Childhood Obesity & Responsible Marketing Strategic CSR ~ MBA292C-1 ~ Kellie McElhaney Sarah Anderson ~ Cristin Gendron ~ Annabelle Louie ~ Amy Omand

Agenda Childhood Obesity Trends Advertising & Marketing to Children “Irresponsible” vs. “Responsible” Marketing Moving Forward Industry Pioneers Risk/”Benefit” Analysis

A Growing Concern… (pun intended) Physical, Emotional, and social consequences.

Agenda Childhood Obesity Trends Advertising & Marketing to Children “Irresponsible” vs. “Responsible” Marketing Moving Forward Industry Pioneers Risk/”Benefit” Analysis

Source of Children Finding Out About Food or Drink Products TOTAL MENTIONSFIRST MENTION ADVERTISING INFORMATION IN STORE /SEEN IN STORE THE SCHOOL HIS/HER FRIENDS Source: The Co-Operative Group, 2002

Who Is Responsible? Companies supplying food products for children are increasingly held accountable for their effects on childhood obesity

Agenda Childhood Obesity Trends Advertising & Marketing to Children “Irresponsible” vs. “Responsible” Marketing Moving Forward Industry Pioneers Risk/”Benefit” Analysis

What Constitutes “Irresponsible” Marketing? Advertising on television shows for which more than a quarter of the audience is children Product or brand placements in media aimed at kids, including movies, television shows, video games, web sites, and books Licensing agreements or cross- promotions with kid-oriented movies or television programs, or use of cartoon or fictional characters from such programs Use of curricula, fundraising activities, educational incentives, or other school- based sales or marketing of junk food Source: CSPI, 2006

What is “Responsible” Marketing in this Context? Advertisers should know their audience Ad’s must be truthful (follow FTC guidelines) Substantiate claims, because children are not discerning Do not stimulate children’s unreasonable expectations about product quality or performance. Products and content inappropriate for children should not be advertised directly to them. Avoid social stereotyping; present positive role models Include educational aspects and encourage positive personal qualities (honesty, respect, safety, etc.) Contribute to the parent-child relationship in a constructive manner. Source: The Children’s Advertising Review Unit (CARU) Self-Regulatory Program for Children’s Advertising

What Drives Responsible Marketing? Offensive ApproachDefensive Approach to avoid lawsuits to conform to policies and regulations to meet retailer requirements to expand consumer base in anticipation of shifting demand to hedge against anticipated policy changes to reap higher margins from ‘premium’ or ‘healthy’ brands to lead in the production and marketing of healthier products for children

Should Stakeholders Focus on a Defensive or Offensive Strategy? Source: Kellie McElhaney’s lecture slides

Agenda Childhood Obesity Trends Advertising & Marketing to Children “Irresponsible” vs. “Responsible” Marketing Moving Forward Industry Pioneers Risk/”Benefit” Analysis

Responsible Marketing- CSR Spheres of Influence Transform multiple industries Transform an industry Take responsibility for our full impact (social, environmental, economic). Take responsibility for adjacent industries. Take responsibility for global conditions (climate change, global inter-dependence, etc.). Be a beacon to others Develop codes of conduct for the industry. Build strong coalitions to effect and enforce them. Be a good neighbor Innovate and demonstrate restorative business practices Influence the industry indirectly, by example Give something back Support local communities (corporate philan., direct programs, employee matching & volunt’ring Reduce waste, consumption and emissions Run a good business Provide access to tools/ product. Disaster relief. COMPANYCOMMUNITYINDUSTRYWORLD Source: Kellie McElhaney’s lecture slides

What Can Be Done? Use their creativity, resources and full range of marketing practices to promote healthy diets for children Work with government, scientific, public health, and consumer groups to establish and enforce high standards for the marketing of food and beverages to children Our Recommendations: Companies Community State and local educational authorities should educate about and promote healthy diets for children in all aspects of the school environment (e.g., commercial sponsorships, meals & snacks, curriculum)

What Can Be Done (cont.) ? Food/Beverage industry trade associations can assume leadership roles in harnessing industry creativity, resources, and marketing on behalf of healthy diets for children The media and entertainment industry should direct its extensive power to promote healthful food and beverages for children Our Recommendations: Industry Policy(‘World’) Government should marshal the full range of public policy levers to foster the development and promotion of healthy diets in children

Agenda Childhood Obesity Trends Advertising & Marketing to Children “Irresponsible” vs. “Responsible” Marketing Moving Forward Industry Pioneers Risk/”Benefit” Analysis

Industry Pioneers Some companies have recognized the effects their business practices have on children and are taking important steps toward acting in children's best interest In January, Kraft Foods decided to stop advertising its low- nutrition foods during children's programs and replace them with ads for more nutritional snack products Sesame Street recently teamed with Earth's Best to launch a new line of organic and "nutrient-rich" breakfast foods and snacks for children Nickelodeon refused to allow one of its characters, Dora the Explorer, to be used for a Burger King kids' meal unless a piece of fruit was included in the meal

Agenda Childhood Obesity Trends Advertising & Marketing to Children “Irresponsible” vs. “Responsible” Marketing Moving Forward Industry Pioneers Risk/”Benefit” Analysis

Risks: Taking Action Cannibalization of current products Giving competitors an edge Going outside of core competencies to pursue healthier options Difficulty in establishing credibility Costs involved in expanding product offerings and changing current marketing strategy Risks: NOT Taking Action If you do not communicate your issue, someone will communicate for you Diminished reputation – a company’s most important asset Loss of trust and credibility within the marketplace Exposure to lawsuits Potential decline in sales as parents become more conscious of their children’s health Loss of partnerships with other companies, such as licensing agreements Product boycotts Future policy changes may force action  want to be ahead of the curve

Thank You! Questions?