Advertisement

Journal of Business Ethics

, Volume 61, Issue 4, pp 387–401 | Cite as

CSR Business as Usual? The Case of the Tobacco Industry

Article

Abstract

Tobacco companies have started to position themselves as good corporate citizens. The effort towards CSR engagement in the tobacco industry is not only heavily criticized by anti-tobacco NGOs. Some opponents such as the the World Health Organization have even categorically questioned the possibility of social responsibility in the tobacco industry. The paper will demonstrate that the deep distrust towards tobacco companies is linked to the lethal character of their products and the dubious behavior of their representatives in recent decades. As a result, tobacco companies are not in the CSR business in the strict sense. Key aspects of mainstream CSR theory and practice such as corporate philanthropy, stakeholder collaboration, CSR reporting and self-regulation, are demonstrated to be ineffective or even counterproductive in the tobacco industry. Building upon the terminology used in the leadership literature, the paper proposes to differentiate between transactional and transformational CSR arguing that tobacco companies can only operate on a transactional level. As a consequence, corporate responsibility in the tobacco industry is based upon a much thinner approach to CSR and has to be conceptualized with a focus on transactional integrity across the tobacco supply chain.

Keywords

CSR corporate philanthropy organizational legitimacy tobacco industry the common good integrity transactional CSR transformational CSR 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Action on Smoking and Health (ASH): 2000, ‘Tobacco Industry Smuggling. Submission to the House of Commons Health Select Committee’, http://www.ash. org.uk/index.php?navState=&getPage=http://www. ash.org.uk/html/./smuggling/html/smugglingbat.html, accessed July 29, 2004
  2. Amine, L. S. 1996The Need for Moral Champions in Global MarketingEuropean Journal of Marketing308194CrossRefGoogle Scholar
  3. Antonakis, J., House, R. J. 2002The Full-Range Leadership Theory: The Way ForwardAvolio, B. J.Yammarino, F.J. eds. Transformational and Charismatic Leadership: The Road AheadJAIAmsterdam333Google Scholar
  4. Ashforth, B. E., Gibbs, B. W. 1990The double-edge of organizational legitimationOrganization Science1177194Google Scholar
  5. British Broadcasting Corporation (BBC): 2003, ‘Tobacco firm denies cigarette smuggling to Iraq’, BBC News (January 15), http://news.bbc.co.uk/1/hi/business/2659397.stm, accessed July 29, 2004
  6. Biener, L., Aseltine, R. H., Cohen, B., Anderka, M. 1998Reactions of adult and teenaged smokers to the Massachusetts tobacco taxAmerican Journal of Public Health8813891391PubMedGoogle Scholar
  7. British American Tobacco (BAT): 1994, ‘Smoking Issues Claims & Responses Active Smoking’, Bates: 2504094459–2504094497Google Scholar
  8. British American Tobacco (BAT): 2003, ‘Social Report 2002/03’, http://www.bat.com/socialreport, accessed June 15, 2004
  9. British American Tobacco Malaysia (BATM): 2003, ‘Taxation and Enforcement Against Illegal Cigarettes’, Press Release (September 12), http://www.batmalaysia.com/CorporateInformation/PressRelease/2003/030912.htm, accessed July 29, 2004
  10. British Medical Association (BMA)1999Submission of the British Medical Association to the Health Committee Enquiry into the Tobacco IndustryBritish Medical AssociationLondonGoogle Scholar
  11. Bruno, K.: 2000, ‘BP: Beyond Petroleum or Beyond Preposterous, Special to CorpWatch, http://www. corpwatch.org/article.php?id=219, accessed March 29, 2005
