MGT610 Business Ethics Assignment 2 Solution Spring 2014

Case:
Philip Morris (Pakistan) Limited an affiliate of Philip Morris International Inc. (PMI), is a public listed company on the Karachi and Lahore Stock Exchanges. The principal activity of Philip Morris (Pakistan) Limited is the manufacture and sale of cigarettes for Pakistan’s domestic market.
Philip Morris has market repute due to its famous brands which serve each category of tobacco lovers. In this way it is not only generating revenues for its share holders but also providing job opportunities to its employees and supply chain members. On the other side of the picture it is affecting environment and tobacco use is creating cancer and other fatal diseases
Considering above situation you have to discuss:
1. What are the consequences to the environment and how could PHILLIP MORRIS (PAKISTAN) Justify its presence in the industry? (10 Marks)

Cigarette is used for cure of certain diseases so PHILLIP MORRIS (PAKISTAN) can justify its presence in industry as it is used as medicine for specific diseases.  It generates Tax revenue for the Government. Provide employment opportunites and works as a subsidiary industry for other companies. It lowers the knee-replacement surgery those men who uses cigarette face less joint replacement so PHILLIP MORRIS (PAKISTAN) is beneficial product manufacturing from health point of view. It also lowers obesity as it contains a pigment called nicotine which is used to suppressant appetite.

 The life cycle of a cigarette takes a heavy toll on the environment from growing the tobacco plant to the disposal of butts and packaging. Although the ecological impacts of tobacco are overshadowed by its devastating effects on human health, they are nevertheless considerable and a cause for concern. Tobacco cultivation is responsible for biodiversity losses, land pollution through the use • of pesticides, as well as soil degradation, deforestation and water pollution.1 Tobacco plants consume nutrients at a higher rate than most crops.• Cigarette-manufacturing machines use up to four miles of paper an hour to roll and • package cigarettes. Cigarette butts are washed into rivers, lakes and the ocean where they are eaten by • birds, animals and fish. While the global share of agricultural land used for tobacco growing is less than 1%, its • impact on global deforestation is 2–4%, making a visible footprint for climate change.

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