The Wall Street Journal reports this morning that when Kraft Foods announced it would stop advertising certain products to children under 12 years of age, “the move surprised the food industry and put Kraft at odds with competitors. It presented the risk of losing market share and millions of dollars in sales. Yet the strategy seems to be scoring points with policy makers,” and is helping the company stave off the possibility of tobacco-like lawsuits against it.
"It's important to align with society and engage our critics," Kraft CEO Roger Deromedi tells the Journal, which writes that “Kraft felt inaction might invite a greater threat. The government could impose restrictions on children's advertising, not to mention the risk of bad publicity or potential lawsuits.”
"It's important to align with society and engage our critics," Kraft CEO Roger Deromedi tells the Journal, which writes that “Kraft felt inaction might invite a greater threat. The government could impose restrictions on children's advertising, not to mention the risk of bad publicity or potential lawsuits.”
- KC's View:
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We’ve always believed that responsible engagement is the best policy – that companies that run and hide or engage in denial simply are making mistakes that will not serve their management, products or investors in the long-term.
Transparency ought to be the watchword for every company, public or private, and every executive at every level.
