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Saturday, September 06, 2008
Tom Borelli :: Townhall.com Columnist
Corporate Irresponsibility: Dow Chemical Promotes Climate Hype Instead of Drill, Drill, Drill
by Tom Borelli
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Just as good political advertising can sway an election, effective ads on issues such as energy can move public opinion and Congress. At a time when the soaring price of energy has public sentiment strongly in support of off-shore oil drilling, corporations have a unique opportunity to drive home the importance of developing domestic natural resources. With corporate profits being stung by the high cost of energy, aggressive advertising promoting fossil fuels is in the corporations’ self-interest.

Yet companies are squandering this opportunity. Why? Because liberal CEOs have adopted the leftist-inspired definition of corporate social responsibility (CSR), which is characterized by commitments to combat global warming. As a result, companies promote efforts to cut greenhouse gases rather than advertise the economic and social benefits of domestic energy exploration.

But by reinforcing the war against fossil fuels, CEOs are harming their shareholders, their employees and the economy.

The Dow Chemical Company provides an excellent example of a self-defeating CSR policy.

Because its profitability depends on cheap supplies of fossil fuels, Dow should be a leader in advertising the benefits of fossil fuel exploration. High fossil fuel prices harm Dow by raising the cost of the natural gas and petroleum it uses while reducing demand for its products in the automobile and housing industry.

Indeed, the impact of high energy prices on Dow is palpable. MarketWatch reported Dow’s 2nd quarter profits fell because “…the surge in raw-materials and energy prices added $ 2.4 billion to its overall costs compared with the first three months of 2008 and the company reported a 27% decline in profit.”

However, advocating greater and more economical supplies of fossil fuels would conflict with the CSR strategy designed by Dow’s liberal CEO, Andrew Liveris. As a result, not only is Dow wasting its money on touchy-feely CSR ads, but it is also a member of the United States Climate Action Partnership (USCAP) – the coalition of industry and environmental activist groups seeking federal cap-and-trade regulation to address global warming.

Dow’s corporate advertising campaign is strikingly pathetic. Launched in 2006, “The Human Element” campaign is intended to “reintroduce the company and announce... its vision of addressing some of the most pressing economic, social and environmental concerns facing the global community in the coming decade.”

Dow’s print ad on energy typifies its CSR theme:

“This is the chemistry of life. And when we see it for all of its complexity, and all its humanity, we discover the element of harmony. The Human Element. When added to the equation, even industry’s need for energy has solutions that are at peace with planet.”

The ad campaign was designed to demonstrate Liveris’ commitment to Dow’s CSR goals, including a promise that Dow will “advocate for an international framework that establishes clear pathways to slow, stop, and reverse emissions by all major carbon dioxide-emitting countries.”

Dow’s participation in USCAP is another puzzling element of its CSR strategy, given Dow’s dependence on fossil fuels. Cap-and-trade legislation would increase the cost of fossil fuels and reduce economic growth – two factors that hurt Dow’s earnings.

Nature abhors a vacuum and Al Gore – Mother Nature himself – is filling the pro-drilling advertising void with TV ads promoting the mystical goal of generating 100 percent of our electricity from carbon-free energy sources within 10 years. The Alliance for Climate Protection, a nonprofit started by Gore, announced it will allocate $300 million in advertising to promote government action to reduce greenhouse gas emissions.

The public is being bombarded with anti-fossil fuel messages from activists like Gore and CEOs like Liveris.

Most likely, Liveris was hoping that cap-and-trade legislation would result in a manageable escalation in energy prices that would allow him to use carbon credits earned from U.S. plant closings to pay for the cost of shipping jobs overseas, where energy is cheap. The unforeseen spike in energy prices caught him unprepared.

Astonishingly, given Dow’s lobbying for cap-and-trade energy restrictions, in a recent interview Liveris blamed the U.S. for what he considers a failed energy policy that “decided to restrict supply of our natural resources of this country.” He further said Dow would move jobs to “countries like the Middle East, countries like China, countries like Russia… these are countries that are worked out that their natural resources need to be value added in their country to create meaningful high-paying jobs.”

Liveris, born in Australia and not a U.S. citizen, has no loyalty to America.

To Liveris, corporate responsibility means using government force to subsidize the moving of American jobs to countries that oppose liberty.

If Dow was really responsible, its “Human Element” campaign would be replaced by “Energy Reality” ads promoting energy policies that would benefit the company, its stockholders and the U.S. economy.

If Congress prevents development of domestic natural resources, liberal CEOs like Liveris will share much of the blame.

