Mission Statement Review Provide consistent and timely external and internal communication in order to create and maintain an environment promoting the manufacture, marketing and sale of RJR brands and to preserve the company's role and participation in U .S. commerce . Identify and develop relationships and create a positive environment among key policy and business constituencies strengthening RJR's ability to maximize the company's business objectives . Aggressively advocate the company's positions on federal, state and local legislative, regulatory and policy initiatives in order to maximize RJR's market position as well as its ability to manufacture, market and sell its products to adult consumers in an increasingly competitive environment . Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/pmjk0091 Corporate Affairs 1999 Strategic and Tactical Plan Leeislative Interventio n A. Build strong relationships with elected officials, at all levels and parties, with emphasis on emerging markets. B . Organize grass-roots support to oppose federal, state and local tax and retail regulations that negatively impact RJR's ability to do business . C . Present Company's youth non-smoking position, as well as restrictive retail access programs and legislative issues to political contacts . Sales & Marketin ¢ A . Serve as the Company's resource for information pertaining to emerging market issues and relevant brand marketing and sales opportunities . B . Engage RJR Sales Management, as appropriate, in legislative and regulatory issues that impact RJR's business . C . Identify opportunities through seminars, meeting and contacts to assist Sales in sourcing additional retail outlets and recruiting personnel . Constituency Buildin e A. Support and evaluate key national, state and local organizations and leaders who can assist with industry-related issues . B . Cultivate non-traditional alliances, (i .e. builders/realtors, nightclubs, educational associations), to secure and strengthen RJR's position in the marketplace . C. Recommend minority suppliers to RJR Purchasing Department . Community Relation s A. Maximize media affiliations through corporate ads and public service announcements. B . Utilize board affiliations to positively strengthen RJR's presence in the community . C. Expose constituents to community opportunities that provide enrichment and education . Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/pmjk0091 FEDERAL GOVERNMENT AFFAIRS "As everyone knows, our children are targets of a massive media campaign to hook them on cigarettes . Now I ask this Congress to resist the tobacco lobby, to reaffirm the FDA's authority to protect our children from tobacco and to hold tobacco companies accountable, while protecting tobacco farmers . Smoking has cost taxpayers hundreds of billions of dollars under Medicare and other programs . You know, the states are right about this . Taxpayers shouldn't pay for the cost of lung cancer, emphysema, and other smoking-related illnesses, the tobacco companies should . So tonight I announce that the Justice Department is preparing a litigation plan to take the tobacco companies to court and with the funds we recover to strengthen Medicare." (Bill Clinton, State of the Union Address 1/19/99) OBJECTIVE The objective of Federal Government Affairs is to defeat, or hold to a minimum the impact of any regulatory or legislative action that has an impact on RJRT's market position as well as our ability to continue manufacturing and marketing cigarettes to adult consumers . STRATEGY • Through RJR lobbyists, communicate the impact of all proposed legislation to RJRT's continued viability to our allies on the Hill . • Mobilize key third party groups (such as Americans for Tax Reform, CART, NSA and others) to ensure that RJRT's message is effectively communicated, reinforced and understood by key opinion leaders. • Better utilization and coordination of contributions to trade groups and others to ensure that potential legislation, or regulatory actions, do not tilt the playing field in favor of our competition . • Strengthen existing and create new relationships with key opinion leaders . Lack of a presence ensures that our concerns will not be overlooked . A lack of a visible presence leads key opinion leaders to forget you exist . "Gone and forgotten" to use an old phrase. Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/pmjk0091 STATE GOVERNMENT RELATIONS OBJECTIVE The objective of State Government Relations is to defeat, or lessen the impact of all legislation that has a direct, negative effect on RJRT's financial bottom line . (Ability to manufacture, market and sell product to adult consumers) STRATEGY • Retain lobbyists in as many states as possible to represent RJRT's interests . (Our fist line of defense : without them we will not be a serious factor in the legislative process) . Make appropriate political contributions and support key trade groups and allies . (There is an old saying in politics " Money talks and bullshit walks " . .it is especially true when dealing with tobacco issues . . . after all, the antis are now thinking billions) • Execute grassroots mobilization of trade groups, smokers and other allies to impact key issues .( Making noise in a member's district, state or federal, is growing in importance . . . supplements direct lobbying) • Coordinate and activate company resources on legislative issues .( Assure that all those in the company who say they bring legislative support be held accountable) • Monitor the legislative activity of other cigarette companies to protect RJRT's interests .( If we don't have some or all of the above resources, we basically turn the game over to PM who will not be trying to do us any favors in our ability to manufacture, market and sell our products to adult consumers) Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/pmjk0091 WHAT IS THE MISSION OF RJR'S EXTERNAL RELATIONS FUNCTION IN 1999? Ours is a defensive function . We seek to prevent passage of/mitigate legislative and regulatory fiats that make it harder and more expensive for RJR to manufacture and market cigarettes . We seek forums, in the media or with third parties who help us fight onerous legislation/regulation, to balance hyperbolic accusations of well-financed critics whose credibility with key audiences is greater than ours . We serve as an information resource to RJR employees, customers, suppliers, legislators, regulators, potential jurors, third-party allies, financial analysts . There is no other source for this information that will represent RJR's interests . Our competitors will not do it, and the Tobacco Institute no longer exists to provide company-neutral information . We seek to remind the roughly 70 percent of Americans who are neither pro- nor antismoking activists that adults' rights to choose to smoke are important and should not be legislated away . Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/pmjk0091 COMMUNICATIONS OBJECTIVES 1) Contribute to media coverage of RJR and its brands to bring some balance and reason to news stories . • Great majority of the public is not "anti" smoking - it's not a day-to-day issue for them. • Consistently erroneous, skewed, one-sided news coverage will shift neutral public opinion to negative public opinion . Drives smokers away from our brands, taints potential jury pools, depresses analyst assessments of company, and gives legislators no reason not to vote for punitive bills . • No defense or balancing of criticism leads reader/listener to assume accusations are correct . "No Comment= Guilty as Charged ." 2) Inform third parties of our mutual and allied interests so that we can broaden the base of opposition to legislationlregulation/policies that make it harder and more expensive for RJR to sell cigarettes . • Demonstrate to third parties why challenges facing the tobacco industry will have a negative impact on their industry or constituency . • Legislators facing opposition from a number of industry sectors and constituencies are less likely to pass punitive legislation. 3) Provide employees with accurate, timely communications so that they can do their jobs effectively . • Keep employees informed of and focused on corporate goals . Without this, they cannot be expected to intuit what management is asking of them, and our ability to harness employee resources is diminished . Source: http://industrydocuments.library.ucsf.edu/tobacco/docs/pmjk0091