  12. Burch, P. R. J. 1978Smoking and lung cancer: The problem of inferring causeJournal Of The Royal Statistical Society141437477Google Scholar
  13. Burton, B. and A. Rowell: 2002, ‘British American Tobacco’s Socially Responsible Smoke Screen’, PR Watch 9(4). http://www.prwatch.org/prwissues/2002Q4/bat.html, accessed August 12, 2004
  14. Calton, J. M., Payne, S. L. 2003Coping With ParadoxBusiness & Society42742Google Scholar
  15. Carroll, A. B. 1979A Three-Dimensional Conceptual Model of Corporate PerformanceAcademy of Management Review4497505.Google Scholar
  16. Carroll, A. B. 1991The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational StakeholdersBusiness Horizons343948CrossRefGoogle Scholar
  17. Criminal Intelligence Service Canada (CISC)2002Annual Report 2002Criminal Intelligence Service CanadaQuébecGoogle Scholar
  18. Chapman, S., Carter, S. M. 2003Avoid Health Warnings on All Tobacco Products for Just as Long As We Can: A History of Australian Tobacco Industry Efforts to Avoid, Delay and Dilute Health Warnings on CigarettesTobacco Control12iii13iii22PubMedGoogle Scholar
  19. Cummings, K. M., Morley, C. P., Horan, J. K., Steger, C., Leavell, N.-R. 2002Marketing to America’s Youth: Evidence from Corporate DocumentsTobacco Control11i5i17PubMedGoogle Scholar
  20. Deutsches Krebsforschungszentrum2003Gesundheit fördern – Tabakkonsum verringern: Handlungsempfehlungen für eine wirksame Tabakkontrollpolitik in DeutschlandDeutsches KrebsforschungszentrumHeidelbergGoogle Scholar
  21. Die Welt: 2003, ‘Ex-Schmuggler Belasten Reemtsma: Zigaretten über Osteuropa nach Deutschland zurücktransportiert’, Die Welt (January 20)Google Scholar
  22. Doll, R. 2000Review – Fifty years of research on tobaccoJournal of Epidemiology and Biostatistics5321329PubMedGoogle Scholar
  23. Doll, R. 2001Commentary: Lung Cancer and Tobacco ConsumptionInternational Journal of Epidemiology,303031Google Scholar
  24. Doll, R., Hill, A. B. 1950Smoking and Carcinoma of the Lung: Preliminary ReportBritish Medical Journal,212711286Google Scholar
  25. Domino, E. F. 1973Neuropsychopharmacology of nicotine and tobacco smokingDunn, W. L. eds. Smoking Behavior: Motives and IncentivesV.H. Winston and SonsWashington, D.C.531Google Scholar
  26. Drucker, P. 1973Management. Tasks, Responsibilities, PracticesHarper and RowNew YorkGoogle Scholar
  27. European Union (EU)2004Anti-Contraband and Anti-Counterfeit Agreement and General ReleaseEuropean UnionBrusselsGoogle Scholar
  28. Farrelly, M. C., Healton, C. G., Davis, K. C., Messeri, P., Hersey, J. C., Lyndon Haviland, M. 2002Getting to the Truth: Evaluating National Tobacco Countermarketing CampaignsAmerican Journal of Public Health92901907PubMedGoogle Scholar
  29. Fisher, R. A.: 1957, ‘Alleged Dangers of Cigarette Smoking’, Letters to the Editor of The British Medical Journal, vol. II, p. 43, 6 July 1957 and vol. II, pp. 297–298, (August 3)Google Scholar
  30. Freeman, R. E. 1997A Stakeholder Theory of the Modern CorporationHartman, L. P. eds. Perspectives in Business Ethics.McGraw-HillBoston171181Google Scholar
  31. Gentile, G.: 2003, ‘Counterfeit Cigarettes’, CBS Broadcasting Inc (June 10), http://www.cbsnews.com/stories/2003/06/10/national/main557799.shtml, accessed August 9, 2004
  32. Glantz, S. A., Slade, J., Lisa Bero, A., Hanauer, P., Barnes, D. E. 1996The Cigarette PapersUniversity of California PressBerkeley, CAGoogle Scholar
  33. Goss, B. C.: 1953, Background Material on the Cigarette Industry Client, Minutes of Meeting, 15 Dec 1953, Hill & Knowlton, Bates: 82106769–82106774Google Scholar
