Philanthropy and Tobacco

Philip Morris's "Working to Make a Difference" campaign proves that the company cares. About its corporate image, that is.

The campaign, launched in 1999 and growing ever since, tells us about Philip Morris' philanthropy. The company, we are told through touching personal stories, lends a hand to the truly needy, giving when no one else will. It helps battered women and struggling children; the oppressed, the hungry, and the sick. On the company website, we're told that Philip Morris gives because the company "believes[s] foremost in helping people in need, in supporting the life of our community."

But the numbers reveal their true intentions. In 1999, Philip Morris spent $60 million on charity - and $108 million advertising that it was giving to charity. The next year it upped its charitable contributions to $115 million, and the advertising budget to $150 million.

That advertising budget is large, even by PM's standards. In the same year, the company spent $94 million advertising Marlboro, $118 million advertising Kraft brands, and $92 million advertising Miller beer. But it's worth it.

The campaign works on several levels. Internal documents suggest that Philip Morris' philanthropy targets causes favoured by legislators and their spouses, as well as groups such as women and ethnic minorities that are likely to oppose the company's marketing tactics.

Besides creating fuzzy feelings among target audiences, the company's charitable contributions give it pull in the organizations to which it contributes. For example, Philip Morris gives to 4-H, and its representatives sit on the program design committee charged with creating the 4-H tobacco prevention program.

But not every aspect of the campaign is working in the company's favour. One part of the push has been to associate Philip Morris with Kraft, one of its more wholesome subsidiaries. The people at Philip Morris figured that not many people were aware that it owned Kraft, and that if they found out through this campaign, they'd feel warmer about the parent company. Well, they were half right. Not many people did know that Philip Morris owned Kraft, and a lot of people were made aware of this through the philanthropic ad campaign. Only instead of buying more Kraft products, a poll available at www.infact.org reveals that the new knowledge motivated many consumers to make a difference of their own -- by joining a growing boycott of Kraft.