Tobacco Case

Exhibit 1 is a decision tree. A model for incorporating ethical and social responsibility issues into multinational business decisions. The decisions are decided by the users’ responses to a number of relevant questions regarding the matter at hand. The first question the model asks is whether the decision efficiently optimizes the common good or benefits of the business firm, society, the economy, and the individual. From the tobacco business standpoint, the answer is yes it does. They are making huge profits my doing business in the Third World international markets. Next the economy benefits because Third World government often profit from tobacco sales. Brazil collects 75 percent of the retail price of cigarettes in taxes, over $100 million per month. As far as the society is concerned, one could argue yes to this point as well. The people living in these Third World countries are not living in the best of conditions. Our US tobacco manufactures offer them a small escape from their world to our more affluent western world by smoking our products. This is questionable because the idea of tobacco benefiting any society is one that is man made, in that the idea is spawned through aggressive advertising and promotions. You ask the people who live in these societies they most all agree, being like their friends in the west no matter how brief is like heaven. Lastly, when considering the individual there are two perspectives to consider, the individual form his/her perspective and the individual from our (western) perspective. The individual viewed from there own perspective most certainly votes yes to the question. They do feel as thought they have the freedom of choice and feel very good about the benefits that the tobacco industry gives them; a taste of the good life if you will, while more importantly providing the regions with long sustainable employment. On the other hand, we westerns, see these issues much different. Smoking is viewed as a luxury here. We would like to think that if our country was suffering a malnutrition epidemic, that the tobacco products would be the first to go. From a western point of view we would vote no, because these people are dying from a product that they don’t need. The Tobacco industry is making huge profits at the expense of the people of Third World countries. 


After having determined that the decision optimizes the common good of all involved, we are now faced with the question of rights.

Does the decision respect the right of the individuals involved? The answer here is a definite yes. The people have to right to make the best decision for them. It is hard to cast a judgment on a corporation that provides the tools for our many vices here in the states. Does the corporation decision respect the canons of justice or fairness to all parties involved? The answer to this question is no. The fact the tobacco industry