Tobacco Industry - Case Study Example

1.0 QUESTION ONE Tobacco is one of the farming manufactured goods that are acknowledged as being addictive drug, developed from the new leaves of thevegetation (Killebrew 1999, pg 242). This has resulted in the formation of the British American Tobacco company as the industry for the produce to the people for their consumption in different forms. They have some of their stakeholders of which they have enabled the succession of the company in the past years. These stakeholder includes; the Russian government, the Rumania government, the European government, the African nations governments and the Americans government. 1.1 Stakeholders Basing on this, the stakeholders have their own harms and the benefits that they do face today in the market. Focusing on the Russian and Rumania governments, they have continued to benefit in the market in that, their sales have continuingly increased in that in the year 2008, may, their sale growth rose upward by around 23% to around 30% of which showed a positive trend in the market of the tobacco in the BAT. Regarded the Americans market, the market have continuingly facing the harmful nature of the product. With this, the stakeholder noted the increase in the nicotine level in the product so as to increase the addictive quality of the product, this has led to the benefits of the market in that the increase in the addictive nature of the consumers have led to the increase of the sales in the market. With the Europeans as one of the stakeholders, they have experienced lose in regard to their contribution to the tobacco market. In this country, the consumer mostly involves the teenage girls of whom they have been addicted to the level that they can not perform correctly in the society. Basing on the African countries as the last stakeholders of the company, they have ended up involving themselves in the business of transporting the goods across the boundaries without paying the taxes. This has resulted in the high level of the consumption of the product among the uneducated people in the countries. 1.2 Banning of the Tobacco Industry. As much the industry has been one of the sectors that bring in high percentage of tax in the world as a whole, I do support the banning of the tobacco industry. This is because; the product has led to high negative effects to the consumer and even to the non users of the product. Whenever one associates anything with tobacco in the today world, they have tended to relate it to the lung cancer (Hoek 2000, pg 220). This is one of the diseases that have led to the decrease in the world population and thus leading to the low productivity of the nations in the world. other than the disease affecting the consumer only, it has that extent to the non smokers too as they receive the product impassively from the environment, and with this, I do support for the banning of the industry to reduce the death of the people in the world thus increase in the production rate. Due to the increase of the untaxed product being passed across the boundaries, the industry has in the long run resulted in being unproductive as no income tax is gained from it. With this, it has led to majority of the people involving themselves in the unlawful business of transporting the untaxed goods (Hoek 2000, pg 221). Thus, the industry will be best being banned to allow for the fairness in the country. This it will also utilize the utilitarianism theory of which states that, one has to do what will take full advantage of comprehensive happiness and gratify the significance of the people around him or her. With this, the society will be up to the idea of trying to ensure that the members of the society gets the clear and good air that they do need. 1.3 Duties & Responsibilities of the Tobacco Companies The tobacco companies were to be responsible to the application of the rules and the regulation on the usage of the product and the ways in which the consumer has to ensure that they do not affect the rest of the population in the environment. With this, the company has used the maxim theory that states that each achievement done usually has an equal but reverse action in the company. Thus, the company has ensured that all of their responsibilities are focused in ensuring that the health of their consumer is maintained to the fullest to discourage the infection of the lung cancers in the society. The other duty for the company was to influence the growth of the society in a positive way. As much as the tobacco companies have the awareness of their duties and the responsibilities that they are required to undertake in the society, they have tend to neglect some of them. With this neglect-ion, we find in the today market the increase of the nicotine in the product with the view of the increase in the addictive nature in their product, with this, it has led to the high infection of the lung diseases to the users of the product. With their duty to encourage the growth of the society, the company in the European market has failed to accomplish their goals as they have ended up concentrating their product to the teenage girls of who in the long run have ended up having a negative influence in the society. 1.4 Right Clashes Involved In this point of view, the smokers have come up with their organisations to fight for their right for smoking in the society. An example of this organisation is like that of the Smokers' Liberation Front found in United Kingdom. In this organisation, they tend to concentrate more on the benefits that the smoker gets while smoking and forget the disadvantages of smoking for the consumer and the society as a whole. While doing this, they have tried to apply the virtue theory of which is among the ethic theory that does suggest that, an individual have to perform to whatever its group of individual views it as being admirable in the society. Thus, it has encourage more and more teenage people to practice smocking as their group view it as one of the quality. In the today's life, the human right that of the fresh air in the environment has more significant in the society as compared to the pleasure that one gets while smoking. 1.5 Approaches To Ethical Analysis Other than using the approach that they are using, the organisation may incorporate other approaches to their mode of ethical analysis. The organisation has to incorporate the ethical decision making frameworks to come up with their way of solving issues. With this mode of approach, the organisation will be bale to tackle all the aspects that do affect them in one way or another. Other than that, they will have to focus on the case study, stakeholder, cost benefit and the conflict of interest analysis as away of approach to tackle some of the issues affecting the industry. 