Radu of Aer
Pur (Romania). At the close of his remarks, he cited the problems that
Romania and other Eastern European countries have faced since the "fall
of the Berlin Wall" and asked how Philip Morris plans to reduce the
burden of tobacco-related disease in the region. Geoffrey Bible
responded by saying that in a democratic society, adults are free to
decide to smoke. As Cornel notes he has found in no dictionary the
definition of "democracy" being "promotion of tobacco addiction purely
for profit." Romanians, he notes, smoked before and after the end of
communism -- the only thing that has changed is the aggressive marketing
of cigarettes by tobacco multinationals. PM sales in the region were up
14.3% last year, and in early September 2001, Philip Morris opened up a
new plant in Romania. Democracy or corporate greed, you be the judge!
LONG STANDING OVATION FOR THE LEADER OF THE WORLD'S DEADLIEST COMPANY
Louis Camilleri praised Geoffrey Bible for being the "finest CEO in the
world" and lauded his "legacy, tenacity, and will to succeed in the
unwavering pursuit" of the company's longterm financial goals -- noting
that under Bible's leadership, the company's revenues went up 50%.
Bible's "outstanding initiative and charisma motivates us all" said
Camilleri, adding that Bible is "inspired with brain and heart." The
standing ovation that followed literally continued for several minutes.
Apparently overseeing the massacre of millions can boost your
popularity, that is, if you're the CEO of a profitable multinational
corporation.
STAREHOLDER: NEW NAME WON'T MAKE ANTI-TOBACCO FOLKS GO AWAY
Perhaps one of the most damaging statements came from an actual
stockholder who said that
Philip Morris is first and foremost a tobacco company, and that he is
proud to have helped build the company to where it is today. For what
reason would Philip Morris want to change its name? "Changing the
company's name to "Altria" won't make the anti-tobacco folks go away," he
said, and furthermore, "the name "Altria" doesn't mean anything."
PHILIP MORRIS STOCKHOLDERS VOTE FOR "ALTRIA" & AGAINST PUBLIC HEALTH The
vast majority of stockholders voted according to the company's
recommendations:
* Change company's name to Altria Group, Inc - 95.1% VOTED FOR
* Stockholder Proposal 1 - Inserts Disclosing Personal and Social
Effects Related to Using our Company's Tobacco Products - 94.8% VOTED
AGAINST
* Stockholder Proposal 2 - Environmental Tobacco Smoke (compel company to
warn people of the dangers of secondhand smoke) - 94.8% VOTED AGAINST
* Stockholder Proposal 3 - Philip Morris Companies Inc./Global Human
Rights Standards (compel the company to abide by International Labor
Organization standards re: child labor, sweatshops, denial of labor
organizations) - 94.6% VOTED AGAINST
For the full text of the stockholder proposals go to:
http://www.philipmorris.com/investors/proxy_statement/proxy_htm.htm
(scroll down to end)
OUTSIDE: STOCKHOLDERS GREETED BY GPTC & INFACT DEMONSTRATORS
Representatives of three statewide youth empowerment programs [Target
Market (MN), Fighting Against Corporate Tobacco (WI), and (WV)] joined
Infact demonstrators in "greeting" shareholders as they arrived at the
meeting. GPTC groups carried signs with examples of PM's misdeeds around
the world. Target Market teens also carried hardhitting posters, e.g. a
photo of serial killer Charles Manson with a nametag "Hello my name is
Wally Sunshine" and the message: "Sorry, Philip Morris, but changing your
company's name to Altria won't help change your image either."
Stockholders were not at all pleased to be reminded that their increased
wealth comes at the expense of millions of lives around the world! For
some photos of some of our signs:
http://www.essentialaction.org/tobacco/event/pm2002/
For a list of chants used:
http://www.essentialaction.org/tobacco/qofm/0204/chants.html
For copies of video footage contact: Corey Spoden <spoden@tmvoice.com>
IN THE BELLY OF THE CORPORATE BEAST
Eva Kralikova (Czech Republic) had these comments about the meeting: "It
was not a meeting. It was a performance of power. It reminded me of the
communist era. At the entrance there was so much security and
restrictions. You could not bring in a camera or any luggage. They
looked into my papers and confiscated all extra copies. Everything was
perfectly timed and controlled, even the microphone, which I was not
allowed to hold. It was a pure demonstration of power."
CONTENTS OF PM "LUNCHBOXES" GIVEN TO SHAREHOLDERS
Chips Ahoy cookes, Oreos, Milka bar, Planters roasted cashews, Balance
Bar, Toblerone, Oscar Meyer bacon bits, Terry's Chocolate raspberry,
Miller beer bottle opener, Altoids mints, Kraft Caesar Italian dressing,
Lifesaver candies, Kraft Crystal Lite, Gevalia Tea, Maxwell House
coffee, Gevalia Kaffe.
LIST OF BROCHURES THAT WE PICKED UP:
* 2001 Annual Report - includes summary of PM's worldwide cigarette sales
and some not-so-real-life photos, e.g. a Russian man smiling as he lights
up an L & M and a Japanese woman beaming at her boyfriend as he pulls a
packet of Larks out of his suit pocket.
* PM's Humanitarian Aid - includes 9/11
* The Parent Connection: Helping Parents Help Their Kids
* Start talking to your kids about not smoking. They'll Listen
* Creating a comfortable environment for non-smokers and smokers - "a
best practices guide for restaurants and bars. Provided by Options" *
Philip Morris List of Products
* The Philip Morris Campaign Against Domestic Violence
* La Campana de Philip Morris Contra la Violencia Domestica
* Diversity in Our Workforce
* Shared Issues: Exploring Issues Facing the Farm-To-Consumer Production
Chain
* Philip Morris Agricultural Initiative: Shared Solutions
* Closer Links: Communications Analysis of the Pork Value Chain
* Hablemos claro...Una guia familiar para tomar decisiones reponsables -
Miller Brewing Company
* 2002 Driver License Booklet for the U.S. and Canada - Miller Brewing
Company - "Buying beer is no minor thing."
Email <awhite@essential.org> if you would like a photocopy of any of
these.
THANKS TO EVERYONE WHO PARTICIPATED!
* Action on Smoking and Health (DC): Laurent Huber
* Charles University of Prague (Czech Republic): Eva Kralikova
* Campaign for Tobacco Free Kids (DC): Judy Wilkenfeld
* Essential Action (DC): Anna White
* FACT (Fighting Against Corporate Tobacco) (WI): Debbie Vorass, Beth
McHone, Rick Shumaker, Brianna Stuessey, Chelsey Tubbs, Chad Snyder, Phil
Castillo, Stephanie Thornton
* Smoke Free Maryland (MD): Mark Breaux
* Target Market (MN): Corey Spoden, Jeannette Cleland, Hannah Severtson,
Rachael Moeding, Nate Glynn
* West Virginia Youth Empowerment Program: Sheila Ridler, Christine
Kile-Eye, 3 teens
* Arlyn Elizee (DC) - independent consultant, formerly with the Latino
Council on Alcohol and Tobacco
Report on last year's meeting:
http://www.essentialaction.org/tobacco/event/pm2001.html
------------------------------
Global Partnerships for Tobacco Control
Essential Action
P.O. Box 19405
Washington, DC 20036
Tel: +1 202-387-8030
Fax: +1 202-234-5176
Email: tobacco@essential.org
http://www.essentialaction.org/tobacco