Tag Archive: OHSU


“There you go again.” – Ronald Reagan debating Jimmy Carter in 1980

Wonder why more than a few consider “corporate social responsibility” to be an oxymoron?

Can corporations, especially publicly traded companies, serve both masters: fiduciary responsibility (do well) and CSR (do good)? It can be done, but the effort has to be sincere and meaningful.

Sorry 5-hour ENERGY®. There you go again.

5-hourvets

First, Living Essentials (parent of 5-hour ENERGY) mounted a mucho grande marketing campaign with special pink raspberry bottles in order to make an un poquito contribution to Living Beyond Breast Cancer (LBBC). The Integrated Marketing Communications (IMC) campaign even came with a plethora of television ads and a specially decaled NASCAR racer being driven by Clint Bowyer

Now, it is time for yet another mucho grande marketing campaign with special red-white-blue bottles in order make another un poquito contribution, this one to the Special Operations Warrior Foundation (SOWF). Do you think that 5-hour ENERGY just commissioned another specially marked Bowyer stock car for the occasion?

Does a bear relieve itself in the woods?

In addition, the company even sponsored a 400-mile NASCAR race in Kansas just in case you missed any of 5-hour ENERGY’s ads.

Even in-your-face syndicated radio sports jock Jim Rome got into the act, pimping for these $2.99 (today’s retail price) red-white-blue bottles of 5-hour SPEED.

And how much will be raised for the wounded vets? (Drum roll) Not less than $75,000.

Wasn’t the $75,000 minimum the same figure for when 5-hour ENERGY contributed a nickel from the sale of each $2.99 pink bottle (less than 2 percent of retail) to the breast cancer foundation?

Why is Almost DailyBrett underwhelmed?

Real Corporate Social Responsibility

“It is amazing what you can accomplish if you do not care who gets the credit,” – Harry Truman

SBUXCI
Contrast the shameless 5-hour ENERGY CSR-in-disguise campaign with the synergistic relationship between Starbucks (NASDAQ: SBUX) and Conservation International (CI) on behalf of the environment and the farmers in the Chiapas region of Mexico. This is the same case that was examined in-depth by Harvard Business Review. 

The relationship between the for-profit Starbucks and the NGO Conservation International took time to develop. Starbucks wanted to help, but it insisted on not compromising the quality of its mild Arabica coffee beans for its discerning customer base. In the end the two disparate entities teamed in setting standards for Starbucks’ coffee supply chain in the Chiapas including the planting of shade trees and no coffee pulp being thrown into the rivers.

Just imagine, Starbucks and its NGO partner, Conservation International, accomplished impressive deeds together without the need for specially marked cups or a spiffy race car.

This same is true for Ronald McDonald House Charities, including the 338 Ronald McDonald houses around the world, a direct offshoot of the fortune made by McDonald’s founder Ray Kroc. Ditto of the Home Depot Foundation and its $1.5 million partnership with Habitat for Humanity to build homes for veterans.

Let’s not forget Nike founder Phil Knight’s $100 million contribution for the Knight Cancer Institute at Oregon Health & Science University (OHSU), and another $125 million for the OHSU Cardiovascular Institute. There were also some celebrated “Uncle Phil” contributions to the University of Oregon and Stanford University.

And of course we need to salute the efforts of another billionaire, Bill Gates and his spouse Melinda, establishing the Bill and Melinda Gates foundation. The foundation’s $38.3 billion endowment targets promoting health care and reducing extreme poverty around the world.

“Pink Washing” Close Call

kfc

Before 5-hour ENERGY got into the Think Pink act, YUM Brands’ KFC Division launched a controversial “Buckets for the Cure” campaign benefitting the Susan G. Komen Foundation.to combat breast cancer. A portion of the sale of each specially marked bucket of grilled chicken was devoted to the work of the Komen foundation.

Some have called this effort true CSR. Others have labeled it, Pink Washing. Whichever way one comes down on the “tastes great” vs. “less filling” divide, there is no question that KFC raised a reported $4.2 million to combat and find a cure for breast cancer.

There are many, who simply do not like KFC (formerly Kentucky Fried Chicken) and will not see anything positive undertaken by the company. Having said that, there is a legitimate debate whether “Buckets for the Cure” was a crafty marketing campaign, a well-intentioned CSR thrust or a combination of the two. Let the Fiduciary Responsibility vs. Corporate Social Responsibility debate commence!

5-hourspecial

When it comes to 5-hour ENERGY and its guarantee of $75,000 to the wounded vets, compared to its massive marketing campaign, NASCAR race and race car, one has to make the call:

5-hour ENERGY once again stands guilty of disguising its massive for-profit marketing campaign as an attempt to help (fill-in-the-blank).