  34. Hammond, R. and A. Rowell: 2001, ‘Trust Us: We’re the Tobacco Industry’, http://tobaccofreekids.org/campaign/global/framework/docs/TrustUs.pdf, accessed August 6, 2004
  35. HM Customs and Excise: 2003, ‘Annual Reports and Accounts 2002-03’, 94th Report of the Commissioners of Her Majesty’s Customs and Excise (December 18)Google Scholar
  36. International Agency for Research on Cancer: 2002, ‘Tobacco Smoking And Tobacco Smoke. Summary of data reported and evaluation’, Monographs on the Evaluation of the carcinogenic risks to humans, Volume 83 (IARC, Lyon)Google Scholar
  37. Joyner, B. E. and D. Payne: 2002, Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility, Journal of Business Ethics 41(4), 297–311.Google Scholar
  38. Joyner, B. E., Payne, D. 2002Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social ResponsibilityJournal of Business Ethics41297311Google Scholar
  39. Kaufman, P. E., Cohen, J. E., Ashley, M. J., Ferrence, R., Halyk, A. L., Turcotte, F., Kyle, K. L., Stewart, D. E. 2004Tobacco Industry Links to Faculties of Medicine␣in CanadaCanadian Journal of Public Health95205208Google Scholar
  40. King, A. A., Lenox, M. L. 2000Industry Self-Regulation Without Sanctions: The Chemical Industry’s Responsible Care ProgramAcademy of Management Journal43698716Google Scholar
  41. Kok, P., Weile, T. V. D., McKenna, R., Brown, A. 2001A Corporate Responsibility Audit within a Quality Management FrameworkJournal of Business Ethics31285297CrossRefGoogle Scholar
  42. Lamb, W.: 2001, ‘Keep America Beautiful: Grassroots Non-Profit or Tobacco Front Group’, PR Watch 8(3), http://www.prwatch.org/prwissues/2001Q3/kab.html, accessed August 12, 2004
  43. Landman, A., Ling, P. M., Glantz, S. A. 2002Tobacco Industry Youth Smoking Prevention Programs: Protecting the Industry and Hurting Tobacco ControlAmerican Journal of Public Health92917930PubMedGoogle Scholar
  44. Lanfranco, A. 1970Smoking and DiseaseThe St Luke’s Hospital GazetteV181186Google Scholar
  45. Lee, C.-Y. and Stanton A. Glantz: 2001, ‘The Tobacco Industry’s Successful Efforts to Control Tobacco Policy Making in Switzerland’, Research Paper of the University of California, Center for Tobacco Control Research and Education, http://repositories.cdlib.org/ctcre/tcmpi/Swiss2001, accessed August 12, 2004
  46. Maguire, K.: 2000, ‘Dons Furious Over Tobacco Cash’, The Guardian (December 6)Google Scholar
  47. Maignan, I., Ferrell, O. C. 2000Measuring corporate citizenship in two countries: the case of the United States and FranceJournal of Business Ethics23283297CrossRefGoogle Scholar
  48. Matten, D., Crane, A. 2005Corporate Citizenship: Towards an Extended Theoretical ConceptualizationAcademy of Management Review30166179Google Scholar
  49. Mayer, R. C., Davis, J. H., Schoorman, F. D. 1995An Integrative Model of Organizational TrustAcademy of Management Review20709734Google Scholar
  50. Margolis, J. D., Walsh, J. P. 2003Misery Loves Companies: Rethinking Social Initiatives by BusinessAdministrative Science Quarterly48268305Google Scholar
  51. McDonald, E. J.: 1982, Statement, U.S. Congress, House Committee on Energy and Commerce, Subcommittee on Health and the Environment, 1982 Hearing, 97th Congress, Second session, March 5, 11 and 12, 1982 (Washington Printing Office, 1982), 669–684, AppendixGoogle Scholar
  52. Meikle, J.: 2002, ‘BAT Sorry for Offer to Sponsor Student’, The Guardian (October 11)Google Scholar
  53. Michalos, A. C. 1997Issues for Business Ethics in the Nineties and BeyondJournal of Business Ethics16219230CrossRefGoogle Scholar
