Public Affairs and Public Policy FTI ECON / FD Global Public Affairs and Public Policy Sample case studies 25th June 2010 Global: Maples and Calder Integrated global public affairs and media programme to shape legislation Building on a call from the G20, in 2009 the EU issued controversial proposals to regulate Alternative Investment Fund Managers (the AIFM Directive), including a threat to exclude European investors from investing in non-EU-domiciled funds. In response to this threat FD teams in London, New York and Brussels have worked with Maples and Calder, the leading Cayman Islands-based law firm, to help understand the implications and influence the drafting of this legislation. This has included advising on political strategy and positioning, facilitating dialogue with the key policy-makers drafting the law in Brussels, and using the media on both sides of the Atlantic to communicate to policy-makers and fund managers the ability of the Cayman Islands to comply with the proposed regulatory regime. Legislative negotiations remain ongoing but the most damaging proposals have been amended and Maples and Calder remains well-positioned to contribute to a positive outcome to the legislation. 2 Public Affairs and Public Policy US: Educating Policy Makers CHALLENGE At the height of a global H1N1 outbreak and under fierce opposition from the Union of Concerned Scientists, Pew Charitable Trusts and the American Medical Association, the Animal Health Institute (AHI) enlisted FD to launch an education campaign targeting key thought leaders, influencers and policymakers to engage support of the use of medicines in animals. STRATEGY Utilizing messaging research among Washington, D.C., policy elites that provided insight into perceptions and awareness of animal medicines issues and legislation, FD launched Healthy People. Healthy Animals. Healthy Planet. The educational initiative was designed to underscore the importance of animal health on public health and wellness, and to highlight the role of the animal health community in preventing disease transmission from pets and food animals. FD worked with AHI to align with animal and public health organizations, livestock and producer groups, veterinarians and food safety experts, and regulatory agencies to strengthen the message that animal health is essential to human health. In order to influence policymakers and educate media on the truth behind antibiotic use in animals and the role of the animal health community in ensuring food safety, FD launched a Web site (www.healthyanimals.org) and developed a series of issue-specific op-eds and collateral materials, from fact sheets and brochures to a timeline showcasing innovation in animal medicines. IMPACT The two-year program is still underway, though AHI’s campaign has already begun to have a critical impact across target audiences. So far, FD has successfully engaged all tier-one government agencies and continues outreach to broaden the campaign’s network in the public health arena. In addition, the campaign has garnered significant media hits and a strong new media fan base on Facebook, and has held a well-attended event on Capitol Hill. 3 Public Affairs and Public Policy US: Building Coalitions to Block Damaging Legislation at the State Level CHALLENGE With the Minnesota bridge collapse still fresh in public memory, Americans were primed for a discussion of transportation infrastructure solutions in 2008. At the same time, the state of New Jersey and the Commonwealth of Pennsylvania were considering leveraging toll revenue to address statewide financial shortcomings. Even though research indicated that these proposals would be devastating to communities, commuters and businesses, FD Public Affairs was engaged to work on behalf of the American Trucking Associations (ATA) to dissuade motorists and lawmakers from being wowed by the billions in upfront cash. Further complicating the dynamic of the program was the need to address a national issue that was at the same time incredibly local for commuters, residents and businesses. FD had to compete with headline-makers like Pennsylvania Gov. Ed Rendell and members of Building America's Future, while also delivering facts to commuters in towns such as Reading, Penn., and Asbury Park, N.J., which look to regional publications for their news. ATA and FD faced an uphill battle in halting these potentially precedent-setting initiatives. STRATEGY FD worked with state motor truck associations in New Jersey and Pennsylvania to employ a public education campaign with the goal of effectively communicating to and with essential audiences, including elected officials, the motoring public and industry employees. The program was designed to: create an open dialogue that recognized the real financial needs of the states; explore the positive and negative attributes associated with the proposals; identify much-needed funding options to address the states’ ageing transportation infrastructure; and offer realistic alternative solutions. Specifically, FD built and managed coalitions of business and labor organizations and individuals with similar concerns; solicited and managed vendors to conduct opinion polling and government affairs outreach; developed and placed advertisements; created and managed a digital component that included robust micro-sites and blogs for each initiative; and executed an effective earned media campaign, which included extensive editorial board tours, the