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Dr Mary Assunta

Regional Workshop on

Industry Surveillance & Monitoring

Bangkok

Nov 2009

CSR – Last Frontier, Post FCTC Bans on

Advertising, Promotions & Sponsorship

By far the most challenging issue

Tobacco company names are used, instead of

cigarette brand names

Carried out through foundations

Industry efforts to rebirth or reposition its image

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WHO Report on CSR

Tobacco industry and

corporate responsibility...

an inherent contradiction

2004http://www.who.int/tobacco/communications

/CSR_report.pdf

Fundamentally...

An industry that kills half its customers

prematurely cannot be considered

„socially responsible‟

“Corporate Social Responsibility”

and

“Tobacco industry”

is an “OXYMORON”

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Issues Targeted for CSR

Issues that buy public support and gain political

mileage

Youth Smoking Prevention (YSP) Programme

Environmental programmes

Women‟s causes

Children‟s plight

Poverty/community activities

Disaster relief

Cultural and sports awards

What CSR activities mean to the industry

“Feel-good „social-responsibility‟ campaigns by

tobacco companies help the industry not only to

sway political and public opinion but to continue

to recruit effective sales people and boost

employee morale.”

Source: American Journal of Public Health, Burning Love: Big Tobacco Takes Aim at GBT Youths, July 2002, Vol 92, No. 7, ww.ourbodiesourselves.org/uploads/pdf/apha.pdf

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Industry CSR activities in SE Asia

Philip Morris‟ CSR in SE Asia

Country Recipient CSR Activity $$$

Indonesia PT Sampoerna Foundation SF University Project 5,000,000

PT Sampoerna Foundation Computer Donation Program 89,993

Jakarta Society for Disabled Children (YPAC)

Medical and Educational Facilities Donation

6,445

Malaysia Yayasan Salam Malaysia (SALAM) 2008 Back-to-School Program for Farmer's children

80,000

Yayasan Salam Malaysia (SALAM) IT centers to promote computer literacy

47,988

Yayasan Salam Malaysia (SALAM) Donation of refurbished computers & DVD-ROM drives

In-Kind

Philippines Philippine Band of Mercy Cigarette Butt Litter Campaign 49,201

Philippine Band of Mercy Sustaining the National Social Development Fund Y5

196,802

Philippine Band of Mercy Support to Capacity Building Programs of RHRDC

49,200

Philippine National Red Cross Disaster Relief for Typhoon Mina 7,541

Philippine National Red Cross Disaster Relief for Typhoon Fran 45,310

Philippine Band of Mercy Support for the Poor 375,940

Knowledge Channel Found Inc. Proficiency Measures for Quality Education 2008

733,191

American Chamber Foundation Philippines Inc

Additional Development Fund for Child Labor Study

15,000

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Country Recipient CST Activity $$$

Thailand Human Development Foundation (HDF)

School Sponsorship & Nutrition for HIV/AID patient

46,950

Population and Community Development Association

Water from Health to Wealth-Rainwater

151,699

Population and Community Development Association

Community Capacity Building & Village Bank

61,030

Dr Kovit Vorapipat Foundation Support to the educational system 6,091

Thai Rath Foundation Thai Rath Witthaya Schools 6,091

Vietnam Vietnam Red Cross (VNRC) Emergency relief to typhoon/flood victims

49,900

Industry Corporate Social Responsibility (CSR) programmes – YSP Programmes

Country PM BAT JT Others

Cambodia X XIndonesia X (Sampoerna) and Eaprindo

Laos X XMalaysia X X CMTM

Philippines XTaiwan X Taiwan Tobacco Asso

Thailand X X Thailand Tobacco Monopoly

Vietnam X X Vietnam Tobacco Corp

Japan X X X TIOJ

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Confederation of Malaysian Tobacco

Manufacturers (CMTM) produced

YSP posters such as this

BAT-VINATABA funded School YSP

through Youth Union in Ho Chi Minh City.

(Source: Ho Chi Minh City Youth Union, 2007)

The logo for Philip Morris‟ YSP

programme since 1999

YSP Programmes Across ASEAN

What Philip Morris says about YSP

“As we discussed, the ultimate means for determining the success of this (youth) program will be: 1) A reduction in legislation introduced and passed restricting or banning our sales and marketing activities; 2) Passage of legislation favourable to the industry; 3) Greater support from business, parent, and teacher groups.”