  54. Mitchel, N. 1986Corporate Power, Legitimacy, and Social PolicyThe Western Political Quarterly39197212Google Scholar
  55. Müller, F. H. 1939Tabakmissbrauch und LungencarcinomZeitschrift für Krebsforschung,495785Google Scholar
  56. Ng, C. and B. Dakake: 2002, ‘Tobacco At the Movies. Tobacco Use in PG-13 Films’, http://masspirg.org/reports/TobaccoattheMovies.pdf, accessed July 28, 2004
  57. Ong, E. K., Glantz, S. A. 2001Constructing “Sound Science'' and “Good Epidemiology'': Tobacco, Lawyers, and Public Relations FirmsAmerican Journal of Public Health9117491757PubMedGoogle Scholar
  58. Okonkwo, K.: 2004, ‘Rothmas Brand: Enriching Nigerians Through Product Promotions’, AllAfrica Global Media (August 5)Google Scholar
  59. Porter, M., Kramer, M. R. 2002The Competitive Advantage of Corporate PhilanthropyHarvard Business Review805768Google Scholar
  60. Prichard, J.: 2004, ‘University defends Philip Morris accolade’, Western Herald (October 20)Google Scholar
  61. Rampton, S. and J. Stauber: 2000, ‘How Big Tobacco Helped Create “the Junkman''’ PR Watch 7(3), http//www.prwatch.org/prwissues/2000Q3/junkman.html, accessed July 27, 2004Google Scholar
  62. Rimmer, L.: 2004, ‘BAT’s Big Wheeze - The Alternative Report’, http://www.ash.org.uk/html/conduct/pdfs/batbigwheeze.pdf, accessed on August 6, 2004
  63. Ringel, J. S., Evans, W. N. 2001Cigarette Taxes and Smoking During PregnancyAmerican Journal of Public Health9118511856PubMedGoogle Scholar
  64. Rondinelli, D. A. 2002Transnational Corporations: International Citizens or New Sovereigns?Business and Society Review107391413.CrossRefGoogle Scholar
  65. Russell, M. A. H. 1974Realistic Goals for Making and HealthLancet,I254258Google Scholar
  66. Samet, J. M., Burke, T. A. 2001Turning Science Into Junk: The Tobacco Industry and Passive SmokingAmerican Journal of Public Health9117421744PubMedGoogle Scholar
  67. Schudson, M. 1984Advertising, the Uneasy PersuationBasic BooksNew YorkGoogle Scholar
  68. Scollo, M., Younie, S., Wakefield, M., Freeman, J., Icasiano, F. 2003Impact of Tobacco Tax Reforms on Tobacco Prices and Tobacco Use in AustraliaTobacco Control125966Google Scholar
  69. Sethi, S. P. 1975Dimensions of Corporate Social Performance: An Analytical FrameworkCalifornia Management Review175864Google Scholar
  70. Simpson, D. 2005Hungary: BAT university deal questionedTobacco Control147677CrossRefGoogle Scholar
  71. Sterling, T.D. 1975A critical re-assessment of the evidence bearing on smoking as the cause of lung cancerAmerican Journal of Public Health65939953PubMedGoogle Scholar
  72. Suchman, M. C. 1995Managing Legitimacy: Strategic and Institutional ApproachesAcademy of Management Review20571610Google Scholar
  73. Swanson, D. L. 1999Towards an Integrative Theory of Business and Society: A Research Strategy for Corporate social PerformanceAcademy of Management Review24508521Google Scholar
  74. Sydney Morning Herald: 2004, ‘Business Ethics Forum Sponsor Dropped’, Sydney Morning Herald (July 18)Google Scholar
  75. Tallmo, K.-E.: 2002, ‘Philip Morris assigned secret grants to Swedish professor’, http://www.nisus.se/archive/020610e.html, accessed August 12, 2004
  76. Tapscott, D., Ticoll, D. 2003The Naked CorporationFree PressNew YorkGoogle Scholar
  77. J. A. Tauras, P. M. O’Malley and L. D. Johnston: 2001, Effects of Price and Access Laws on Teenage Smoking Initiation: A National Longitudinal Analysis, NBER Working Papers 8331 (National Bureau of Economic Research, Inc, Cambridge, MA)Google Scholar
