• To enable the student understand various issues in business ethics.
• To enable the students understand the importance of ethical practices in an organization.
• To enable the student understand the justification of the presence of even harmful businesses in
Philip Morris (Pakistan) Limited an affiliate of Philip Morris International Inc. (PMI), is a public
listed company on the Karachi and Lahore Stock Exchanges. The principal activity of Philip
Morris (Pakistan) Limited is the manufacture and sale of cigarettes for Pakistan's domestic
Philip Morris has market repute due to its famous brands which serve each category of tobacco
lovers. In this way it is not only generating revenues for its share holders but also providing job
opportunities to its employees and supply chain members. On the other side of the picture it is
affecting environment and tobacco use is creating cancer and other fatal diseases
Considering above situation you have to discuss:
1. What are the consequences to the environment and how could PHILLIP MORRIS (PAKISTAN)
Justify its presence in the industry? (10 Marks)
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Tobacco giant Philip Morris is under fire forclaiming that premature deaths from smoking areeconomically beneficial to a country's finances.
In a report for the Czech government, PhilipMorris claimed the Czech exchequer saved about$147m in 1997 through the deaths of smokers whowould not live to use healthcare or housing forthe elderly.The company claims the report was part of an"ongoing debate" about the economics of cigarette taxes.
Claims by the tobacco industry that there are noeconomically viable alternatives to growingtobacco are increasingly being disputed andinvestigated (especially when the price of tobaccoin some developing countries falls dramatically,such as in Malawi in 1993). "There arealternatives to tobacco. Many crops can grow inland that is now under tobacco -- they include themajority of grain crops and vegetables. Sugarcane, bananas, coconut pineapples and cottoncould all be suitable.
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The toxic chemicals are present in the cigarette are harmful to the aquatic environment and it may cause death to the living creatures of the ecosystem.
There are many types of toxic substances present in the cigarette which may cause harmful impact on the fresh water life.
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Cigarette is used for cure of certain diseases so PHILLIP MORRIS (PAKISTAN) can justify its presence in industry as it is used as medicine for specific diseases.
It lowers the knee-replacement surgery those men who uses cigarette face less joint replacement so PHILLIP MORRIS (PAKISTAN) is beneficial product manufacturing from health point of view.
It also lowers obesity as it contains a pigment called nicotine which is used to suppressant appetite.
Company is giving jobs and revenue to share holders..