has a virtual monopoly in parts of Africa, both in terms of

tobacco manufacturing and sales of cigarettes. In ten

African countries BAT has more than a 90% share of the cigarette

market. This report examines some of the health, social and economic

impacts of BAT’s activities in Africa over the past century. Although the

full effects of rising tobacco consumption - namely a steep rise in

smoking-induced illness and premature death - will not be felt until well

into the 21st century, Africa is already in the grip of a major tobacco

epidemic. There can be no doubt that, if left unchecked, BAT’s heavy

footprint on the African continent will continue to wreak havoc on the

health and welfare of its people.

BAT’s presence in Africa is also undermining the

achievement of the Millennium Development Goals

(MDGs) that are designed to help the world’s poorest

people. The production and consumption of tobacco in

Africa directly runs counter to at least three of the eight

goals, namely to eradicate extreme poverty and hunger,

to combat diseases such as AIDS, malaria and

tuberculosis, and to ensure environmental sustainability.1

In fact, effective tobacco control is key to helping achieve

all of the Millennium Development Goals.2 Currently sub-

Saharan Africa is not on track to meet any of the MDGs3

and, as this reports illustrates, BAT’s heavy footprint on Africa is hindering

the continent’s ability to make progress in these important policy areas.

BAT’S FOOTPRINT ON AFRICA’S HEALTH.

It is impossible to be certain how many deaths are caused by tobacco in

Africa because many countries do not collect the information. However,

based on an analysis of BAT sales in its Africa & Middle East region, it is

estimated that current rates of consumption will lead to at least 100,000

deaths each year.

BAT has also exerted indirect health consequences on the people of

Africa. In Uganda, for example, there are 12 million cases of malaria

every year, killing 110,000 people. Despite claims that it does not use

political and economic leverage, BAT joined forces with other big

businesses to block a government malaria prevention programme to treat

farm workers’ homes with pesticides because of fears that the chemicals

used might contaminate their crops . The businessmen claimed exports

worth more than £200m (US$400m) and 600,000 Ugandan jobs could

be lost if crops were threatened.4

BAT’S SOCIAL AND ECONOMIC FOOTPRINT.

Zimbabwe is gripped by famine and corruption that leaves it scarcely able

to feed itself yet intervention by BAT means that the country remains

amongst the world’s biggest tobacco producers. In 2005 the BAT

sponsored Tobacco Grower of the Year award went to a newcomer to the

industry, Monica Chinamasa, the wife of Zimbabwe’s Justice Minister,

Patrick Chinamasa, who, with her husband, had been accused of seizing

the farm two years’ earlier.5

Most tobacco growers do less well out of their involvement in the industry.

In Kenya today BAT provides loans for seeds, pesticides and fertilisers

and buys back the product at a price of their choosing. To quote one

farmer, “The loan the tobacco firm provides is really weighing down

on us. Actually, after the deduction you get nothing”.6 There are

echoes of post-slavery America, where former slaves

found themselves bonded by debt as “share croppers”,

borrowing money from the land owners for seed and

materials and in return forced to sell the product to their

former masters.

BAT’S FOOTPRINT ON AFRICAN YOUTH.

BAT Chairman Jan Du Plessis claims: “We work with

farmers through our leaf growing programme to try to

eliminate child labour.” It’s true that BAT and other

tobacco corporations fund the Swiss based “Eliminating

Child Labour in Tobacco Growing Foundation”.7 However

neither BAT nor the Swiss based charity would disclose how much BAT

contributes. The foundation’s entire income for 2006 was only 2.8 million

Swiss Francs per year (US$2.7 million), around half the salary paid to

BAT Chief Executive Paul Adams and one fifteenth of the amount the

industry earns from unpaid child labour in Malawi alone.

A similar sleight of hand can be seen in BAT’s duplicitous approach to

tackling youth smoking. BAT’s corporate strategy recommends

investment in high profile youth smoking prevention strategies that stress

a minimum age for smoking. Given that so called “youth prevention

strategies” which stress the adult nature of smoking have been found to

increase youth smoking, the industry can claim corporate responsibility

and stimulate under age sales at the same time. The other side to the

strategy is an aggressive marketing campaign which purports to target

young adults over 18, precisely the group which provides aspirational

role models for underage smokers.

Despite the heavy toll that tobacco has wreaked on African society, at

the close of BAT’s first century in Africa, the continent is rich in hope,

because Africa is now standing up to BAT. Across the continent

communities are organising against the tobacco giants and the WHO

Framework Convention on Tobacco Control is being implemented. Africa,

it seems, may be deciding precisely where on BAT she intends to leave

her own foot print.

“The loan the

tobacco firm provides

is really weighing

down on us. Actually,

after the deduction

you get nothing”

FOREWORDDeborah Arnott

Director

2

BAT

Since British American Tobacco first set foot in Africa in 1908 it

has been the continent’s dominant force in tobacco production

and consumption. To mark this 100th anniversary, Action on

Smoking & Health examines BAT’s heavy footprint on Africa.

BAT’S AFRICAN FOOTPRINT

3

“We should notbe depressed

simply becausethe total freeworld marketappears to be

declining. Withinthe total market,there are areas

of strong growth;particularly in

Asia and Africa .. .It is an excitingprospect .. .” ~ BAT

4

To the tobacco industry, Africa is the continent of today and

the future. We are the only trophy left in the tobacco industry’s

reckless globalization of deaths, diseases and poverty

associated with its products.

