corporate social responsibility and challenges in creating smoke free environment
TRANSCRIPT
Corporate social responsibility and challenges in creating a smoke-free environment
Simon Barraclough
School of Public Health
La Trobe University
Australia
Aims of the presentation
To determine what is meant by corporate social responsibility (CSR) and its functions for the tobacco industry
To present specific examples of CSR from British American Tobacco Malaysia (BATM)
To explore the implications for tobacco control in Malaysia and the ultimate rational goal of a smoke-free Malaysia
To ask what we should do to deal with tobacco corporation CSR
Reality check!
The Malaysian government is the major partner in two of Malaysia’s largest tobacco corporations
The chairman of BATM is also the chair of the Human Rights Commission
What greater endorsement that tobacco firms are responsible corporate citizens?
Malaysian state controlled shareholdings in the tobacco industryBritish American Tobacco
Skim Amanah Saham Bumiputera 24,177,500 shares (8.47%) No 2 shareholder
Employees Provident Fund 11,498,975 shares (4.03%) No.3 shareholder
Valuecap Snd Bhd 6,505,200 No.4 shareholder
Amanah Saham Malaysia 5,991,700 (2.1%) No 5 shareholder
As of 29 February 2008 Source: BAT Malaysia Berhad, Annual Report 2007, pp. 108-109
JTI Malaysia
EPF 319,182,300 shares (7.33%) No 2 shareholder Skim Amanah Saham Bumiputera 13,306,200 shares (5.09%) No.3 shareholderValuecap Snd Bhd 47,144,400 shares No.5 shareholder Amanah Saham Wawasan 2020 6,756,200 (2.54%) No. 7 shareholderAmanah Saham Malaysia 55,939,300 shares (2.27%) No.8 ShareholderKumpulan Wang Persaraan 1.350.000 shares (0.52%) No. 14 shareholderMalaysian Industrial Development Finance (MIDF) Berhad 1,261,700 shares (0.48%) No.15
shareholderAUTB Progress Fund 367,000shares (0.14%) No. 25 shareholderMIDF for EPF 263,400 shares (0.10%) No.28 shareholderAmanah Saham Nasional 3 Imbang212,300 (0.08%)No.29 shareholder
As of 3 March 2008Source:JT International Berhad, Annual Report 2007, p. 77
Leading citizens and BATM
Tan Sri Abu Talib Othman
Chair of SUHAKAM
Chairman of the Board of BATM
Dato’ Ahmad Johari bin Tun Abdul Razak
Member of the Board of BATM
Corporate Social Responsibility
“…the degree of moral obligation that may be ascribed to corporations beyond simple obedience to the laws of the state”
M. Kilcullen and J. Kooistra, Reference Services Review 27(2) p.158
BATM and CSR
BATM social reporting will “ultimately result in less questioning of our right to exist, thus improving our long-term shareholder value”
Annual report 2001 p.25
Good business
“…we recognise that by running our business well, we help to drive the engine of economic development, which in turn helps to achieve social and environmental development. Accepting social and environmental responsibilities, in a society that we conduct our business, makes good business sense”
Annual Report 2003 p.62
A typology of BATM corporate social responsibility
“working to alleviate hardship, pain and suffering [among] the aged, the disabled, the sick or the less privileged”Annual Report 2005 p.51
The BAT Foundation
scholarships to “talented but underprivileged Malaysian students” and grants to community groups
higher education grants to students from families engaged in tobacco cultivation and curing
In 2003 a “partnership” with the National Tobacco Board, a federal government agency, permitted the scheme to be all applicants (British American Tobacco 2004, p. 32).
Shelter Home for Abused Women and Children in Negri Sembilan 20 cents is received by the home for each greeting
card produced by BAT Malaysia. According to the shelter’s founder, Mrs Jegathambal,
the corporation’s support “. . . goes to show that they do care about the society’s
wellbeing”
(British American Tobacco Malaysia Annual Report 2003, p.67)
Symbolic and substantial support for government policies Portraying BAT’s activities as
contributing to domestic economic growth and international trade – regional hub for rechnology and skills
Scholarships support policy on bumiputra and rural development
Cooperation with anti-smuggling measures
Sponsorship of the Dewan Filharmonik Petronas
Shared in costs of smoking lounge at KL International Airport
Support for government policies Contributions to assist tobacco farmers
during the restructuring of the industry in response to AFTA
Endorsement of Malaysia’s ratification of the Framework Convention on Tobacco Control so long as adults were free to continue to consume a legal product (NST 17 September 2005)
Participation in youth smoking programs
Youth Smoking Prevention Programs (through the Confederation of Malaysian Tobacco Manufacturers)
Retail access prevention to prevent minors from purchasing cigarettes
Retailer education to inform retailers of the laws governing minors and assist them in refusing under-age purchases
Mass media advertising advocating that youth do not smoke Mass media campaigns to complement the Government’s own
“Tak Nak” campaign to deter youth smoking
Environmental action
Tree planting project to absorb at least as much carbon dioxide as the company emits into the environment directly, or indirectly
Re-forestation partnership in Pahang and Sabah
BAT has a exceeded carbon neutrality ” (Annual report 2006, p.49).
