Financial Regulation - Assignment
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Added on 2021-04-17
Financial Regulation - Assignment
Added on 2021-04-17
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Running head: FINANCIAL REGULATIONLobbying- Philip Morris Name of the StudentName of the UniversityAuthor Note
1FINANCIAL REGULATIONIntroduction:The essay is evolved with certain lobbying matters of Philip Morris, an internationaltobacco manufacturing company that has around 180 branches spreading over several countries.The company is recognized as the producer of the leading product Marlboro (Pmi.com 2018).The said company was worked under the supervision of Altaria Group until the year 2008andafter that year a spin off has been taken place in the group regarding the corporate ownership ofthe US sales market. All the shareholders of the Altaria groups were investing their capital in thePhilip Morris, while the Group wanted to concentrate over the sales market of USA. Therefore, aconflict has been cropped up to this regard. Headquarter of the company is situated in the NewYork and the operational headquarter of the company is being situated in Switzerland.Controversies over the killing nature of tobacco made the company worried for it and thecompany has to face several litigations regarding the same (Bennett et al. 2017). Most of thecontroversies are made regarding the packaging process of the company and the qualities ofproduct the company is using for the products. in United Kingdom, dispute arises in the year2014 due to the plain packaging system. However, many litigations are pending against thecompany due to the same and the company has to face damage for the same. However, thecompany has also filed cases for asking compensation from the government of United Kingdomfor the introduction of plain package for their product. According to a report, the company isdeploying its resources that are in operation on a large basis against the global efforts for thereduction of smoking. In the year 2014, the company has spent €5.25million to a lobby controldepartment for maintaining transparency in their activities. According to the media relationmanager of Philip Morris, the financial discrepancies imposed on the company is very fateful asthe company always contributed their views with the decision making process of European
2FINANCIAL REGULATIONUnion (Crosbie, Sosa and Glantz 2018). Further criticisms have been made against the rules thatregulate the contract in between the policymakers and the tobacco manufacturing industries. Lobbying- Definition:Lobbying is an act that attempts to influence the actions or policies made by the officialsin their daily life. Most of the time, lobbying is taken to influence the work of the regulatoryagencies (Berry 2015). According to the ethical principle of lobbying, if any socio-economicpower of someone attempts to corrupt the law for securing his or her own interest that specifiedaction is treated as lobbying (Griffin and Thurber 2015). It has been observed that theprofessional lobbyists are influencing the legislation for progressing their commercial interest.Certain conflicts of interest have been raised at the time when the officials are trying to shape thelaws according to their own perspective (McCambridge, Hawkins and Holden 2014). Theprocess of lobbying is treated as agent misdirection when any government official or privatecompany fails to serve their duties in favor of the public interest. Therefore the word lobbyingcan be defined as an advocacy that is intended to influence the decision made by the governmentfor certain special interest. Considering the nature, the term lobbying is regarded as amicuscuriae and the governments are sometimes treated it as a part of the law to prevent the chances ofpolitical corruption and establish transparency according to the lobby registers (Kim 2017). Foran instance, certain rules have been made to provide advantages to the colored people by theNational Association for the Advancement of Colored People, which has been challenged in1950 by the process of lobbying and the Supreme Court of USA had declared the policies of theorganization as unconstitutional. In United Kingdom, most of the lobbying is made from thecorporate side and the purpose of it is to amend the government rules through advocacy
3FINANCIAL REGULATION(Borisov, Goldman and Gupta 2015). Lobbying is considered as legal process in case the practicehas been professed to influence the political decision.Scenario of the case:In this present case, it has been observed that one of the leading tobacco manufacturer ofthe world have to face lots of trouble due to the policies taken by World Health Organization andthe company has made certain protests regarding the same. In the year 2003, WHO has takencertain framework to control the tobacco and the treaty has been adopted under Article 19 of theconstitution (de Godoy Lusso et al. 2017). The operation of the treaty has been come into forcein the year 2005. The main purpose of the treaty is to protect the current generation from thedetrimental effect of smoking consumption. This treaty has also given much concentration overthe societal and environmental effect of the smoking in this case. A universal standard has beentaken to curb the danger of consume ashes by way of limiting its utilization. The standard isknown as FCTC standard and after the issuance of the standard, many tobacco manufacturershad denied to abide by the regulations. An increment in the tobacco related diseases has beenobserved and Professor Ruth Roemer has taken all the possible steps to apply legal provisions tocontrol the use of tobacco worldwide basis. However, lobbying has been made by the tobaccoindustry against the tobacco control policies taken by World Health Organization. The purposeof the lobbying process was to shift the concentration from health issue to financial loss sufferedby the tobacco industries (Roache, Gostin and Fonsalia 2016). With this intention, the tobaccoindustry has tried to influence the member state delegation. The tobacco industry has takenseveral policies to sloth the implementation process of FCTC by filing more cases before thecourt against it. It has also been pointed out by the tobacco industry that they are the stakeholderof the tobacco control process and they should get the permission to be a member in the decision
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