2.0 QUESTION TWO Tobacco industry manufacturers have come up with their own an association of which facilitates their trade around the United Kingdom. One of the manufacturers is the British American tobacco United Kingdom limited amongst Gallaher limited and the imperial tobacco limited. In this particular case, we are going to major in the study of the British American Tobacco, in which we are entitled to evaluate their way of approach to the corporate governance. Corporate governance is the collection of the strategies, laws and the procedures in a given organisation that is used to direct and to control the management of the organisation. This also includes the good relations that exist between the main stakeholders in a given organisation and the objective that the organisation is aiming to achieve (Nelson 2006, pg 110). It usually involves the responsibilities of the different components in the organisation. The organisation is focused in its positive contribution to the society. With this strategy, they have come up with various approaches of which enables them to grow, for their better productivity, their positive responsibility and the winning of the organisation in the whole world. These have turned out to be their approaches to reach to various people in the society and thus their approach to the corporate governance. 2.1 Growth or Stockholder Approach With this approach to the corporate governance, the organisation has come up with many variations of their brands in which they have established in the entire nations in the world. Herewith, the strategy has resulted in the rise in the market affecting the economy of the world in appositive direction (Crane 2007, 219). Some of the brands are like that of the Stuyvesant and the Dunhill of which are mainly found in the southern region of Africa. This being one of the best selling commodities in the nation, it has ended up being the major profit for the company as a whole. Despite the fact that the company is doing well in South Africa, it has made sure that it does to every continent and nation and making it to be the best selling and recognized company among the tobacco manufacturing companies. This has given it more strengths of even doing more and more activities worldwide. 2.2 Productivity In the consideration of the organisation to lower its complexity and the indirect cost that increase across its production measures, the organisation has come up with a plan of which assists them to attain their product by the means of getting their raw material locally from the farmers. With this, it led them to locate their branches in various locations throughout the world so as to be accessible to the raw materials (Crane 2007, pg 222). This has also assisted in their mode of distribution of their various products to their respective consumer wherever they are located internationally. 2.3 Responsibility or Agency Theory In this particular approach to the corporate governance, the organisation normally act as being the mediator of the corporation and thus, the manager is entitled to ensure that all the duties dedicated to the organisation are accomplished as required by his members in the organisation. In the B.A.T. the organisation has come up with various forms of the investments in which they are focused to assist people in different levels in the society (Crane 2007, pg 225). They have come up with four strategies of which enables them to accomplish all these activities. These include the education on the deadly disease of HIV/AIDs, to empower the economy levels of the people, to sustain the agricultural levels of the farmers and civic life of the people around them. To deal with the issue of the HIV, the company has come up with the company signature trust which commenced in the year 2003, this particular association help to increase the level of knowledge of HIV as well as talk about its impact on ones life. This has been well facilitated by the use of the songs as well as performance of which are performed by the members of the company. On empowering the economic status of people, the company educates the individuals on the technical skills such as the agriculture, technology and hairdressing of which helps them in attaining their daily meal. They also offer scholarship fund which helps the needy university students to proceed with their education. Basing on the civil life of the people, the organisation, has initiated some activities that encourages the artistic and the cultural nature of ones life. Sustainable agriculture is also one of their strategies to reinforce the living standards of the members as well as their consumer. With this strategy, they concentrate on the social, financial and the ecological maintainability of farming process of the people. This involves some of the activities that enable the people to be accessible to common commodities such as water and place to practice the farming activity. They have also come up with some training of which educate people on the plantation of the non-tobacco plants that will aid them in attaining their crop crops. 2.4 Creating a Captivating Organisation The organisation has worked hard to ensure that it gives the best to the workers so as to motivate them to work even better for the uplifting of the organisation. British American tobacco organisation has come up with a good strategy to ensure that the needs of the workers in the organisation are met to the fullest; this gives the workers the positive feeling and the strength to even work hard to attain their goals in the organisation (Crane 2007, pg 230). To attain this, the organisation looks at the cultural aspects of all of the workers and tries to fulfil them to the capability of the organisation. They have also established different levels of leadership in the organisation; this allows the employees to grow in the field of ruling others. CONCLUSION In the finale, we can say that as much the British American tobacco organisation , has all that it takes to ensure for its good relationship with the rest of the populace in the world as much as to increase its productivity and the profit in the economy. REFERENCES Crane A & Matten D (2007): Business Ethics: Management Corporate Citizenship & Sustainability. 2nd Ed. Oxford University Press Amazon.com pp 218-250 Hoek J & Sparks R (2000): Tobacco Promotion Restriction; International Marketing Review. Vol. 17 MCB UP Ltd pp 216- 230 Nelson B.L (2006): Law & Ethics in Global Business: How to Integrate business into Corporal Government around the Work. McGraw Hill Amazon.com pp 109-115 Killebrew J. B & Myrick H (1999): Tobacco: Its Culture, Marketing and Manufacture. Orange Judd Company. pp 240-245 Read More