Debate on the health warnings on cigarette packs

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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

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