BUSINESS ETHICS

Business Ethics

Business Ethics

Introduction

The insight of the contradictory consequences of corporations on various facets of life has changed buyers' utilisation patterns in developed countries, and progressively in evolving countries. The latest economic crisis has supplemented to the contradictory impression of the corporate community. Acompany's presentation is judged more and more on the basis of its impact on the natural natural environment and on humanity as a whole. This in turn means that businesses have to boost their efforts to improve their corporate blame and trustworthiness in the eyes of customers and the community in general. Being a strategic topic, a firm's communal principles require the active engagement of the whole business, peak administration in particular. In last couple of decades the concept of business communal responsibility (CSR) appeared as a major topic for corporations to address; and with each new corporate quandary this tendency is picking up momentum.

Magnitude of problem

The high rate of smoking among young people is an issue of concern. It is therefore vital to promote effective campaigns to warn about the serious effects of snuff in the body.

According to a survey conducted by the secretariats Buenos Aires Health and Education, two out of three teenagers smoke, and most of them are women between 13 and 16.

Although almost all children recognize the harm to health that smoking causes, the survey revealed that no detailed and accurate information about the nature and severity of this addiction, a finding that reinforces the need to intensify prevention.

The Case

Effects of marketing cigarettes raise an ethical issue regarding smoking and its effects on children. This becomes the reason for government to file a lawsuit against British American Tobacco. The federal government registered a lawsuit against British American Tobacco and two other tobacco companies in 2007

In 2008 the business was the subject of a BBC2 documentary, in which Duncan Bannatyne enquired the marketing practices of the business in Africa and specifically the way the business goals junior Africans with labelled melodies events, competitions and the sale of lone tobacco sticks. Many of the practices uncovered by Bannatyne appeared to break BAT's own code of conduct and company standards (Baron 2006, pp.1173). Bannatyne interviewed Dr Chris Proctor at the end of the programme in which Proctor accepted that advertisements directing children from three African countries were 'disappointing'. In many of these undeveloped countries, the perception of health dangers from fuming is very low or nonexistent.

Stakeholders

The stakeholders are those which have direct and indirect impact. In this case the stakeholders are:

Regulatory agencies

The industry

The community

Regulatory agencies

Regulatory agencies such as government agencies have direct impact on the company because British American Tobacco (BAT) is running under rules and regulations of government. The marketing which have a negative impact on society is not legal in any way. This becomes the reason for the government to take action against them. Regulatory agencies came into action when the impact on children reaches beyond the control of government (Barone 2007, pp.437).

The community

Stakeholders are those who are directly affected by ...