Tobacco

Tobacco Name: Course: Lecturer: Date: Table of Contents History……………………………………………………………………………………3 Corporate stakeholders and response to their issues……………………………………5 The role of the industry in its social, economic, and political setting……………………8 Domestic and international ethics…………………………………………………………9 Ecological and natural resources…………………………………………………………10 Social issues………………………………………………………………………………12 Rating of the industry in relation to University core values……………………………16 Industries have carried most of the economies in the world`s countries. Most individuals in a state depend on the industries for their daily living. Industries are formed for production of various products, and materials for usage within the country or for export. Though there are different products produced by different industries, tobacco is one of them and this paper seeks to look at the history, Corporate stakeholders and response to their issues, The role of the industry in its social, economic, and political setting among others. History Tobacco is a product used by many as stimulant, while others articulate that it`s used for cooling the depression. Tobacco was long introduced in the European countries as early as 1513, by the tobacco merchant by the name Diego Columbus. Initially, the leaves of the plant were used to relieve pain mostly in the ears and toothaches. In the Indians, tobacco was said to be a cure for colds. The Indian deserters also believed it as a cure for asthma and tuberculosis. Those who used it for smoking believed it as a gift from God, and once someone used it. One would feel as if the thoughts were being carried to the creator. Tobacco was introduced in the United States of America, in 1609.This was done by john Rolfe who arrived as the first settler in Virginia. He successfully introduced it, and was used for commercial usage. People in Virginia referred to it as the brown gold, and even went to an extent of using this raw material as a medium exchange of trade. John Rolfe made much production of tobacco which he used to export to other parts of the world including England and Spain. This made him so before travelling back to England with his family (Hirschfelder, 2010). After going back to England, he settled in Jamestown and continued on improving the tobacco quality produced by him. In the United States of America, tobacco collects the highest taxes for the government which accounts for a third of the total internal revenue collected by the state government, making it valued by American citizens and the government. Tobacco became more popular in the United States farms, and started selling much in the shops as many people were interested in smoking. In Australia, this product was introduced in the early 18th century. This was done by some Indonesian fishermen who visited the area. The British produced patterns of tobacco were shipped in Australia in large quantities which made even the indigenous people to get much into smoking. In Africa it was introduced by the white settlers who later colonized this continent and indulged many Africans into slavery in their farms (Hirschfelder, 2010). By the mid of the 18th century, tobacco was all over known and spread in most parts of the world. Its usage was known to many, and following the civil wars in America, most parts of the world where the black people were working as slaves in the farms struggled for their rights, making the industry to have a shortage of laborers. In the year 1881 due to much shortage of laborers in the tobacco farms, machine ware created to revolutionize its production. This made the whole operation of cigarette production from removing the unwanted parts, to the rolling of the cigarette. The introduction of this machine increased the production of tobacco thirteen times more than doing it manually, leading to much industrialization of this produce. In the mid-20th century, the production of tobacco moved from production of natural tobacco and stated adding some stimulants to make it sell more. Stimulant addition was not taken positively as people started rising alarm over health issues. In 1950s, the companies involved in the cigarette advertising activities advocated for production of cigarette with low nicotine and tar. This was done since most people had started using cigarettes and impacts on what is caused by cigarette smoking were witnessed as well the increase on cigarette consumption as shown in the graph below. * A graph showing the increase in the tobacco consumption since 1900. Stakeholders in this industry Just like other industries that exist in the world, tobacco industry also have its stakeholders who make it keep going, and revolving each day. The first stakeholder in this industry is the states government. The government regulates the amount of products that are imported and entering in the country. The government also gives the prescribed areas where the smokers are secluded and given their smoking areas away from the public. This helps in protecting them from contacting the nicotine that is released by the smokers. In order to control the tobacco usage, it imposes high tax on this commodity making its prices to skyrocket for the users to be difficult to afford. The smokers are other stakeholders in this industry, since they are the customers of the product. These customers consume the product according to their social classes. The