There you go again.

http://www.5hourenergy.com/5hrNews-2014-04-14.asp

https://almostdailybrett.wordpress.com/2013/10/10/5-hour-pink-washing/

https://almostdailybrett.wordpress.com/2011/12/05/lattes-cappuccinos-mochas-and-csr/

http://www.hbs.edu/faculty/Pages/profile.aspx?facId=6413&facInfo=pub

http://www.brainyquote.com/quotes/quotes/h/harrystru109615.html

http://www.rmhc.org/what-we-do

http://www.homedepotfoundation.org/page/our-partners/habitat-for-humanity-international

https://almostdailybrett.wordpress.com/2012/10/11/buckets-for-the-cure/

https://almostdailybrett.wordpress.com/2012/09/25/taxing-uncle-phil-to-death/

http://en.wikipedia.org/wiki/Bill_%26_Melinda_Gates_Foundation

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/

http://www.nascar.com/en_us/race-center/sprint-cup-series/5-hour-energy-400.html

 

 

 

 

 

 

 

 

 

Upon announcement of his induction into the University of Oregon Athletics Hall of Fame Saturday night, the sellout crowd at Autzen Stadium gave Nike founder and über-UO donor Phil Knight a standing ovation.

The 99 percent were cheering, rather than jeering, a member of the despised 1 percent.

Class warfare and jealously were shelved for at least for a nanosecond or two.

And what ever happened to “Occupy Eugene,” let alone “Occupy Wall Street?”

The reason for the outpouring of appreciation was obvious: Never in recorded history have so many UO students, athletes and alums owed so much to one solitary man. He has given more than $300 million (and counting) to the school’s Athletic Department, including $100 million to the UO Athletics Legacy Fund.

unclephil

Academically, he contributed the lion’s share to the $27 million renovation to the UO Knight Library. The name of his late father and 1932 UO Law grad, William W. Knight, adorns the 68,000-square foot University of Oregon law school.

Knight’s generosity is not limited to the University of Oregon as he gave $105 million to the Stanford Graduate School of Business, where he received his MBA. He has also directed $100 million to Oregon Health Sciences University (OHSU) for the Knight Cancer Institute, and most recently $125 million more to establish the OHSU Cardiovascular Institute.

In a society where we make so much of those who are “giving back,” why are we so insistent on “taxing the rich” (e.g., Phil Knight) to further grow the size, scope and gravitational pull of the federal government?

Is it fair to impose punitive taxation on successful entrepreneurs in which nothing is given, who have a great idea, and have the temerity to “Just Do It?” If one subscribes to the notion that the best anti-poverty program on the planet is a job, then $24 billion Nike is responsible for “stimulating” 44,000 direct jobs and oodles of indirect jobs. Investors have poured $43 billion into Nike’s market value, and the company has nearly $4 billion of cash on hand for future job-creating investments.

Back to our basic public policy question: Is it a swell idea to punitively raise the tax rate of successful entrepreneurs to make the government grander while retarding their investment and philanthropy endeavors? And will these additional revenues be used for deficit reduction or for more spending and borrowing (e.g. Solyndra II)?

If we agree to hike the highest federal income rate from 36 percent-to-39 percent, coupled with increasing the capital gains rate from 15 percent-to-30 percent, will these increases be sufficient to pacify the insatiable class warriors?

Consider that the top federal income tax rate was 70 percent under the “malaise” reign of James Earl Carter from 1977 to 1981. That rate sounds high and unreasonable (at least to some) until you consider the effective 98 percent rate under UK Prime Minister Harold Wilson in the 1970s. This level of confiscatory taxation even prompted the Beatles to write “Taxman,” and for the Rolling Stones to flee to France and record “Exile on Main Street.” See Almost DailyBrett https://almostdailybrett.wordpress.com/2011/10/04/taxing-the-fab-four-exiling-the-stones/

Some will scoff at 98 percent taxation, but it happened in the industrialized country that shares a special class-warfare kinship with the United States. What is mind-boggling is the notion of one can earn $1 million and then only taking home about $70,000? Think of it this way, one could toil from January 1 to December 15 to pay the government, before starting to work for herself or himself.

Call me silly or naïve, but I humbly contend that we should be incentivizing entrepreneurs, such as Uncle Phil, to invest and donate and along the way create jobs. The static-scoring Keynesiologists will want me to stuff my dynamic-scoring “Laffer Curve” cocktail napkin where the sun doesn’t shine. They will demand that I and other like-minded individuals to simply accept the “inevitability” of “community” tax increases that foster more “investing” (e.g., code for spending and borrowing).

Wonder how many of those who were standing and applauding “Uncle Phil” for his contributions to his favorite university are deep down inside hoping our government gives it to him, and gives it to him good? I’m afraid that more than half of the stadium supports this exact policy.

As they say, “No good deed goes unpunished.”

http://www.registerguard.com/web/sports/28782173-41/oregon-hall-knight-fame-american.html.csp

http://www.celebritynetworth.com/richest-businessmen/ceos/phil-knight-net-worth/

http://www.forbes.com/profile/phil-knight/

http://en.wikipedia.org/wiki/Phil_Knight

http://en.wikipedia.org/wiki/Knight_Library

http://www.kgw.com/news/Phil–Penny-Knight-donate-125M-to-OHSU-170087396.html

http://bleacherreport.com/articles/608673-nikes-big-gift-phil-knight-and-the-university-of-oregon

http://en.wikipedia.org/wiki/John_Maynard_Keynes

http://en.wikipedia.org/wiki/Arthur_Laffer

%d bloggers like this: