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Abstract

 

Quite a lot has been said and done about Business Ethics. Several studies have been conducted emphasizing on the importance of what and How in business environment. However there has been put quite little effort in describing in a unified term of what business ethics exactly asks. Nevertheless existing giant businesses have not been scrutinized of their ethical practices.

 

This study is an attempt to investigate what ethics does Tobacco Industry practice. The case of Pakistan is taken to complete this research so as to check in absence of strict government regulations how responsible does the industry behaves. Cost Benefit analysis procedure for clarifying this ethical dilemma shows that in the absence of strong health hazard data the industry's overall functioning can be considered ethical under utilitarian school of thought. This is because the number of beneficiaries of the industry in a developing country like Pakistan is immense and the recognized harms are comparatively less. This thesis gives the real coaster effect when these results are revealed.

 

However this is a deductive study that leads to further research questions and discovers new undiscovered ventures to explore.

 

Introduction

 

Ethics is mostly known as the study of decision making that while doing this considers the widely accepted moral standards. One of the ethical questions however is the ethical dilemma, in which an issue has two conflicting bur arguably valid sides. A classical ethical dilemma example can be of the debate on allowing the tobacco companies to advertise. If allowed to do so then that means encouragement of an unhealthy practice but on the other hand if they are not allowed to advertise then it is clear discrimination between rights.

 

Similarly Employees have the right to privacy, but employers also have right to expect safe, competent behavior from employees. Now who is to decide the winner between employees choice of taking drugs or employers' liberty to let undergo their employees through drug tests? Many such ethical questions are faced by managers every day.

 

The common theme in all ethical dilemmas is a clash between the privileges of two or more stakeholders over one another. Traditionally, the place of ethics in business practices has been to supply a decision procedure or some formal normative orientation. The place of ethical theory in the making of business decisions is problematic, and the symptoms are numerous. This can be seen, for example, in the difficulties authors of 'business ethics' texts often have in employing ethical theories to resolve or clarify issues of ethical or social concern.

 

In my opinion the theories for resolving the ethical dilemmas themselves create an ethical dilemma. For instance some of the employees in the organization feel that there shouldn't be fixed working hours. As long as they are productive there should not be any restrictions on them regarding the time schedules. If we analyze this case under the two schools of thought i.e. Utilitarian and the deontological we will see that if the employees are productive without imposing the limit of fixed working hours on them i.e. the consequence of the proposition is positive then according to the utilitarian theory the act is ethical. While Deontological concept will take it as unethical for it will see it as breaking the laws and conventions of the organization

 

It can be observed that presently accepted and practiced ethical theories posit strong foundations. In my opinion however these theories are of limited use in solving ethical problems. Their reliability and ability to be generalized can be challenged because they ignore certain aspects of morality and prefer others according to different situations that arise in different contexts. This study is devoted to resolve the conflict of deciding between what is and what is not ethical in the Tobacco industry.

 

The theory chosen for the study is utilitarian theory which has two advantages over other alternative ethical theories as how to be applied in various business endeavors. Firstly as we know that business works for the motive of benefiting self and so does utilitarian theory defines morality i.e. morality is to prefer self interest as prime. Secondly utilitarian theory is analyzed by comparing the benefits and harms of a given option and this is how it again finds similarity with profit and loss in accounting and business.

 

Since utilitarian theory is quantified with the help of cost-benefit analysis so the data is analyzed by using cost-benefit analysis model. The strive was to be able to resolve the ethical dilemma regarding the existence and functioning of Tobacco industry without creating an ethical dilemma through the process of resolving it.

 

Business Ethics.

Business ethics is a form of applied ethics that identify and solve the ethical and moral issues in the business environment. 'In the increasingly conscience focused marketplaces of the 21st century, the demand for more ethical business processes and actions (known as ethicism) is increasing' (wikipedia, 2007).

 

Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations use alternate words such as social responsibility charters, corporate social responsibility etc to highlight the importance of social values and norms.

 

Business ethics has to decide on ethical issues by looking through the lens of the employee, the enterprise or the society as a whole.

 

Ethical dilemma

It is the situation in which an issue has two conflicting but arguably valid sides. Ethical dilemmas continue to receive a great deal of attention from philosophers and management experts, who have developed a number of tools to guide managers through sometimes confusing and always difficult decisions regarding ethical dilemmas. However it is important to note that like the problem the methods for resolving this problem are also not absolute and agreed upon. Even the best models rarely lead to a single answer that is absolutely right, just or fair, but they do point the way to answers that seem more right, more just, or more fair than others Hosmer(1988 a).