OR the past two decades, the tobacco companies have intensified

market expansion strategies in several African countries. They have

used music to target youths and children. They organised fashion

shows to lure women into smoking. They offered kids free cigarettes on

the streets and for a very long time undermined efforts by governments

to put in place effective tobacco legislation. They actively participated

in the smuggling of tobacco products into the

continent. Worse still, tobacco companies persuaded

some African governments to promote tobacco

cultivation as a major source of foreign earnings. And

in recent years, the tobacco industry has resorted to

using Corporate Social Responsibility (CSR) to

massage its image and cover its tracks.

The result of the tobacco industry onslaught is evident

in rising smoking rates, particularly among young

people and women, and increasing tobacco related

deaths and diseases. Tobacco leaf dependent

economies like that of Malawi and Zimbabwe rank

among the world’s poorest. The tobacco industry promised jobs but

brought deaths; they promised wealth but escalated poverty. Africa

is outraged.

The World Health Organisation’s (WHO) initiated - Framework

Convention on Tobacco Control (FCTC) provides a unique platform for

the mobilization of African governments and civil society groups for

organised resistance against the tobacco industry.

National legislation is undergoing review in countries like South Africa.

Kenya has introduced a comprehensive tobacco control law which

incorporates all the provisions of the treaty. Besides, several other

countries such as Nigeria and Ghana have completed draft national

legislation. These draft bills provide for a comprehensive ban on

tobacco advertising, sponsorship and promotion, periodic increases in

taxes to reduce consumption, warning messages to include pictures, a

ban on smoking in public places, and mass education to discourage

youth smoking initiation.

However, one of the milestones in the burgeoning

resistance to the tobacco industry across the continent

is the litigation in Nigeria. In April 2007, the Lagos

State government in South West Nigeria, in

conjunction with Environmental Rights Action/ Friends

of the Earth, Nigeria (ERA/FoEN) filed a suit against a

number of tobacco companies. In the lawsuit, the

plaintiffs are seeking special, punitive damages to the

sum of $26 billion from the defendants including British

American Tobacco, Philip Morris International and the

Tobacco Institute.

Since the filing of the suit by the Lagos State government, Nigeria’s

Federal Government and four other states have filed similar suits

against tobacco companies. The Nigerian suit (a replica of similar

cases in the United States) and increased pressure by tobacco control

groups provide strong evidence that Africa has decided to fight back.

There is no doubt that the tobacco industry’s heavy footprint on Africa

will take a long time to erase but Africans are now standing up to the

industry and are full of hope that the tobacco scourge will be wiped

from this continent over the course of this century.

AFRICA FIGHTS BACK

Adinbode OluwafemiEnvironmental Rights ActionFriends of the Earth Nigeria

Board member for the African region of the Framework Convention Alliance

Photograph:AndrewKerr

F

The tobacco industry

promised jobs but

brought deaths; they

promised wealth but

escalated poverty.

Africa is outraged.

ASH receives core funding from Cancer Research UK and the British

Heart Foundation. This report was funded by Cancer Research UK

Executive summary ............................................................................. 6

BAT’s Scramble for Africa ................................................................... 7

BAT’s footprint on society ..................................................................... 9

BAT’s advertising and promotion footprint ........................................... 10

Covering their tracks – BAT’s CSR “marketing favourite” ................... 14

BAT’s footprint on the environment .................................................... 20

BAT’s footprint on child labour ............................................................. 21

Links and further information ............................................................... 22

References ......................................................................................... 23

CCOONNTTEENNTTSS

5

Photograph: Marty Otañez, PhD, American Cancer Society Postdoctoral Fellow,Center for Tobacco Control Research and Education, University of California,San Francisco.

6

BAT is the second biggest cigarette multinational in the world and

is dominant in Sub Saharan Africa with over a 90% market share

in eleven African countries.9,10 BAT claims to be “a responsible

company” but in Africa BAT is:

EXECUTIVE SUMMARY

Aggressively marketing cigarettes contrary to the WHO’s

Framework Convention on Tobacco Control directive for a

comprehensive ban on tobacco advertising, promotion and

sponsorship.11 Tactics include:

Running competitions that require participants to buy

cigarettes in exchange for a chance to win exciting

prizes such as cars.

Issuing invitations to youth orientated music events that

would appeal to teenagers.

Running high profile HIV, youth smoking prevention, child

labour and other greenwash programmes1 in Rwanda, Malawi,

Nigeria, Cameroon and Kenya as a promotional tactic, to

deflect criticism and to avoid regulation.

Seeking out partnerships with respected environmental Non

Governmental Organisations (NGOs) such as Earthwatch,

Fauna and Flora International and the Royal Botanical

Gardens Kew, to run projects in Africa to improve BAT’s image

and sway public opinion.

Running counter productive youth smoking prevention

programmes that encourage children to see smoking as

something to aspire to in adulthood and that it is OK for over

18 year olds to smoke.

Taking advantage of poor African tobacco farmers who

regularly end up in debt to BAT rather than making a decent

living.

Claiming credit for projects to reduce child labour but failing to

address the fundamental problem of poverty among tobacco

farm workers.

Putting tobacco farmers and their families at particular risk

from tobacco growing which is both unhealthy and

environmentally damaging, with problems ranging from

pesticide exposure to nicotine poisoning.12

1. ‘Greenwash’ has been defined as disinformation disseminated by an organization so as to present an environmentally responsible public image.

Photograph: Marty Otañez, PhD, American Cancer Society Postdoctoral Fellow,

Center for Tobacco Control Research and Education, University of California,

San Francisco.

“Throughout the continent, tobacco manufacturers are

building brands to gain market share before the markets

go dark, and if the statistics are anything to go by, they

are succeeding.”

World Tobacco September 2007.8

has historically held a virtual monopoly over cigarette

sales in many African regions where Britain formerly

controlled colonies; in 1912 BAT was among the world’s 12 richest

companies.17 BAT continues to reap benefits from this colonial legacy

today maintaining a stranglehold on Africa’s cigarette markets and is

responsible for over 90% of cigarette sales in the following countries:

Ghana = approx 99%.18

Kenya = approx 92%.19

Malawi = approx 91%.20

Mauritius = approx 98%.21

Nigeria = approx 92%.22

South Africa = approx 94%.23, 24

Sierra Leone = over 98%.25

Uganda = approx 90%.26

Zambia = over 99%.27

Zimbabwe = approx 99%.28

BAT sells its cigarettes in over 38 African countries although it is

difficult to get an exact picture as BAT itself refuses to release this

information and smoking prevalence data is difficult to obtain.28, 30, 31

The large number of cigarette brands that BAT markets across the

continent indicates the extent of its promotional agenda. Brands

include:

7

Slides from a presentation to shareholders by BAT South

Africa in 2007 which illustrates BAT’s growth in sales in Africa, the

world’s poorest continent, and other developing countries.16

Sportsman555BristolRansom LifeCraven ACamelImpalaCrown BirdIntoreSafariScoreCrescent & StarAlbanyTom Tom

GladstoneSatin LeafPaul Revere Sweet Menthol Royal StandardThree RingsDunhillPlayersKentLucky StrikePall MallPeterStuyvestantRothmans

CartierConsulateEmbassyRoyalsJohn RolfeWinfieldLexingtonGauloisesSatin LeafVogueGunstonCourtleighLondonMills

BAT’S SCRAMBLE FOR AFRICA

“We should not be depressed simply because the total free world market

appears to be declining. Within the total market, there are areas of strong

growth; particularly in Asia and Africa… It is an exciting prospect . . . ” 13

~ Statement from a 1990 internal BAT document, made available to the public due to a legal settlement requiring BAT

to provide public access to its document archives.14. 15

Slide from a BAT South Africa investor presentation,

showing how BAT is focusing on selling “premium brands” to

smokers under the age of thirty.16

This dominance appears to be paying off for BAT asprofits in its “Africa and Middle East region” grew by £2million (US$ 4 million) to £470 million in 2007 and salesin South Africa and Nigeria were particularly strong.32

For the six months ending June 2007, British American Tobacco Kenya

announced pre-tax profits and gross turnover growing by 26% to 7.08

billion Kenyan Shillings ( US$ 107,358,125), up from KES 5.6 billion

(US$84,916,031) the previous year.33

BAT Uganda predicted it would double export earnings in the financial

year ending 2008 and achieve earnings worth $58 million. Shareprices

are also rising as the company posted half year profits of 31 million

Ugandan Shillings.34

In Nigeria in 2006, BAT’s market share and cigarette sales grew,

especially its Benson & Hedges and Pall Mall brands, resulting in

higher profit for BAT.35

BAT

Diversified Brand Portfolio

Focus on International and Premium brands,Lights and adult smokers under the age of 30(ASU30)

International brand

Peter Stuyvesant

Global Drive Brands

Dunhill

Kent

Lucky Strike

Global Drive BrandsThe Engine of BAT Volume & Value Growth

1999 2000 2001 2002 2003 2004 2005

120

100

80

60

40

20

0

79 Bn

Global Volume(Billions)

85 Bn79 Bn

93 Bn79 Bn

113 Bn 114 Bn

125 Bn

Pall Mall Dunhill Kent Lucky Strike

Right Markets, Volume and BrandsGenerate Volume, Value and Consumer Share

2005 Overall MarketVolume TrendSince 2000

Company Profile(% Company

Vol.)

Source: shipments database

Markets

E Europe Up 19%

Asia Pacific Up 24%

Middle East Up 6%

Africa Up 6%

Total Growing 56%

Total Declining 44%

Latin America Down 16%

American Pacific Down 17%

W Europe Down 11%

4

8

UE to the limited reach of health care and surveillance it is difficult

to estimate the number of tobacco deaths in Africa. However

according to Sir Richard Peto, Professor of Medical Statistics at the

University of Oxford, “One death results from every tonne of tobacco

which makes 1 million cigarettes. If BAT continues selling 100 billion

cigarettes a year in Africa and the Middle East, this will in the long run

cause 100,000 deaths per year.”

