A Competition It Is, Indeed.

Early next year an academic article, which I co-authored along with three professors from the University of Southampton (UK), will publish in Voluntas, the International Journal of Voluntary and Non-Profit Organizations. The subject of the article is about how companies can more effectively deal with irregular competition. I’ll post more about the article as the publication date nears, but for today the topic I’d like to address is the power of irregular competition.

I opened this post by mentioning the academic article because during the publication submission process for the article, one of the three reviewers commented that the civil society organizations to which we referred in the article weren’t really competitors to business. (The other two reviewers, by the way, thought the idea of “irregular competition” as applied to NGOs and activists who engage companies was an intriguing concept.) If you are a regular reader of this blog, you’ll understand that NGOs and activist organizations which vie with companies for what those companies stand are indeed competitors. Per the definition of irregular competition that appears on Telofski.com, these organizations primarily:

attempt to influence, or even control, what a company or brand image means, by employing the notoriety of a company’s reputation to achieve publicity and legitimacy for the agenda that the irregular competitor pursues.

In other words, these organizations “compete” for the “meaning” of the company targeted. And they usually do so via disparagement.

A competition it is indeed. If it wasn’t then why would some of the companies currently targeted by major irregular competitors be spending significant funds on television image advertising?

Take for instance Exxon Mobil, which has been targeted by Greenpeace, Rainforest Action Network, and others over the controversial oil sands project in Canada. This project is slated to send its oil via pipeline through the United States. Exxon recently released the video shown below and has been running it heavily in many television markets across the United States.

Or another example of a company targeted by various activist groups would be Asia Pulp & Paper. This Indonesian business has been at the center of the palm oil controversy driven by, again, Greenpeace, Rainforest Action Network, and others. AP&P commercials (one of which is shown below) have been running on various American television networks.

So, if the organizations in opposition to the oil sands project, those competing for the meaning of the project and for the meaning of Exxon’s involvement in it, or the organizations in opposition to palm oil harvesting, those competing for the meaning of AP&P’s image, were not a significant competitive force against Exxon and AP&P, then why would Exxon and AP&P bother spending considerable sums on advertising their own point of view?

Competitors? Yes, Mr. Reviewer. Yes, indeed.

Corporate Accountability CEO Makes "More" Than Mickey D CEO?

Back in January of this year, I wrote a post about the compensation differences between the CEO of Greenpeace and the CEO of Exxon Mobil. From the research which was the foundation of the article, I found that, as a percentage of revenue, the Greenpeace CEO makes far more than the Exxon Mobil CEO. You may read that post entitled, “Greenpeace CEO Makes ‘More’ Than Exxon Mobil CEO?” by clicking here. Since it was published, that post has been one of the most popularly read on this blog. And since, on this blog, I like to give readers topics in which they have an interest, today I write a similar article, but this time it’s about two different “competitors.”

In recent weeks and months, Corporate Accountability International (CAI), an irregular competitor, has been very much in the news with their dual objective campaign against Mc Donald’s. Those objective are: (1) to get the company to stop promoting its Happy Meal product through the offer of toy giveaways (this objective is in partnership with the Center for Science in the Public Interest, see here and here) and, (2) to convince Mc Donald’s to retire their corporate icon, Ronald Mc Donald. All this CAI attention toward Mc Donald’s piqued my curiosity about this irregular competitor, CAI. So, in the same vein as the Greenpeace – Exxon Mobil comparison, and in the interest of giving my readership topics in which it has interest, I decided to do some research regarding the CEO compensation of these two adversary organizations. The findings were surprising.

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