csudh april 2012 (1)

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Demand Driven Demand Driven ReformReform

AdvertisingAdvertising

►What’s does advertising do?What’s does advertising do?


►Create demandCreate demand IndustryIndustry Products and ServicesProducts and Services


►Least evil form –Gets the word outLeast evil form –Gets the word out►More commonMore common

ManipulationManipulation Dishonesty and ObfuscationDishonesty and Obfuscation

►Few things worse than …Few things worse than …

Junk Science –Create Junk Science –Create ConfusionConfusion

► "RECENT REPORTS on "RECENT REPORTS on experimentsexperiments with mice have given with mice have given wide publicity to a theory that wide publicity to a theory that cigarette smoking is in some way cigarette smoking is in some way linked with lung cancer in human linked with lung cancer in human beings.beings.

Although conducted by doctors of Although conducted by doctors of professional standing, these professional standing, these experiments are not regarded as experiments are not regarded as conclusive in the field of cancer conclusive in the field of cancer research. However, we do not research. However, we do not believe that any serious believe that any serious medical researchmedical research, even though its , even though its resultsresults are inconclusive should be are inconclusive should be disregarded or lightly dismissed.disregarded or lightly dismissed.

Junk ScienceJunk Science

►Glad to see Fox Glad to see Fox News on top of the News on top of the case against climate case against climate change.change.

► Unlike cigarettes –Unlike cigarettes –the delay to action the delay to action will harm or kill will harm or kill millions.millions.

Real Ecomagination at WorkReal Ecomagination at Work

►GE: We’ll make up GE: We’ll make up the words –you just the words –you just keep buying our keep buying our crap.crap.

►GreenwashingGreenwashing Clean CoalClean Coal Safe Nuclear EnergySafe Nuclear Energy

Real Ecomagination at WorkReal Ecomagination at Work


► Hmmm –ad claims Hmmm –ad claims Halliburton is “The Halliburton is “The Home Team” –building Home Team” –building Astro stadium.Astro stadium.

► Corporate HQ?Corporate HQ? United Arab United Arab

EmiratesEmirates Emirates Towers, 13th Emirates Towers, 13th

FloorFloorSheikh Zayed Road, Sheikh Zayed Road, Dubai, UAEDubai, UAE


► Kaiser. Thrive.Kaiser. Thrive.► Because if you don’t Because if you don’t

–you could wind up –you could wind up waiting for a long, waiting for a long, long time for one of long time for one of our physicians to our physicians to not run diagnostics not run diagnostics on you (so they can on you (so they can get a nice bonus).get a nice bonus).


► Bicycle. Bicycle.

► It’s good for the It’s good for the environment and environment and we’ve repossessed we’ve repossessed your car (and your car (and foreclosed on your foreclosed on your home). home).


Just when you thought Just when you thought National Lampoon National Lampoon or Mad Magazine or Mad Magazine were the funniest were the funniest damn magazines … damn magazines … along comes along comes Forbes!Forbes!


►Not much to say Not much to say here –other than the here –other than the rugged, individualist rugged, individualist cowboy in the ad cowboy in the ad died of lung cancer.died of lung cancer.


► I love bars were I love bars were everyone drinks everyone drinks Heineken, is having Heineken, is having a great time and a great time and will all sleep with will all sleep with one another shortly one another shortly after last call.after last call.

More Junk ScienceMore Junk Science

►And the “No one does that voodoo that And the “No one does that voodoo that you do” award in Economics goes to …you do” award in Economics goes to …

Milton FriedmanMilton Friedman

► Economist, Nobel LaureateEconomist, Nobel Laureate► Wrote Wrote ““The Social Responsibility of The Social Responsibility of

Business is to Increase its ProfitsBusiness is to Increase its Profits““ --The The

New York Times Mag.New York Times Mag., September, 1970, September, 1970 ► If you are a billionaire –you If you are a billionaire –you

LOVE Friedman. LOVE Friedman. ► When I’m not moving books When I’m not moving books

by Cheney or Rove into the by Cheney or Rove into the “True Crime” Section … I “True Crime” Section … I move Friedman to Fiction.move Friedman to Fiction.