SMOKING RATES

African countries are experiencing the highest increase in tobacco use

amongst developing countries. During the 1990s, total tobacco

demand in Africa grew by a record 3.5 percent per year, compared to

an average annual increase of around 1.7 percent across all developing

nations.36 However, according to the latest WHO estimates, tobacco

consumption in Africa is increasing by 4.3% a year.37

Kenya is one of the ten heaviest smoking countries in the world.38

According to the Kenyan Ministry of Health up to 15% of

under 15 year olds now smoke and approximately 45%

of 18 to 30 year olds.39

One in five young Nigerians smokes cigarettes, while the

number of young female smokers rose ten-fold during

the 1990s.2

About 50% of Ugandan men smoke and according to the

2002 Global Youth Tobacco Survey, smoking rates of

13 to 15 year olds top 33% in some parts of Uganda.40, 41

Tobacco use among young people in Malawi is on the

rise. In 2005 the Global Youth Tobacco Survey of 13 to

15 year-olds found over 19% of boys smoked while the

rate among girls had risen to 16% from 10% in 2001.42, 43

ECONOMIC IMPACT

The WHO has observed that people who smoke tend to be poorer and

that cigarettes contribute to this poverty through loss of income, loss of

productivity, disease and death.2

In Egypt, where BAT reported particularly strong sales in recent years,

more than 10% of household expenditure in low-income homes is spent

on tobacco.44, 35

Malawi is one of the poorest countries in the world and people from its

most disadvantaged communities are more likely to smoke.45,46

According to a Ghana Health Service Demographic Survey in 2003 the

most economically disadvantaged region in Ghana is also the region

with the highest incidence of smoking. Over 14% of students at junior

secondary schools had smoked cigarettes.47

“In developing countries, among poor families, the proportion of

household expenditures used to purchase tobacco products can easily

represent up to 10% of total household expenditures.” Report of the

Secretary-General, United Nations Economic and Social Council

(2004).2

In 2007 US media company, Forbes, calculated that the loss of income

per smoker per year in Namibia was about US$448.61. With just over

1 million smokers, the national income loss equates to about $461

million.48

Researchers in 2003 found people from across the social spectrum in

Niger spending substantial proportions of their incomes on their

smoking habit with students spending 40% and manual

labourers spending 25% of their respective incomes on

cigarettes.49

HEALTH IMPACT

Tobacco is a risk factor for six of the eight leading causes

of death in the world.50 A 2004 study of tobacco

attributable deaths in South Africa concluded that about

8% of all adult deaths were caused by smoking.51

However, data on the effects of tobacco are largely

lacking across Africa and studies are needed throughout

the continent to assess the effects of tobacco on the

occurrence of specific diseases, and to monitor the

evolution of the epidemic.

There is growing evidence of an association between

smoking and the spread of tuberculosis. A 2005 South

African study found areas of Cape Town experiencing high rates of TB

where 82% of TB sufferers were smokers or ex smokers.52 Dr Peter

Ormerod of the British Thoracic Society commented: “This study

supports other evidence showing an association between

smoking and TB risk. …People who smoked would

therefore be more at risk of acquiring TB.” 53 South Africa

is burdened by one of the worst TB epidemics in the world with an

estimated 180 507 cases in 1997, amounting to 419 per 100 000 of the

total population.54

9

BAT’S FOOTPRINT ON SOCIETY

As BAT increases cigarette sales and profits in African countries in

the quest to become the global leader of the tobacco industry, the

increasing numbers of smokers across Africa are having a huge

impact on health-care costs as well as lost productivity due to

tobacco related illnesses and premature deaths.

D

If BAT continues

selling 100 billion

cigarettes a year

in Africa and the

Middle East, this

will in the long run

cause 100,000

deaths per year.”

10

ADVERTISING AND PROMOTION FOOTPRINT

The tobacco industry strongly opposes, and lobbies heavily

against tobacco adver tising and promotion bans because

they are highly effective in reducing tobacco use.

Peter Stuyvesant advertoutside a sports club inBlantyre, Malawi.Photograph: Peter Luckham,

April 2006.

Pall Mall shop sign.Photograph: Folorunsho

Moshood, Educare Trust,

Nigeria, 2008

Photographs: Folorunsho Moshood,

Educare Trust, Nigeria, 2008

2008 promotionfor a ticket toMetro Grooveparty, availableon purchase of apack of Pall Mall.

2008 Pall Mall cigarette advert for a BATcompetition in Nigeria. “Buy a pack of Pall Malland win an instant gift + a raffle ticket for achance to WinBig.”

Screengrab fromThe Daily Times2007

11

ESPITE the massive socio-economic and health burden smoking

is placing on African societies, BAT continues to market cigarettes

here, as elsewhere, by associating its brands with glamour, style,

vitality, beauty, sport, sexual allure, celebrity, contemporary fashion

and modern living - methods it claims to have

voluntarily given up using in the UK thirty years ago.55

Furthermore, BAT has been found to be in breach of

its own weak marketing code by allowing its

cigarettes to be sold singly rather than in packs of

10 or 20.55 In Nigeria, advertisements were even

produced detailing the price of 1, 2 or 3 “sticks”.56

Following ASH’s protestations in 2007, BAT

acknowledged that it had begun an investigation

into the alleged marketing breaches but has failed

to report publicly on its findings.

Because BAT cannot be trusted to keep within even

its own marketing codes of conduct in countries where

advertising bans are partial or not fully implemented,

only a comprehensive ban will protect people from its

marketing tactics and reduce tobacco consumption. In

2000, a global review of the effect of tobacco

advertising bans on consumption concluded that “. . .

a comprehensive set of tobacco advertising bans can

reduce tobacco consumption but a limited set of

advertising bans will have little or no effect.” 57, 58

MALAWI:

BAT held a series of Pall Mall promotion shows across Malawi in 2007

and 2008 to which the entertainment section of The Daily Times of

Malawi gave further publicity. (Photograph page10)

After the Pall Mall Embassy show, a BAT representative said, “Much as

this is a promotion, we also know that our customers need

entertainment as well”

According to the Daily Times, “The customers stand a chance of

winning various prizes. They will be required to buy one pack of Pall

Mall Embassy or Kings to enter the competition.”

The grand prize of a million Malawi Kwacha was

equal to over US$7,255 - forty two times the

average annual Gross National Income in Malawi.59

Other prizes included HiFis, TVs, bicycles, T-shirts,

caps, shopping vouchers, travelling bags, key rings

and packets of cigarettes.60

UGANDA

BAT is also using promotional events to market

brands in Uganda. Jay, a Kampala based blogger

reported on a “festive and colourful” Dunhill launch at

Speke Resort, Munyonyo in 2006.61

Jay, a smoker himself, writes: “Besides young

Ugandans smoke to [sic] much already and they

are starting younger. We do not need more

temptations for those impressionable wannabes.