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About The Author

Thomas J. Borelli, PhD. is the editor of FreeEnterpriser.com and Director of the Free Enterprise Project at the National Center for Public Policy Research.

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Just goes to show
tha the kumbaya of agenda trumps even profit-making. I never thought it possible!

Milton Friedman
made it very clear, in testimony to Congress years ago, that for individuals to pursue with their own resources various goals usually described as responsible, and humanitarian are a very laudable acts. For a corporation to do so is, in the first place, an act of theft from the stockholders, and in the second place a reduction in the material goods available in the marketplace that impoverishes us all. Dow is not the only corporation to go down this road. I don't know if they are sincere, and therefore naive, are if they are merely cynical and therefore hypocrites.

time to wake up
In the past year hundreds of scientists and climatologists have stated that they find NO connection between CO2 and climate change. Dozens of others are warning us about a coming cold period lasting many years. If runaway temperatures are not expected, you would expecty Dow to cath up with the latest information.
Since complete implementation of the KYOTO cap and trade would only reduce projected temperatures less than one degree, it proves to be a very unatractive and very expensive idea.

Foolish and Costly CSR
Milton Friedman was right, it does amount to theft from shareholders.
Political correctness and the NEA monopoly on education are America's most obvious Achilles Heel.
We must break the cycle of Political Correctnes and bring freedom to our educational system before we can hope to compete with the upcoming powerhouses, the BRIC countries (Brazil, Russia, India, China).
Brazil's hardly earned objectives of energy independence and economic prosperity are finally being achieved after 35 years of struggles in this direction.
The BRIC countries are cutting taxes and regulations on business while we are foolishly debating yet higher taxes and regulations on ours, the second highest in the civilized world.
A guaranteed recipe for economic disaster and we have the example of California, bankrupt financially, economically, morally and spiritually with a credit rating equal that of Socialist Bolivia!

Do NOT be fooled
Make no mistake, Dow Chemical’s push on this is NOT part of an “effort” to BE green. It is an effort to APPEAR green while making a quick buck from government policy.

Dow Chemical operated one of those “clean coal technology” conversion plants that was the product of the Carter years at it’s Baton Rouge facility. It made tons of money off of that plant, not from energy, but from government grants and tax breaks. The day the tax breaks expired the plant was shutdown and the next day it was bulldozed to the ground. Currently you would be hard pressed to know it was ever there.

So do not be fooled by these companies and their slogans. Remember, Duke Power was one of these companies trying to get in on the ground floor so they could influence legislation. When it became apparent that the deck was stacked against them they got out of the movement.

No Dow Chem fully expects to make money out of this deal. Whether they do or not will be up to the American people this November. Get the Commies out of Congress and Dow will NOT make money.

I don't get it!
He further said Dow would move jobs to “countries like the Middle East, countries like China, countries like Russia… these are countries that are worked out that their natural resources need to be value added in their country to create meaningful high-paying jobs.”

The countries mentioned have worked out their energy policies by ignoring even the common sense pollution reduction rules. So Leveris promotes a net increase in pollution to the world? I would think that he would encourage a substantial increase in energy production in the USA whereby fuel can be used for increased production of chemicals and less net pollution.

Conservatives fail to realize how the
activist Leftie have been getting themselves MBAs for decades, with the goal of taking control of corporations and making them "green," and as everyone knows, green is the new red.

Don't forget that Business majors are just as subject to the same brainwashing as all the other skulls-full-o'-mush that inhabit our nation's universities.

What were conservatives thinking when they passively sat on their hands while the activist Left took over all of the institutions of enfluence and power, especial the educational institutions?

climate change is not political
Global warming has been conclusively shown to be caused by human greenhouse gas emissions. How is trying to prevent this leftist?

More lies trying to sneak in
AGW has conclusively been shown to be a fraud and a scam.

Climate change is God's plan
We have a sun that causes warming and allows periodic cooling cycles. The earth has followed this pattern for millions of years. We can not change the temperature of any ocean by one degree for one day if we wish, and there are thousands of scientists who are agreeing that the data were cooked as part of a huge global money-making scam.

AGW is a cult, not something that can be proven.

Sunspot Activity is at a new low
and this has been the coolest August that I can remember her in SC in my 31 years here. All in all it was a very mild summer as well. I predict that we will have an early winter and very cold with a late spring. The springs have alreay been getting later and later.

I would say that the people who predicted global cooling for the next ten years based on sun activity are right.