high ranked social class people smoke the expensive cigars and cigarettes while the low stated individuals use the less costly cigarettes. Age difference and gender also determines a lot to the rate and the kind of substance used. The other main stakeholders in this industry are the producers and the suppliers of the products. The capability of the firms to produce the product determines a lot. In this case, they must focus on the customer`s needs and their social classes before producing the tobacco products. The producers have inherited a good trend of warning tobacco user`s on the hazardousness consequences of smoking tobacco more regularly. This includes the messages like smoking tobacco is harmful to your health, and can lead to cancer among other warnings. The other fundamental stakeholder is the NACADA. This provides campaign to the normal citizens and also gives the government the guidelines on how to handle these issues. * Some of the warning messages advocated and campaigned by NACADA The role of the industry in its social, economic, and political setting The resources used by the firms belong to the community in which they are surrounded by. Therefore it is the role of each firm to involve themselves in the social responsibilities acts. For instance, giving back to the community should be a key issue in an organization. It is also the mandate of each management of any firm to see that it contributes to the economic progress of the country in which it is located. Working with the government of the state in which it is located is another key issue to take care of and handle it with much care. It is the role of the tobacco company`s management teams to see that the effects caused by the tobacco to its users are well taken care of (Statistics on drug abuse in Australia, 2007). This may include providing basic needs to the victims of tobacco abuse. In some cases, setting aside some of their profits to cater for the claims that may be presented against them in courts, basing on the harm and the effects caused by their products may be a good initiative. The companies may also cater for the losses that may arise from unethical issues such dumping and environmental mismanagement processes. For example in 1999, the tobacco industry leader implemented a corporate program where the companies introduced an act to cater and for the homelessness acts, the arts and the domestic abuse. This charitable works made the company to improve its face in the eyes of the public resulting to people liking their services. In the cases of economic activities, the company should pay the taxes dearly to the governments in the countries which they invested or placed their branches. This will help in gearing the economy and create a good environment, and a friendly place for the survival of the enterprise. The economic state of a particular region is more important in the success of any business or investment. This comprises of the overall earning and the persons. Good economic progress reflects the capabilities of the individuals to have a high purchasing power. In the tobacco industry, this will result in the smokers affording the high quality, and expensive products like cigarettes. On the other hand, this will also help the company to get some sympathy from the government, and be charged lowly in terms of the taxes. In marketing issues, the company that adheres and being focused to the country`s economic perspective and goals markets itself well. A company that has a good reputation with its concern with the state`s economic matters shows that it has the intention of making that state a better place. Therefore, the citizens will be imperial to its brands. In matters involving politics, the government is a choice by the majority in the country. Every stakeholder in the country must therefore respect the people`s choice. In order for the tobacco industry to prosper, and market itself and its products well, the industry should be in good terms with the political party and the government in power. With the harmfulness caused by the use of tobacco to the users, the tobacco stakeholder must pay the heavy taxes that are imposed to the by the federal and the central government without any compromise and delays. By doing so, the tobacco industry cements a good base in the country`s premises. Domestic and international ethics Business ethics indicates what is right or wrong for the industry or an individual firm in the corporate world. Ethics involves being in good terms with all the stakeholders in the firms context. Companies must be aware that it is their core role and not a privilege they are performing to the stakeholders. Ethics starts with treating the internal stakeholders well, this is giving the employees their salaries on time, giving them better employment terms and much more, treating the customers and suppliers with tender terms (Williams et al, 2001). In the cases of being ethically responsible in the external affairs, companies should place better terms with their competitors in order to have healthy competitions. Tobacco industry must continue being ethically responsible for all their stakeholders. In the domestic context, the companies in the tobacco industries should adhere to all the terms specified by the governments in which they are formed. They are supposed to take all the responsibilities of the consequences that may accrue to the s...