Tobacco

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Tobacco industry and product safety Introduction
According to Clete (2005), in United States cigarette is the only product which legally marketed used by the consumers as informed by the companies but it will harm the users and injure their health. There is a lot of information is available regarding the health hazards of cigarette smoking and the use of tobacco products. In all health related seminars and

discussions cigarette smoking is regarded as an main subject which need urgent attention of authorities and public. Governments sometime take a passive approach to these issues because cigarette is an important economic commodity which gives a good share of revenue of the country. People know the health hazard of the smoking cigarettes but they are not ready to leave this habit. According to John (1992) The tragic death of Marlboro man is an example for this. the Marlboro man his name was Wayne McLaren, he started

smoking when he was a teenage boy and the age of 49 he got lung cancer. But he was not ready to quit his habit and continued it along with cancer treatment. Later at age of 51 he died of cancer. At the time of death he revealed that he was the model for the brand Marlboro cigarettes. The markets of multinational tobacco companies are international hence it will

affect all segments of people. The conflict between the trade of tobacco and public interest is started in an impromptu mode. The battle between the legislation and tobacco companies is fierce and cigarette companies resist this by creating new areas in the global market. Due to the increased awareness the use of cigarettes become reduced in developed countries while in developing countries the use of tobacco is increasing because there the people are uneducated or poor to know the harmful effects of cigarette smoking and there are no effective agencies to provide adequate information to this people. According to BAT industries booklet (1996) the major share of the cigarettes produced is marketed in Africa, Latin America, Asia and Eastern Europe. The annual growth in the export of tobacco in America reached into 260%.

The main addictive present in tobacco is nicotine. Andre (2010) opines that 350,000 people died annually in the world due to the diseases caused by the use of tobacco; among these 85% is due to lung cancer which is caused by cigarette smoking. The effect of addictive nicotine is equal to the heroin and cocaine. But it is amazing find that this deadly commodity is still legally selling in the market along with biscuits, soaps, bread etc., in a shop. The consumers

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of this product include all segments of the society.

According to Velasquez (2007), usually

it is supposed that in a free market consumer has the choice to select the products he or she needs and the marketer is indebted to produce the product they need. It is thought that consumers are also protected in a free market but the issue is that they are not completely conscious about the product they purchased because the producer is not providing enough information about the product. According to Andre (2010), the costs of smoking is

shocking, a current government report releases the annual costs of healthcare due to tobacco smoking are twenty three billion dollars and the cost of productivity loss is thirty billion dollars. From the above statements it is obvious that cigarette should be banned in the market and laws should be implemented that selling of tobacco products is illegal.

Objectives of the study
The objective of this study is to analyse the ethical issues related with the production of tobacco and product safety of tobacco products. It also concerned with the study of consumer protection.

The theories of product safety and social responsibility
According to Kant’s Moral Philosophy (2010), in 18th century the German philosopher Immanuel Kant first developed the concept of Duty Based Ethics. This theory sates that loyalty to standards and duty are most important. If a person acts according to the ethics there is no issue in that action. Kant proposed a theory based on duty based ethics is that “Act only according to that maxim whereby you can at the same time will that it should become a universal law.” These words become a proverb to the duty based ethicists. When we consider the duties of multinational corporate, it is necessary that the marketer should keep certain standards in their products. The marketer should show a social

responsibility regarding the manufacturing and quality of their products. The public had seen the effects of the advertisement of Marlboro man. According to John (1992), the market

share of the Marlboro cigarettes was less than one percentage but after the advertisement of Marlboro man it show an exponential growth of five billion dollars and market share becomes 3,241%. According to the AMA Statement of Ethics (2007), has put forward three ethical norms for sellers and it also contains the ethical duties of the marketer. The norms states that the
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marketer should not do any harm to the consumer, the marketer should develop a trust the market, the marketer should keep fundamental ethical values in the market to attain the confidence of customer about the product he or she wants to purchase. AMA opines that the above mentioned norms are recognised standards or conduct that should be followed by the society and corporate. The organisations should not do any harm to the consumers and they should act according to the ethics that may call as an universal law every citizen of a country should follow. But the tobacco companies are failed to do the justice to their customers and they give false information to the customers regarding the product they produced. According to Clete (2005), one third of world’s adult population is using tobacco products and more than a billion of people who use the tobacco products are die due to smoking. The corporate are doing marketing of tobacco products are effectively by knowing that their products are harmful to the customers. They particularly target a special segment of The bombardment

consumers and misleading their customers to use this deadly product.

