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business level 3 d1 unit 37

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Evaluate the impact of a selected business’s ethical behaviour on stakeholders and the business.

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Ethical and unethical activities of BAT
BAT has a market share of 15% worldwide and in order to continue leading BAT need new smokers which will
be around 750,000 each year and many of the new smokers are children and their advertising have proved to
attract youth in order for them to start smoking.(Arnott,2007).BAT is the world’s second biggest cigarette
company and they sold 850 billion cigarettes in more than 190 countries in the last year (ASH,2007).BAT is
also trying to destroy the tobacco advertising ban (Arnott,2007).BAT markets cigarettes to young people
around the world by linking smoking to style, beauty and sport.BAT also do not adhere to the advertising ban
in the uk.BAT also do not abide by their own code of conduct which claims they will not appeal to youth as
they believe children should not smoke. Even though advertising is banned BAT still find ways to promote
their brand to young people. In countries such as Argentina, Philippines, Vietnam, UK, Pakistan and Nigeria
BAT promote cigarette and smoking to young people at festivals, bars, cafes and clubs. As young people
mainly will be found in these places. The Indian tobacco Company which is affiliated with BAT is using the
wills and john player tobacco brand names on fashion labels in order to attract young people. As these
brands associate with sport, glamour and youth. In Argentina, Chile and Vietnam BAT is using surveys to
collect details of young people in order to mail them about cigarettes. Also in Argentina, Nigeria and Vietnam
BAT is using competitions to attract customer’s especially young people, BAT use contests and video games in
order to increase their popularity. In Nigeria BAT is promoting the sale of single cigarettes , as it is cheap it
attracts young people as they are most likely to have less money than adults (ASH, 2007).In the Philippines
and Vietnam BAT is using fashionable youth as brand ambassadors to sell and promote cigarettes. In 2006 in
the UK, Philippines, Nigeria and Argentina BAT brand were promote by celebrities such as Julian Opie. In
Argentina, Chile, Nigeria and UK, BAT affiliates with the glamourous and trendy youth in order to make their
cigarette brands glamorous. In the UK bars frequently used by celebrities sell BAT cigarette brands.BAT do this
because by associating with popular people, it may make their fans start smoking. In Argentina BAT is
advertising their brand on websites that are designed to appeal to the youth. In the UK BAT has artists,
designers and advertising agencies in order to raise the awareness of their brands (ASH,2007).

BAT is running an original voice campaign for their brand lucky strike and linking the brand to fashion, style
and celebrities. In 2006 newspaper ads offered cinema and concert tickets in return for lucky strike vouchers
which is an BAT brand. BATs lucky strike website publishes a magazine for youth and they offer screensavers
and this can be viewed by anyone including children.BAT launched limited edition cigarette packets with a
youthful style to it, the themes were genuine tribe, genuine vibe, genuine energy and genuine sunrise.BAT
markets camel cigarettes and camel genuine sound sponsored creamfields dance music festival and there
was an online competition to win a trip to Brazilian creamfield’s festival and iPods (ASH,2007).BAT adverts
had bright colours which looked like an invite to a party. In 2007 BAT launched a cigarette pack that is like a
book and when you call the number inside you get invited to many parities in Chile (ASH,2007).BAT done
many events in the Philippines and these events were advertised and reviewed online. In Vietnam BATS
cigarettes are promoted in cafes and restaurants. In the cafes there’s workers with trays selling cigarettes to
customers and promoting competitions for BAT. The sales girls for the cigarette are young, attractive and
skillful , which shows they have been carefully selected by BAT to make sales and BAT also monitor the girls
to make sure they selling correctly.BAT Japan markets lucky strike as a glamorous brand for the youth as
some of their cigarette packs looks like small cameras.BAT is also selling lucky strike in packs of five in Japan
in order to make it cheaper for the youth (ASH,2007).In 2006 BAT Nigeria held many competitions to raise
awareness of their brand and prizes such as plasma TVs, laptops and movies were given.BAT Nigerian
advertises two cigarettes as this is cheaper which young people will buy. In 2006 BAT stated how they painted
a school for blind teenagers and young people and they also put on a comedy show for the students.BAT East
Africa spend $70,000 promoting a trade fair in Tanzania 2006 and some stallholders were underage and some
included school children. In Sudan BAT advertises Benson & Hedges cigarettes and they advertise in takeaway
restaurants and cafes which are very popular with young people. The stalls sell sweets, chocolates and BAT

1

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