Positive Effects
-The tobacco industry is an industry with a net profit of $690 billion per year. With this immense, multinational marketplace, BAT offers people from all continents with many needed jobs, from working in a manufacturing plant to management. -Many undeveloped countries' economies can benefit from a tobacco industry because it offers governments billions in tax revenue, which could boost poorer economies. -The company helps provide work for tobacco farmers around the world. |
Negative Effects
-The products they sell are known to have many serious health risks -The business supports cheap labour in underdeveloped markets -Heavily targets undeveloped or developing countries with low education on the health risks, decreasing life expectancy -Can be destructive to ecosystems and local communities. It will put small tobacco companies out of business and factory pollution and exploitation of land can lead to negative conflicts. |
Ethical Issues
Smuggling
An important consumer issue involved with BAT competing internationally is how
their increased sales in the past have been linked to smuggling their cigarettes
into black markets across the globe. This was in an effort to sell to younger generations without restrictions on age, or taxation by controlling governments. Because of the
lack of ability to advertise, this was aimed to help move more of their product
to increase its popularity in developing BAT markets such as Indonesia, Vietnam, Philippines, and Siberia/Russia. This issue poses problems with legal obligations and consumer ethics/obligations.
Health and Safety Hazards
Tobacco is a health hazard, yet it still manages to be one of the largest industries in the world. Its products contains thousands of lethal chemicals that, when used as directed by the company, can cause serious health issues such as respiratory cancer and oral cancer. This knowledge isn't known by everyone and can very seriously affect an under educated population. Even educated populations continue to buy these products because of its addictive qualities which brings the question of whether the production and selling of tobacco products is an ethical business since it kills millions around the world annually.
Ethical Solutions
An effort to combat the ethical issues involved with tobacco companies and the way they operate is to make sure to keep their business selling to adults and keep away from younger illegal markets with smuggling. The company also looks toward supporting tobacco farmers with money and irrigation to improve the quality of the product and the quality of place in which It was made. The health and safety hazards that tobacco causes is not kept secret by the company but is being increasingly promoted around the world. Regulations are being made to help inform developing countries more on its negative effects.
Smuggling
An important consumer issue involved with BAT competing internationally is how
their increased sales in the past have been linked to smuggling their cigarettes
into black markets across the globe. This was in an effort to sell to younger generations without restrictions on age, or taxation by controlling governments. Because of the
lack of ability to advertise, this was aimed to help move more of their product
to increase its popularity in developing BAT markets such as Indonesia, Vietnam, Philippines, and Siberia/Russia. This issue poses problems with legal obligations and consumer ethics/obligations.
Health and Safety Hazards
Tobacco is a health hazard, yet it still manages to be one of the largest industries in the world. Its products contains thousands of lethal chemicals that, when used as directed by the company, can cause serious health issues such as respiratory cancer and oral cancer. This knowledge isn't known by everyone and can very seriously affect an under educated population. Even educated populations continue to buy these products because of its addictive qualities which brings the question of whether the production and selling of tobacco products is an ethical business since it kills millions around the world annually.
Ethical Solutions
An effort to combat the ethical issues involved with tobacco companies and the way they operate is to make sure to keep their business selling to adults and keep away from younger illegal markets with smuggling. The company also looks toward supporting tobacco farmers with money and irrigation to improve the quality of the product and the quality of place in which It was made. The health and safety hazards that tobacco causes is not kept secret by the company but is being increasingly promoted around the world. Regulations are being made to help inform developing countries more on its negative effects.