A dispute about pig welfare has underlined the need to ensure that sustainability claims are spin free.
After Smithfield Foods, a U.S. meat producer, published a video about pig breeding on YouTube this week, the Humane Society made a formal complaint to the U.S. Securities Exchange Commission saying Smithfield had made false claims in the video about the welfare of its animals.
Federal securities law prohibits the making of any false statement of a material fact, or the omission of a material fact that would prevent a statement from being misleading.
The Humane Society has taken issue with Smithfield’s assertion that “every need is met” of the pigs in its care. The Society argues that Smithfield “is making false and misleading claims to shareholders and consumers about its corporate responsibility practices in violation of federal securities law”.
Setting aside the deep emotions that imbue any discussion on animal welfare, this case echoes similar accusations made against Nike in 1998 about human rights, and which led all the way to the U.S. Supreme Court.
The Smithfield case should stand as a fresh warning to all those communicating about corporate sustainability. As companies quite rightly look to maximize the publicity they can get from social and environmental efforts, they should be acutely aware that others may not share their enthusiasm. And the doubters have the tools to embarrass the companies – as the Humane Society is clearly attempting to do with Smithfield.
Corporate messaging can have its downside. Our motto is: keep it simple, straight and spin free. And make sure you can support all claims.
See the Smithfield video here: http://www.youtube.com/user/SmithfieldFoods#p/a/u/2/BK9tUYkRh2Q
Read the Humane Society complaint here: http://www.humanesociety.org/news/press_releases/2011/11/complaint_filed_11022011_1.html