Not Done With Friedman YetNot Done With Friedman Yet

► ““The Social Responsibility of Business is to Increase its The Social Responsibility of Business is to Increase its Profits”Profits” ie.- Maximize profitsie.- Maximize profits

► How?How? Increase revenue Increase revenue Lower costsLower costs Avoid costs (externalize them)Avoid costs (externalize them)

The Joy of EXThe Joy of EX(ternalities)(ternalities)

►Avoiding Costs … examples?Avoiding Costs … examples?


►Examples –Examples –►Ford Pinto and the exploding gas tank.Ford Pinto and the exploding gas tank.

Major recall and repair costs $10xMajor recall and repair costs $10x Pay off a few court cases for deaths $5xPay off a few court cases for deaths $5x


► A hypothetical oil refinery in Richmond, A hypothetical oil refinery in Richmond, California can reduce its harmful emissions California can reduce its harmful emissions and pollutants with an expenditure of and pollutants with an expenditure of $20mil.$20mil. Yes? –quarterly profit is only 2Yes? –quarterly profit is only 2ndnd highest on highest on

record, executive bonuses reduced from $2mil. record, executive bonuses reduced from $2mil. to $1.75mil.to $1.75mil.

No? –Record quarterly profit, higher executive No? –Record quarterly profit, higher executive bonuses –people in and around Richmond have bonuses –people in and around Richmond have higher incidence of respiratory illness, medical higher incidence of respiratory illness, medical needs and emergency care (asthma).needs and emergency care (asthma).


►Other examples?Other examples? Tax avoidanceTax avoidance

►Offshore HQOffshore HQ►Subsidies and creditsSubsidies and credits

WorkforceWorkforce►Transition work to low-cost, low-safety areasTransition work to low-cost, low-safety areas►More competition for jobs More competition for jobs

––work harder, longer and for lesswork harder, longer and for less►Tort “Reform”Tort “Reform”

Less safety for public –no recourseLess safety for public –no recourse

Industry CreationIndustry Creation

►Fast food Fast food Obesity Obesity Fitness CentersFitness Centers Weight loss clinicsWeight loss clinics Drug CompaniesDrug Companies

►DiabetesDiabetes►Blood PressureBlood Pressure►Heart DiseaseHeart Disease

Industry CreationIndustry Creation

► Study by Robert Wood Johnson Foundation –AMA 7/2010 (rwjf.org)Study by Robert Wood Johnson Foundation –AMA 7/2010 (rwjf.org) Between 2003 and 2007, there was a 27 percent to 30 percent decrease in Between 2003 and 2007, there was a 27 percent to 30 percent decrease in

children’s and teens’ exposure to beverage ads. Exposure to heavily advertised children’s and teens’ exposure to beverage ads. Exposure to heavily advertised sugar-sweetened fruit drinks and non-diet soft drinks showed decreases of 60 sugar-sweetened fruit drinks and non-diet soft drinks showed decreases of 60 percent to 75 percent.percent to 75 percent.

Exposure to ads for sweets declined, down 41 percent for children ages 2-5; 29 Exposure to ads for sweets declined, down 41 percent for children ages 2-5; 29 percent for children ages 6-11; and 12 percent for adolescents ages 12-17.percent for children ages 6-11; and 12 percent for adolescents ages 12-17.

Daily average exposure to total food advertising fell by 13.7 percent and 3.7 percent Daily average exposure to total food advertising fell by 13.7 percent and 3.7 percent among ages 2-5 and 6-11, respectively. For ages 12-17, however, daily average among ages 2-5 and 6-11, respectively. For ages 12-17, however, daily average exposure to food advertisements increased by nearly 4 percent.exposure to food advertisements increased by nearly 4 percent.

