Yikes, a U.S.-based manufacturer of shoes, had plants in several countries in Southeast Asia and enjoyed considerable success in world markets as a result of a number of factors, including its excellent products, low prices, effi cient production, low labor costs, and widespread consumer product acceptance. In the midst of its success, a grassroots group took exception to the corporation’s policies, particularly the fi rm’s labor policies, which the grassroots group referred to as “sweatshop” conditions. The grassroots group set up a Web site on which numerous disparaging criticisms and a call for a worldwide boycott of Yikes’s products were disseminated. In the opinion of Yikes management, the criticisms were without merit; yet the unfavorable publicity that would surely result from a defamation suit against the grassroots organization did not seem to offer much encouragement either. The mass media joined the fray and Yikes became increasingly defensive. The company mounted a public relations campaign to defend its practices. What would be a recommended course of action for Yikes?