writing and placing of op-eds and the positioning of organization and coalition members as experts with the media. IMPACT For its work on behalf of ATA in Pennsylvania and New Jersey, FD was named a finalist for the Public Affairs Campaign of the Year 2008 Gold SABRE Award by The Holmes Report. Due to the effective execution of the focused public education programs, neither New Jersey nor Pennsylvania has moved forward in implementing these potentially precedent-setting privatization efforts, and similar initiatives around the country are encountering opposition. This program alone has garnered nearly 52 million media impressions in a wide array of publications ranging from The New York Times to The Ocean County Observer. Through editorial board tours, op-eds, letters to the editors and articles, ATA was able to introduce alternatives to the proposals and influence audiences from commuters in Asbury Park to lawmakers in Congress. 4 Public Affairs and Public Policy US: Coalition Mobilization and Management CHALLENGE The Quality Parts Coalition (QPC) engaged FD to raise its public profile and provide grassroots support for a legislative solution following a patent ruling that effectively eliminated the use of certain alternative automotive replacement parts on a Ford pickup truck. The ruling threatened to block competition in the marketplace, which could harm the vitality of the independent auto parts manufacturing industry and limit consumer choice. Because the issue was steeped in the complexities of U.S. patent law, FD had to develop a framework for cogent arguments that would spur legislators and consumers alike to act. STRATEGY FD launched its program at a Capitol Hill event attended by Members of Congress and staff. In tandem with a government relations partner, FD worked to inform Members and regulators of the economic implications of curbing competition and consumer choice in the marketplace. FD’s activities included aggressive coalition mobilization and management; ongoing media outreach; the creation of a suite of messages and corresponding materials; and targetspecific grassroots. Throughout the duration of the program, the team worked with coalition members and supporters to produce partner press materials as well as testimony and letters. FD also employed a Web optimization component that included promotion of the QPC Web site, www.qualitypartscoalition.com, as the go-to resource. BUSINESS IMPACT Capitol Hill took notice of the QPC’s activities when a U.S. House Subcommittee conducted a hearing on design property issues in Feb. 2008. Shortly thereafter, Rep. Zoe Lofgren (D-Calif.) introduced H.R. 5638, “repair clause” legislation that proposed to provide design patent exemption for alternative repair parts used for the purpose of repairing a vehicle to its original appearance. Seven cosponsors joined her in supporting the solution. The coalition continues to work to obtain an automotive “repair clause.” In June 2008, the QPC and a number of supporters participated in the first-ever United States Patent & Trademark Office (USPTO) townhall meeting on the Protection of Industrial Designs. FD supported members and supporters by assisting with oral and written testimony and providing a steady media drumbeat publicizing the event. Since its inception, the Coalition has grown to approximately 70 members. Its diverse membership represents the voices of the independent parts industry, repairers, insurers, consumers and seniors. State automotive associations like the Alliance of State Automotive Aftermarket Associations and insurance associations such as the American Insurance Association; National Association of Mutual Insurance Companies and Property Casualty Insurers Association of America have joined on. In addition to raising the profile of the issue among key legislators and regulators, FD has implemented a proactive and reactive media strategy that has garnered 10+ million media impressions. 5 Public Affairs and Public Policy US: Generating Visibility with Legislators & the Media CHALLENGE In 2000, the Center for Clean Air Policy (CCAP), a DC-based think tank, decided to focus its climate policy work on Europe and developing world because Washington leaders were hostile to global warming issues. CCAP saw an opportunity to re-engage in the U.S. with Democratic takeover of 110th Congress in 2006 and engaged FD to leverage its international climate work with inside-the-Beltway audiences and funding community to position them as a thought leader and trusted policy advisor in the U.S. Also, CCAP wanted to amplify its work in key developing countries and the European Union as the UN began crafting the post-2012 international climate change treaty. STRATEGY FD developed a strategic plan that included an aggressive communications strategy, Capitol Hill education and outreach, thought leadership and staff training program to help them incorporate communications and key messaging into their daily work and programs. FD worked with CCAP to develop a stakeholder engagement and media outreach program at the UN negotiations in Bali, Indonesia and Poznan, Poland to influence the post-2012 treaty process. BUSINESS IMPACT As a result of FD’s ongoing work with CCAP, climate and energy ministers worldwide who are negotiating the post-Kyoto climate change treaty rely on CCAP for expert advice and consultation. The organization has gained greater media visibility in Washington, is shaping policy with the current Congress and administration and CCAP staff are regularly invited to testify before key congressional committees. CCAP is playing a lead role in helping the State of California implement its landmark GHG emissions reduction laws, further adding to its domestic profile as an authority on climate policy. 