BAT reputation – Bad reputation?

Résumé du document

Corporate social responsibility, mostly quoted as CSR can be the most important point in corporate communication for some companies. Why is corporate responsibility such a famous expression? Corporate social responsibility is “a commitment to improve community well-being through discretionary business practices and contributions of corporate resources” (Kotler, 2005). It is a strategic business tool that has been in the focus of numerous corporations in the past 5-10 years (Kotler, 2005).

In the last few decades, people have tended to realize the finite capability of our planet and the fact that the human body gets strength from it, and they have therefore developed from customers to conscious consumers, who want to take personal responsibility for every situation affecting the environment and human life. Both points are present in the company's operations we have chosen to analyze: the global tobacco industry member British American Tobacco.

Producing tobacco products which pose serious risks to health, operating in emerging countries, trading worldwide are just a few of the many precarious issues it deals with. To be successful, it is crucial that stakeholders get a positive, trustworthy image about the organization. Corporate image derives from corporate identity – which the company projects about itself – including visions, mission statement, organizational culture, and the legitimacy of its operations, including its products and services (Hellum 2010). In case of BAT, the basic importance is on legitimacy which according to Hellum (2010 17) is: “Organizations are perceived as legitimate when their goals and activities are seen as legitimate.”
The question left is our case study question itself: is it possible for a tobacco industry firm to gain positive image amongst all its stakeholders while being aware of the fact that its products pose significant risk to health and are questioned in all societies?
To deliver an answer regarding this issue, first we summed up BAT's history and characteristics, then we looked into the matter of corporate communication detailed. At the end of our study a short summary can be found, which is followed by our conclusions and findings.

Extraits

[...] This is a key to start working on developing good reputation for a tobacco manufacturing firm. The company is investing in its employees and environmental protection to prove its best intentions. Since their products are harmful and health- damaging, the only action they can take to prove concern and commitment to people's well-being is by undertaking environmentally and socially responsible activities Socially Responsible Production The Social Responsibility in Tobacco Production (fatherly referred to as SRTP) program that BAT implies is a tobacco producing and manufacturing strategy that integrates the best processes to achieve maximum output in the most resource-conscious and environmentally friendly way (BAT, 2010). [...]

[...] The organs reviewing BAT's operations are as follow: the Board CSR Committee and regional and audit CSR committees. By spreading the power of control to both centralized and local bodies ensure that local needs are taken into consideration as well as the overall goal of the company. The committees discuss social, environmental and corporate citizenship issues three times a year and evaluate BAT's policies on the field of reputational risks as well. That means that they assess their performance according to the primarily set benchmarks and indicators and make adjustments if necessary. [...]

[...] A set of requirements (e.g.: iso standards, etc.) have to be met before a brand or product can be merchandised on the market. The aim of BAT is to optimize the blends in order to show responsibility and commitment to tobacco production. Proving that their overall actions are a set of integrated processes to serve the customers on a high quality level is crucial to create trust towards both the corporation and its products. Once trust is created we can say that the positive image is successfully projected and the positive reputation of the company can be easier achieved Operating responsibility Apart from optimizing their production processes, and placing emphasis on harm reduction and trustworthy quality, BAT engages in undertaking and promoting environmental protection activities and engages in CSR. [...]

[...] These initiatives also contribute to building a positive image for the venture Health issues 1. Providing information British American Tobacco is aware how important it is to communicate with the public regarding health issues and concerns. Therefore it is the policy of BAT to provide information about the possible damages of smoking and their harmful effects on health and environment. Furthermore, to prove their commitment to raising awareness, they offer a section on their website detailing the ways to quit smoking and how people can omit this habit in the easiest possible way. [...]

[...] Sustainability For summarizing the essence of BAT's overall policy, we have to state first that all the actions of BAT are subordinate to the concept of sustainability. business began over a century ago in countries such as India, Nigeria, Malaysia, South Africa and China and its growth has always been linked to the economic and social development of the countries where we operate. We do not claim to know all the answers or to get everything right every time. But we work hard to do business in ways that balance the economic, social and environmental dimensions of sustainable development.” BAT, 2010) As mentioned above, the company's visions point out what actions have to be undertaken to reach the goals stated in the mission statement. [...]