The Case of Phillip Morris Becoming Respectable.

Post on 01-Apr-2015

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Transcript of The Case of Phillip Morris Becoming Respectable.

The Case of Phillip MorrisBecoming Respectable

Phillip Morris attempting to

leverage its non-tobacco

credentials to make itself

look socially responsible

Should Phillip Morris be banned from advertising its other products?

NO

Migration Path Encouraged By Taxation and Tobacco Regulation

1950s Now

Tobacco Socially Acceptable

Not acceptable

Phillip Morris

More to other products

Ban Will Thwart The Migration Path

No Ban

Utilitarianism result (greater good for all)

Facilitates Kantian approach (companies fullfilling their rational duties)

Marketing too sophisticated for complete regulatory control

Marketing techniques move faster than

Regulation – British American Racing (F1 Team)

E.G. Viral Marketing

Regulation is not the answer… government

and community must demand ethical companies

Marketing too sophisticated for complete regulatory control

Ethical Duties of the Marketer to the Phillip Morris Customer

• Tobacco is an adult product based on adult choice

• Duty to inform where it can reasonably expect the consumer would not know the consumption costs (cancer).

• Duty to market only to adults, not children

Code of Ethics?

• Arrow contends: : “Codes are not a universal substitute for… taxes regulations and legal remedies”.

• Game theory says the short-term opportunist may cheat

• We say: Codes of Ethics are too rigid to keep up with fluid and evolving community standards

Green Marketing

• Promotion of products / services on the basis that they do not harm, or are beneficial to the environment

• E.g. Dolphin friendly tuna, unbleached toilet paper, chemical free cleaners.

Green Marketing Can Work

• Where there is more than one players

• Where green credential is obvious and people choose on this basis

• Can help “raise the bar”

Green Marketing May Not Work

• Where comparisons are difficult as products are not co-located (e.g coffee shop)

• Where there is no-one to check the claims … who knows if Jo’s coffee bar is really rehabilitating the rainforest area where the coffee is grown?

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