I am waiting to see what coolness they will

associate Dunhill with. I can already see the

yuppies displaying their shiny Dunhill packets at

counters from SteakOut to Silk Royale.” 61

NIGERIA:

Folorunsho Moshood from the Nigerian Educare Trust says:

“The presentation of Metro Groove happened at venues across

Nigeria in 2007. The prize was a ticket to attend a groove where

BAT supplied cigarettes… Many young people attended the

Metro Groove at Cotton’s Club, one of the largest club houses in

Ibadan, Nigeria’s third largest city.62

In 2007 BAT Kenya’scommunication managertold the tobacco industryjournal, World Tobacco

that BAT

“... has cushioned

itself from the

business impact of

the enactment of

the [smoke-free] law

by adopting self

regulation in

advertising and

marketing, to ensure

a smooth transition

that will not hurt our

bottom line.” 8

D

12

Foloronsho Moshood also reports that BAT supported shops are springing up across Ibadan.These photographs are of a parade of shops opposite the Cultural Centre in Mokola district:

“The name of each shop in the area doubles up as a Pall Mall

banner and the whole street is covered in BAT branding and

advertising. The children featured in my photographs were visitors to

the Cultural Centre and many secondary schools are also located

around this area. The closest Oba Akinbiyi High School One is about

three hundred meters away.”

Pall Mall promotions on umbrellas,table cloth, chairs, & awnings.School students in check shirts.Photographs: Folorunsho Moshood,

Educare Trust, Nigeria, 2008

13

DEMOCRATIC REPUBLIC OF CONGO:

Above: Young man wearing a BAT branded Sportsman t-shirt in The

Democratic Republic of Congo in 2007.

KENYA:

Left: BAT Sportsman branded cigarette stall in Kenya 2007.

SOUTH AFRICA:

Below left: ASH uncovered the slide on BAT’s website revealing how

in South Africa BAT is specifically researching and targeting the black

community which it refers to as “black diamonds” in a cynical bid to

increase premium brand sales and dominate the market.16

UGANDA:

In 2007 the tobacco industry journal World Tobacco noted that BAT in

Uganda is “…quite aggressive in the promotion and marketing of its

products”. The journal reported BAT’s widespread advertising and

frequent competitions in the press.8

According to Jackie Tumwine from the Health and Environmental

Rights Organisation, Uganda,

“Low female smoking rates in Africa are due to the social

and cultural taboo against women smoking... The

tobacco industry is steadily breaking these cultural

norms through aggressive and deceptive promotion of

cigarettes as symbols of empowerment, equality,

glamour, modernity, sophistication and Western style

independence.”

Below: BAT Embassy adverts in a restaurant in 2007.

Photographs: Jackie Tumwine, Health and

Environmental Rights Organisation (HERO), Uganda

Photograph: Laura Seay

Photograph: http://www.flickr.com/photos/aardvark/465519676/in/set-21576000 98409014/)

Black diamonds, the drivers of oureconomy

Black middle class grown by30% in one year 2.6million

Spending power of blackdiamonds risen from R130billion to R180 billion

2% of South Africa’s blackpopulation account for 54% ofall black buying power vs10% accounting for 43% 15months ago

Source: Unilever Study

14

HROUGH voluntary Corporate Social Responsibility (CSR)

programmes BAT purportedly addresses its social and

environmental impacts. BAT has established a Corporate and

Regulatory Affairs Department (CORA) to oversee a CSR agenda that

promotes BAT as engaged in contributing to “Civic Life and

Empowerment” by encouraging branches around the world “to enrich

public and community life.” 64, 65

It is well documented that the gap between BAT’s CSR goals and their

actual impact is stark. BAT’s reported achievements sit uneasily

alongside aggressive cigarette marketing and do little to address the

key health, socio-economic, human rights and environmental impacts

of cigarettes.66, 67, 68

The slide (below) from a BAT South Africa Investor presentation to

financial services company Citigroup illustrates how BAT uses CSR

projects to make itself attractive to investors and to convince them of its

social and environmental credentials.16

Internal BAT documents have been made available to the public due to

a legal settlement that required tobacco companies to provide public

access to its document archives.14,15 In the archives ASH found

documents that illustrate the real thinking behind BAT’s CSR strategy.

COVERING THEIR TRACKS:BAT’S CSR “MARKETING FAVOURITE”

“I hope it is not immodest to say that we have been

something of a trailblazer for CSR in Africa.”

BAT chairman Jan du Plessis 63

“Corporate social responsibility schemes are a

current tobacco industry marketing favourite.”

Tobacco industry journal, World Tobacco.8

T

The above slide is from a BAT South AfricaInvestor presentation

15

Extracts from BAT Corporate

and Regulatory Affairs (CORA)

roadmap, 2000.69

British AmericanTobacco

Today’s reality

Public opinion The anti-smokingmovement

British AmericanTobacco

What we want to achieve

Public opinionThe anti-smoking

movement

Terms of reference

To drive the development of a pro-active globalreputation management strategyTo agree the CORA strategy

To agree key deliverables

To agree the responsibilities of:

- The end markets

- The regions

- The centre

Identify stakeholders and understand the level and nature of theirinfluence.Classified according to three criteria:

Their impact on the business

Their hostility/sympathy towards tobacco

Their willingness to change their views

Understanding Stakeholders - Research Model

DDeecciissiioonn--mmaakkeerrss Individuals and institutions whose decisions will have adirect and immediate impact on our ability to achieve profitable growth overthe next five years

IInnfflluueenncceerrss Individuals and institutions who have no immediate impact onour ability to achieve profitable growth but who, nonetheless, expertinfluence over the views and activities of decision makers or otherinfluencers

Understanding Stakeholders - Research Model

16

OR BAT it was essential the CORA strategy be mobilised on a

consistent basis worldwide. To this end the roadmap was

presented to regional managers in Africa in 2000 to be adopted,

planned and driven forward into the 21st century.70, 71

By 2007 the tobacco industry Journal World Tobacco noted BAT using

CSR schemes in Uganda to improve its image and as a means of

“deflecting criticism and unwanted regulation” in addition to its use as

a “marketing favourite”.8

Examples include BAT’s annual sponsorship of the East African

exhibition for local craftspeople, known as Jua Kali. This serves a

number of purposes for BAT:

Jua Kali is a place where BAT can advertise itself and its brands,

it attracts substantial press coverage for BAT, and

it is used as a venue where BAT can meet, greet and impress local

politicians.