6 Public Affairs and Public Policy US: Profile Building: Creating Awareness About the Water Industry CHALLENGE The vast majority of Americans receive water service from community water and wastewater utilities. However, it is not well known that many of these systems are either privately owned utilities or are owned by a municipality but managed by a private company in a public-private partnership. In 2005, the National Association of Water Companies (NAWC) the association representing the private water companies that own nearly 16 percent of the nation’s community water systems, engaged FD Public Affairs to raise its profile, help the organization promote the importance and benefits of the private water industry among the media and the water industry as a whole and address criticism from groups opposed to private ownership and management of water utilities. STRATEGY FD Public Affairs began by working with NAWC to identify the messages and supporting facts and figures that would establish the importance of the private water industry, our country’s water infrastructure, and the importance of the private water industry to ensuring that Americans have ready and affordable access to clean water. FD created and is implementing an overall communications strategy, establishing and cultivating relationships with influential press outlets inside the Beltway and beyond through a variety of mechanisms. FD provides key journalists with important educational and background information on the private water industry, drafts and distributes press releases regarding important milestones and maintains a rapid response bureau to express NAWC’s viewpoint to positive and negative news. FD also works with NAWC to develop and distribute statements regarding issues of concern to the water industry. For example, when the Associated Press broke a series of stories in early March concerning water quality and particularly the presence of very low levels of pharmaceuticals in drinking water FD worked with NAWC to ensure that its members, who were in Washington, D.C., for a day of visits on Capitol Hill, were armed with solid talking points and prepared to discuss the issue, and the role NAWC’s members play in ensuring water quality, with their legislators. BUSINESS IMPACT NAWC continues to be noticed at the highest levels. The organization was recently acknowledged as a major force in the water industry when it was approached as a sponsor and participant in the Aspen Dialogue on Sustainable Water Infrastructure and Investment. The Aspen dialogues and policy programs bring together key players that span the spectrum national debates to engage in neutral ground discussions that pertain to the specifics of significant issues. With the Aspen Dialogue on Sustainable Water Infrastructure and Investment, experts and representatives from private and public drinking water and wastewater utilities along with NGOs, local, state and federal decision makers and others are coming together to discuss financing and investment, infrastructure improvements and the implications of such actions. Upon conclusion of the meeting, Aspen will compile a set of consensus recommendations that will provide a critical roadmap for legislators and regulators navigating the substantial infrastructure replacement challenges facing our nation today. 7 Public Affairs and Public Policy US: Protecting a Brand Amid a Crisis Situation CHALLENGE For more than 15 years, MHz Networks, an independent public television organization headquartered in the Washington, D.C., area, has been the premier U.S. public media importer of international broadcasters stateside. MHz Networks’ approach has been simple: Deliver top-tier international programming “direct from the source” to U.S. audiences through public television. When MHz Networks decided to add Al Jazeera English (AJE) — an award-winning global news and current affairs channel broadcast carried in more than 100 countries but available only to viewers in the U.S. via two small cable stations in Vermont and Ohio — to its lineup of nine other prestigious international channels that MHz broadcasts and cablecasts in the Washington, D.C., region, the CEO called upon FD Public Affairs to develop and implement a program that would effectively mitigate the negative attention MHz Networks might receive. STRATEGY FD Public affairs developed a three-phase public affairs strategy to address MHz Networks’ challenge. First, FD Public Affairs crafted a crisis communications plan and worked closely with MHz Networks to condition the media environment prior to announcing and launching its broadcast of AJE, as well as to prevent news leaks related to the launch from derailing its implementation. FD Public Affairs also secured third-party advocates and spokespeople to support the new programming, and developed positive relationships and built support from key lawmakers. Next, FD Public Affairs worked to generate positive media coverage surrounding the launch and positioned MHz Networks CEO Fred Thomas as a media resource. FD Public Affairs also prepared and conducted rapid response to minimize sensationalized, negative media coverage, and