Similarities between Liveris and 0blahma
Both are "high achievement" in the area of skyving:
(*) 0blahma supports sending $845 billion as foreign aid (to be gobbled by corrupt governments), but was conspicuous by absence when a few media revealed about his Kenyan half-brother George
(*) Dow (which Liveris heads) owns the erstwhile Union Carbide, including the notorious Bhopal plant--and has not even been approachable about cleanup of the mess that UC had left after closing the plant

Vic is right about about making
a killing off of money from the government in the forms of grants and incentives. Also, regulation can as often be a friend as an ennemy. Companies can learn to play the regulatory game, which can often be more effective than having to work for a living in a number of areas, especially in restricting competition. I spent seven years at a federal regulatory agency in Canada, saw it all first hand.

DOW
is a true globalist. It seems to me they have a very small footprint left here in America. They have outsourced most of their employment to other countries and Michigan is the worst off for it. They are so far out of touch with America they figure it won't hurt them financially if America has no energy independence. "Let them Eat Cake" gets leadership in trouble.

Here is Mr. Liveris' address:
Andrew N. Liveris, CEO
DOW Chemical
2030 Dow Center
Midland, MI 48674
(courtesy of hoovers.com)

Write this idiot CEO (if you become a member of hoovers.com you can get his email) and let him know you are onto his game. Philosophocon has it exactly right. These companies could care less about being green...they just want a cut of the action while pretending to care about the planet and look good in their ads (while hiding their hypocrisy...similar to T.Boone Pickens.)
If enough consumers, even better stockholders, would tell them off we could seriously put a dent in this kind of CSR baloney.

Gore and the dims
have used Hollywood and their leftist media to grab America's economic illiterate that grew up on conservation and taken it to an all new level of power and money grabbing lies. While there is plenty of room for improved processes for efficiency and environmental protection it is still an economic reality that drilling for our own oil is the only solution for future energy changes. The world runs on oil and can run cheaper because of this idiocy. We use 26%
and the world dirties the world with the other 74%. What doesn't compute with Gore and the dims? Money and power doesn't come from being logical. Because no one will elect idiots once they figure them out. Oblaba is of the same ilk. These propaganist supporters like Dow should be on the front burner of drill, drill, drill literature. Along with Clinton's veto of Anwar ten years ago and Oblaba's tire gauge.

Ticket to Totalitarianism
The logic of anthrogenic CO2 induced climate change leads directly to totalitarian government control of all energy generation & use. Is it then just a coincidence that someone seems bound & determined to push the ACO2ICC notion as dogma regardless of the lack of evidence for it? OToH there's abundant evidence higher taxes (above a very low rate) decrease revenue, the present "social security" model is vulnerable to declining birthrates, & Keynesian economics is a poor model to use as a basis for policy. However, all of the foregoing propositions empower & enrich government at our expense, so they're still with us.

Michael's reponse is typical: a dogmatic assertion ACO2ICC is "conclusively shown", without any citation to back it up. The thing about 'scientific consensus' is that it has to be backed up by, like, actual science, or it's bogus. Keep repeating the slogan, louder & louder, & it becomes the perceived 'truth.'

Corporate exec compensation & motivations have long been disconnected from the corporation's actual long term viability as a productive business anyway. Create a bump this quarter, get a bonus. Hit a trough, bail out.

In any event, from the Sherman Antitrust Act cases against railroads to the Microsoft antitrust suit, government has basically put itself in the position to be able to destroy any business corporation it wants to for any reason regardless of lack of wrongdoing. Thus bus. corps have become major suckups & toadies to the government zeitgeist & the artificially created public concern du jour.

Interesting Take....
As a former Dow Chemical employee of 18 years, I find their new found take on Corporate Responsibility interesting. Dow has missed many opportunities to be more profitable and this current stance is a real surprise. Petroleum based products make up the bulk of their building blocks for their products. This makes this stance even more puzzling.

More about PR than $$...
Dow is trying to recruit the next generation of chemical engineers and scientists. In order to prevent automatic dismissal of a career in chemistry by thousands of otherwise smart people, they need to seem caring about the environment. I have worked for Dow for nearly 10 years, and the corporate leaders all walk in lockstep once the talking points are put out. We now have a group that will keep saying the right things to make it ok to work for a company and an industry that has a poor public perception. Even though modern life depends on chemicals, most people in the western world look at this industry with loathing only exceeded by that for nuclear, defense and big oil. If that is what it takes to keep in the game, so be it. Truth is always the first casualty in war.
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