Analyzing Business Ethics: The Case of Philip Morris International

This essay delves into the business ethics of Philip Morris International (PMI), examining the company's commitment to creating a smoke-free future in light of its continued production and sale of tobacco products. The analysis incorporates ethical theories from Immanuel Kant and Jeremy Bentham to evaluate PMI's actions. Kant's perspective suggests that PMI is treating consumers as a means to profit rather than ends, while Bentham's utilitarian view acknowledges the pleasure some derive from smoking but highlights the detrimental health effects. The essay concludes that while PMI is making efforts to improve its image and meet corporate social responsibility goals, its core business practices remain ethically questionable, raising concerns about misleading consumers and prioritizing profit over public health. Desklib offers similar essays and study resources for students.

Exploring business ethics

TABLE OF CONTENTS
QUESTION 2..................................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

QUESTION 2
INTRODUCTION
Business Ethics is concerned with conducting the activities which are fair and significant
kind of activities so that positive working environment can be developed. In the current era,
awareness regarding the business ethics has inclined which require firm to pay attention on
developing significant strategy that can allow to achieve positive outcome. For this purpose,
number of course of action are adopted by company for ensuring that higher profitability with
maintain sustainability can become possible. The current study is based on evaluating how
case regarding Philip Morris International (PMI) practices regarding commitment of creating h
smoke free future. It will involve information from the perspective of Immanuel Kant and
Milton Friedman.
MAIN BODY
Philip Morris International is one of the biggest company that has significant level of
growth and market share in the manufacturing sector. The company has taken several course of
action for improving its financial and non-monetary position. It is recognized as the one of the
bestselling organization that has allowed it to grab the strong position in the sector. In addition
to this, company pay attention on compliance with American corporate ownership for pursuing
the growth & market share in both domestic & international market. There are number of
objectives which are formulated by the company in order to accomplish its social corporate
responsibility which is essential part of business ethics (Sroka and Szántó, 2018.). Factors of
products such as material, et car obtained from society so it is important for the company to do
welfare for them so that higher profitability and sustainability can be derived.
For this purpose company has promised that it will create smoke free future by
eliminating the usage of health hazardous commodities. In respect to this, m company has
legally purchased Vectura which is one of company that has specialization in manufacturing
the commodities that can cause respiratory diseases and asthma. This course of action can
allow the firm to meet the objective so that higher profitability & stability with ensuing good
brand image. These promises made by the firm are perfectly opposing from the activities
conducted by the company. There are several products which are offered by PMI to its targeted
segment for generating revenue so that higher strong financial condition can be exerted. This
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products make people easily addictive and may cause preventable death global which is one of
the crucial reason that has evident that it is adversely impacting health (Ferrell and et.al., 2019).
There are several types of business ethics theories which helps in gaining the depth
understanding regarding the prevailing issues in turn appropriate strategy for improvement can be
identified. Immanuel Kant has developed theory which indicates that mortality emanates from
reason which makes crucial to act in accordance with universal moral law. according to this
particular theory consumer should not be only treated as the means of generating profit but use
them as end by ensuing that proper product with standard quality is provided (Davani, 2020). It
implies the business with the obligation that it should concentrate on treating people with respect.
From this perspective it can be identified that Philip Morris International as being manufacturing
of tobacco products not focusing on accomplishing its responsibilities to meet the objective.
From the overall revenue of the company 70% of revenue is generated by selling cigarettes that
has adverse influence on health of people.
On the basis of particular theory it can be identified that the goal of making smoke free
environment by selling larger number of cigarettes cannot become possible. PMI is only using
the consumer as means of higher profitability and not giving emphasis on improving their
health. From the analysis of the case it can be identified that crucial course of action to decline its
smoking impact on customer has been applied by the business but which is not enough. On the
basis of this it can be articulated that firm is completely not working as per the ethical
consideration that can impact negatively in longer run. In addition to this, it is expected from the
specified theory to fulfill the organizational objective of gaining competitive advantage by
maintaining significant compliance with business ethics such as respect, quality products, etc.
Jeremy Bentham has propound the of business ethic that indicates that particular action
can be referred as right if tend to give happiness and pleasure (Zoshak and Dew, 2021,). In
addition to this, it has been articulated in the theory that course of action taken which promote
unhappiness and pain is considered to be non-ethical. From this theory perspective it can be
recognized that smoking tend to give pleasure to the consumers. On the other side, it has adverse
influence on the functioning of people. There are several objectives which are computed by
company for its personal benefits but tend to offer pain to the consume. Smoking is considered to
be injurious to health but taken into consideration for reliving stress. On the basis of the
articulated theory regarding the action which is executed by firms is negative and required to be
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improved to have good future. From the analysis of the given information regarding the provided
details with respect to the highlighted theory that Philip Morris International (PMI) is
conducting non ethical activity. It is manufacturer of tobacco products for which it has taken
certain course of action to incline the ability to reach towards the formulated goal. There
should be much emphasis should be provided by the company for gaining the higher outcome
which can benefit the consumer in both social and health related perspective.
CONCLUSION
From the above study it can be conducted that ethical conducting is highly essential for
having productive performance and good impact on society. From the evaluation of conducted
case it has been identified that the Philip Morris International is performing good which is
making its financial position strong. From the perspective of drawn theory such as Jeremy
Bentham & Immanuel Kant that accomplishing social responsibility is important to gain for
attaining ethical responsibility. According to this theory PMI is not functioning ethically as
misleading consumer with formulated objective of smoke free future. In addition to this, it is just
focusing on benefiting its organizational goals with creating good image in market.
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REFERENCES
Books and Journals
Davani, M.R.E., 2020. Business ethics (pp. 182-199). De Gruyter Oldenbourg.
Ferrell, O.C. and et.al., 2019. Business ethics, corporate social responsibility, and brand
attitudes: An exploratory study. Journal of Business Research. 95 pp.491-501.
Sroka, W. and Szántó, R., 2018. Corporate social responsibility and business ethics in
controversial sectors: Analysis of research results. Journal of Entrepreneurship,
Management and Innovation. 14(3). pp.111-126.
Zoshak, J. and Dew, K., 2021, May. Beyond Kant and Bentham: How Ethical Theories are being
used in Artificial Moral Agents. In Proceedings of the 2021 CHI Conference on Human
Factors in Computing Systems (pp. 1-15).
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