In this assignment I will be explaining the implications for the business and stakeholders of BAT operating
ethically. I will also be explaining 20 benefits for BAT.
BAT benefits from being an ethical business because for example when they recruit and retain staff which
means hiring staff and aiming to keep them.BAT have a high standard of staff satisfaction which means their
staff are satisfied and when their staff are satisfied it means they are behaving ethically towards the staff and
this will benefit them because when people notice that BAT treat their staff right , they will be able to recruit
more people and these people will be qualified, skilled, good education and have good experience. Also the
more they treat their staff right they will not want to leave the company and they will have loyal, experienced
and pleasant staff and it also stops their staff from going to their competitors. Also when employees are
satisfied they will perform better, work harder, produce quality work, be productive and this will lead to a
profit increase. Even though BAT sell tobacco which harms people, people still want to work for them
because of how they treat their staff and also BAT are on the list of the Sunday times 100 best companies and
they are number 58; when people see this they may choose to work for BAT because BAT being on that list
shows they are a good company and they look after their staff. People may decide to work for BAT and this
will lead to more productivity which will increase profit. Also not only will people want to work for them,
they may want to buy from them which will increase their sales and that also leads to profit. Also as they
have an ethical attitude towards staff, their staff may recommend their friends and family to work there and
to buy from BAT and this gives BAT more possible sales, more possibly qualified staff and a good reputation
and this will give them free PR which means people will be advertising them for free and speaking about
them.
BAT’s company is also diverse which means they have many races and sexualities working within the
company. This benefits BAT because if they have different type of races that work for them, it’s likely these
people can speak different languages, which means they will be able to communicate efficiently with people
around the world which will give BAT a good reputation for customer service. Also when their company is
diverse, people will see this and may want to shop with them or work with them because of this as they
know they will be treated fairly and this leads to more sales, profit and a good reputation. Also BAT being
diverse It will allow them to get investors and loans easily because their an ethical company they can be
trusted, which means they will get to pay lower interest rates which means more profit for them. Also BAT
win many awards because of their ethical behaviour, the Dow Jones sustainability indices award has been
won by BAT for 15 years running and they have not lost since, they are the only tobacco company that has
won. This benefits BAT because it will give them a good reputation as people around the world be able to see
this and it also gives customers the confidence to shop with them as they know they are shopping with a
good trusted ethical company and this leads to free pr for BAT.
BAT can improve their brand value through improving their reputation such as being different in terms of
being responsible and ethical and this will make them unique from other businesses which will lead to
support, repeat custom and customers will be attracted. Also when BAT have good ethics it will enhance their
brand, which will attract customers and increase sales.BAT can also deal with their stakeholders simply
without giving them problems and this will build trusted relationships as they are showing they have values.
Also building their reputation will attract investors because the investors know that if they invest in BAT
which is trusted by customers, they will get a good profit back. In terms of their reputation BAT can satisfy
their stakeholder’s needs such as making sure their employees are satisfied and this will build long term
trust.
BAT can also enhance their environmental performance such as being more environmental friendly and this
will benefit them because staff will not want to leave the business as they know BAT cares for the planet and
this will also save BAT money as they will not need to pay for the recruitment process of new staff. Also
1
ethically. I will also be explaining 20 benefits for BAT.
BAT benefits from being an ethical business because for example when they recruit and retain staff which
means hiring staff and aiming to keep them.BAT have a high standard of staff satisfaction which means their
staff are satisfied and when their staff are satisfied it means they are behaving ethically towards the staff and
this will benefit them because when people notice that BAT treat their staff right , they will be able to recruit
more people and these people will be qualified, skilled, good education and have good experience. Also the
more they treat their staff right they will not want to leave the company and they will have loyal, experienced
and pleasant staff and it also stops their staff from going to their competitors. Also when employees are
satisfied they will perform better, work harder, produce quality work, be productive and this will lead to a
profit increase. Even though BAT sell tobacco which harms people, people still want to work for them
because of how they treat their staff and also BAT are on the list of the Sunday times 100 best companies and
they are number 58; when people see this they may choose to work for BAT because BAT being on that list
shows they are a good company and they look after their staff. People may decide to work for BAT and this
will lead to more productivity which will increase profit. Also not only will people want to work for them,
they may want to buy from them which will increase their sales and that also leads to profit. Also as they
have an ethical attitude towards staff, their staff may recommend their friends and family to work there and
to buy from BAT and this gives BAT more possible sales, more possibly qualified staff and a good reputation
and this will give them free PR which means people will be advertising them for free and speaking about
them.
BAT’s company is also diverse which means they have many races and sexualities working within the
company. This benefits BAT because if they have different type of races that work for them, it’s likely these
people can speak different languages, which means they will be able to communicate efficiently with people
around the world which will give BAT a good reputation for customer service. Also when their company is
diverse, people will see this and may want to shop with them or work with them because of this as they
know they will be treated fairly and this leads to more sales, profit and a good reputation. Also BAT being
diverse It will allow them to get investors and loans easily because their an ethical company they can be
trusted, which means they will get to pay lower interest rates which means more profit for them. Also BAT
win many awards because of their ethical behaviour, the Dow Jones sustainability indices award has been
won by BAT for 15 years running and they have not lost since, they are the only tobacco company that has
won. This benefits BAT because it will give them a good reputation as people around the world be able to see
this and it also gives customers the confidence to shop with them as they know they are shopping with a
good trusted ethical company and this leads to free pr for BAT.
BAT can improve their brand value through improving their reputation such as being different in terms of
being responsible and ethical and this will make them unique from other businesses which will lead to
support, repeat custom and customers will be attracted. Also when BAT have good ethics it will enhance their
brand, which will attract customers and increase sales.BAT can also deal with their stakeholders simply
without giving them problems and this will build trusted relationships as they are showing they have values.
Also building their reputation will attract investors because the investors know that if they invest in BAT
which is trusted by customers, they will get a good profit back. In terms of their reputation BAT can satisfy
their stakeholder’s needs such as making sure their employees are satisfied and this will build long term
trust.
BAT can also enhance their environmental performance such as being more environmental friendly and this
will benefit them because staff will not want to leave the business as they know BAT cares for the planet and
this will also save BAT money as they will not need to pay for the recruitment process of new staff. Also
1
