Phillip Morris
Post on 05-Jan-2016
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Megha ChawlaArpit KulshresthaPeeyush MittalRohit GhoshSukhvinder SinghRishi Malhotra
INTRODUCTION
Diverse global workforce of more than 91,000 employees.
Since March 28, 2008, PMI has been independent and is listed on the NYSE.
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.
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.
SUSTAINABILTY EFFORTS
ENVIRONM
ENTAL FO
OTPRINTS
Particular focus on reducing energy from fossil fuels.
Increasing the share of our energy that comes from renewable sources
PRIORITIES
PROG
RAMS
Good Agricultural Practices
Our Contributions Program
Access to Education
Providing Economic Opportunity
Empowering Women
Disaster Relief and Preparedness
P E S T ELPOLITIC
AL
ECONOMICAL
SOCIAL
ENVIRONMENT
AL
LEGAL
TECHNOLOGIC
AL
POLITICAL
ECONOMICAL
P E SSOCIAL
Government policies and programs.
The developed and under developed nations.
The significant increase in cigarette-related taxes.
The demand of tobacco products can be considered as inelastic.
Huge changes on the economic development growth rate are probable to have a parallel effect on the industry volume trends.
Currency exchange rates - net revenues and operating income will be affected by devaluation/strengthening of U.S. dollar and foreign currencies.
The increase health awareness among consumers.
The diminishing social acceptance of smoking represents.
Organizations eg. FCTC.
T EENVIRONMENT
AL
TECHNOLOGIC
AL
New product technologies that may reduce the health problems caused by the consumption of tobacco products.
Need to invest in technologies that will enable them to reduce the business impact on the environment.
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 due to the production of greenhouse-effect gases, such as carbon dioxide and methane; and the irresponsible use of cigarettes is a common cause of forest fires worldwide.
Main catalyst for increase in the number of regulation and legislation currently displayed in the tobacco industry, is the FCTC. The World Health Organization’s (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.
L LEGAL
Analysis of
Current CSR
System
Establishing
Vision for a New CSR
Program
Building Support
and Leaders
hip
Designing a New CSR
Structure
NEED FOR CSR RESTRUCTURING
RECOMMENDATIONS
PMI’s 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 group’s 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.
Health effects of Smoking
Analysis of Current CSR
System
Tobacco regulations
Health effects of Smoking
Youth Smoking Prevention Programs
Illicit Trade of Cigarettes
Impact on Environment
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 StakeholdersAnalysis of Key Stakeholders Identification of Key IssuesIdentification of Key Issues
Setting Goals & Targets
Setting Goals & Targets
Preventive Policies & Procedures
Roles & Responsibilities
Ownership & Communication
Corrective Rewards &
Punishments
MonitoringMonitoring
ReportingReporting
LearningLearning
Strategic Alliances
Standards & BenchmarksStandards & Benchmarks
Managing Risks & Problems
Managing Risks & Problems
Designing a New CSR Structure
Identification of Key Stakeholders Consumers
Employees
Investors
Dealers and Retailers
Society
Governments and NGOs
Suppliers
Manage Closely
Minimum Effort
PromotersLatents
Defendants
Apathetics
Governments and NGOs MediaInvestors
Consumer Employee Dealers and Retailers
Suppliers
Power/Interest Matrix
Archie’s Carroll
Key Issue and Drivers PMI’s 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.
Investors - Accuracy of accounting and financial record keeping, prevention of conflicts of interest and insider trading.
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