In 2007 BAT used many similar CSR events as advertisements and as

opportunities to influence and impress dignatories. In Uganda BAT

also solicited media attention for hosting and sponsoring the

Commonwealth Business Forum where BAT representatives met

heads of state and ministers.72

In 2007 in Nigeria and Rwanda BAT also gained considerable publicity

for sponsorship of an HIV/AIDs conference and donated US$6000

(£3000) to People Living with HIV/AIDs.73 Previously ASH and other

NGOs have uncovered how BAT’s internal documents reveal aims to

encourage tobacco farmers groups to “Target WHO's blind spots on

key primary health priorities, such as HIV/AIDS prevention and

malaria.” 67, 74

In Malawi BAT attracted publicity for donating prizes to its distributors

as a reward for selling the most cigarettes in the most places. The

rewards included motorbikes as well as cash prizes. The Daily Times

newspaper reported a BAT representative as saying “The motor bikes

have been provided based on coverage and business growth and we

want you to use them for its intended purposes and that is to grow your

businesses further.” 75

In Zimbabwe in 2005 BAT gave a “Tobacco Grower of the Year”

award to Monica Chinamasa, the wife of Zimbabwean Justice Minister,

Mr. Patrick Chinamasa. Two years’ earlier, in September 2003, it was

reported that the Minister and his wife. had seized the Tsukumai Farm,

forcing off the owners with threats of violence.5 BAT presented Mrs

Chinamasa with the Zimbabwe $24 million prize (US$1000) and trophy

as the 2004/2005 top grower at a ceremony in Harare.76

The BAT exhibition hall at the Jua Kaliexhibition in Uganda.

Photograph: Jackie Tumwine, 2006

Dunhill adverts featured inside the BAT exhibition hall.Photograph: Jackie Tumwine, 2006

F

17

YOUTH SMOKING PREVENTION STRATEGY

A number of BAT’s CSR campaigns in Africa focus on what BAT refers

to as “Youth Smoking Prevention”. However, there is no evidence that

such schemes decrease smoking among young people but there is

evidence that they can be counter-productive.77, 78 Such schemes

encourage children to see smoking as an adult activity and therefore

something to aspire to. They also give the impression that cigarette

addiction is a youth issue and that once a young person reaches 18 it

is acceptable to smoke. Despite BAT’s purported stance on youth

smoking prevention it is clear that because so many long term smokers

die in middle age, the tobacco

industry is in perpetual need of

new young customers.

NIGERIA

“Nigeria’s [youth smoking

prevention] campaign reached

over 100,000 sale points, with

posters and stickers. . .” 79 -boasts

BAT’s website and takes the

opportunity to publicise the

Nigerian minister responsible

for youth development who

launched the campaign.79

Meanwhile BAT and other tobacco companies currently face lawsuits

in Nigeria for targeting young and underage smokers by sponsoring

events such as pop concerts and of promoting the sale of individual

cigarettes. Although Lagos recently withdrew a lawsuit, the tobacco

industry still faces similar suits from the federal government and two

other states are hoping to recover the costs incurred in treating

smoking-related diseases.81, 82

Even as these court cases are getting underway and despite BAT’s

purported intentions regarding youth smoking prevention, in 2008 BAT

is displaying adverts and

competitions with youth

appeal by shops near schools.

Screengrabs of extracts from

BAT’s Corporate and

Regulatory Affairs Guidelines

for West Africa 2001-2002. 71

Pall Mall display case next to sweets displayed nearschools in Nigeria complete with BAT designed ‘YouthSmoking Prevention’ logo.62

Photograph: Folorunsho Moshood, Educare Trust, Nigeria, 2008

BAT Gambia Youth Smoking Prevention billboard.Photograph: Paul Hooper, 2005.

Poster downloadedfrom BAT website.80

18

ENVIRONMENTAL STRATEGY

The following extracts from an internal presentation reveal how a

strand of BAT’s CSR involved a calculated strategy to collaborate

with NGOs in order to gain public support for its environmental

policies.

Over the last seven years, following through on its long term

strategy to engage with “reasonable NGOs” BAT has fostered

relationships with the Earthwatch Institute, Fauna & Fauna

International, Royal Botanic Gardens Kew and The Tropical

Biological Association to particular effect.83 In 2008 BAT’s

Biodiversity Partnership boasts of supporting 43 projects, many

in Africa.84, 85

A number of the projects are ecologically themed “volunteering

and training” opportunities for BAT employees. BAT uses such

projects as a way of promoting its biodiversity credentials while

boosting staff morale and skills.85

Screengrab 2008 86

“… this year the fellowship programme received official

recognition as an important contributor to employees’ progress

within the British American Tobacco leadership framework.” BAT

statement on Malawi project.86

Other BAT biodiversity projects in Africa include Mountain Gorilla

conservation programmes in Rwanda, Great Ape Habitat

Conservation Programmes in Nigeria and Cameroon and a

project to enhance the conservation of Lake Victoria in Kenya.87

The WHO has observed that when BAT and others in the industry

devote portions of profits to CSR projects, the companies are

often disguising other aims:

