Archive for the ‘Corporate Campaigns’ Category

Piercing the Corporate Veil of Secrecy

Tuesday, June 17th, 2008

Congratulations to Wikileaks, Wal-Mart Watch and a handful of other web resources for being chosen by Portfolio magazine as the “top anti-corporate sites.” Specifically, the magazine is featuring sites that have done the most to distribute confidential—and often embarrassing—corporate documents or otherwise publicize material that companies want kept quiet. “From anonymous whistle-blowers who post secret documents online to fan sites that spill trade secrets,” Portfolio writer Kim Zetter says, “websites and their owners can be a major thorn in the side of corporations that find comfort behind a veil of secrecy.”

Wikileaks is focused on piercing that veil. The site was at the center of controversy a few months back when Swiss bank Julius Baer tried to get it taken offline after it posted documents that purportedly showed how the bank’s Cayman Islands branch helps wealthy clients hide assets and launder money. Much of the web community rallied to the defense of Wikileaks, and the censorship move was defeated.

Wal-Mart Watch, of course, is one of two national campaigns aimed at reforming the giant retailer. Aside from producing its own critiques of the retailer (including one to which I contributed), the group has used its site to publicize internal company documents leaked to it. Among these was a memo in which the company discussed controlling health care costs by methods such as making physical activity part of every job, apparently so that those in poorer shape would not apply.

The other sites singled out by Portfolio are:

* Mini-Microsoft, a anonymous blog written by a Microsoft employee who skewers management and highlights waste and inefficiency at the software behemoth.

* Brenda Priddy and Company, a automobile outfit that is not necessarily critical of carmakers but which manages to take clandestine photographs of their prototype vehicles and sell them to other websites and magazines for distribution well before the companies are ready to go public.

* Farmers Insurance Group Sucks, a site produced by a disgruntled customer who now publicizes lawsuits against the company, complaints to state insurance agencies, and unflattering insider testimonials.

* HomeOwners for Better Buildings, a site that exposes the shortcomings of the residential construction business, especially KB Homes. It is filled with homebuyer horror stories and has an “Implode-O-Meter” that tracks companies in the industry experiencing bankruptcy or other forms of distress.

* AppleInsider and MacRumor, which make it their business to report on new Apple products and features being developed by the secretive company.

Zetter has only scratched the surface, and she seems to realize it. She says to her readers: “If you have suggestions for other pesky sites that are a reliable source for inside information about a company or industry, please let us know. We’ll write about the best ones in a follow-up article.” So go ahead and let Zetter know about the wider world of the corporate-critical web.

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Their Information-Gathering and Ours

Monday, April 14th, 2008

The activist world is abuzz over two new articles about corporate spying on environmental and labor groups.

James Ridgeway has published an exposé in Mother Jones on a private security company called Beckett Brown International (later S2i). According to documents obtained by Ridgeway, the firm, organized and managed by former Secret Service officers, spied on Greenpeace and other environmental groups in the late 1990s. Its activities are said to have included “pilfering documents from trash bins, attempting to plant undercover operatives within groups, casing offices, collecting phone records of activists, and penetrating confidential meetings.” Because the papers seen by Ridgeway are not complete, it cannot be said exactly which groups were spied on for whom. The firm’s clients are known to have included corporations such as Allied Waste, Halliburton, Monsanto and Wal-Mart.

The other article was written by Amy Bennett Williams for the Fort Myers (Florida) News-Press. It reports on an attempted infiltration of the Coalition of Immokalee Workers farmworker advocacy group by the owner of a private surveillance company. The Coalition suspects that the company may have been hired by Burger King, which is the current target of a campaign to raise pay for tomato pickers. The article notes that a person using an e-mail address traced to Burger King’s corporate headquarters made disparaging online comments about the Coalition.

Reports such as these are certainly a matter of concern, but it is important to distinguish between unlawful corporate espionage and legitimate information-gathering of the type that campaigners themselves do against companies all the time.

For example, in speaking about his article on Democracy Now this morning, Ridgeway mentioned that among the Beckett Brown documents he obtained was a background report on David Fenton, who runs the largest public-interest p.r. firm in the country. Ridgeway mentioned that the file included license plate numbers and property tax records.

As a corporate researcher (and licensed private investigator) for unions, environmental organizations and other activist groups, I find nothing scandalous about the presence of that kind of information, which is part of the public record (though there are often restrictions on who can access license plate numbers). The same goes for divorce, bankruptcy and other court records; criminal records and driving violations; tax liens; state corporate filings; campaign contributions; and voting records (indicating whether someone voted, not who they voted for). I’m also not scandalized by dumpster diving, assuming that it was done in a jurisdiction where it is not illegal (laws vary).

Let’s not be disingenuous. Campaigners use all legal means at our disposal to find possibly incriminating information about corporations and their executives. We should accept that they are doing the same about us.

The difference, of course, is that corporations and their agents sometimes cross the line. As the Ridgeway and Williams articles suggest, companies may use operatives who engage in burglary, infiltration, pretexting (misrepresenting oneself to obtain financial and telephone records) and other illegal or improper tactics. By all means, let’s condemn those practices, while being careful not to preclude those information-gathering techniques we need for our nobler purposes.

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