Principles of ethical analysis have their roots in normative philosophy, the study of proper thoughts and conduct, or how people should behave Hosmer(1988 b). Five commonly applied normative approaches are described as under.

Deontology.

Deontology depends on the intentions of a person making the decision or performing the act. A deontologist would disagree with the emphasis on outcome as the determinant of moral actions because consequences are generally indefinite and uncertain at the time the decision is made. Immanuel Kant (1724-1804) provided much of the base for understanding this concept in all eras.

 

Theories of Justice.

Theories of justice explain ethical decisions on the basis of fairness and impartiality (Stead et al, 1990). This philosophy stresses social justice. Critics point out that this theory assumes that social cooperation provides the basis for all economic and social benefits, which may or may not be true (Stead et al, 1990).

Theories of Rights.

Theories of rights as from the name indicate that the most ethical decision will be based on protecting peoples' right that might potentially be affected by the decision (Courtland et al, 1992). Theories of rights, unlike theories of justice, depend upon on equal opportunities for choice and exchange, not on equal allocations of wealth and income. As discussed earlier sometimes the conflicting rights become the shortcoming of the application of this theory (Courtland et al, 1992).

Social Contract Theories.

Social contract theories hold that when individuals become a part of a bigger community such as an organization of a local community then they agree to share the values of that group and also agrees to the means of reaching the agreed upon goals (Thomas, 1991). Critics argue that social contract theories do not give liberty to the individual thinkers who might have a contradicting opinion from their fellow community members (Thomas, 1991).

Utilitarian theories.

Utilitarian theories support the idea that ethical behavior results in the greatest good for the greatest number. So, according to utilitarian theories, the most ethical decision creates the greatest degree of benefits for the greater number of people while having a potential of inducing comparatively lesser amount of damages or harm (Hitt & Columbus, Ohio 1990). Consequentialist moral theories are teleological which means that they aim at some goal state and evaluate the morality of actions in terms of progress toward that state.

 

Tobacco Industry and Business Ethics.

This section will outline some historical facts related to tobacco industry and will also highlight how this industry grew from the scratch. This section also includes the description of the functioning of the tobacco industry in terms of business ethics since from the beginning of its origin right up till now. Finally the chapter concludes by briefly stating how it became a part of Muslim and Asian culture.

 

Tobacco Plant.

Tobacco is a natively fostered plant of America. Tobacco plant has very small seed such as one ounce approximately contains over three hundred thousand seeds. This plant started being cultivated according to an estimate thousand years B.C.

As early as one B.C., Tobacco started being used in various religious activities. Not only religious but also was thought to be of quite a medicinal importance by American Indians. It was basically thought of as pain killer and was also used by quite a number of people as a cure all solution.

 

Discovery of the New World.

Christopher Columbus was gifted dried tobacco leaves by the American Indians. As it was brought to Europe it started to be grown all over the Europe. Europeans grew it against a misinformation that tobacco has a healing tendency and that it can cure all the diseases no matter how big or small.

According to a book written by a Spanish doctor in 1571 tobacco could cure at least thirty six health problems. Thomas Harriet a Virginian in 1588 invented smoking as he wanted to discover a way that could help take a daily dose of tobacco. Later he died of nose cancer because it was through the nose then that they use to breathe tobacco.

In 1610 Sir Francis Bacon realized that trying to quit smoking was really difficult. In 1632 for the first time for moral reasons smoking got prohibited in Massachusetts.

Tobacco: A Growth Industry

For the first time when tobacco industry got significant industry value was in 1776. In the American Revolutionary War It acted as a security against the loans America borrowed from France.

However scientists continued to understand the chemicals in tobacco, as well as the dangers they had. In 1836 tobacco was recognized as a lethal commodity.In 1847, the famous Phillip Morris was established, selling hand rolled Turkish cigarettes. Until 1900 chewing tobacco was the most famous tobacco product however cigarette started becoming famous in 1990's. As the cigarette was gaining popularity so was anti smoking campaigns with the notion of some states in America asking for total ban on tobacco. The demand for cigarettes however kept growing.

The Recent trends.

In 1980's was the time when legal actions gained their pace against the working of tobacco industry as in 1982 from the Surgeon General reports it was evident that tobacco is injurious to health and by no means its use or sale can be termed legal. It was also known that passive smoking may cause lung cancer. It was in 1990 that smoking got banned in all the flights except for the flight to Alaska and Hawaii.

 

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