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

Reynolds American, Inc. is an American holding company. It is a subsidiary of British American Tobacco. It is the parent company for R. J. Reynolds Tobacco Company, American Snuff Company, Santa Fe Natural Tobacco Company, and Niconovum. The revenue stands at $ 8.3 billion in 2013

It is formed by the merger of the U.S. business of British American Tobacco and R. J. Reynolds Tobacco Company in 2004. Its products include

the Tobacco company is into manufacturing of cigarettes and tobacco products and export of tobacco products. The American Snuff is into moist snuff. The Santa Fe segment is into super-premium cigarettes (Natural American spirit)

it is a well known about the harmful effects of tobacco as it is one of the leading causes of cancer-lungs, throat etc, Coronary heart disease, vascular diseases etc. Tobacco is considered as one of the foremost preventable killer. Companies face both ethical and legal; issues in marketing them, especially to teens.

The ethical dilemma is about satisfying both objectives stated below

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

In Uthe nited States ,it is more of a health issue. Also cultural and social factors are associated with it. Smoking is considered cool by teens and is considered a sign of adulthood. It is associated with illicit pleasures like alcohol and sex. Smoking is considers a passage of rite to enter adulthood.

In eastern countries like India apart from health issues, cultural issues play a key role. Smoking is considered as a not so respectful activity

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

RAI has been recognized as a leader in corporate sustainability in Dow Jones Sustainability North America Index

On its website, The company also advised smokers to quit or resort to less harmful alternatives. In their vision statementthe ,they have clearly indicated about reducing the harmful effects of smoking and enhance decline in youth tobacco use. The company also includes in its business nicotine chewing gum which helps in smoking cessation

They use product ingredients so that desired Flavour is obtained using minimum amount of additives.

CSR

They support youth tobacco prevention programs especially through Boy Scouts of America that reaches more than 1 million Scouts every year. They also support the Coalition for Responsible Tobacco Retailing. The coalition offers a We Card program that trains retailers to comply with minimum age laws for tobacco purchases. About 22,500 U.S. middle schools are offered teaching materials for tobacco prevention program, Right Decisions Right Now

Advertising

The company sticks to principles in the Voluntary Cigarette Advertising and Promotion Code. It restricts its mailing list to age-verified adult smokers 21 years of age or older. In print advertising, they check for audience data regarding the age and make sure topics are adult-focused

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.

American Marketing Association (AMA) states ethical norms for marketers

Leadership should

Place strict policy guidelines regarding ethical advert

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.