Tobacco Industry – Ethics V’s Profits
Tobacco Industry – Ethics v’s Profits
Tobacco industry is one of the leading industries in the whole world and also a vital part of the world economy, which evidently establishes the question of ethics v’s profits. There are five biggest tobacco industries dominating the world market and they are: China National Tobacco Co., Philip Morris International Inc., Japan Tobacco International, British American Tobacco and Imperial Tobacco Group.
I will be mainly focusing on the Philip Morris International tobacco industry, which is the leading international tobacco company, selling Marlboro (the world’s best-selling cigarette brand). It is an American global tobacco company, operating company of Altria Group and listed in London Stock Exchange and other markets. Their aim is to provide high quality and innovative products to adult smokers and reduce the harm caused by smoking while operating the business sustainably.
PMI (Philip Morris International) sells its products in 180 markets, selling the world’s leading brand – Marlboro, as well as the third leading brand – L&M. Aside from these top-leading brands, other brands that PMI sells are for example Parliament, Philip Morris or Delicados (in Mexico).
In 2013 PMI held 15.7% share of the total international cigarette market outside of the United States or 28.3% excluding China.
PMI considers its employees as one of their greatest strengths and the key to their success, as they employ more than 91, 0000 employees, who speak more than 80 languages.
Another leading tobacco company is British American Tobacco, who sells cigarette brands such as Kent, Dunhill, Lucky Strike or Pall Mall. BAT (British American Tobacco) is a market leader in more than 60 markets, covering six continents. They are headquartered in London, United Kingdom and have primary listing on the London Stock Exchange and FTSE 100 Index. Their strategy is very similar to PMI’s – to deliver growth and ensure investment in the their future.
There are two things that publicly-trade companies, such as PMI and BAT, have to legally use and those are corporate governance and code of conduct. Corporate governance is a system where organizations are directed and controlled. PMI and other publicly-trade companies are owned by the shareholders however ran by the board of directors. Therefore the main task of corporate governance is to ensure that the company is ran in the interests of the shareholders.
“Philip Morris International Inc. (PMI) believes good corporate governance is a cornerstone of strong business performance. We strive to be transparent in our governance practices and policies and responsive to our shareholder, while managing the Company for long-term success.”
(Corporate Governance, PMI, 2002-2014)
“We are committed