Malboro

Thursday, March 3, 2011

Group Experimental exercise 3: No. 5 Unethical Company in the World - Marlboro

Marlboro’s unethical behaviour in developing countries

Causes:

1.      Tight control on tobacco in advanced countries

US, Europe and Japan have taken measures to limit the number of smokers since some medical research showed the relationship between smoking and some diseases like lung cancer. In US, Tobacco industry has been accused of exaggerated marketing promotion (USA Today, 2009)[i] and hiding danger of smoking (Washington Post, 2004)[ii]. The federal government made an attempt, though not successful, of having the tobacco industry pay US$260 billion for “ill gotten gain” (Daily Finance, 2010)[iii]. In Japan, only adults are able to apply for smart card called “taspo” for the purpose of

identification in buying cigarettes. It made tobacco companies try hard to explore new business opportunities in developing countries where the related regulations are still not clear and tight and the growth in population, especially for young generation, is rapid.

Ethical dilemma: Profit maximization v.s. Health of smokers in developing countries

2.      Government inactivity in developing countries

A report made by the president of Asia Pacific Association for Control of Tobacco (1994) suggested that the administration usually perceive that production of tobacco leaves and tobacco products creates agricultural and manufacturing jobs and generates substantial tax revenue.[iv] Inevitably, tobacco industry is well integrated into local economy that creates value for local citizens and government. It makes the authority fewer incentives to solve the smoking associated issues.

3.      Weak non-government organizations (NGOs)

NGOs are the third party to deal with smoking issues. However, NGOs get little resources to fight for tobacco giants. International Union Against Tuberculosis and Lung Disease (The Union) is an instance of that kind of NGOs. Since late 2006,...