- J.J. Slavitt, Philip Morris, 1991

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Why Industry conducts YSP Programmes?

Help the industry to lobby against effective tobacco control laws – continue promotions

Increase industry credibility

Preserve the industry’s access to youth

Create allies and preserve industry’s influence with policymakers and regulatory bodies

Diffuse opposition from public health advocates, educators and parents.

Marginalize public health advocates by making them appear ‘extreme’

Environment:CSR Programmes prey on the vulnerable

Thailand: Train the trainer : Children’s Riversand Stream Sponsorship Investigation Project

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Vietnam: Publicity around BAT-VINATABA Reforestation programme, 2005

Cambodia: A tree nursery in Kampong Cham, October 2006

Supporting Environmental Causes - Diversion from its Destruction of the Environment

Philippines: PM exploitation of the Poor

Philip Morris Philippines

Individual small-scale irrigation facility given to selected tobacco farmers in Ilocos Region

Tanauan, Batangas, training 70 youths from 15 barangays, on auto detailing, masonry and painting.

Contributes to organizations that work to make an impact in the areas of education, the environment, arts and culture, social services, and disaster relief throughout the country.

Source: http://pbsp-abetterlife.blogspot.com/

Photo: http://pbsp-abetterlife.blogspot.com/

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An event organized by the American Chamber of Commerce and Royal Thai custom and sponsored by companies,including Philip Morris (Thailand, 2007)

Activities that Enable close association with Key Government Departments

Offering scholarships to poor students (particularly females) buys public favour (Indonesia, 2007) Source: http: www.sampoernafoundation.orgPhoto: Courtesy NCCP

Exploiting public festivals through sponsorship activities puts the company within easy reach of the public, especially minors Cisadane 2007 (Indonesia, 2007)Photo: Courtesy NCCP

How Industry Silences Public Criticisms

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Exploiting the poor in Thailand: TTM establishing its public relations by providing fund to support the community (2007)

Exploiting the Poor

Big publicity around BAT-Vinataba US$6,817 for victims of a typhoon in Central Vietnam, 2006

Sai Gon Tobacco company donated 2 houses to Tam Phuoc Commune, Chau Thanh district, January 2007 (Source: Ben Tre province website)

What is the price of 2 houses to the profits?

Big Publicity for Small Handouts

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BAT in Vietnam

Yet another new term - CSI:

“In Vietnam, our Corporate Social Investment Programme focuses on improving the economic and social life of needy people. We also look to working with relevant partners on environmental projects. As such, the Programme covers a wide range of activities including: Funding for poverty alleviation, transfer of sustainable agricultural techniques from experts to farmers, upgrading communal libraries, supporting the afforestation programme.”

Source: www.batvietnam.com

Philippines Art Award receivedpublicity in the media.

Special Awards

Very few ASEAN countries still allow Philip Morris Art Award

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BAT’s Social Report Dialogue with Stakeholders

Asia Pacific Region 2001/2002: Australia, Hong Kong, Sri Lanka, Malaysia

2002/2003: Bangladesh, Fiji, New Zealand

2004/2005: Korea, Pakistan

A Lesson in Ethics for the Industry

Dropped after protest

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Advocacy Lessons

It is possible to stop an unethical industry activity

It only takes a few persons to get things moving

There are allies willing to cooperate

Possible to easily consolidate similar distaste in many areas of the business community

Actions to “denormalise” the tobacco industry by stopping its efforts to associate itself with other industries

Arguments against CSR activities

1. Industry sponsored YSP:

Implement FCTC Article 13 Guidelines

FCTC Article 5.3 warns Parties to protect tobacco control measures from interference from the tobacco industry

Industry sponsored YSP don’t work, public education should be the responsibility of government

Graphic pack warnings are an effective way to educate public and the young

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Arguments against CSR activities

2. How much does the industry spend on scholarships

How much does the industry make from minors?

3. How much does the company hand out to community projects?

How much $$$ do the poor spend on tobacco?

Discussion

What is your source of CSR activities?

How much detail information is needed?

Who do you talk to for more information?

How do you verify information about CSR?

How do you handle sensitive information on CSR?