business ethic case study
DESCRIPTION
business ethic case studyTRANSCRIPT
The
Copyright @ Carmen, David, Joe, Jessica, Stella, Sean, Tony
Tobacco Charit
yin China
Background of tobacco charity in China
• The largest producer of tobacco in the world and has the largest population of smoking
• Generated RMB717 billion profits in 2013, and donated 4.7 billion to charity
Social welfare 17%
Schools 27%
Sports events 4%
Relieve poverty 52%
China tobacco
Shall we accept tobacco charity? Is it ethical?
Theory IntroductionMorality
Pre-conventional
• Individual interest
• Short-term punishment
Conventional
• Interpersonal• Social
argument
Development
Theory IntroductionMorality
Development
Pre-conventional
• Individual interest• Short-term punishment
Government
Company
Consumer
Donee
• No anxieties about daily life
• No concerns about economically disadvantaged family burdens
• No worry about dropping out school
The view ofdonee
• Positive image
• Social recognition
• Current market retention
• Potential market acquirement
The view ofconsumer
Tobacco might be bad, but the tobacco company is not bad
Tobacco companyPerspective of
Tobacco companyPerspective of
“We don’t sell a cigarette to customer withhiding its harmfulness. And we do not presscustomers to buy it.”
“We don’t sell a cigarette to customer withhiding its harmfulness. And we do not presscustomers to buy it.”
We should not be barred from donation,Simply because the cigarettes were harmful.
Tobacco companyPerspective of
Campaign of quitting smoking Smoking of adolescence
WE CAN PREVENT IT
Education Improvement
Youth Smoking
Dilemma
üü
Potential Risk
Long-run Benefit
We can diminish the potential risk of youth smokingBy expanding supply of education.
Tobacco companyPerspective of
Shall we…X
The charity is unethical!
Egoism One ought to act in his or her
own self interest.
Maximize personal interest.
Egoism
The charity of tobacco
Higher sales
More hurt
Good reputation
Unethical Forbid
CSR Approach • Philanthropy
Target • Extra activities
Expected benefits
• Image improvement & reputation impact
Charity donation
Charity donation
Brand, Potential consumer, Revenue……
Other approaches: CSR Innovation, CSR integration……
Not easy.
Can we
eliminate Tobacco charity?
Each Party shall, in accordance with its constitution or constitutional principles, undertake a comprehensive ban of all tobacco advertising, promotion and sponsorship. This shall include, subject to the legal environment and technical means available to that Party, a comprehensive ban on cross-border advertising, promotion and sponsorship originating from its territory.
WHO FRAMEWORK CONVENTION ON TOBACCO CONTROLArticle 13
The tobacco industry is lEGAL in most of countries.
STATE TOBACCO MONOPOLY ADMINISTRATION
China Tobacco Corporation
It has abundant resources, even political power.
Regulated its charity behavior.Instead of simply banning it.
Promoting
behaviors should
be banned and
punished.
Regulated its charity behavior.Instead of simply banning it.
Motivate tobacco
company to
donate under
regulation.
No matter how we judge tobacco charity, we could hardly expect its disappearance from China in near future. Instead of trying to eliminate this phenomenon, we’d better try to guide and regulate this kind of charity.
Q&A