Multinationals and net activism



Edited/Distributed by HURINet - The Human Rights Information Network
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## author     : info@cleanclothes.org
## date       : 09.02.99
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taken from the nike-international list:

04/02/99 UK: MARKETING FOCUS - WIDE OPEN TO THE WEB
WARRIORS. By MATTHEW REED.

Activists are using the internet to fight large companies
over ethical issues. Yet many major brand-owners lack a
clear counter-strategy. Matthew Reed reports.

Earlier this month a group of environmental activists staged
a sit-in at Shell's London offices. Although Shell turned
the power off and cut the phone lines, activist Roddy
Mansfield broadcast the protest live to the internet and
e-mailed the press, using a digital camera, laptop computer
and mobile phone. This is just one example of a growing
trend, whereby protesters and activists are turning to the
internet as quick, cheap and effective way of reaching
millions of people. Many of the web sites are primitive, but
their message is clear and, for some brands, dangerous.
'Boycott' and 'ban' are the two most common phrases used by
many of the anti-brand sites. Whereas a few years ago these
messages were confined to pamphlets or placards, the web has
given millions access to the campaigns - and it seems that
their corporate targets are unable or unwilling to act
against them. For almost three years, the McSpotlight site
(www.mcspotlight.org) has carried material ruled in 1997 to
libel McDonald's. Posted on the site is an exact copy of the
leaflet, What's Wrong With McDonald's?, that provoked the
fast- food giant to successfully sue Helen Steel and Dave
Morris, of London Greenpeace, for libel. Yet, despite
spending an estimated #10m on the long-running 'McLibel'
case, McDonald's has taken no action against McSpotlight for
publishing the same material on the internet, which can be
downloaded and distributed. No one at the company was
willing to outline its strategy for dealing with internet
protest or to explain how it plans to protect its brand in
the future from similar web onslaughts. McDonald's and Shell
are not alone in being attacked in this way. Many large
multinationals, including Procter & Gamble, have had their
names dragged through the online mud. But there are complex
arguments about legal defences and how brand owners can
fight the web agitators. Many opt for the head-in-the-sand
approach, hoping that if they ignore it, it will go away.
But the sites are out there, and thousands of people see
them every day. The internet has ceased to be a fringe
environment: Market Tracking International estimates there
were 78 million internet users worldwide in 1998 and this
will grow to 180 million by 2002. In Europe, International
Data Corporation estimates that 23 million people were using
the internet in 1998 and that 83 million will do so in 2002.
Datamonitor believes a third of European homes will have
access to the internet by 2003. Setting up a web site is
easy and cheap.

