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MGC 2017 2 Business Ethics
Transcript of MGC 2017 2 Business Ethics
Biodegradability: takes decades for butts to degrade
Tobacco Company Funding Schools?
FSC: more additives more damage
Assisting people in quitting but still selling cigarettes
Utilized social and environmental issues as shield
Headquarters: Henrico, Virginia
Was previously named Philip Morris
Was renamed due to social, legal and financial difficulties
Owns Nabisco and previously owned KRAFT
CEO: Michael E. Szymanczyk
2011: was ranked Fortune number 157
Deforestation: Production of tobacco requires substantial amount of trees to endure a curing process by constructing barns/cigarette paper (Geist, 1999)
Pollution: Air, water, land pollution via use of pesticides (WHO, 2008)
Litter: Cigarette butts
Soil Degradation: Tobacco plants naturally deplete more nutrients than most plants
Health: Pesticides/herbicides are detrimental to health: Methyl Bromide, Imidacloprid, Aldicarb/Second-hand smoking (USEPA)
Afforestation: Planting trees in Africa where tobacco barns are situated (Chapman, 1994)
Biodegradable cigarette butts
Educational Funding: Financially funding schools
Fire Safe Cigarettes/Fire Standards Compliant (FSC): Self-extinguishing/Fire-safe/Reduced Ignition Propensity (RIP)
Engaged in social and environmental issues (Hirschhorn, 2004)
Quit Now toll-free lines
Altria and CSR
Reduce employee turnover
Enhance company reputation
Reduce operating cost
Attract new customers
However CSR can hurt company itself
Starbucks & CSR
Starbucks was first established in
1971 in Seattle USA. Today has over 17,000 stores in more than 55 countries across the world.
Starbucks mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”
Starbucks first setup its CSR strategy in 2000 partnering with Conservation International to build ethical coffee-sourcing guidelines
Holistic approach to ethically resourcing coffee.
Farmer loans and forest conservation programs.
Historically world coffee market prices have been very volatile due to global demand and supply
Starbucks pays a premium price for coffee
C.A.F.E – Coffee and Farmer Equity (2004) – promoting social, economical and environmental standards
Provides farmers with credit as well as fair trade and organic certifications.
Farmer support centres: Technical support from Starbucks quality control experts
Reduce their environmental footprint
LEED (Leadership in Energy and Environmental Design) green building standard.
Recycling all their paper and plastic cups broadly recyclable
Forest carbon programs: Conservation International to expand efforts to protect carbon- absorbing tropical forests in coffee-growing regions in Mexico, and Indonesia.
Starbuck Foundation – Charity
Community service projects
Youth Action Grants
Starbucks invests in programs designed to strengthen local economic and social development, working collaboratively with nongovernmental organizations that have the experience and expertise to work with farming communities
Indonesian provinces BLEND (Better Living, Education, Nutrition, and Development).
Tea-growing regions of India and Guatemala, Starbucks has supported health and economic development programs through Tazo’s Community Health and Advancement Initiative (CHAI) project, a joint partnership with Mercy Corps.
Business Ethics and CSR
Primum Non Nocere
CSR: Why bother?
Benefits from CSR activities
Examples of the above?
“The activities making companies good citizens who contribute to society’s welfare beyond their own self-interests”
(Kang et al. 2010, p.76)
Professor Kevin O'Gorman