Among the negative trends identified in fast-food advertising:Among the negative trends identified in fast-food advertising:

Exposure to ads for fast-food restaurants increased for all age groups, up more than Exposure to ads for fast-food restaurants increased for all age groups, up more than 20 percent for ages 12-17; more than 12 percent for ages 6-11; and nearly 5 percent 20 percent for ages 12-17; more than 12 percent for ages 6-11; and nearly 5 percent for ages 2-5.for ages 2-5.

By 2007, fast-food ads were the most frequently seen type of food ad among both By 2007, fast-food ads were the most frequently seen type of food ad among both children and teens.children and teens.

Among African-American youths, exposure to fast-food ads increased at more than Among African-American youths, exposure to fast-food ads increased at more than twice the rate for their white counterparts: up almost 30 percent among ages 12-17; twice the rate for their white counterparts: up almost 30 percent among ages 12-17; almost 16 percent among ages 6-12; and almost 7 percent for ages 2-11.almost 16 percent among ages 6-12; and almost 7 percent for ages 2-11.

Is it Individual Responsibility?Is it Individual Responsibility?

► CSPI* Study:CSPI* Study: 80% of ads on 80% of ads on

Nickelodeon were for Nickelodeon were for foods of poor foods of poor nutritional qualitynutritional quality

This is an This is an improvement from improvement from 2005 when approx. 2005 when approx. 90% of ads were for 90% of ads were for bad foods.bad foods.

*CSPI=Center for Science in the *CSPI=Center for Science in the Public InterestPublic Interest

Certainly government regulation Certainly government regulation and enforcement can help …and enforcement can help …

►House Votes to Ban 'Obesity Lawsuits' House Votes to Ban 'Obesity Lawsuits' Against Fast Food IndustryAgainst Fast Food Industry

►NOT!NOT!

Here’s where government Here’s where government regulation and enforcement regulation and enforcement

helps … not!helps … not!► House lawmakers on Wednesday passed a bill banning House lawmakers on Wednesday passed a bill banning

obesity-related lawsuits against restaurants and food obesity-related lawsuits against restaurants and food manufacturers. More than 20 states already have such laws manufacturers. More than 20 states already have such laws on the books.on the books.

“The bill seeks to block lawsuits by people because they ate “The bill seeks to block lawsuits by people because they ate too much and got fat,” says Rep. Chris Cannon, R-Utah, one of too much and got fat,” says Rep. Chris Cannon, R-Utah, one of the bill’s sponsors.the bill’s sponsors.

► ““We should not encourage lawsuits that blame others for our We should not encourage lawsuits that blame others for our own choices and could bankrupt an entire industry,” notes own choices and could bankrupt an entire industry,” notes Rep. Lamar Smith, R-TexasRep. Lamar Smith, R-Texas

Read more: Read more: http://www.foxnews.com/story/0,2933,172805,00.html#ixzz1shttp://www.foxnews.com/story/0,2933,172805,00.html#ixzz1sDLpGeRmDLpGeRm

Reacting to ExternalitiesReacting to Externalities

► Absent government regulation and Absent government regulation and enforcement:enforcement:

Boycotts -consumersBoycotts -consumers

Socially Responsible Investing (SRI)Socially Responsible Investing (SRI)►Domini, Calvert, ParnassusDomini, Calvert, Parnassus►Major pension funds CalPERS, CalSTRSMajor pension funds CalPERS, CalSTRS

Corporate Social Responsibility* or CSR MovementCorporate Social Responsibility* or CSR Movement

* * I preferI prefer Corporate Social Behavior or CSB Corporate Social Behavior or CSB

Reacting to ExternalitiesReacting to Externalities

► Boycotts/Consumer PressureBoycotts/Consumer Pressure 1769 –British Trade Goods in America1769 –British Trade Goods in America 1960 -Delano Grape Strike –Cesar Chavez1960 -Delano Grape Strike –Cesar Chavez In caving into the economic threats, Coke told In caving into the economic threats, Coke told

Secrets: "The Coca-Cola Company has elected to Secrets: "The Coca-Cola Company has elected to discontinue its membership with the American discontinue its membership with the American Legislative Exchange Council (ALEC). Legislative Exchange Council (ALEC).

