Sunday, May 10, 2009

Cigarettes and Corporate Responsibility

I recently read a story in this month's Business Week featuring the CEO of Philip Morris International (PMI) Louis Camilleri. Camilleri is working quickly to increase profits abroad before international restrictions and anti-smoking movements gain footing (read the full story on PMI's potential overseas market/profit).

The World Health Organization shows that 5.4 million people will die from smoking this year. Even Camilleri admits that cigarettes are "a very harmful product" and that "smoking causes disease".

Camilleri says that PMI's objective is not to create new smokers, but to win over those who currently smoke (although I don't think PMI would object to an increase in smokers if it helped their bottom line). Camilleri admittedly defends PMI's position, claiming to have taken the "higher ground" when it comes to advertising abroad. PMI heavily promotes their product abroad at concerts, and sporting events, while using young/attractive people to promote the "cool" factor. Through all of this Camilleri says they are playing well within the rules...and, they are.

The question needs to shift from: "Are the tobacco companies playing within the legal framework?" To: "Are the tobacco companies operating in an ethical manner?"

It may be legal to promote smoking using attractive young people at an Alicia Keys concert, but is it ethical?

Where does corporate responsibility end and individual responsibility begin? While countries are known for the goods they export and contribute to the world market, what kind of damage is done as the United States becomes known as one of the chief exporters of cigarettes? Should the government play a role in legislating (or outlawing) goods that can only cause harm to the people who use them (as well as those who choose not to use)?

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