“…socially responsible initiatives, so-called by transnational

tobacco companies, sit side by side with their continued

involvement in aggressive advertising and sponsorship

campaigns directed at young people, financial pressures they

impose on countries that attempt to limit tobacco marketing, their

deliberate deception in many developing countries concerning

the dangers of second-hand smoke, and attempts to actively

undermine the tobacco control activities of the World Health

Organization .” – WHO (2004)2

BAT Corporate and Regulatory Affairs

(CORA) strategy document from 2000.69

Short and medium term strategy

Short term strategy is to commence substantiveengagement with well-respected and reasonableNGOs, centrally and at end market level - and tobrand and communicate itAim is to show that BAT is acting responsibly onsocial and environmental agendas in order tomaintain its “licence to operate”Outcome from above is build and grow partnershipswith NGOs and get their third partyverification/support for BAT’s achievements andstandards of business integrity

Much pressure emanates from labour/human rightsand environments NGOsNGO engagement will start in these clusters

Where to focus?

Concrete steps towards environmentpartnerships

Earthwatch already in placeThrough this, developing partnerships with fourother NGOs:-- Fauna & Flora International- Wildcru- Royal Botanical Gardens Kew- Tropical Biological Association

19

INFLUENCING GOVERNMENTS

“The law was actually drafted by us but the Government is to be

congratulated on its wise actions.” BAT Regional Director, Norman

Davies on the Kenyan government’s passing of a tobacco law

designed to stop poaching and out of season growing. 88

The archives of BAT’s rival Philip Morris include an article from the

Sunday Times dated 14 May 1990 about BAT’s expansion in Africa.

Above the headline “Africa - Ashtray of the World” a Sunday Times

“Insight” team report noted, “Francis Kabui started smoking because

everyone in the adverts wore shoes. Today he is dying of cancer.” 89

Alongside the article, an internal BAT memo shows that the very next

day the Public Affairs Department issued a strong rebuttal.90

The PR team denied that BAT uses economic and political leverage to

support its marketing. They denied that their advertising played on the

“desires of people in the third world to mirror western sophistication”;

they even denied the proof that smoking cigarettes caused disease at

all. The second and third of these denials can be refuted through

documents in the public domain. The first claim - that they do not use

political leverage to support their commercial interests - is contradicted

by BAT internal documents. One, on influencing stakeholders defines

decision makers as those who will “have a direct and immediate impact

on our ability to achieve profitable growth over the next 5 years”.

In Kenya, BAT has been found to benefit from political connections that

include close relationships with successive presidents.10 These

relationships have been used to influence, dilute and delay Kenya’s

health laws.10 For example, in the 1990s BAT used contacts to

encourage the government to draft laws compelling farmers to sell

tobacco to BAT rather than to other leaf purchasers.10 As BAT was

already paying farmers less than other companies, these laws ensured

farmers’ pay remained poor.

In 2004 BAT was still found entertaining ministers in Kenya when it and

other tobacco companies were exposed in the press for inviting over 90

MPs to an exclusive coastal resort to discuss proposed tobacco

legislation.92

Screengrabfrom theKenyaBroadcastingCorporation2007 91

20

ALAWI has one of the highest rates of deforestation in the world

and tobacco growing is a contributing factor. In 1999 over 26%

of Malawi’s total annual deforestation

was related to tobacco production.93, 94

In 2004 New Internationalist magazine

interviewed a Kenyan tobacco farmer

who spoke about the effect of

deforestation in the area where he lives:

“We were never told that tobacco

growing would clear the forest that we

relied upon for firewood. Today the land

is bare. The trees were cleared to meet

the high demand for wood fuel required

in tobacco curing and a local stream - a

major source of water - has gone dry

due to deforestation.” 95

BAT makes much of its environmental

credentials and is keen to boast of

reforestation projects both on its own and other CSR websites.96

In its 2004 Social Report BAT boasts of a tree planting programme of

more than five million eucalyptus trees in Uganda while the Ethical

Performance website notes that in BAT’s reforestation programmes:

“Most of the species used – such as acacia, eucalyptus, ipil ipil, neem

and shishu – grow quickly to provide the small farmers with a

sustainable fuel source for cooking and

tobacco-curing.” 97

What the Social Report fails to mention

is that eucalyptus trees lower the water

table, adversely affect the nutrient cycle

and soil properties, and that growing

large quantities of such trees in place of

indigenous trees has a monumental and

anti social effect upon the natural African

habitat.98, 99

BAT is aware these fast growing trees do

not promote biodiversity but has done

little to redress the difficulties they

caused. Although BAT has run a few

high profile small-scale schemes such as

one in Chile which returned eighty

hectares of its eucalyptus plantations back to indigenous woodland,

such schemes are a drop in the ocean compared to the 267,000

hectares of fast growing plantations BAT has been responsible for over

the last thirty years.97, 100

BAT’S FOOTPRINT ON THE ENVIRONMENT

A 1999 World Bank funded study estimated that forest removal

related to tobacco was estimated to be approximately 41,900

hectares annually. In Malawi, Zimbabwe, Zambia, Tanzania,

Uganda, Burundi, Ethiopia, Morocco, Tunisia, Togo and Nigeria the

situation was close to criticality. 93

M

Photographs: Marty Otañez, PhD, American Cancer SocietyPostdoctoral Fellow, Center for Tobacco Control Research and

