Ethics and Governance on Health Warning : Report

Ethics and Governance

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Major stakeholders in the debate on the health warning.............................................................1
Ethical issues involved in the Debate..........................................................................................1
Role of the PR Randall Hedges in the case.................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Smoking has become a trend in the modern society. According to the people they say that
smoking gives them relief and reduces their stress level. China which is the world's largest
producer and consumer of tobacco experience most deaths due to tobacco (World Health
Organization, 2013). Big Business Tobacco (BBT) who wants to expand their market is willing
to introduce their cigarettes in China but they are facing a dilemma. The reason for the conflict is
the health warning as marketing manager does not wants to add the warning on the packet of
cigarette (Zhang and et. al., 2011). Through various facts this matter can be better understood.
Main Body
Major stakeholders in the debate on the health warning
There are two crucial stakeholders whose interests are discussed here i.e., external and
internal stakeholder. These people are the part of the debate about the health warning on cigarette
packets. In the internal stakeholder which basically consists of the employee, manager and the
owner of the BBT company (Hammond, 2011). Other than these, suppliers and sellers are also
the internal stakeholders. Those customers who use products or cigarettes of BBT will be
considered as external stakeholders (Chapman and Freeman, 2013). Whatever will be the final
decision on the health warning on cigarettes packets will influence both the internal and external
stakeholders both positively and negatively.
Interest of both of them are included in the decision made on this. If they will use the
warning their profit may go down because people will become more aware about the hazards or
the effects of smoking on the health (Hu and et. al., 2010). This way people will avoid smoking
thus decreasing the market share. There will be big loss to the internal stakeholders and those
who are there customer will also get to know that what can happen if they continue with the
smoking . They will try to reduce the smoking habit. So the external stakeholders will be in
profit and the internal will be in loss.
Ethical issues involved in the Debate.
In Australia it is necessary to put a health warning on the tobacco product packaging.
This warning is under the “Competition and Consumer(Tobacco) Information Standard 2011”
and this was commenced on January 2012 (Holden and et. al., 2010). This was the update of the
“Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations 2004” The
1