There is growing need for businesses to deal with practices with high ethical standards as consumers are becoming interested in making their purchases from companies which engage in legitimate and fair business and marketing deals. The sensitivity of consumers to unethical practices by businesses is getting heightened majorly by the collective efforts of media and consumer activists which have brought the attention of unfair business practices which were otherwise unrealized in the past (Chapman, 1996). A more significant awareness of unethical practices dramatically impacts the consumers' feelings and reactions towards the products. The businesses which continue to deploy unethical practices may bring adverse consequences to the profitability, reputation and long-term survival of the industry itself.
This paper holds the view that tobacco industry is unethical because of many reasons. More fundamentally are the long-term effects that the product brings to humans. The tobacco industry has failed to assess the social and ethical responsibility the best way possible. The manner in which the company advertises their products, the labeling health risks, as well as the means of promoting the product, are unethically carried out. Thus, it is proper to conclude that the industry does take the public interest seriously instead they are more concerned about sales and making profits.
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A business practice is considered unethical when it targets vulnerable consumer segments especially if the product is harmful to health. For tobacco industry, vulnerable consumers include illiterate consumers, children, low-income consumers, and adolescents. Tobacco is a dangerous product because it causes physical, economic and psychological harm to the consumers. Given the magnitude of problems related to tobacco consumptions, it is only logical that there should be an evaluation of how the product is marketed. While some people may argue that use of the product is a choice of the consumer, vulnerable consumers such as children still need proper guidance to understand the effects of the products.
Consumer activists argue that any form of tobacco advertisement through any media may increase the youths' desire to consume the product. The ethical issue about the advertisement of the product is how tobacco smoking is usually associated with relaxation, fun, and professional and social success. Using young people for tobacco advertisement is also considered unethical. Some of the retailing and promotional practices in tobacco industry raise ethical questions. For example, incentive-based promotions expose the product to youths and other vulnerable consumers (Palazzo & Richter, 2005). The heavy reliance on promotional trade and giving incentives to retailers is controversial. According to Chapman (1996), manufacturers of tobacco offer incentive payments to encourage promotional support for the product at the retailer level.
Capitalism plays a fundamental role in decision making. Corporations often make vital decisions about the business if there are chances of profit increase. Companies make a profit when they can sell more than they spend. For a long time, the tobacco industry has had trade surplus a reason why the industry is essential to America's economy. Besides, the taxes that the industry pays to the government are enormous. For example, in 1992, the company reported close to 6 billion dollars trade surplus. In that same year, tobacco exported 2billion dollars more than its import (Palazzo & Richter, 2005). The company leadership should first understand the goals of the firm and to acknowledge the presence of the different institutions and the role they play.
Lastly, it may not be possible for the tobacco industry to care about the interests of the customers and the interest of the business at the same time. Since tobacco is addictive, an individual gets hooked up and stays loyal to the industry. If consumed for an extended period, smoking is harmful to humans and may bring health complications.
References
Chapman, S. (1996). The ethics of tobacco advertising and advertising bans. British medical bulletin , 52 (1), 121-131.
Palazzo, G., & Richter, U. (2005). CSR business as usual? The case of the tobacco industry. Journal of Business Ethics , 61 (4), 387-401.
