3. Overview
History of Tobacco in Canada
- First grown by the natives
- In 17th
century grown by French settlers
- During WWI the demand for cigarettes rose
- Until recently tobacco farms were located in Ontario,
Quebec and the Maritimes
Major Tobacco Firms in Canada
- Imperial Tobacco
- Phillip Morris USA
- Rothmans, Benson & Hedges
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4. Stakeholders
• Health Canada (The Government)
Educating about consequences of smoking, issue laws.
• Society
Directly impacted by smoking.
• Shareholders
Use tobacco firms to generate value.
• Employees
Depend on tobacco firms for employment.
• Consumers
Affected by changes in distribution or production of tobacco.
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5. Stakeholders
• Business Partners, Suppliers
Tobacco farmers are heavily invested in tobacco production.
• Communities where plants are located.
Factory closure negatively impacts small communities.
• Media
Promoting anti-smoking message, blocking tobacco ads.
• Environmental Groups
Pressure firms to properly dispose of chemical waste.
• Not-For-Profit Organizations
Pursue various agendas.
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7. Ethical Audit
Industry Canada CSR Implementation
Framework
1. Conduct CSR assessment
2. Develop CSR strategy
3. Develop CSR commitments
4. Implement CSR commitments
5. Verify and report on progress
6. Evaluate and improve
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8. 1. Conduct CSR assessment
• Assemble a CSR leadership team
Imperial Tobacco CSR Committee
• Develop a working definition of CSR
Economic, social, and environmental responsibilities
• Review corporate documents
Business principles and code of conduct
• Identify and engage key stakeholders
Let’s talk initiatives
Ethical Audit
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9. 2. Develop a CSR
• Build support with management and employees
CSR Committee
• Prepare matrix of proposed CSR actions
Expectations on committed issues
• Decide direction, approach, focus areas
Individually, together, and support others
Ethical Audit
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10. 3. Develop CSR commitments
• Discussions with major stakeholders
Stakeholder meetings
• Create working groups
Internal experts and CSR drive team
• Consult affected stakeholders
Listen, decide, deliver
Ethical Audit
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11. 4. Implement CSR Commitments
• Set measureable targets and performance
measures
Key performance indicators not identified
• Engage employees
“Let’s Talk” workshops
• Create communications plans
Internally: Your Voice surveys
External: CiB Award of excellence
Ethical Audit
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12. 5. Verify and report on progress
• Measure and verify performance
Bureau VERITAS independent assurance
• Engage stakeholders
Comprehensive web site inconclusive
• Report on performance
2006-2007 Social Report
Ethical Audit
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13. 6. Evaluate and improve
• Evaluate performance
AA1000 assurance standards
• Opportunities for improvement
Bureau VERITAS highlighted key areas
• Engage stakeholders
Ongoing dialogue with stakeholders
to be republished two years from now.
Ethical Audit
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15. • Product proven to be harmful to the
consumers
• Obligation to shareholders
• In 2006 cigarette sales fell to $2.7 billion
Health Effects
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16. • Illegal sales estimated to be more than
25% of total sales by 2010
• The quality of illegal cigarettes is
questionable
Illicit Trade
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17. • In most cases, long-term addiction begins
during youth
• 30% of underage (15-17yrs) and 60% of 18-
year-old smokers purchase cigarettes at a corner
store
Underage Smoking
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18. • Promoting cigarettes in contravention
of Anti-Tobacco laws
Cigarette girls in clubs
• Laws prohibit sponsoring at sports or
cultural events
Canadian Grand Prix
Questionable Marketing
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19. • Smokeless tobacco products with
fewer health risks than cigarettes
Snus
• Signifies company’s apparent
dedication to harm reduction
• Not proven to help get smokers off
tobacco
More likely a promotional push to get
more people addicted to tobacco
“Healthier” products
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20. Recommendations
• Genuine concerns for health would result in
Imperial Tobacco’s efforts to completely
eliminate tobacco products.
• Healthy alternative uses of tobacco
Food and industrial products
Antibiotics and vaccines
• Entering nicotine gum and patches markets
as a way of generating profits on sales of more
ethical products.
• Improving company performance almost
always comes at the expense of raising moral
and ethical issues
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