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Nov 5, 2010 - The API effort to stem a rapidly moving tide of anti-industry public opinion which was tending positively toward nationalization of the ...
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INDUSTRIAL RELATIONS JAMES W . I R W I N * The petroleum industry, stimulated b y n a t i o n a l i z a t i o n threats, h a s coopera t e d closely w i t h A P I to w o r k out a n effective public relations p r o g r a m has been the employee SoandSUCCESSFUL public relationship work of the

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petroleum branch of the chemical process industry that the Oil Industry Information Committee, functioning vehicle for the American Petroleum Institute, was given enthusiastic endorsement for its accomplishments to date and a green light for its future activities, at the 30th annual meeting of API held recently in Los Angeles. The API effort to stem a rapidly moving tide of anti-industry public opinion which was tending positively toward nationalization of the industry, was launched in 1946-47 under the leadership of Franklyn Waltman, of Sun Oil Co., Ralph C. Champlin, of Ethyl Corp., Conger Reynolds, of Standard Oil Co.. (Ind.), J. L. DuPree, of Ivy Lee—T. J. Ross, representing Socony-Vacuum Oil Co., H. L. Curtis, of Shell Oil Co., and others who had become seriously concerned with the threat to the welfare of the industry and its employees, customers, and shareholders, and the effect of nationalization of such an industry upon the over-all economy. In studies made before the nationwide project was launched and continued each year since, the effect of the effort has been analyzed and justification of the program proved.

standing by the public and the Government of the oil industry's problems is of first importance. "When the public is made aware of the ability of the industry, under the competitive system, to supply the consumer with adequate quantities of high-quality products, when and where they are needed, at lowest cost, the industrial liberties and freedoms of the industry will be safe from attacks by those who would nationalize the business and industrial enterprise of the nation." Another powerful plea for increased effort was voiced by Reese H. Taylor, president of Union Oil Co., California, who said that if economic freedom is to be preserved, "we are going to have to see to it that the people of this country are given the facts about American business." Mr. Taylor's company has sponsored for several years a national advertising campaign which has been outstanding in dramatizing the values of enterprise and industrial competition and freedom. The work of the petroleum industry over the past few years is worthy of close study by those in the chemical industry proper who believe greater employee and public relations effort is necessary to ensure proper recognition of the industry. The API has made several tactical mistakes in the development and execution of its activity, knowledge of which can be of help to the chemical industry. All in all, the mistakes have been almost forgotten in the light of the unusual success of the operation, but at least we have in API a pattern of organization, budget, and other factors which can be of assistance.

Crass-roots Cooperation One of the strong points of the API program is the way in which the members of the steering committee have enlisted the cooperation of virtually every large and small company to the end that national activities carried on by the association itself have been augmented by grass-root activities sponsored by individual companies in their own communiNo Guesswork Permitted ties and among their own employees. Despite the outstanding success of the Much of the success of the API proprogram to date, leaders of the industry gram can be traced to the carefulness are taking nothing for granted. with which the steering committee and Frank M. Porter, president of API, told the professional staff have organized members at the Los Angeles meeting that their work. Nothing has been taken for the critical problems the industry faces granted. Although it always is reasonably make it imperative that the job of em- safe to estimate the opinions of the public ployee and public relations be taken more and various segments of the public on an seriously now than in the past. industry or an industry's method of operaHe pleaded for more effective use of tion and its place in the economic scheme, such mediums as employee education, the API work was not permitted to move localized and national advertising, and face-to-face contacts both publicly and on guesswork. Opinion polls were and privately by men in the industry to see are an important part of the program so that the facts of the industry's operations that soft spots can be brought out for conand objectives are carried to the greatest sideration in the development of strategy, and progress demonstrated so that the possible number of people. "Considering the critical problems fac- companies which foot the bills may know ing the petroleum industry," Mr. Porter they are not tossing their contributions said, "it becomes obvious to all that the down the drain. development of a sympathetic underIncidentally, these contributions tote C H E M I C A L

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up to sizable annual budgets. No figures are published, but the annual expenditures have exceeded $2 million for the API program alone, and the added efforts by individual companies undoubtedly add up to several times that sum. There has been no niggardliness in the handling of the problem. T h e better brains of the industry knew the industry was faced with a serious problem that required the topmost talent and effort. To lose the fight involved bil­ lions. The result, therefore, was big thinking backed by big budgets. Since the petroleum industry reaches virtually every citizen as an individual, and the chemical industry is rather sheltered from direct public contact, it is only fair to state that the petroleum industry was and is more vulnerable. But the chemical industry, with large returns on sales dollar and large returns on invested capital, must b e better under­ stood by public, Government, and most important of all, labor, if it is to escape the penalties that come from spotlighted leadership.

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Dramatizing Budget Problems The cost of research and the values to the public of the results of research must be dramatized as they have never been before. Not only must the public be made conscious of the place of the chemist in the over-all plan, but employees must be convinced, by being given irrefutable facts, that research is an insurance policy for their continued profitable employment and security. The problem of quick obsolescence of plant certainly is one phase that has never been adequately told. Even members of supervision of most chemical companies with which this reporter has had close con­ tact are in t h e dark on the cost of replace­ ment today versus original plant construc­ tion yesterday. The method of pricing, and the effects of competition bear attention. The neces­ sity for a fair price to ensure maintenance of efficiently designed and operated equip­ ment is a story in itself. The effect of taxes upon expansion and the way in which expansion provides jobs and contributes to the nation's prosperity could be a program all by itself. The attention given to safety, stream and air protection, and all the other factors of importance to communities in which there are chemical operations is interesting and should be brought into the open. After all, entering, as w e are, a war economy that probably will outlast this generation, the industry will be in compe­ tition for manpower and public favor even if it is out of competition in the sale of products. And should there be a return within a few years to normal competitive operation, the effort in 1951 and subsequent years will not be lost but will have provided a sound foundation upon which the industry can build for an even greater future. ° Industrial and Public Relations Consultant, 19201 South Moreland Blvd., Cleveland 22, Ohio.

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