CSR Analysis: BAT Russia's Stakeholder Engagement and Ethical Issues

This report provides a comprehensive analysis of the corporate social responsibility (CSR) approach adopted by British American Tobacco (BAT) Russia. It examines the main elements of their CSR strategy, including measures to prevent minor smoking, such as informing retailers about regulations and using graphic warnings on cigarette packaging. The report explores the work done for stakeholders, highlighting employee training programs and initiatives addressing minor smoking in major cities. It also discusses BAT Russia's global CSR initiatives, emphasizing truthfulness, aiming to prevent underage tobacco use, building confidence, and transparency. Furthermore, the report addresses the ethical and CSR challenges faced by the company, such as smuggling and health and safety hazards associated with tobacco use. The conclusion summarizes BAT Russia's efforts in combating minor smoking, adhering to international marketing principles, and managing ethical, sustainability, and CSR issues within the tobacco industry.

Responsible Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Main elements of CSR approach.................................................................................................1
Work done for stakeholders and global CSR initiatives by company........................................2
CSR and ethical problems faced by company.............................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
.........................................................................................................................................................4

INTRODUCTION
Fulfilling responsibilities towards society in which a business is running their operations
is one of the most important aspects for an organisation (Godemann and et. al., 2014). British
American Tobacco is a multinational company. They sell cigarettes in the market and Russia is
very important country for them because it has significant amount of contribution in revenue of
this enterprise. This assignment will discuss about various elements which are included in CSR
approach along with global corporate social responsibility initiatives as well as problems relating
to sustainability and ethics.
TASK
Main elements of CSR approach
Tobacco is harmful for human beings but its sale is not illegal in most of the countries.
Companies operating in this industry have to go an extra mile in terms of CSR because they are
selling a product in market which is taking life of many people. BAT Russia is serious about
their responsibilities towards society and this is the main reason that they have adopted an
impressive approach for following their responsibility. Below are some of its key elements:
Prevent minors from smoking – In every nation, there is restriction on minors to smoke
cigarettes. This product is harmful for adults but they should have complete awareness about risk
of smoking. Many people argue that society cannot decide that what a young person should or
should not do but BAT Russia firmly believes that providing complete information about product
and its impact on the health of human beings is very important because misguiding minors in
order to increase sale of company is not right (Solitander and et. al., 2012). It is a combined
responsibility of public, manufacturer and government bodies to stop young generation from
using a product which is not good for their health especially in the long run.
Sales representatives of BAT Russia do not only take orders from retail sellers but, they
also give them knowledge about government regulations and provisions. They communicate
them information about consequences of smoking and ask them for stopping the sale of
cigarettes to minor as it is illegal. This company is taking assistance of other firms of same
industry for developing a brochure which contains details about law against using tobacco
products by under 18.
1

Graphic image on packet of cigarettes – BAT Russia is following all the regulation
regarding packaging and advertising. Packets of their offerings has warning sign on it i.e.
‘smoking kills’. It covers almost 30% of the package with graphics. Photos contain the negative
impact of smoking. According to the regulation, more than 50% of the package has warning
about how dangerous are tobacco products on its reverse side. Besides this, company has not
changed the quality of their products. They still focus on meeting the demand of customers.
Work done for stakeholders and global CSR initiatives by company
Employees are considered as significant stakeholders of every organisation. Public
council in Russia is continuously organising programmes for resolving the issue of minor
smoking. BAT Russia is actively taking part in these events and workers of this company are
getting training so that they can spread the message and make people aware about seriousness of
this problem (Leone and et. al., 2013). Customer and public are key stakeholders of this
company, raising this social issue in major cities is responsibility of every entity who is operating
in tobacco sector.
BAT Russia firmly belief that following rules, which are mentioned in internation
marketing principle, is very important. This organisation has raised voice against minor smoking
globally and use of tobacco by pregnant women. There are four initiatives which they have taken
for fulfilling their corporate social responsibilities:
Truthfulness – This organisation always believed in earning trust of customers, this work
can only be done by telling truth to buyers. BAT Russia is communicating with trading partners
and consumer, they are explaining them result of the scientific research which is done by
company.
Aiming – This enterprise is working in the areas of checking relatability of the age which
is provided by a children. They understand that minor can buy tobacco product giving wrong
personal information (Policies, principles and standards, 2018).
Confidence – BAT Russia do not want their product to look attractive and they do not
believe in sending the message that by smoking their cigarettes someone will become successful.
Transparency – This company does not support veiled marketing activities and their
customer have complete detail about organisation's product.
2

CSR and ethical problems faced by company
Any enterprise, who make or sell tobacco product, has to cope up with issues regrading
ethics and corporate social responsibility because basically they are selling a commodity which
is taking life of millions of people every year (Ford, Moodie and Hastings, 2012). Below are
some problem which BAT Russia is facing:
Smuggling – Before few years, sales of this company increased in international market.
Many people believe that they smuggling of their cigarettes is the reason behind earning more
profit because BAT Russia may have started selling their products in black market. This ethical
issue created new trouble for company and promoted a bad image of enterprise in the market.
Many people argued that this organisation is only focusing on minor smoking, they are not
serious about other CSR activities which also included smuggling.
Heath and safety hazard – Their is no doubt that tobacco is responsible for death of
millions. It causes respiratory and oral cancer. BAT Russia is facing an ethical dilemma, they
have the paste graphic about danger of smoking cigarettes but at the same time they have to
increase their sale by using various marketing techniques. A NGO, authorised WHO, once
claimed that this organisation denied to talk about issues related to ethics. This is a matter which
is also related to sustainability of business (Weiss, 2014).
CONCLUSION
At the end, it can be concluded that BAT Russia is doing lot of work for fighting the
issue of minor smoking. At global level, they have taken various initiates in order to follow
international marketing principles. They are facing issues relating to ethics, sustainability and
CSR.
3

REFERENCES
Books and Journals
Ford, A., Moodie, C. and Hastings, G., 2012. The role of packaging for consumer products:
understanding the move towards ‘plain’tobacco packaging. Addiction Research &
Theory. 20(4). pp.339-347.
Godemann and et. al., 2014. United Nations supported principles for responsible management
education: purpose, progress and prospects. Journal of Cleaner Production. 62. pp.16-
23.
Leone and et. al., 2013. Treatment of tobacco use in lung cancer: diagnosis and management of
lung cancer: American College of Chest Physicians evidence-based clinical practice
guidelines. Chest. 143(5). pp.e61S-e77S.
Solitander and et. al., 2012. We are the champions: Organizational learning and change for
responsible management education. Journal of Management Education. 36(3). pp.337-
363.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Online
Policies, principles and standards. 2018. [Online]. Available
through:<http://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/
DO9EAMHQ>.
4