Business Ethics Analysis: Big Business Tobacco Case Study Solution

This case study analyzes the ethical challenges faced by Big Business Tobacco (BBT), an Australian tobacco manufacturer, as it expands into the Asian market. The central conflict revolves around whether to include health warnings on cigarette packs, as mandated by Australian law. Randall Hedges, the public relations manager, advocates for the warnings based on medical findings predicting significant health consequences, while Mary Bender, the marketing manager, opposes them, prioritizing profits and market share. The analysis explores the ethical dilemma, considering the clash between organizational sustainability and customer health. The author argues that, as Randall Hedges, they would conduct a market survey and include the health warning, aligning with deontological ethics and the ethical responsibility to prioritize the health of consumers. The case study further discusses the application of Kantian ethics and its role in resolving the dilemma, emphasizing the importance of long-term sustainability over short-term financial gains. The paper references academic sources to support its arguments, providing a comprehensive examination of the ethical considerations in the tobacco industry.

Running head: BUSINESS ETHICS
BUSINESS ETHICS
Name of the student
Name of the university
Author note

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Ethics play a major role in upholding the efficacy of the business functions. Business
ethics is based on the CSR undertakings, which supports the business activities as per the
concerns of the community stakeholders. As per the case, Big Business Tobacco (BBT) is the
leading manufacturer of tobacco based products in the Australian markets. Randall Hedges, the
company’s public relations manager, found that the tobacco products has resulted to hundreds
and thousands of deaths. Therefore, Hedges thought of including a health related warning,
which would make the user aware of the harm of consuming the tobacco- based product.
However, Mary Bender, the marketing manager of the organization, opposed the view of
including a health related warning in the cigarette packages as it might cast away the customers,
which might result to a degradation of the sales of the organization. The organizational
management faced the ethical dilemma in this standpoint where the organizational sustainability
clashed with the sustainable factors of the customers.
If I was Randall Hedges I would have undertaken a market survey in order to identify the
different aspects of the customer’s buying behaviour. It will be helping me to determine the
demand of the tobacco products in the specific market conditions. On the other hand, I would
have taken steps to include the health related warning in order to conduct an ethical business
operation. The sustainability of the business is based on the sustenance of the customers of the
same (Milanović and Bučalina 2013). The identification of the different ethical standpoints of
the business will be helping me to conduct the business in more viable form. According to the
deontological ethical theory- “....ethics is grounded in notions of duty and it follows from this
that some acts are morally obligatory regardless of their consequences.” (Follesdal and Maliks
2013). The inclusion of the health warning on the cover of the tobacco products might create
awareness among the people and thereby might depreciate the sales volume. However, the

2BUSINESS ETHICS
adherence to the ethical standpoints is clarified through the inclusion of the health related
warning. The key elements of the ethics are based on the social responsibility that is enforced on
the public relation manager of the organization. Therefore, if I were Randall, I would have
included the statutory health warning on the packages of the tobacco products regardless of the
consequences of depreciating sales volume of the business.
Therefore, adherence to the ethical theories will be helping the organization in
maintaining the ethical standpoints. On the other hand, the dilemma that is faced by the public
relation manager of the organization, Randall, is based on the depreciating sales volume through
the inclusion of the health warning. However, the application of the Kantian ethical theory has
helped in simplifying the dilemma over Utilitarianism theory. It has helped Randall in making
the correct decision as per the objectives of undertaking an ethical venture. The key changes in
the approach will be helping the business in maintaining its long term sustainability over its short
term bottom line mentality.

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References
Follesdal, A. and Maliks, R., 2013. Kantian theory and human rights. In Kantian Theory and
Human Rights (pp. 23-29). Routledge.
Milanović, V.M. and Bučalina, A.D., 2013. Theoretical aspect of the development of'corporate
social responsibility'concept. Megatrend revija, 10(3), pp.155-180.