CORPORATIONS ACTIVE IN PUBLIC AFFAIRS MUST TREAD CAREFULLY

No one disagrees that business has a legitimate role in public policy matters. But at times, it appears to play this role in a heavy-handed or surreptitious manner.

Witness last summer's picketing of the U.S. Equal Opportunity Offices by employees of Mitsubishi. Or Philip Morris' [MO] secretive funding of a group monitoring campaign contributions of trial lawyers. The latter example was a legitimate effort that was discredited when the company's efforts to hide its support were learned earlier this month.

In other cases, media and public skepticism about business motives lead to concerns that businesses are being bullies.

A recent example of this type concerns proposals on the ballot next month in Florida aimed at the sugar industry there. The proposals, supported by environmental groups, would raise taxes and require companies proved responsible for pollution of the Everglades watershed to pay for cleanup. (Many sugar farms are located near the Everglades and have been identified as the source of some pollution.)

The sugar industry, logically, does not favor the proposals and has been making its point of view public through groups such as the Alliance of Sugar Growers and Stop Unfair Taxes. While these are legitimate responses, sugar interests were blasted in an Oct. 13 editorial by the editor of the Miami Herald for a counter-demonstration planned near a fundraiser by Save Our Everglades.

The Mitsubishi, Philip Morris and sugar cases raise the question of how corporations can participate effectively in public debates.

"Let's remember that news itself is controversy," said Steve Ellis, a senior vice president at public affairs consulting firm, Jefferson Waterman International, Washington, D.C. "If you're going to deal in the area of public affairs, you have to be able to deal with controversy."

Ellis also advises companies to be completely open about their support for groups or causes. While companies may wish these organizations to take the lead, they should not try to conceal their support. "My rule of thumb is, if you have to think up a way to hide, then it's probably something you should not do."

One of the most effective ways for corporations to work in the public affairs and public policy arena is to form coalitions, says Ron Rogers, president of Los Angeles PR and public affairs firm, Rogers & Associates. Working with respected companies or government or non-profit groups that share a company's goals "can reflect positively on corporations," he said. (Save Our Everglades, 305/379-5643; Jefferson, 202/626-8500; Rogers, 310/552-6922)