The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Thursday, September 16, 2021

Strategic CSR - Philip Morris

Here's a story you may have missed over the summer. As the article in the url below reports, Philip Morris has come a long way in its tobacco journey:

"The chief executive of tobacco business Philip Morris International has called on the UK government to ban cigarettes within a decade, in a move that would outlaw its own Marlboro brand."

The story certainly got my attention, but in a way that, when you start reading, also raises some eyebrows. Not only was the CEO emphatic in his call, but he spoke in the name of the common good and compared cigarettes to other social ills that we are currently working to eradicate:

"Jacek Olczak said the company could 'see the world without cigarettes … and actually, the sooner it happens, the better it is for everyone.' Cigarettes should be treated like petrol cars, the sale of which is due to be banned from 2030, he said."

In reality, this is a great example of a Rational Argument for CSR (Chapter 1) – that is, it is better to be at the table negotiating the solution, rather than have one handed to you. What is that well-known saying, if you are not at the table, you are on the menu (something like that)? This applies to Philip Morris particularly, now that they have finally developed an alternative (or acquired a company that has developed an alternative) to their core product. The only problem (a feature, for Philip Morris) is that the alternative product is equally addictive:

"Government action would end the confusion felt by smokers, some of whom still thought the 'alternatives are worse than cigarettes', Olczak told the Sunday Telegraph. 'Give them a choice of smoke-free alternatives … with the right regulation and information it can happen 10 years from now in some countries. You can solve the problem once and forever.'"

But, wait for it, the best is yet to come:

"Philip Morris International (PMI) recently said it wanted half its turnover to come from non-smoking products as it morphs into a 'healthcare and wellness company' with executive pay tied to its new mission to 'unsmoke the world' by phasing out cigarettes."

Hmmmmmm, a "healthcare and wellness company." Well, full points for gall and irony – not sure Monty Python could have done any better:

"… the company has come under fire from anti-smoking campaigners who accused it of hypocrisy after it launched a £1bn takeover bid for Vectura, a British pharmacy company that makes asthma inhalers."

A tobacco company that also sells asthma inhalers. Brilliant – create the problem, then offer an essential solution. I guess it is easier to take the high road when it is central to your business model:

"Campaigners argue tobacco companies are positioning themselves as part of the solution to a smoke-free world, while continuing to aggressively sell and promote lethal cigarettes. Smoking, including secondhand, kills roughly 8 million people a year, according to the World Health Organization."

Take care
David

David Chandler
© Sage Publications, 2020

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Tobacco firm Philip Morris calls for ban on cigarettes within decade
By Zoe Wood
July 25, 2021
The Guardian