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for the purposes of applying state laws barring false and misleading commercial messages.â44 The court did not rule on the merits of the case but instead was only concerned with whether the case could go to trial. The decision of the majority went so far as to write that a statement could be viewed as commercial speech even when mixed with statements about noncommercial subjects. In a dissenting opinion Justice Ming Chin wrote, âWhile Nikeâs critics have taken full advantage of their right to âuninhibited, robust, and wide openâ debate, the same cannot be said of Nike.â If this ruling were to stand, it could have a profound effect on companiesâ communication with the public on nonmarket issues. As an indication of the potential importance of the case, Nikeâs side was supported in a brief by the American Civil Liberties Union as well as the Chamber of Commerce, whereas the plaintiffâs side was supported by briefs from the California attorney general, the Sierra Club, and the state AFL-CIO. This case was settled out of court. In July 2011 new allegations of worker abuse (similar to those in the case) arose at Nike owned plants in Indonesia. Nike reported that two-thirds of the 168 factories making Converse sneakers failed to meet Nikeâs standards. Nike, however, said it was powerless to do anything about the conditions because the factories operated under contracts in force before it bought Converse.[1]
[1] San Jose Mercury News, July 14, 2011.
The Anatomy of an Activist Campaign: Rainforest Action Network and Citigroup The purpose of this case is to consider an activist challenge to a firm and the firmâs nonmarket strategies for dealing with the challenge. A companion case, Strategic Activism: The Rainforest Action Network, is available from the Stanford Business School and from the Harvard Business School case services. This case describes the organization and strategy of RAN. The (A) and (B) cases can be used for a group negotiation exercise. One group can assume the role of Citigroup and the other RAN. The assignment would be open-ended of the form: Citigroup calls RAN just before the annual meeting, asks for a truce, and expresses a willingness to negotiate. Or the assignment could be given more structure by giving the group instructions to address specific issues such as those identified in the (A) (B) and (C) cases. The (A) and (B) cases could also be used for an in-class role-playing exercise.
44
New York Times, May 3, 2002. 85
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