Download - OFII General Counsel’s Conference: How To Talk About Being A Foreign Company Operating In The U.S
OFII General Counsel’s Conference:
How To Talk About Being A Foreign Company Operating In The U.S.
On behalf of the Organization for International Investment (OFII), Public Opinion Strategies is pleased to present the key findings of two focus groups of Republican and Democratic Hill staffers and a survey of 300 Beltway Opinion Elites.
The focus groups were conducted in Washington, DC on May 5, 2009.
The survey was conducted May 26-28 & 31, 2009 and has a margin of error of +5.66%.
2OFII General Counsel’s Conference – October 16, 2009
3OFII General Counsel’s Conference – October 16, 2009
Congressional Hill staffers told us:
Among Americans, [an] American company is
always viewed slightly better.
I think the word “foreign” is a
dangerous word for marketing.
Republican Hill Staffer
Democratic Hill Staffer
4OFII General Counsel’s Conference – October 16, 2009
5OFII General Counsel’s Conference – October 16, 2009
40% 44%
13%
Total
There is a perception that compared to American companies, the foreign status of U.S. subsidiaries of
foreign companies provides them with an advantage.Based on what you know, compared to American companies, do you believe that U.S.
subsidiaries of foreign companies generally compete and operate on an equal basis with American companies or does their status as a foreign company give them either
advantages or disadvantages compared to American companies?
Advantages DisadvantagesEqual Basis
6OFII General Counsel’s Conference – October 16, 2009
Comparing American companies with U.S. subsidiaries of foreign companies, Beltway Elite give American
companies a significant advantage on “paying their fair share of taxes” and “investing in the local community.”
81%
49%
66%
42%
19%
31% 33% 37%
Americancompanies
U.S.subsidiaries
Americancompanies
U.S.subsidiaries
Well
19%Very
Investing in the local community
Not Well Well Well Well
Paying their fair share in U.S. taxes
25%Very
12%Very
11%Not at all
Not Well Not Well Not Well
12%Not at all
9%Very
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8OFII General Counsel’s Conference – October 16, 2009
Fundamentally, it is STILL all about jobs.
We have several Chinese companies and they’ve gone into mill
towns that were devastated… 50 year
old workers who couldn’t do anything
else and now they have jobs. We don’t care that
the company was Chinese, we courted
them.
In our district jobs are paramount, and we’ve
got a US-owned company and a US
subsidiary of a foreign company making the same product,…and we only care about
jobs…We’re trying to get operations at both
facilities to grow.Republican Hill Staffers
9OFII General Counsel’s Conference – October 16, 2009
Related to jobs, Hill staffers are also compelled by specific examples of
companies that have demonstrated:
Commitment to the United States:
A leading pharmaceutical company has moved its worldwide R&D headquarters from Switzerland to Boston and employs over a thousand American scientists.
Longevity and/or broad presence across the United States:
A top selling manufacturer based in Japan has been operating in the United States for over 50 years and employs people in all 50 states.
Impressive financial contributions to Americans and state governments:
A leading medical technology company based in France pays $36.6 million in state taxes each year while signing $796 million in paychecks in the same state.
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Sounds like the marketing
department came up with something to
say other than “foreign.”Republican Hill Staffer
The term “insourcing” receives some initial skepticism from Hill staffers.
BUT, staffers “get it” and overall it they view the term favorably.
When I think of “insourcing” it’s the
opposite of outsourcing... bringing jobs in... it's what we
want.Democratic Hill Staffer
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13OFII General Counsel’s Conference – October 16, 2009
25%
62%
Total
“Insourcing” companies have a significant image advantage over “outsourcing” companies...
17%Very
Positive Negative
Outsourcing companies
61%
8%
Total
Positive Negative
Insourcing companies
16%Very
Now, thinking some more about different types of companies, please tell me if you have a very positive, somewhat positive, somewhat negative or very negative impression of each of the following.
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72%67% 64% 64%
12% 14% 13% 16%
Total Total Total Total
Beltway Elite have a more favorable opinion of specific foreign companies/products than when they
consider foreign companies in the aggregate.
Bayer Aspirin
Fav Unf
15%Vry
Mack Truck Lean CuisineInternational companies
Global companies
Foreign companies
U.S. sub. of foreign companies
Fav Unf Fav Unf Fav Unf
Specific ProductsConcepts
15%Vry
89%
76%72%
7% 7%
18%
Total Total Total
Fav Unf Fav Unf Fav Unf
40%Vry
24%Vry
21%Vry
Hill staffers acknowledge foreign owned companies are doing defense work.
The default position is that work related to U.S. defense should be done by American companies.
But, it makes them uncomfortable.
BUT, don’t be afraid to point out the similarities between competing companies…
You don’t have to prove you are more “American.” Simply point out that both/all companies are “global” and using an international supply chain.
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17OFII General Counsel’s Conference – October 16, 2009
18OFII General Counsel’s Conference – October 16, 2009
Beltway Elite rate U.S. subsidiaries of foreign companies on par with American companies when it comes to
using technology to protect the environment.