Education, University of California, San Francisco. 2006

21

LTHOUGH tobacco farming is not unique in its use of child labour,

these children are put at particular risk because growing tobacco

is both unhealthy and environmentally damaging with problems ranging

from pesticide exposure to nicotine poisoning.101

Malawi, where tobacco exports account for over

70% of export earnings, also has the highest

incidence of child labour in Sub Saharan

Africa.102

BAT chairman, Jan du Plessis boasts of tackling

child labour problems, saying:

“We work with farmers through our leaf growing

programmes to try to eliminate child labour, but

we know this is not enough. So three years ago

we established the pioneering Elimination of

Child Labour in Tobacco-growing Foundation, in

partnership with the International Tobacco

Growers Association and the trades unions in

our sector. It now includes all the main

multinational tobacco manufacturers and

dealers and the International Labour

Organisation advises its Board.” 7

In 2006 researchers examined the Eliminating Child Labour in Tobacco

(ECLT) programme that du Plessis credits BAT with establishing, and

found it had established projects in Malawi, Tanzania, Uganda, Zambia.

and Mozambique ranging from school construction to education

projects.

However none of these initiatives addressed the problem of low

earnings of adult tobacco workers, or genuinely

implemented ECLT’s stated efforts to improve

labour standards and raise “working conditions of

the plantation worker”.

Most tellingly, the ECLT had a budget of just $2.3

million over four years from 2002, compared to

nearly US$40 million in economic benefit the

major tobacco multinationals’ receive through the

use of unpaid child labour in Malawi over the

same period.104, 105

The research concluded multinational tobacco

companies are using child labour projects to

“enhance corporate reputations and distract

public attention from how they profit from low

wages and cheap tobacco”. 104

The real reasons for BAT’s engagment with

child labour issues are found in the internal

CORA roadmap from BAT’s document

archives rolled out in 2000. BAT wants to be seen as “proactive,

front-footed and already being recognised as such by other

main partners.” 69

BAT’S FOOTPRINT ON CHILD LABOUR

John Mhango, president of the Malawi Congress of Trade Unions says:

“Child labour is an evil practice that contributes to Malawi’s

poverty rates. Most of these children are denied schooling and

grow up illiterate and uneducated. How can they contribute to real

economic development?” 103

A

Photograph: Marty Otañez, PhD, American CancerSociety Postdoctoral Fellow, Center for TobaccoControl Research and Education, University of

California, San Francisco. 2006

2008 Screengrab from BAT website where BAT advertiseshelping establish the “Eliminating Child Labour in TobaccoGrowing Foundation”

Child labour: Next major milestone

Conference on child labour and tobaccogrowing in october

Involvement of unions, growers, governments,multilateral bodies, NGOs

BAT proactive. front-footed and already beingrecognised as such by other main partners

22

Environmental Rights Action/Friends of the Earth Nigeria

Environmental Rights Action/Friends of the Earth Nigeria(ERA) is a Nigerian advocacy non-governmental organisationfounded on January 11, 1993 to deal with environmentalhuman rights issues in Nigeria.www.eraction.org

People against drug dependence and ignorance - Nigeria

Attaining societal advancement via promoting and protectingthe rights to health and meaningful existence.www.paddi.globalink.org/

Educare Trust - Nigeria

An Education and Health NGO based in Ibadan, Nigeria’sthird largest city, with outreach in several other parts of thecountry. www.educaretrust.org/

National Council against Smoking - South Africa

The National Council against Smoking’s (NCAS) mandate isto improve public health by promoting non-smoking.www.againstsmoking.org/

The Tanzanian Tobacco Control Forum

A non-profit organisation with the vision of enhancing publichealth through effective control of tobacco use. PO Box33105 Dar Es Salaam, Tanzania. Tel: + 255 732 924088

The Environmental Action Network LTD - Uganda

The Environmental Action Network (TEAN) aims to institutepublic interest legal actions to protect the environment andpromote the right to a clean and healthy environment.http://tean.globalink.org/

Sidewalk Radio

Collage of videos about the tobacco industry in Africahttp://www.sidewalkradio.net/

Essential Action

Essential Action is a US corporate accountability campaigngroup that helped launch Global Partnerships for TobaccoControl in 2000 to support and strengthen internationaltobacco control activities at the grass roots level.http://www.essentialaction.org/

The Framework Convention Alliance for Tobacco Control

Made up of almost 300 organizations representing over 100countries around the world which are working to support thesigning, ratification and effective implementation of theFramework Convention on Tobacco Control (FCTC) andrelated protocols.www.fctc.org/

World Health Organisation (WHO) Framework Conventionon Tobacco Controlhttp://www.who.int/gb/fctc/

WHO Report on the Global Tobacco Epidemic, 2008. TheMPOWER packagewww.who.int/tobacco/mpower/en/index.html

World Bank - Economics of tobacco controlhttp://web.worldbank.org

Guernsey Adolescent Smokefree Project

Guernsey Adolescent Smokefree Project (GASP) is a localcharity whose aim is to reduce smoking amongst the youngpeople of Guernsey. GASP runs a project to support childrenwho work in the tobacco industry in Malawi.www.gasp.org.gg/

Tobacco and poverty: A vicious circle

World Health Organisation brochure outlining the viciouscircle of tobacco and poverty: who pays, who benefits andwhy tobacco control is a necessity.www.who.int/tobacco/resources/publications/wntd/2004/en/

British American Tobacco Documents Archiveshttp://bat.library.ucsf.edu

LINKS AND FURTHER INFORMATION

Photograph: Marty Otañez, PhD, American Cancer SocietyPostdoctoral Fellow, Center for Tobacco Control Research andEducation, University of California, San Francisco.

23

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