Tobacco & Third World Countries

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This case deals with the ethical dilemma that Tobacco manufactures face when selling tobacco products in third world countries. First, there is the ethical dilemma of business versus health. The opening and development of the tobacco business in Third World countries like China, Malaysia, Indonesia, India and Africa, is considered against the health consequences of tobacco use which according to an Oxford University epidemiologist, has estimated to cost 3 million lives annually rising to 10 million by 2050 without effective tobacco control program A second ethical dilemma is employment versus impoverishment, where the opportunities for work in the tobacco industry are considered against a background of malnutrition. This is a problem that is certainly worth consideration, but with those who have the power to change things reaping huge profits, I am not sure if anything will be done. 1. Use the model in Exhibit 1 as a guide and assess the ethical and social responsibility implications of the situation described 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...
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