  78. Tobaccofreekids: 2004a, ‘The Big Cigarette Companies and Cigarette Smuggling’, http://tobaccofreekids.org/campaign/global/framework/docs/Smuggling.pdf, accessed August 6, 2004
  79. Tobaccofreekids: 2004b, ‘Tobacco Industry Gave More Than $2.2 Million in Federal Political Contributions So Far in the 2003-2004 Election Cycle’, http://tobaccofreekids.org/Script/DisplayPressRelease.php3?Display= 779, accessed August 6, 2004
  80. Tobacco Institute of Australia (TIA): 1985, ‘The Tobacco Industry’s Position on Proposed New Rotating Health Warnings on Tobacco Products and Advertising’, Bates: 2500009158/9187Google Scholar
  81. United Kingdom Parliament: 2000, ‘Memorandum by British American Tobacco’, http://www.publications. parliament.uk/pa/cm199900/cmselect/cmhealth/27/0011309.htm, accessed August, 06, 2004
  82. U.S. Department of Health, Education, and Welfare: 1964, Smoking and Health: Report of the Advisory Committee of the Surgeon General of the Public Health Service, Public Health Service Publication No. 1103 (U.S Department of Health, Education, and Welfare, Washington, D.C.)Google Scholar
  83. U.S. Department of Health and Human Services1988The Health Consequences of Smoking: Nicotine Addiction. A Report of the Surgeon GeneralUS Government Printing OfficeWashington, D.C.Google Scholar
  84. U.S. House of Representatives Committee on Commerce: 1998, ‘Top Law Enforcement Officers Warn of Growing Cigarette Smuggling by Organized Crime’, Tobacco Policy 3 (U.S. House of Representatives Committee on Commerce, Washington, D.C)Google Scholar
  85. Wartick, S. L., Cochran, P. L. 1985The Evolution of the Corporate Social Performance ModelAcademy of Management Review10758769Google Scholar
  86. Weaver, G. R., Trevino, L. K., Cochran, P. L. 1999Integrated and Decoupled Corporate Social Performance: Management Commitments, External Pressure, and Corporate Ethics PracticesAcademy of Management Journal42539552Google Scholar
  87. Whist, A.: 1986, Memo to Board of Directors, Philip Morris International Corporate Affairs (December 17), Bates: 2025431401/1406Google Scholar
  88. Wicks, A., Freeman, R. E. 1998Organization Studies and the New Pragmatism: Positivism, Anti-Positivism, and the Search for EthicsOrganization Science9123149Google Scholar
  89. World Health Organization (WHO)1992Women and Tobacco: Moving from Policy to ActionWorld Health OrganizationGenevaGoogle Scholar
  90. World Health Organization (WHO)1999The World Health Report: Making a DifferenceWorld Health OrganizationGenevaGoogle Scholar
  91. WorldHealth Organization, (WHO) 2002The Tobacco AtlasWorld Health OrganizationGenevaGoogle Scholar
  92. World Health Organization (WHO)2003Tobacco Industry and Corporate Responsibility...an Inherent ContradictionWorld Health OrganizationGenevaGoogle Scholar
  93. Yach, D., Bialous, S. A. 2001Junking Science to Promote TobaccoAmerican Journal of Public Health9117451748PubMedGoogle Scholar
  94. Yach, D., Brinchman, S., Bellet, S. 2001Healthy Investments and Investing in HealthJournal of Business Ethics33191198CrossRefGoogle Scholar
  95. Zeltner, T. et al.: 2000, ‘Tobacco industry strategies to undermine tobacco control activities at the World Health Organization’, Report of the Committee of Experts on Tobacco Industry Documents (World Health Organization, Geneva)Google Scholar
  96. Zimmerman, M.A., Zeitz, G.J. 2002Beyond Survival: Achieving New Venture Growth by Building LegitimacyAcademy of Management Review27414431Google Scholar

Copyright information

© Springer 2005

Authors and Affiliations

  1. 1.Ecole des Hautes Etudes Commerciales (HEC)University of LausanneLausanne-DorignySwitzerland

Personalised recommendations