► SRI/Investor PressureSRI/Investor Pressure Domini, Calvert, Parnassus, CalPERS, CalSTRSDomini, Calvert, Parnassus, CalPERS, CalSTRS

Personhood ?Personhood ?

► 1414thth Amendment and SCOTUS Amendment and SCOTUS► ““Citizens” UnitedCitizens” United►Move to AmendMove to Amend

A momentary voice of reasonA momentary voice of reason

Individual ResponsibilityIndividual Responsibilitywhich product?which product?

► Each purchase Each purchase helps perpetuate a helps perpetuate a set of behaviors set of behaviors that is the operating that is the operating culture of a culture of a company.company.

►Which pair Which pair should I buy?should I buy?

Leveraging Market DemandLeveraging Market Demand

►Extend consideration factors in a Extend consideration factors in a purchase transaction.purchase transaction.

►Typical factors:Typical factors: Cost + Quality = ValueCost + Quality = Value

One New FactorOne New Factor

► Extend to consider Extend to consider how a company how a company treats its employees, treats its employees, the environment and the environment and other factors of other factors of social responsibilitysocial responsibility

► Provide a simple Provide a simple grade/rating based grade/rating based upon trusted data upon trusted data (CSBI)(CSBI)

Influencing the Purchase Influencing the Purchase DecisionDecision

►Smartphones/Mobile DevicesSmartphones/Mobile Devices►alonovo.com destination websitealonovo.com destination website►Major social sites (Google+, Facebook, Major social sites (Google+, Facebook,

Twitter, Linked In)Twitter, Linked In)►““alonovo anywhere” –graffiti/overlay alonovo anywhere” –graffiti/overlay

on other shopping pages (ie.- on other shopping pages (ie.- amazon.com, bestbuy.com, etc).amazon.com, bestbuy.com, etc).

Corporate Social Behavior Index Corporate Social Behavior Index (CSBI)(CSBI)

► LaborLabor Workforce StabilityWorkforce Stability Workforce DiversityWorkforce Diversity Executive Pay RatioExecutive Pay Ratio Fair Labor PracticesFair Labor Practices

► EnvironmentEnvironment Toxic and other Toxic and other

wastes/emissionswastes/emissions Natural Resource Natural Resource

ConservationConservation

► Social ResponsibilitySocial Responsibility Societal Value of Societal Value of

Products/ServicesProducts/Services Corporate Ethics, Transparency Corporate Ethics, Transparency

and Accountabilityand Accountability LobbyingLobbying Supply Chain SelectivitySupply Chain Selectivity Worker and Community Health Worker and Community Health

and Safetyand Safety Class Action LitigationClass Action Litigation Tax AvoidanceTax Avoidance Animal CrueltyAnimal Cruelty

Creation vs. Transfer of Creation vs. Transfer of WealthWealth

►99% versus 1%99% versus 1% Are all 1% created equal?Are all 1% created equal?

►1% of the 1% -1% of the 1% - Risk capital, innovate and create jobsRisk capital, innovate and create jobs

►And sometimes entire industriesAnd sometimes entire industries

Creation vs. Transfer of Creation vs. Transfer of WealthWealth

► Polisner plan –Polisner plan – Tax the hell out of the 1% except …Tax the hell out of the 1% except … Create real incentives and tax credits for 1% of Create real incentives and tax credits for 1% of

the 1% that are actually innovating and investing the 1% that are actually innovating and investing that are strategically vital:that are strategically vital:►Safe, clean and renewable energy productionSafe, clean and renewable energy production►Reduction of energy consumptionReduction of energy consumption►Peace and conflict resolutionPeace and conflict resolution►Real participatory democracyReal participatory democracy►EducationEducation►HealthcareHealthcare►Energy consumptionEnergy consumption

csudh april 2012 (1)

Health & Medicine

advertising whats

advertising kaiser

advertising bicycle

real ecomagination

costs examples

advertising leastevil

repair costs

work ge