was prepared to respond to attacks from interest groups. Post launch, FD Public Affairs continues to monitor the reactions of media, policymakers and third parties and provides MHz Networks with strategies for maintaining positive media coverage. IMPACT FD Public Affairs’ extensive media outreach and crisis management efforts surrounding the launch of AJE successfully prevented the outpouring of any negative response from the media that MHz Networks expected. FD Public Affairs introduced the AJE partnership to Washington, D.C., through a positive article in The Washington Post. The article was critical in setting the right tone for the launch and establishing a precedent as MHz Networks seeks to introduce AJE in 23 new media markets in the near future. FD Public Affairs continued to set the stage by generating positive coverage in premium news outlets including Forbes, Dow Jones, NPR and WAMU’s “The Kojo Nnamdi Show” as well as broadcast trade publications and blogs. The preemptive steps taken before the launch to enlist third-party allies and build relationships with key lawmakers also hindered any “alarmists” from raising flags on Capitol Hill. The launch of AJE and FD Public Affairs’ positioning of MHz Networks as a source for the DTV transition story helped garner an influx of coverage, including a profile of MHz Networks CEO Fred Thomas in The Washington Post. 8 Public Affairs and Public Policy US: Assessing and Improving Perceptions of the Pharmaceutical Industry CHALLENGE The Pharmaceutical Research and Manufacturers of America (PhRMA), representing the country’s leading pharmaceutical research and biotechnology companies, wanted to assess and improve perceptions among key stakeholders. STRATEGY As part of an industry-wide effort, FD conducted a comprehensive research program aimed at assessing healthcare practitioners’ (HPs) current perceptions of the pharmaceutical industry. A series of standard focus groups and influencer circle groups were organized, followed by a national survey of healthcare practitioners to understand the current perceptions of the pharmaceutical industry and other key entities in the medical field, the expectations HPs have for pharmaceutical companies, and an evaluation of the extent to which they meet or fall short of their standards. BUSINESS IMPACT The comprehensive nature of the research allowed PhRMA to explore several areas where they can strengthen their communications to and relationship with healthcare practitioners; and has provided the organization with the ability to make key recommendations for best practices with regard to communications and marketing to industry members. 9 Public Affairs and Public Policy US: Reaching Target Audiences through Issue Advertising In-house award-winning design team offers a one-stop-shop for creative concept development and start-tofinish production. Team is comprised of visionary designers, and highly experienced production artists and managers who provide seamless and cohesive solutions for clients. Experience producing compelling issue advertising from conception to placement in local, national, and inside the Beltway publications. 10 Public Affairs and Public Policy EU: Helping a corporation navigate Brussels institutions Accenture FD Blueprint was called upon by Accenture and its consortium (Sagem and Daon) to assist with their bid for a €32 million EU tender for the development, installation, and support of a biometric matching system for fingerprints for the Visa Information System (VIS). Through our comprehensive intelligence gathering approach, organisation of a high-level European Parliament workshop, and identification of speaking opportunities for senior leadership, we helped Accenture understand policy aspects that could be decisive in the award of an extremely complex and sensitive contract. In addition, by positioning Accenture as a European company and reliable partner, our support helped dispel EU decision-makers’ misperceptions about the company. Ultimately, Accenture was awarded this EU contract – its first with an EU institution, and the company was in an even more advantageous position to be considered for future EU contracts in the security area. Public Affairs and Public Policy EU: Political facilitation of a merger Mittal FD Blueprint supported and facilitated the successful completion of Mittal Steel’s unsolicited bid in 2006 for Arcelor by countering governmental protection – so called ‘economic patriotism’. We worked alongside banking, legal and investment advisors to develop and implement a political strategy and contact programme at EU and national levels in France, Spain, Belgium and Luxembourg. This required high-level networking, intelligence and strategic advice, coordination of multi-country events, the organisation of a Belgian Senate Hearing and input into the French National Assembly Hearing as well as communication support with unions, think-tanks, NGO’s and other political influencers. Key EU government opposition was neutralised and the 27.9bn euro deal completed. Public Affairs and Public Policy EU: Safeguarding the mobile phone market DIGITALEUROPE Custom duties applied on imported high-tech products can create a huge cost difference for the same products in different countries. Over the past four years, the EU Member States have classified a range of products such as LCD monitors, set-top boxes with a hard drive and multifunctional devices (printer/scanner/copier) into