58% 60%
41%
24%
Americancompanies
U.S.subsidiaries
Well Well
Using advanced technology to operate in a way that protects the environment
Not Well Not Well
16%Vry
10%Vry
American companies U.S. subsidiaries
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After jobs, “using advanced technology” in a way that “protects the environment” is most important.
Using a scale from 1-10, where 1 means it's not important AT ALL to you personally, and 10 means it's extremely important to you personally, please rate how important it is to you personally that these
U.S. subsidiaries of foreign companies do each of the following.
Provides well-paid jobs for high skilled workers 73%
66%
60%
59%
58%
51%
36%
27%
% ‘8’ - ‘10’
Using advanced technology to operate in a way that protects the environment
Retrains unemployed or laid-off workers to learn new job skills
Reinvests twenty percent or more of its profits into its U.S. based operations
Relies on local U.S. suppliers for a majority of its parts, supplies, and services
Invests in local communities through charitable contributions and sponsorship of
local eventsHas been operating in the same American
community for ten years
Has one-quarter of its jobs in the United States
% ‘10’
39%
34%
31%
29%
23%
26%
10%
11%
Given the current distrust of corporations in general, knowing a company is operating ethically canbe reassuring.
There is sometimes a sense that foreign companies do better on this measure than American companies.
They [foreign companies] might have to follow stricter laws than
the U.S.Democratic Hill Staffer
20OFII General Counsel’s Conference – October 16, 2009
21OFII General Counsel’s Conference – October 16, 2009
22
Now, there is currently a proposal before Congress that would raise taxes on the U.S. subsidiaries of foreign companies
operating in the insurance industry.
American owned insurance companies are supporting this proposal because they say foreign owned insurance
companies have an unfair tax advantage when they operate in the United States.
…while…
Foreign owned insurance companies are opposing this proposal because they say a tax increase on their U.S.
operations would lead to a decrease in insurance availability and higher prices for American consumers.
Would you favor or oppose this proposal to raise taxes on the U.S. subsidiaries of foreign owned insurers?
OFII General Counsel’s Conference – October 16, 2009
23OFII General Counsel’s Conference – October 16, 2009
46%41%
Total
A plurality of Beltway Elite support the proposal to raise taxes.
Would you favor or oppose this proposal to raise taxes on the U.S. subsidiaries of foreign owned insurers?
Favor Oppose
16%Strongly
15%Strongly
By Party
54% - 36% 43% - 41%44% - 45% IND
I want good rates for me and consumers… however they do it…
Republican Hill Staffers
Increasing taxes is bad… even if it is a foreign company.
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25OFII General Counsel’s Conference – October 16, 2009
56%
Total
But, using some facts to push back, a majority of BeltwayElite agree that subsidiaries of foreign companies
have to abide by the same tax laws as U.S. companies.Which statement do you agree with more...
U.S. subsidiaries of foreign companies don't pay their fair share of taxes here in the U.S. because they send most of their profits overseas or hide them in offshore tax havens. …OR…
U.S. subsidiaries of foreign companies have to abide by the same tax laws that apply to any U.S. company. And, although they employ 5% of all American workers they pay 14% of all corporate
taxes in this country.
Abide by the same tax laws
31%
Don’t pay their fair share
26OFII General Counsel’s Conference – October 16, 2009
75%
Total
Further, few Beltway Elite believe that American taxpolicy should give American companies an advantage
over U.S. subsidiaries of foreign companies.On the topic of taxes, which statement do you agree more with?
We should create tax policy that gives American companies an advantage in competing with U.S. subsidiaries of foreign companies. …OR…
We should create tax policy that makes the United States the most attractive place for any company – domestic or foreign – to locate and create jobs.
Make the U.S. most attractiveplace for any company
21%
Give American companies an advantage
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Pick your battles.
We’re not going to win a competition pitting American companies against U.S. subsidiaries of foreign companies.
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Talk less about “foreign companies” and more about specific companies.
Don’t shy away from acknowledging a company’s foreign status on the Hill – staffers can’t help you if they don’t know what’s going to hurt you.
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We have a resonant positive message – use it.
Both direct and in-direct employment… JOBS!
If your investment helped save jobs, or revitalized a community, let staffers know.
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Shift the debate.
Move the discussion from the success of companies to the success of American workers.
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32OFII General Counsel’s Conference – October 16, 2009
And, what is more important to America's economic competitiveness? The success of American workers ...or... The success of American companies
Total
57%
31%
Total
American Workers
American Companies
National Data - June, 2009
51%
36%
American Workers
American Companies
Beltway Opinion Elite - May, 2009
Beltway Elite and national voters put the focus on the success of American workers.
The phrase “insourcing companies” works well…
Especially when juxtaposed with “outsourcing companies.”
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Understand our vulnerabilities.Paying our fair share in taxes and community re-investment are two soft spots.
34OFII General Counsel’s Conference – October 16, 2009
While our messaging starts with jobs, it can be taken further.Environmental protection, retraining workers, reinvesting profits, and relying on local suppliers.
All resonate.
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