BAT US (0
A Policy Proposal
CORPORATE AND PUBLIC AFFAIRS
PROGRAM FOR BATUS INC.
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I. PATUS INC.. ranks among the nation's top 100
corpora-
tions an~_has*significant interests in several
industries
that
re close y observed by journalists and analysts.
It
in both the major arm of B.A.T Industries Ltd. in
-the U. S.
and is-its largest single investment. It is
desirable that
EATUS has a clear and positive identity with key
publics
- ----- and financial groups. That identity should
be carofully
established rather than be allowed to evolve
unattended.
Accordingly, the degree to which BATUS is
favorably per-
ceived by its key audiences has a bearing not only
on the
corporation itself and its operating divisions but
also a
direct impact on the reputation of B.A.T
Industries. In
the light of this. it is deemed desirable that a
managed
corporate program be developed with the following
objectives:
1. To create a clear perception of BATUS INC. in
the U. S. , gain-
ing for it over a period of time favorable
recognition as a
substantial, capable, and progressive management
entity as
well as a responsible corporate citizen.
2. To underscore the outstanding professional
management de-
ployed in the operating divisions and to portray
them not only
as experts but also leaders in their particular
1,ndustries,
with a high degree of delegated operating
authority.
3. -To achieve a public status and reputation for
BATUS which will
redound to the benefit of B.A.T Industries' image
consistent
with B.A.T policy and objectives.
4. To help gain recognition of the strengths of
the operating di-
visions and companies while acknowledging
theirresponsibili-
ties towards their primary audiences (employees-,
customers,
suppliers, etc.) and their own capabilities in the
maintenance
of effective coomunication with their audiences.
5. To c unicate the BATUS image internally through
a corporate
information program directed to appropriate
management staffs.
6. To encourage the development of a climate in
which "protective
P.R." is engendered at all levels of management,
thereby ensur-
ing a conscious awareness of possible P.R.
consequences of de-
cisions and action.
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7. To remain alert 'to issues and actions in
public, private,
and governmental sectors which could impact on the
corporate
and operating interests, and therefore to initiate
appro-
priate means of protecting Group interests.
8. To determine the program's proper approaches
and techniques
through discussions with and involvement of
appropriate cor-
porate and operating company executives.
9. To portray BATUS INC. as an organization with
multi-business
interests as distinct from a "tobacco
conglomerate."
II. CONSIDERATIONS
1. The pro ram will be viewed as a long-term
achievement, to be
adjusteg according to realistic expectatiors in
terms of cir-
cumstances (performance results, economic
conditions, policy
changes, etc.).
2. Strategies will be developed that target
certain key audiences
whose favorable opinion is important to BATUS INC.
and B.A.T
Industries, as follows:
a. Business community (journalistsi commentators,
columnists., in national and trade media);
b. Financial community (analysts, brokers,
bankers-
primarily in the U. S. ; and, to the degree
consis-
tent with B.A.T's requirements, in the U.K.);_
c. Federal, state, and local government (through
corporate or company initiative and/or trade as-
sociation endeavors-as appropriate)l
d. BATUS management and key operating division ex-
ecutives (providing information to encourage
inter-
relationships and a sense of participation.
Each of these "publics" will be defined and
appropriate ap-
proaches determined in consultation with both
Corporate and
Operating managements.
3. Concomitant with the acceptance of the need for
a BATUS corpo-
rate information program, a determination will
need to be made
r1 gording the degree to which financial results
will be dis-
c osed.
4. The government sector will be monitored with
regard to how
BATUS may be impacted by legislative and
regulatory actions.
A delineation will be made between corporate and
operating in-
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volvement, while'preserving opportunities for
local company
initiatives and protective measures (regarding
such issues
as environment, employment, health, etc.).
5. A close liaison with B.A.T Industries will be
maintained to
ensure compliance with B.A.T policy and encourage
coopera-
tion for the common good of BATUS and B.A.T.
6. A public relations agency will serve as a
technical and pro-
fessional resource in developing the overall
program.
111. ROLE OF PUBLIC RELATIONS COUNSEL
Carl Byoir & Associates, of New York, has been
retained by
RATUS INC. as counsel for Corporate and Public
Affairs De-
partment.
The Byoir organization is the third largest Public
Relations
agency in the U.S. and has gained an excellent
reputation
over the past 50 years in representing leading
corporations,
trade associations, non-profit institutions, and
branches of
govel. Lm ent.
Byoir's role will be to help develop overall
strategies and
specific elements for a comprehensi4e BATUS
Corporate and
Public Affairs Program. Byoir's principal
responsibility is
to BATUS Corporate. They will provide counseling
and technical'
services for projecting BATUS as a major. highly
responsible,
well-managed U. S. multi-business corporation.
Inherent in this
responsibility is a "carry-over" benefit to
the-BATUS Divisions
and advantage to the business interests and
international image
of B.A.T Industries.
In terms of the BATUS Divisions, Byoir is to be
considered a
resource to be made available if and when needed.
Managements
of the Divisions are to be consulted and their
agreement sought
in the development of the Corporate and Public
Affairs Program.
Should the Divisions request Byoir's services,
arrangements
will be made at the corporate level in order to
ensure compli-
ance and coordination with Corporate and Division
policies.
There will, in addition, be occasions when Byoir
will be asked
to fulfill certain functions related to the
corporate reputa-
tion of B.A.T Industries. Principally, these will
lie in the
following areas:
1. Financial Relations The distribution of
documents de-
tailing B.A.T Industries financial
performance and other supportive
information.
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2. Media Relations Arranging interviews both on
and
off the record with influential
journalists for key B.A.T Indus-
tries executives.
Byoir's accountability to BATUS will include
advisories on is-
sues and actions which could affect both BATUS and
the B.A.T
Group as a whole. These include social,
government, or politi-
cal developments, utilizing the Byoir Washington
and interna-
tional offices as "early warning stations." This
intelligence
will be provided by Corporate and Public Affairs
to appropriate
managements, with interpretative analyses and
suggested.action.
Byoir is aware that the BATUS program is to be
predicated on
the principle of a cumulative effort over the long
range. No
quick, heavy impact is to be attempted. The
integrity of the
Operating Divisions is to be maintained, giving
wide latitude
in the determination of Division needs and
opportunities, as.
well as individual action. By the same token, when
called upon
for assistance, Byoir will respond with timely and
professional
services.
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BAT Industries document for Province of British
Columbia 23 April 1999