1. Phillip Morris Implications of Unethical Behavior
2. Historical Summary Philip Morris International Inc. (PMI) is
the leading international tobacco company, with seven of the worlds
top 15 international brands, including Marlboro, the worlds
best-selling cigarette brand. Our goals are to provide high quality
and innovative products to adult smokers, generate superior returns
for shareholders, and reduce the harm caused by smoking while
operating our business sustainably and with integrity. Until March
28, 2008, PMI was a wholly owned subsidiary of Altria Group, Inc.
Altria, since that time the company has been independent and is
listed on the New York Stock Exchange (ticker symbol PM). Philip
Morris Inc. is one of biggest tobacco companies, with 45% of the
U.S. market and 12% of the world market. Tobacco accounts for about
72% (1989 figure) of the company's profits. It's Marlboro brand
alone (the world's best selling brand) was estimated to have killed
75,000 Americans in one year.
3. Unethical Behavior/Event Examined Tobacco companies have
lured American smokers over the years through their deceptive
marketing practices, manipulated advertising campaigns ignoring the
health hazards due to smoking, and even indulged in political
lobbying. Tobacco companies have grown into enormous multinational
conglomerates. Tobacco causes to society, and also the growing
concern among the public, The US government imposed certain
restrictions on the advertising of tobacco- related products in
order to prevent children and teenagers from falling a prey to the
perils of smoking. The government's intervention forced the tobacco
companies to try out new techniques and strategies to sell their
products. The imposition of restrictions on tobacco advertising did
little to help the government prevent these companies from selling
their products to young people.
4. Reflection on Ethical Standards PM USA is guided by Altria
Groups Mission, as well as Altria's Code of Conduct, and is
committed to marketing our products To responsibly market products
by building relationships between our brands and adult smokers
while taking steps designed to limit reach to unintended audiences.
We want adult smokers of our brands to purchase our brands
consistently; and compete for adult smokers of competitor brands to
switch to our brands to grow our market share. We have practices in
place to focus our marketing activities toward adult smokers while
limiting reach to unintended audiences. Altria and its companies
(Philip Morris) , reflects on commitment to protect those who seek
advice, raise concerns or report misconduct. PM USA does not
tolerate retaliation by management or co-workers against anyone who
in good faith reports an actual or potential non-compliance
concern.
5. Influence of Leadership There is nothing unethical about the
corporation manufacturing those goods, selling those goods, or
marketing those goods to people who can legally purchase them. It
IS unethical to market tobacco in a manner that exposes them to
legal liability (and risks losing lawsuits) or in a manner that is
against the law (risking government sanctions). Since it is legal
to lobby the government, as long as it is a favorable return on
investment there is nothing unethical about the industry hiring
individuals to push for laws that lower their restrictions or
increase their profits. This is what people learn these days in
business school find every loophole and exploit it because not only
is it not wrong, but it's your obligation to the company and
investors. On a larger scale, it's your obligation to the nation
and society since the more money companies make, the better the
economy is doing, right? These are the Regan era trickle-down
economic policies - the free market will sort everything else out
because if it doesn't hurt your bottom line, it isn't bad
6. Social Responsibility Philip Morris USA and U.S. Smokeless
Tobacco Company shared perspectives and information with the Food
and Drug Administration on important tobacco product issues through
written submissions, meetings and presentations. Altria Group
adopted and communicated its Standards for Underage Tobacco
Prevention to its tobacco operating companies to guide their
efforts to help re-duce underage tobacco use. Altrias tobacco
companies provided grants to help kids avoid risky behaviors like
tobacco use in 2010. These grants are expected to reach
approximately 1.3 million kids and 829,000 adult influencers,
primarily in the Southeast. Altrias tobacco companies provided
funding to support Search Institutes launch of ParentFurther.com, a
new resource for parents and other caring adults. First-year visits
exceeded Search Institute's goal by 82 percent. Duke University
completed its PM USA-funded evaluation of the QuitAssist
website
7. Cultural Environmental Legal Implications Scholarships for
Education Charitable Contributions Leadership Programs Rural and
Migrant Immigration Grants Hunger and Poverty Fight on Domestic
Violence Cleaning Garbage and and Illegal Construction Disaster
Relief
8. Impact on Stakeholders Identify and manage emerging issues
Inform our business processes Including our annual strategic
planning and risk management processes Continue our efforts to
align with society Prioritize topics and issues for both business
action and reporting Build a better understanding of Altria Group
and its companies.
9. Impact on Stakeholders Increase our understanding of the
views of others Enhance our ability to help resolve those issues
Experience that external engagement Inform business decisions.
Shareholders to tobacco growers, trade partners and public health
organizations.
10. Outcome of Event with a Comparison of the Consequences
Early tobacco industry divestment efforts, Rise of the socially
responsible investment movement, Litigation against major tobacco
companies, Emphasis on tobacco industry Tobacco control strategy
created a climate within which tobacco divestment Divestment
advocates framed the issue as one of responsible social policy,
Focusing on the ethical disconnect involved in profiting from such
a healthdestroying product. Framing refusal to divest as a matter
of responsible fiscal policy, Advocates replied with arguments
about the increasing lability of tobacco industry finances Face
ongoing litigation and proposed government regulation, Adopting the
industry preferred framing while stressing a different solution.
State attorneys general began suing the industry to recover
smokingrelated Medicaid costs advocates enlarged their frame to
highlight the contradictions arising from state justice departments
suing the industry, and state health departments expanding tobacco
control
11. Fairness of Punishment Media Fairness Fairness for the
Power Fines for Plaintiffs Improve Corporate Responsibility
Investor relationships enhanced
12. Recommendations for Action PM's income development has
slightly outpaced the commerce mean of 1.4%. Since the identical
quarter one year former, incomes slightly expanded by 0.1%.
development in the company's revenue appears to have assisted boost
the earnings per share Phillip Morris USA, they have ways to ensure
that their goods come to the adult cigarette users in a most
effective, responsible and a profitable way. This occurs through
one-on-one communication with the users lawfully permitted to use
cigarettes.
13. References Tang, M. (2001). The Marlboro Man's Secret
versus the Public Health: Trade Secrets and Unconstitutional
Takings in Phillip Morris v. Reilly. Hastings Constitutional Law
Quarterly, 28829. Hodge, J., Collmer, V., Orenstein, D., Millea,
C., & Van Buren, L. (2013). Reconsidering the Legality of
Cigarette Smoking Advertisements on Television Public Health and
the Law. Journal Of Law, Medicine & Ethics, 41(1), 369-373.
Stoll, M. (2002). The Ethics of Marketing Good Corporate Conduct.
Journal Of Business Ethics, 41(1/2), 121. Tort Law - Proof of Harm
in Tobacco Cases - Supreme Judicial Court of Massachusetts
Recognizes Cause of Action for Medical Monitoring of Tobacco Users.
- Donovan v. Philip Morris USA, Inc., 914 N.E.2d 891 (Mass. 2009).
(2010). Harvard Law Review, 1231771. Stucke, M. (2013). LOOKING AT
THE MONOPSONY IN THE MIRROR. Emory Law Journal, 62(6), 1509-1562.
Berman, M. L. (2008). 'SAFER' TOBACCO PRODUCTS: REDUCING HARM OR
GIVING FALSE HOPE? TOBACCO LITIGATION WITHOUT THE SMOKE? CIGARETTE
COMPANIES IN THE SMOKELESS TOBACCO INDUSTRY. Journal Of Health Care
Law & Policy, 117.