With the information available worldwide at the click of a
mouse, the impact can be huge - some protest sites receive a
million visitors each month. Although it may not be the case
for much longer, publishing online has not generally faced
the restrictions placed on traditional media, such as
reporting conventions, owners' fear of litigation and a
dependence on advertisers. Henley Centre consultant Chad
Wollen has monitored the rise of internet activism. He says:
'Taking the US as the bellwether, it is something that's
going to grow.' The emergence of companies such as eWatch in
the US confirms the phenomenon. Located at www.ewatch.com,
it tracks discussion taking place on the internet about
major brands (see graph). BA site takes off Mikko Takala is
webmaster of a site called no-way-ba.lochness.co.uk, set up
to protest BA's year-old move to replace its
Inverness-Heathrow route with a flight out of Gatwick, a
change campaigners believe is damaging to the Highlands'
economy. 'Doing it this way we have a greater chance,' he
explains. 'The secret to online campaigning is using a
combination of the web and usenet (online discussion groups)
to identify interested groups - in this case travel and
Scottish interest groups. It's not passive; you have to tell
people that it's there.' The site has received a lot of
feedback, including from people working within airlines and
airports, says Takala. The McSpotlight site, run by
supporters of the McLibel Two, went online in February 1996.
It is run by volunteers in 22 countries, with mirror sites
in four countries. It contains 20,000 files - most relating
to McDonald's and the trial - and claims more than a million
visitors a month. In a 'Beyond McD's' section, it targets
other corporations to focus on their business practices.
These include Pfizer, Johnson & Johnson, Boots the Chemist,
Philip Morris, BAT, Nestle, Cow & Gate, Milupa, Unilever,
Procter & Gamble, SmithKline Beecham, Colgate-Palmolive and
Shell. The internet has added an extra dimension for
activists, says Dan Mills, spokesman for the McLibel Support
Campaign. 'Generally in campaigning groups the internet and
e-mail have become much more important. It's now standard,
but when McSpotlight started it was new and an inspiration
for others.' Given the experience of Steel and Morris,
McSpotlight's actions may seem foolhardy. According to
Mills: 'When McSpotlight went up, the idea was that if
McDonald's was able to get the site closed down it would
continue through mirror sites and a McSpotlight Kit. But as
a result of the trial McDonald's was effectively stymied -
it would have been a disaster to do anything more.' Nor has
BA taken steps against Takala's site. 'They haven't taken
action because I don't think we've done anything libellous,'
he says. As a campaigning tool, Wollen says the internet has
'been most effective when the consumer has had a legitimate
case and then the company can't use PR to get out of it'.
Shell has taken a similar line. While it acknowledges it is
targeted on the internet, a spokesman said it monitors the
situation: 'It's a medium in which we do come in for some
criticism; we do take it seriously.' Shell takes the power
of the web seriously enough to give a large part of its web
site (www.shell.com) over to information on company ethics,
and in a shrewd move to wrong-foot its detractors has a
'forums' section which both encourages debate and criticism
and includes hotlinks to the sites of Greenpeace, Friends of
the Earth and others. Similarly, McDonald's
(www.mcdonalds.com) and Nike (www.nikebiz.com) dedicate
parts of their web sites to messages on environmental and
labour practices. In a medium where preventing activists
from making allegations appears unviable, disarming them by
issuing a counter message seems an attractive option.
Ethical and environmental issues are a big part of internet
campaigning. The Boycott Nike site (www.saigon.com/nike)
urges visitors to pressurise the firm over its employment
practices in South East Asia. Visitors are also encouraged
to sign letters to US President Bill Clinton and to Nike's
chief executive officer. Project Underground
(moles.org/projectunderground) encourages visitors to
boycott Shell because of its alleged activities in Peru,
Colombia and Nigeria. Visitors are also encouraged to write
to Shell's CEO and to e-mail the oil corporation. There is
also a Boycott Shell/Free Nigeria home page at
www.essential.org/action/shell. The Free Burma Coalition,
which aims to persuade investors to get out of Burma, set up
a web site in September 1995. PepsiCo decided to withdraw
from Burma in 1997 after the internet campaign. Texaco and
Heineken are among others persuaded not to invest in, or buy
from, the country. So, will ethical and environmental issues
move up the awareness agenda as a consequence? Wollen
believes companies won't change overnight, 'but it will
become more of a battlefield'. For brand owners, the key
concern is protecting their brands and trademarks. Catrin
Turner, head of intellectual property at law firm Davies
Arnold Cooper, observes that: 'Some brands shy from taking
action - you don't want to become 'McLibel Mark Two'.' For
those that do take action, the starting point is libel, or
trade libel. 'But there are certain things about the
internet that make it more difficult than print to sue. In
particular, the difficulty of tracking down the operators of
the site,' says Cooper. A law unto themselves Tim Hardy,
head of litigation at law firm Cameron McKenna, has a number
of clients, from pharmaceuticals, financial and other
sectors, which have been targeted by protest sites. The
problem for brand owners, Hardy says, is that: 'Individuals
and activists can put up highly defamatory material on their
web site, much of which probably wouldn't be published
otherwise. Worryingly, this material is readily accessible.'
Despite the difficulties, there are strategies that can be
adopted to have material removed, and even to get web sites
killed, Hardy explains. 'You can pursue the internet service
provider (ISP) because they can be held responsible for what
they have allowed to be published. Under the Defamation Act
1996, they have the innocent dissemination defence, provided
they don't know the material is there, but once you have put
them on notice that's no longer valid. Many ISPs will remove
material rather than risk legal action.' In the US, ISPs are
exempt from liability for material that originates from
third parties, under the Communications Decency Act 1996.
'This might embolden groups to put more stuff on US sites,'
Turner says. 'But, if it's accessible from the UK it's
potentially a libel.' An increasingly litigious atmosphere
could have far-reaching consequences. Owners have a right to
protect their brands and trademarks, but do they have a
right to close down debate that may be in the public
interest? Turner says: 'As the ISP market consolidates, the
remaining ISPs will become more and more averse to risk.
There will be less of a maverick attitude and possibly the
throttling of free speech.' Although recourse through the
law may be appropriate in some circumstances, to focus
purely on the legal dimension may obscure the meaning behind
this rise in internet activism. The Henley Centre's Wollen
believes that companies are finding it difficult to deal
with the cultural change that the internet represents. He
suggests that when dealing with net activists, 'it might be
best to start by asking what the problem is, rather than a
'cease and desist' order. It would be more in keeping with
the ethos of the net. 'If the net is about anything it's
about a shift of power away from the centre and to the
individual. It's also about people organising themselves
into communities of affinity,' Wollen adds. 'And companies
find it difficult to deal with emotional responses of any
kind, positive - such as fan and tribute sites - as well as
negative.' Henley Centre director Sian Davies thinks
marketers should try to turn it around: 'If people are going
online to talk about brands then doesn't that tell us
something about marketing? A lot of companies try to shut
things down and that's quite short-sighted and naive.' 'It's
early days but online communities are developing, such as
GeoCities, Tripod and SeniorNet, and lifestyle ones relating
to music or brands such as Harley-Davidson,' says Davies.
'It's significant because horizontal communications, between
consumers, is growing but companies tend only to think about
vertical communications - pushing out brand messages and
treating consumers as if they exist in a vacuum, whereas the
net is a fluid environment.' The lesson that brand owners
must learn is that the web is an increasingly powerful
cultural phenomenon, and the communications tactics they
develop must be as sophisticated for their fiercest critics
as they have been for their customers.

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