advertisements are making the customer defenceless and they cannot identify the advantages and disadvantages of the products they want to buy. When analysing the issues of tobacco customers it is clear that the tobacco companies are not following any ethical norms in the marketing system and also their advertisements are not considering the harmful effects of tobacco. As it is understood from Barney (1986), the idea of corporate social responsibility has is based on the writings of Andrew Carnegie and others. Carnegie, founder of U.S. Steel, believed that two principles were necessary for capitalism to work. First is the charity principle. This required the rich of society to assist its poor members. These poor members include the unemployed, the disabled, the sick, and the elderly. These people could be assisted either directly or indirectly. Second is the stewardship principle. This required businesses and rich people to see themselves as the caretakers of their property. Carnegie's view was that the rich hold their money for the rest of society. Holding it in trust for society as a whole, they can use it for any purpose society thinks is correct. However, it is also the function of business to increase this wealth by investments of the resources. From this came the idea that an organisation should compensate for any loss it causes. According to Thornton (2008) the responsibility of a company to social issues depended on compensation. Nowadays the obligations of a corporation do not end with compensating the people affected by its activities. Social responsibility is considered a broader duty in many
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companies. It is integrated with corporate strategy. Kotler & Lee (2004), defines corporate social responsibility as "a commitment to improve community well-being through discretionary business practices and contributions of corporate resources." They identify six strands of initiatives: Cause promotions: A corporation provides funds or other corporate resources to increase awareness about a social cause or to support fundraising like AIDS, health and hygiene, etc. Cause-related marketing: The organisation promotes a cause. This effort is directly related to its own marketing activities. It commits to making a contribution or donating a percentage of revenues to a specific cause, most commonly for a specific time period like donations of endangered species programmes, children’s education, etc. Corporate social marketing: According to John and Martin (1984) the corporation supports a behaviour change campaign intended to improve public health, safety, the environment, or community well-being. Again, a cause is at the core but here the intent is to actually change public behaviour. Examples of these are campaign to use bottled water for drinking, use of anti-bacterial hand washes, etc.

Corporate philanthropy
The corporate makes a direct contribution to a charity or cause. Companies pick an area to focus on, tied to business goals, which raises public awareness of its efforts like protection of Amazon rainforests. Community volunteering: The business organisation supports and encourages employees or business partners to volunteer their time to support community organizations, such as beach cleaning activities. Socially responsible business practices: The organisation adopts business practices that support social causes to improve community well-being and protect the environment like literacy programmes. According to Hosmer (1991), the decisions made by businesses have an effect internally and also on the community. Corporate social responsibility is also known as corporate citizenship. It has no fixed definition, but is understood to refer to the business approach where
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operational decisions are made after considering the economic, social and environmental impacts. The basic ideas of social corporate responsibility can be summarized as follows environmental sustainability and social impact of business operations. Business operational decisions should be made with environmental sustainability outcomes in mind. According to Ferrell and Pride (1991) environmental sustainability refers to ensuring that there is as little impact as possible on natural environments and eco-systems. Examples of these are using recycled material and using energy-efficient production methods. Business does not operate independent of its environment. It is understood that every business is a part of a community.

Social cost
According to Anderson (1982) consumers have the choice of products from different companies and they can change preferences quickly. It is of utmost importance that the corporation takes maximum care and follows procedures carefully when dealing with consumers. Special care is to be taken of the employees and all the people who are associated with the company. These are very important parts of the system as they are responsible to release their end product. The quality of an end product depends on many aspects including the commitment of. It is imperative that all dealings with the government are done according to established procedures and at appropriate times. The company has to pay its taxes and other dues to the government regularly as these contribute to government finances. The governmental policies like employment of local manpower and paying them the established remunerations is a part of the responsibility of the organisation. The society consists of the consumers of the company’s products, non-consumers and the sum of all this. The firm should assure return to the society because they receive much from them. Milton Friedman's (1970) argument has given rise to many theories about the economic role of the corporation. Milton Friedman's is known for his famous argument is that corporations should follow their economic self interest. Any attempt to have corporate social

responsibility amounts to moral wrong. Friedman questioned the logic of corporate social responsibility as it had developed. He has reported that in a democratic society, government was the only legitimate vehicle for addressing social concerns. He also argued that government was the best for meeting such concerns.
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It is understood from Heinz (1976) that from these more complex models of corporate social responsibility came. While there are real differences among these models, they share an important common basic idea. They seem to accept Friedman’s idea that business can address social issues in addition to economic ones. However, it is understood that CSR has its benefits. The adoption of an effective ethical corporate culture can lead to competitive advantage in its product markets. Kotler (2003), have reported that in order for an organisation to benefit from advantages based on culture there are three aspects to be considered.

