Debate on the health warnings on cigarette packs

Reference no: EM13935225

Big Business tobacco (BBT) is a large Australian producer of tobacco products including a market leader brand of cigarettes. With the continuing development of Asian countries such as China and its moved to market based economy, the company has made the decision to sell its cigarettes in this large market from the beginning of next month. Cigarettes will be sold in the packs of 40's.

Mary Bender, marketing manager is discussing the decision of cigarette packets for the Asian market with Randell Hedges, the company's public relation manager. Having agreed on the basic design of the pack, Hedges raised the issue of whether to include the normal health warning on the pack, which has to be displayed under Australian law. He emphasises on recent medical findings which predicted many hundreds of thousands of deaths from cigarette smoking in the next few years particularly in developing countries.

Mary Bender, must strongly opposed to including a health hazard warning on the packs destined for Asian market. She explained in this business it is the bottom line which matters -- We have to think of our shareholders. BBT stands to lose considerable market share to competitors if it includes such a warning besides, it is not a legal requirement in many Asian countries to display a health warrant on cigarette. If Asian law is subsequently amended than we will be one of the first to comply. Besides the managing director supports me on this one.

Hedges expressed a final opinion: the company could be better off in the long term by being seen to be acting with corporate responsibility and demonstrating some concerns for its consumers.

Besides, such warnings have not been detrimental to the company's performance in Australia, where health warnings have been common for many years.

Required:

a. Who are major stake holders in the debate on the health warnings on cigarette packs?

b. What are the main ethical issues involved in the debate?

c. If you were Randell Hedges what would you do?

Reference no: EM13935225

Questions Cloud

An employee writes an anonymous blog on her experience : An employee writes an anonymous blog on her experience at Sears that provides insights into the company's strategy for success.

Why do molecular biologists use restriction enzymes : What is the difference between type I and type II restriction endonucleases and why are type II restriction endonucleases more useful for molecular biologists than type I restriction endonucleases?

Analyze the major steps related to planning the audit : Go to the PCAOB Website (http://pcaobus.org/Pages/default.aspx) to review the internal control requirements (Auditing Standard No. 5). Next, analyze the major steps related to planning the audit

What controversy history of discovery of structure of dna : What is the controversy around the history of the discovery of the structure of DNA? Who do you think should receive credit? How does giving credit only to Watson and Crick reflect on the Scientific Method in general? Please provide references as ..

Debate on the health warnings on cigarette packs : a. Who are major stake holders in the debate on the health warnings on cigarette packs? b. What are the main ethical issues involved in the debate?

Determine the capital balances for the individual partners : Boswell and Johnson form a partnership on May 1, 2009. For the year of 2011, the partnership earned a profit of $46,000, and each partner withdrew the allowed amount of cash. Determine the capital balances for the individual partners as of the end of..

Literature review dealing with organic farming and barriers : A literature review dealing with organic farming and the barriers (mostly barriers ) and benefits that it faces, with an addition of a case study which is Organic Farming in Scotland.

Riverview but pay the rate the guests would have been charge : Riverview but pay the rate the guests would have been charged at the Pines ($160 per room) rather than paying the normal rate of $260 per room at the Riverview.

People contribution to project management : The effectiveness of projects is partly concerned with how people fit in and contribute to the success of the project. This means there may be synergies in group decision making compared to individual decision making.

User Account

All Pages