News Sept 14, 2000

Juergen Daum’s News Service about New Economy Management Best Practice

©2000 Juergen Daum. All rights reserved.

 

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Why Mr Bové vandalized a McDonald’s restaurant in his fight against globalization

News categories: enterprise and business strategy, stakeholder relationship management and corporate reputation management

 

Jose Bové, a radical French farmer who dismantled with farm equipment a McDonald’s restaurant under construction on August 12, 1999, was sentenced on Wednesday to three months in prison. The destruction of the McDonald’s restaurant made Mr. Bove in the eyes of many French people to a hero in the battle against rampant globalization and drew 15000 people to the two-day trial in Millau, France. His $17000 bail was paid for by farmers and activists around the world.

 

After the trial Mr. Bové said, prison would not stop him from continuing his battle against multinationals and the World Trade Organization, which he claims pose a threat to small farmers, good food and a way of life. He said the attack was ultimately against the “McDomination” of the world. Bove, nicknamed “Robin Hood”, and his Farmer’s Confederation, linked with movements elsewhere, would continue to act, in particular destroying field of genetically altered crop and against multinationals producing what they see as standardized, unhealthy food.

 

Why is this case important ?

 

Corporations and their managers are in most countries one of the least trusted constituents of society. Perceived as agents, acting exclusively in favour of their shareholders they are increasing corporate profits and their own huge salaries by cutting costs, laying off employees and destroying social welfare and local culture through their unified products and brands. Global brands and the living styles communicated through them often have a more significant influence on kids, than their parents (“the Coca Cola culture or McDonald’s”). Corporate reputation is highly and quickly at risk in world, where multinational corporations are influencing a growing portion of the daily live of every citizen in potentially any country in the world. A fundamental distrust in front of corporations from citizens and Non-Governmental Organizations (NGOs) is the consequence. They want companies to carry a proportionally greater degree of accountability than in the past. But most managers don’t consciously articulate, what role their companies play in society, leaving this task to economists and representatives of NGOs, that shape the public perception of themselves and their institutions. Yet a new generation of corporate managers is starting to pioneer a new corporate model. They see their task not only by increasing value for their shareholders and investors. Knowing that in a New Economy, which is founded on Intellectual Capital that is created by the interplay between employees, business partners, customers and society in general, they have to incorporate into the companies economic chain all corporate stakeholders and also public institutions and NGOs and their company has to share with them created value.

 

 

... related news: The Global Compact Innitiative

 

... recommended book about corporate reputation management:

    Glen Peter, Waltzing with the raptors: a practical roadmap to protecting your company’s reputation

 

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