Tobacco
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Every company whether successful or not is involved in making strategic decisions that reveals the firms social responsibility and ethical decisions.
Ethical decisions are tough and complex and should not be based on what is “right” or “wrong.” Its complexity is found in the countries setting; internationally they are based on different cultures, morals, perceptions. U.S ground rules must be altered when doing business internationally, they must abide by the host countrys rules to guarantee success. Sometimes to abide other rules, means that some must be broken or changed. However, they are topics that are hard to “just follow” the rules because it involves the health or safety of others.
A very controversial topic is the consumption of tobacco and cigarettes. Even though the consumption of cigarettes is a personal decision made by use by consumers, it is indeed very popular in the U.S. On the other hand, sales have declined by 5% per year and unit sales by 1% per year. That is because campaigns such as U.S. Surgeon campaign have raised awareness against smoking, increase concern on public health, and have suggested higher cigarette taxes. The force of information against the tobacco industry has increased lawsuits against them in which the majority have been losses. There are also pending federal legislation cases against the tobacco companies. Tobacco companies have decided to concentrate in the international marketing of foreign countries in order to increase sales and maintain profits. They are hoping that the decisions they have made will be profitable and beneficial. Tobacco companies also invite journalists to luxurious hotels with all expenses in order to encourage them to play down the health and concern scale. They are also using appealing slogan, single cigarette sales in hard pressed budgets, and using order promotions in order to court consumers. As a result, markets such as the one of Indonesia have quadrupled in sales in the past 10 years. In some cases expanding overseas seems like the only option; for example, a major U.S. tobacco company has invested in a joint venture in China. The $21 million factory will employ 350 people and produce 2.5 billion cigarettes annually. This is great news for China that currently holds the biggest market with $300 million smokers, and consumes 1.4 trillion cigarettes more than any other country. Its next goal is Russia that consists of 50% smokers. The people against the tobacco industry are fighting harder than ever to try to convince foreign media, public and policy makers to make changes. It has been successful in some countries that will not allow tobacco advertising on radio or television. However, tobacco companies are fighting back by using strong promotions and advertising that consists of sending messages of luxury and freedom. The messages works because using sophisticated promotions in unsophisticated societies entice people who cannot afford necessities life to spend money on luxury. The companies are using billboards with pictures of corporate executives, college graduates, Mercedes Benz and skylines in order to portray their message. In Latin America, consumption has increased by 24% in 10 years due to ads on the media. In other countries that involve corrupt governments can relate to the messages that smoking one cigarette will bring them relaxation and a sense of freedom. In Gambia, consumers are given the opportunity to win a car by sending and empty cigarette carton. Lotteries are given to the consumers of Kenya.
Unfortunaly, most countries are focusing in promoting to kids that will hopefully increase the consumption among teens in foreign countries. Most foreign countries remain highly corrupt and there are no laws that will punish kids from buying cigarettes. The companies are using this to their advantage and heavily promoting. In Buenos Aires, a brand new jeep drives to a high school and hands out free cigarettes. In rock concerts free lighted cigarettes and sunglasses are given to teenagers by young beautiful women. In Russia cigarette companies offer to sponsor parties for teenagers and the admission is for them to buy a pack of cigarettes. Other examples of free cigarettes or ads are found on childrens comic books and arcades. Another unethical concern relies in the amount of tar and nicotine found on cigarettes overseas. In 1979, a study shows that U.S. holds the lowest amount with 17 milligrams compared to Kenyas 22.3 milligrams, Malaysias 29.7 milligrams, and South Africas 31.1 milligrams. It is very crucial for consumers to know this because its high levels of addictions.