Corporate Social Responsibility Policies of British American Tobacco Company

Running head: STRATEGIC AND OPERATION MANAGEMENT
Strategic and Operation Management
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STRATEGIC AND OPERATION MANAGEMENT
Table of Contents
Introduction....................................................................................................................................2
Discussion.....................................................................................................................................2
Developing Sustainability and CSR Policies..............................................................................2
Triple Bottom Line......................................................................................................................3
Innovation and Product Development........................................................................................4
Financial Performance of the company.....................................................................................4
Conclusion.....................................................................................................................................9
Reference....................................................................................................................................10
Appendix......................................................................................................................................11

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STRATEGIC AND OPERATION MANAGEMENT
Introduction
The main purpose of this assignment is to analyze the policies of Corporate Social
Responsibility of a company. Corporate Social Responsibility (CSR) can be defined as the
various policies which are followed by the business in order to ensure that the activities of the
business do not affect the environment or the social well-being of the society (Schwartz, 2017).
In other words, CSR policies requires the companies to take responsibility for all the activities of
the company and also incur certain costs which will be for the well-being or promotion of the
society (Crane, Matten & Spence, 2013).
Nowadays most of the business have to prepare CSR reports in order to show the
society and the shareholders that the company is making investments for the betterment of the
society and not just going after profits. In addition to this, companies also prepare sustainability
reports which shows if the business is using sustainable resources for meeting the production
requirements of the company (Schaltegger, Hansen & Lüdeke-Freund, 2016).
Overview of the Company
The company which has been selected for this assignment is British American Tobacco
Company. The company is engaged in the production of tobacco products such as cigarettes.
The company has operations in more than 180 countries and is regarded to be market leading
brand (British American Tobacco - Annual reporting., 2018). The four largest selling brands of
the company is Dunhill, Lucky strike, Pall Mall and Kent.
Discussion
Developing Sustainability and CSR Policies
In todays world, it is very important for every business to formulate a plan which looks
after the corporate responsibilities of the business. A company exists in a society for the overall
development of the society as per the meaning of CSR principles, therefore the company should
invest in the overall development of the society in which the business operates. In addition to
this research also shows that a company which has efficiently followed CSR principles have
been rewarded with good reputation and high market value of shares for the business.
Corporate Governance may be defined as the management initiative to act in an ethical
manner and be accountable for the same to the users of the financial statement and the society
at large (Tricker & Tricker, 2015). Every company needs to have its corporate governance
policies and prepare a statement on the same which is to be disclosed with the financial
statement of the company.

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STRATEGIC AND OPERATION MANAGEMENT
In the case of British American Tobacco Company which is engaged in the manufacture
and selling of tobacco goods. As the company is engaged in the manufacture of tobacco which
is not good for health therefore there is an increased responsibility on the company to ensure
that the company follows sustainable practices and takes their corporate social responsibility
seriously. As per the financial statements of the company the company has been following a
strong policy regarding sustainability. The vision of the company is that though the core product
of thee company will remain combustible tobacco, however the company will be focusing on
long term sustainability which can be achieved by transforming its current tobacco business.
The sustainability of products is a key area for the group strategy and plays a vital role in
all aspects of the business (Silvius & Planko, 2017). As per the report developed by the
management of the company. three areas which is significant to the business and also the
stakeholders are given below:
 The company is actively engaged in reducing the smoking habits of the people by only
offering to sell cigarettes to adults. The products of the company which are offered to the
public are a range of potentially reduced- risked products.
 The company is committed to provide a proper livelihood for the farmers who are
engaged in farming for tobacco leaves for the business.
 In addition to the above two points, the business is focused on maintaining high ethical
standards and promote transparency.
The company in order to survive the various changes which are occurring in the market
needs to adopt a specific strategy which can help the business to overcome such changes. With
the advent of new technologies and market changes, the company is planning to drive towards
a reduced risk portfolio.
Triple Bottom Line
Triple Bottom Line is a concept which was developed by John Elkington in1994 which
deals with the three bottom lines of economic development, maintaining environmental quality
and also adhering to the social responsibility of the business (Savitz, 2013). In simple word, it
deals with the three aspect which the business should consider which are meeting the needs of
the people and the society, looking after the environment by applying sustainable processes,
adhering to environmental protection rules and the profit aspects which all companies strive for
in activities or operations (Henriques & Richardson, 2013). The concept makes it clear that the
overall development of any business does not solely depend on the profit of the business but
other key factors as well such as environment and responsibility towards the society. Triple
bottom line approach helps businesses to take decisions for long-term business nature based