Active consultation with government and civil society “Our Social Reporting initiative
enables us to now demonstrate to society how we strike the ultimate balance – playing our role as a corporate citizen to address and manage the key issues impacting our industry, thus meeting society’s expectations of us as a responsible company”
BAT, Social Report (2001 – 2002) p.12
The item that remains unansweredPR 1 of the Social Report asks for:
Description of policy for preserving customer health and safety during use of products
BAT’s response: “While not reporting on this indicator, information on smoking and health can be found on our website ….”
Passive smoking is not harmful
“statistics do not demonstrate that environmental tobacco smoke is even a risk factor for any long-term health effects and disease”
BATM Website “Talking about tobacco FAQs”
Accessed 1.11.07
Engagement with stakeholders
BAT Malaysia engages “stakeholders, from Governments and non-government organisations to employees and business partners, in open, honest and constructive dialogue.”
BAT, Social Report (2001 – 2002) p.12
Strategic purposes
Create a favourable public relations image for the industry or individual corporation (protecting “reputation capital”)
Compensate or atone for negative actions (compare with “sin tax” concept in public policy)
Seek an accommodation with critics (responsible marketing of a dangerous product) and portray those not entering dialogue as unreasonable
Strategic purpose
Demonstrate compliance with government policies and even “partnership” with governments
Stem or restrain the growing tide of regulation Coopt elites to create an image of
harmonious functions Use philanthropy as a persuasive tool
Consequences
Public relations furthered Favourable mass media coverage Symbolic and even actual endorsement by the
political and civil elites bestows legitimacy Opportunities to influence policy and opinion makers Philanthropy separated from the core business of
the corporation to blur a tobacco identity
Malaysian leaders endorse BATM CSR Dato’ Seri Najib Tun Abdul Razak (while
deputy PM) in 2004 commends BATM for its CSR initiatives, including its Social report
In 2002 Tan Sri Dato Muhyiddin bin Mohd Yassin observed that the Youth Smoking Program “reiterates the industry’s positiion that its products are meant only for adults”
In 2004 Datuk Seri Syed Hamid Albar challenges describes BATM and JTI as “good and responsible corporate citizens” who are willing to help the Government curb smoking
In 2006 Datuk Seri Fong Chan Onn emphasised the alignment of BATM’s approach and objectives with the Ninth Malaysia Plan and predicted “returns on investment many times over”
A contrasting view
“They have used every means at their disposal to promote and block effective tobacco reductions measures, including years of systematic lying, obfuscation and denial about addiction and passive smoking”
A former health minister Dr Chua Soi Lek, NST 20 May 2005)
What is to be done?
Monitoring CSR activities Countering CSR activities
Monitoring the CSR activities of the tobacco industryWe need to: Be mindful of ethical considerations Identify the nature of tobacco CSR Seek to understand the strategic purposes
and the consequences of CSR Explore opportunities for monitoring
Ethical considerations: should those advocating tobacco control engage with tobacco CSR?“I am also speaking with
executives in multiple industries except for one – the tobacco industry. We are not on speaking terms, and never will be”
Dr M. Chan, Director-General, WHO, 2007
Some ethical considerations
But what if cooperation reduces the damage of tobacco?
Can “tobacco money” be regarded differently to taxation and excise revenue or share dividends derived from tobacco (“selective moral outrage”)
How and where can activities be monitored ? Mass media Web sites Public relations material (press releases) Annual company reports (for listed
companies) and reports of recipient bodies Internal newsletters of tobacco companies
How and where can activities be monitored ? Industry publications (e.g. Tobacco Reporter) Tobacco Industry Monitor (WHO/TFI
partnership with UICC GLOBALink (available at: http:/www.globalink.org/tim)
Unobtrusive observation Personal approaches
Countering CSR
Publicize what is monitored Inform policy-makers and regulators In the language we use: challenge false consensus
and employ the narrative of irony (eg paradox of responsible marketing of a lethal product and scholarships for medical students)
Publicly or privately challenge recipients of tobacco philanthropy to justify their behaviour
Countering CSR
Identify and exploit any contradictions with government policy and legislation
Turn observations and contradictions into policy demands for further control of tobacco industry activities