customs categories where those products are taxed upon entry to the EU, at a rate of up to 14%, instead of being duty-free as required by the WTO’s Information Technology Agreement. In December 2008, following customs classification of mobile phones in Germany and the Netherlands, the European Commission presented a proposal to move sophisticated mobile phones (with TV or GPS function) into a dutiable category. This could represent losses of 2.48 billion € for Nokia alone. FD Blueprint supported DIGITALEUROPE in a media campaign to denounce the Commission’s move. The issue broke out on a Friday afternoon and we worked around the clock to pull together a press conference in Brussels for the following Monday, ahead of a critical meeting of the Council. We have also organised a series of one-to-one interviews with media across Europe. More than 150 articles were published in major international and national business newspapers throughout Europe during December. As a result in July 2009 the European Commission finally decided to abandon plans to introduce EU-wide duties on the latest generation of mobile phones, embedded with GPS readers and TVs. Public Affairs and Public Policy Australia: AFACT FD Third Person was engaged by the Australian Federation Against Copyright Theft to assist raise the profile of the issue of online film piracy and solutions for stopping it. AFACT’s members eventually launched legal action against internet service provider iiNet for failing to prevent online copyright infringement and asked them to disconnect repeat copyright infringers. THE CHALLENGES: To raise the issue of online film piracy and promote solutions that include ISP involvement while avoiding criticism on privacy issues, disconnecting repeat infringers from their internet accounts and criticism of the Hollywood studios themselves. To manage publicity around the court case while also addressing the above issues. The case and the issues were being reported heavily by the IT community who already had opinions on the issue and were twittering and filing stories several times a day online. There was a lot of heat around other online issues such as the Australian Government’s proposal on internet filtering and the NBN. ADDRESSING THE CHALLENGE: FD Third Person took a long term approach by holding extensive ongoing one on one briefings with the media over an 18 month period making them aware of the problem, its impact, the solutions AFACT were proposing and the issues in the court case. OUTCOMES: Although AFACT lost the court case in the first instance, 40% of all post court decision articles touched on the need for the law to be updated so that something could be done to address online piracy. 91% of articles were considered positive or neutral by the client even though they lost the case. 14 Public Affairs and Public Policy Australia: SP AusNet FD Third Person was retained by SP AusNet to manage financial calendar reporting and provide ongoing advice to the management team on a range of projects from 2005-2010. We provided financial communications advice to SP AusNet and the vendor, Singapore Power, on its $1.4 billion IPO in 2005, and to SP AusNet on its $3 billion rights issue in 2007 and $415 million capital raising in 2009. We were also responsible for liaising with business/finance media and providing support in the development of media and market releases, presentations and the drafting of formal company documents such as the annual report. In addition, we were retained by SP AusNet in 2009 to provide communications and issues management and media engagement advice following the devastating Black Saturday bushfires and throughout the subsequent Victorian Bushfires Royal Commission. VICTORIAN BUSHFIRES ROYAL COMMISSION - THE CHALLENGES: An emotion-charged environment with a desire by community and media outlets to apportion blame for Australia’s worst natural disaster Intense media coverage of Royal Commission hearings, industry and company policies and practices and all other developments regarding the Black Saturday bushfires. A class action launched by victims against SP AusNet prior to commencement of Royal Commission hearings. HIGHLIGHTS OF FD THIRD PERSON’S APPROACH TO ADDRESS THE CHALLENGES: Put SP AusNet on a crisis communications footing to tightly control all company statements in the public domain about the bushfires so as not to add to speculation, impact on police or legal proceedings or to make the company a target for media, politicians and public criticism. Established clear narratives and fact bases for use in Royal Commission hearings and media briefings. Worked with the SP AusNet legal team on strategy to have key issues either raised or rebutted in Royal Commission proceedings, to allow for media pick up. BUSINESS AND COMMUNICATIONS OUTCOMES: Clear shared objectives were set by legal and communications teams and achieved through close cooperation throughout Royal Commission proceedings. An agreed fact base was established around all potential fire-related issues and used as the basis for media holding statements and engagement with journalists. On the whole, media coverage of SP AusNet has been a fair and accurate reflection of proceedings in the Royal Commission. The company has not become the sole focus of media attention and there has been no pick-up of SP AusNet or related issues on talkback radio. 15 Public Affairs and Public Policy
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