1. The culture must be valuable enough for the organisation to do things and behave in ways that lead to high sales and increased profits. A promotional strategy which emphasizes the firm's concerns for safety and quality can differentiate the firm from those which do not take similar actions in a highly visible manner. 2. The culture must be rare. It must have characteristics that are not common among competitors to the organisation.

3. The culture must be difficult to copy. The competitors cannot easily use this culture and integrate it to their strategy.

The socially responsible firm may capitalize on competitors' difficulties in structuring their own cultures to attract customers away from the competition. James and Hensel (1991), have suggested that organizational innovation is often slow to get to everyone and may tell a more lasting advantage than other organizational characteristics. The socially responsible culture could be understood as one such form of innovation. The challenge that is facing the organisation in respect to requirements is to use the increased good relations with customers and by developing on goodwill that is got through a reputation based upon fair dealing and quality products.

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Conclusion and recommendations
According to Online Glossary published by Pearson Prentice Hall (2007), the manufacturing and marketing of tobacco products is not like the other consumer products because of it addictive nature and harmful effects to health. Cigarette consists of the addictive nicotine so that its consumers can not give up the use of cigarettes. The above statement shows that the tobacco companies are forcing the vulnerable customers to using tobacco products. The goal of marketing is totally ignored by the tobacco companies and they are only concentrated on making profits from the misery and pain of its stakeholders. In the case of tobacco products the consumer has no choice; they have to use the cigarettes because they are addicted to it. Here the consumer is not purchasing the product according to its motivation or need. The

consumer is perplexed due to the complexity of the product and a continuous flow of advertisements make the consumer confused and only a vague knowledge about the brands. Advertisements of tobacco products are aiming the children; these ads are attracting the children to cigarette smoking. The tobacco companies making huge profits by cheating their customers and in return they give the customers severe pain and death. In the marketing campaigns the tobacco companies give ambiguous information about the product and the youth to use it. They attract the youth by give false information like smoking is the entry for adulthood. So the governments should implement restrictions in using the tobacco products for the public and also for the companies they should ban the advertisements through all media. The government should find out other ways and means to increase their revenue and discourage the marketing and promotion of cigarettes and other tobacco products.

Word Count: 2535

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Reference
 Kotler, Philip and Lee, Nancy.,2004 Corporate Social Responsibility, Kindle Edition Kindle Book . USA .  Ferrell, O. C., and W. Pride.,1991. Marketing: Concepts and Strategies, 7th Edition. Houghton Mifflin Company. Boston:  Armstrong, G. and Philip Kotler.,2003. Marketing: An Introduction 6th ed. Prentice Hall. New Jersey

Journals and Websites  Snell, Clete., 2005. Peddling Poison: The Tobacco Industry and Kids. Connecticut: Praeger Publishers. Westport.  Marchese, John. “A Rough Ride.” The New York Times. 13 September 1992. 1 April 2007<http://query.nytimes.com/gst/fullpage.html?sec=health&res=9E0CE7DF1 03 1F930A2575AC0A96 4958260>.  “Kant‟s Moral Philosophy.” Stanford Encyclopedia of Philosophy. 2004. 20 March 2007. Available at [on line] URL: http://plato.stanford.edu/entries/kant-moral/. [date accessed on 2/1/2014]  Ethical Norms and Values for Marketers.” AMA Statement of Ethics. 2007. 26 February 2007. Available at [ On line] URL:

http://www.marketingpower.com/content435.php.[accessed on 2/1/2014].  Anderson, P.,1982. "Marketing, Strategic Planning, and the Theory of the Firm," Journal of Marketing, V. 46 (Spring), 15-26.  Thornton, Grant. 2008. Corporate Social Responsibility: a necessity not a choice, International Business Report (July-August), 56-65.

 Barney, J.,1986. "Organizational Culture: Can it Be a Source of Sustained Competitive Advantage?" Academy of Management Review, V. 11, 656-665.

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 Heinz, D.,1976. "Financial Correlates of a Corporate Social Responsibilities Measure," Akron Business and Economic Review, V. 7, 48-51.  Hosmer, L., 1991. Managerial Responsibilities on the Micro Level. Business Horizons, (July-August), 49-55  James, K. and P. Hensel.,1991. "Negative Advertising: The Malicious Strain of Comparative Advertising," Journal of Advertising, V. 20 (June), 53-65.  John, G. and J. Martin.,1984. "Effects of Organizational Structure of Marketing Planning on Credibility and Utilization of Plan Output. Journal of Marketing Research, V. 21 (May), 170-183.

Article  Friedman, M., 1970. Business is to Increase its Profits. New York Times Magazine, (September 13), p. 33.

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