Establishing a culture of sound business ethics within an organization is challe

Question

Establishing a culture of sound business ethics within an organization is challenging, to say the least. Companies that market products that are not considered to be “healthy” for consumers have additional challenges. Using the CSU online library, research a company that markets “unhealthy” products. Examples might include tobacco or alcohol companies, but these examples are not all-inclusive. Respond to the following questions.

1. Briefly describe the company and its product and the ethical dilemma associated with the production and distribution of its products.

2. Describe how the perception of the product differs within cultures both within the United States and globally.

3. How has this company handled the ethical implications of its product with a focus on social responsibility, integrity and business ethics?

4. Explain how leadership within the organization can instill a culture of ethics within the marketing department as they strive to advertise a product that is not healthy for the customer.

Explanation / Answer

1. Taking the example of Philip Morris International, the largest cigarette making company in the world. Founded in 1847 in London, the company has grown to have a presence in 180 countries with 80,000 employees. The Marlboro brand of the company is the world’s #1 cigarette brand. The business of Philip Morris International has expanded across the supply chain to include tobacco farming, agriculture distribution, processing, packaging and marketing. Consumption of tobacco has been medically proven to be harmful for the lungs and is the leading reason for deaths due to cancer. The company faces the ethical dilemma of making and selling products that is addictive, causes painful death, but at the same time, the business has supported employment to thousands, mainly in rural areas and creation of wealth for its shareholders.

2. Philip Morris International are perceived in the United States by general public as a large corporate that profits from selling an addictive product that is harmful. Media reflects this larger public opinion, government and leaders have mixed views depending on the political climate, youth are influenced by peer oressur and glamour to consume these products. In the Fortune magazine rankings of ‘most reputed companies’, Philip Morris has slipped from 2 to 202 in the 1990s. In Asian countries where the company has factories, it is seen as a source of employment, large tax payer and big multinational investor.

3. To handle the ethical implications, Philip Morris is engaged in several social responsibility activities including providing better livelihood for farmers, ending child labour, using energy efficient systems to minimise impact of climate change and fighting against illicit trade. The company’s integrity is proved by its commitment to replace cigarettes with smoke free products that are reduce the health hazards. Philip Morris International has dedicated R&D facilities in Switzerland to develop e-vapour products that deliver nicotine and flavours without tobacco or burning.

4. The CEO gives the vision and guidance of the company’s marketing strategies. A culture of ethics can be instilled through clear policies and communication. At Philip Morris International, the marketing department follows four core principles:

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