Anatomy of a Corporate Campaign: Rainforest Action Network and Citigroup

(Externalities Example 1: Resources and Pollution)
Authors: Yurday, Erin; Baron, David P.
Source: Stanford Graduate School of Business
Year: 2004
Company Name: Rainforest Action Network (RAN)
Number of pages: 10

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Abstract:

Citigroup, the world's largest project finance bank, provided financing for extractive projects such as mining, logging, and oil exploration. Some of these projects took place in developing countries and in rainforests and other endangered ecosystems. In 2000, the Rainforest Action Network (RAN) launched its Global Finance Campaign with Citigroup as the target. The goal was to convince Citigroup, and eventually all lenders, to stop financing destructive activities in endangered ecosystems. The campaign began in early April 2000 when RAN wrote to Citigroup, urging it to address its role in financing the destruction of the world's remaining old growth forests and the acceleration of climate change. Shortly thereafter, at Citigroup's annual meeting, RAN campaigners questioned the board of directors and CEO Sandy Weill in front of an audience of shareholders. Citigroup agreed to meet with RAN immediately following the annual meeting. For the next two years, Citigroup and RAN held regular meetings, while RAN continued its protest activities. Mike Brune, executive director of RAN, believed that Citigroup was stalling--the meetings were discussions, not negotiations.