Megha Chawla

Arpit Kulshrestha
Peeyush Mittal
Rohit Ghosh
Sukhvinder Singh
Rishi Malhotra

INTRODUCTION
Started by Mr. Philip Morris in 1847.
Leading international tobacco company
Owns 7 out of the top 15 international
brands in the world.

Goals high quality and innovative

products for adult smokers.
superior returns for
shareholders.
Operating the business
sustainably and with integrity.

Diverse global workforce

of more than 91,000
employees.
Since March 28, 2008,
PMI has been
independent and is
listed on the NYSE.

CODE OF CONDUCT
Communicating on the health effects
of smoking
Advocating comprehensive tobacco
regulation on harm reduction.
Enforcement of laws on minimum age
for tobacco purchase and
implementing youth smoking
prevention programs
Combat illicit trade in counterfeit
cigarettes
Reduce impact on environment
Promote sustainable tobacco farming
Support local communities through
charitable giving

Agricultural Labor
Practices (ALP)
program
For addressing
the problems of
child labor.

 Particular focus on reducing

energy from fossil fuels.

Increasing the share of our energy

that comes from renewable sources

ENVIRONMENTAL
FOOTPRINTS

SUSTAINABILTY EFFORTS

 PRIORITIES

 PROGRAMS

Good Agricultural Practices

 Our Contributions Program

Disaster Relief and Preparedness

Providing Economic
Opportunity
Access to Education
Empowering
Women

P E S T L E
POLITIC
AL
ECONO
MICAL
SOCIAL
TECHN
OLOGIC
AL
LEGAL
ENVIRO
NMENT
AL

P
POLITIC
AL

Government
policies and
programs.

E
ECONO
MICAL

The demand of tobacco

products can be considered as
inelastic.

The developed and Huge changes on the economic

under developed
development growth rate are
nations.
probable to have a parallel effect
on the industry volume trends.
The significant
Currency exchange rates - net
increase in
cigarette-related
revenues and operating income
taxes.
will be affected by
devaluation/strengthening of U.S.
dollar and foreign currencies.

S
SOCIAL

The increase health

awareness among
consumers.
The diminishing social
acceptance of smoking
represents.
Organizations eg.
FCTC.

T
TECHN
OLOGIC
AL

New product
technologies that
may reduce the
health problems
caused by the
consumption of
tobacco products.

E
ENVIRO
NMENT
AL

Highly affected by weather and

climate changes.

The tobacco growing is pointed

as a cause of deforestation in
many areas of the world;
smoking is considered as a
contributor to climate change
Need to invest in
due to the production of
technologies that will greenhouse-effect gases, such
enable them to
as carbon dioxide and methane;
reduce the business and the irresponsible use of
impact on the
cigarettes is a common cause of
environment.
forest fires worldwide.

LEGAL

Main catalyst for increase in the number of regulation and legislation

currently displayed in the tobacco industry, is the FCTC. The World Health
Organizations (WHO) Framework Convention on Tobacco Control (FCTC
Tobacco consumption reduction measures encloses: regulations on sales to
minors; bans on advertising, marketing, promotions and sponsorships;
restrictions and bans on the use of ingredients, such as: ceilings on tar,
nicotine, carbon monoxide and other smoke constitutes; litigations against
tobacco product manufacturers; restrictions on smoking in public areas; bans
on the sale of duty free tobacco sales; plain packaging, among other
legislations.

RECOMMENDATIONS
NEED FOR CSR
RESTRUCTURING

 PMIs code of conduct says very little about the expected behavior from
employees both inside the company as well as when dealing with outside
stakeholders like suppliers and customers.
It does not cover important areas like responsible advertising and marketing
as well as human rights, two issues that have plagued the company in the
past.
Imperial Tobacco Group of UK - has published a 65
page long document detailing the groups stands on a
much more comprehensive list of issues including
business and trade integrity, responsible commercial
practice and code of conduct in the workplace.
The Imperial Tobacco group also includes what the
company expects its employees and other stakeholders
to do and not do, something which is missing in the code
of conduct of Philip Morris.

Analysis of
Current
CSR
System

Health effects of
Smoking

Illicit Trade of
Cigarettes
Impact on Environment

Tobacco regulations
Health effects of
Smoking
Youth Smoking
Prevention Programs

Charitable Giving

Building
Support
and
Leadership

Involves influencing and educating the

various internal stakeholders
Buy-in from the board of directors and
executive level management

Bad Press

Comprehensive
CSR Program
Sustainability
Report

Analysis of Key Stakeholders

Setting Goals
& Targets

Preventive
Ownership &
Policies & Procedures
Communication Roles & Responsibilities

Corrective
Rewards &
Punishments

Monitoring

Managing
Risks &
Problems

Standards &
Benchmarks

Designing a New
CSR Structure

Reporting

Strategic
Alliances

Identification of Key Issues

Learning

 Identification of Key
Stakeholders

Consumers

Employees

Society
Investors

Dealers and
Retailers

Suppliers

Governments
and NGOs

Latents

Promoters

Manage Closely

Power/Intere
st Matrix

Governments and
NGOs
Media
Investors
Defendants
Minimum Effort
Dealers and
Retailers
Suppliers

Apathetics

Consumer
Employee

 Archies Carroll

 PMIs Code of Conduct

Marketing and Responsible

Labor Practices

Employees - Codes of conduct

governing business integrity
issues like money laundering and
bribery and employee treatment
issues like discrimination and
harassment.

Key Issue and Drivers

Investors - Accuracy
of accounting and
financial record
keeping, prevention of
conflicts of interest and
insider trading.