The Poverty Business: British American Tobacco Company

763 Words 4 Pages
PHIRI, Khumbu Daniel
636174
BUS 4090A
Maina Muchara Phd
Assignment 1
The Poverty Business

1. Social responsibility is the idea that a business has the responsibility to serve the society in general as well as the stockholders. An example of a company action that was legal but not socially responsible in the case of British American Tobacco Company in Malawi that founded Eliminating Child Labour in Tobacco Growing Foundation (ECLT) in October 2000. Many transnational tobacco companies indulged in child labour in order to exploit cheap labour and make as much money as possible in the process. Transnational tobacco companies are using child labour projects to enhance corporate reputations and distract public attention from how they profit
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Name five potentially valuable indicators of a firm’s social responsibility and describe how company performance in each could be measured?
A social Audit is a firms attempt to measure its’ social performance against its social objectives. Potential indicators of a firm’s social responsibility are;
a) The company’s environmental policy – indicator could be its access to environmental consultants, its environment budget, etc.
b) A packaging company’s recycling policy – its approach to cycling, its marketing budget to educate consumers to recycle
c) A global company’s interaction with several local communities that it does business in – does the organization have a manager in charge of local liaison, or does it have a “buy local” policy?
d) Interaction with stockholders – does it have a code of conduct to deal with such as institutional
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Society’s expectations for corporate social responsibility are likely to increase; this is because stakeholders are likely to become more powerful and influential to companies and decisions in a business. For example, in today’s world consumers are able to boycott a firm’s product until they see change. Environmental pressure groups such as Greenpeace force industries to make changes to how they run their operations. Activists who demand changes usually have a greater effect in today’s world due to globalization and discoveries such as the internet which makes communication faster and easier. These and other similar factors may increase society’s expectations of companies as the consumer comes first and not the product. So every business works at satisfying the

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