The world’s second largest tobacco company has hit out at critics who refuse to give it credit for trying to take a socially responsible attitude to its activities.
British American Tobacco says it wants to pursue a ‘radical yet workable agenda for progress’, but is having to work partly in isolation.
BAT chairman Martin Broughton told the company’s annual meeting last month that critics of the tobacco industry ‘have a vested interest in refusing to acknowledge that a tobacco company can even contemplate being socially responsible’.
He added: ‘This seems to me to be an unfortunate position to adopt, because it closes off real opportunities for dialogue and progress in the very areas where they express concern.’
Broughton said proponents of CSR should look beyond their disapproval of smoking and take a pragmatic attitude that would help BAT and other tobacco companies become more responsible on marketing, labour standards and social auditing.
‘In the real world we can, for example, co-operate extensively with governments, parents, teachers and non-governmental organizations to prevent under-age smoking,’ he said.
However, too many people and organizations felt it was ‘politically incorrect’ to help with such initiatives.
Broughton said BAT had been carrying out a social audit of its business over the past year, but needed support to make it more meaningful. ‘Social reporting is not something we can do alone, as that would defeat much of the purpose,’ he said. ‘We want to approach it with an open mind and a real desire to listen.’
Broughton added that one billion adults in the world chose to smoke and the industry supported 100 million jobs. ‘Tobacco is legal and no governments, and even no serious campaigners, seek prohibition’, he said. It therefore made sense to work with the tobacco companies to ensure they acted responsibly in all areas.
‘What is the real alternative? Is it to hound the large, well-run and responsible industry out of existence? If so, the pursuit of that goal will surely lead to unintended outcomes,’ he added.
Lee Coates, director of UK financial advisors Ethical Investors Group, said he had some sympathy for Broughton’s viewpoint but warned that dialogue on CSR had to be a two-way process. ‘I would, for instance, be very happy to meet Mr Broughton to talk about what BAT is doing on social responsibility, but he has to be prepared to discuss all the issues and answer all the questions, otherwise it’s just rhetoric. It’s no good saying, “we’re not as bad as you think we are” and then not talking about things like the marketing of cigarettes in developing countries.’
BAT has begun work on a number of CSR measures over the past two years, but these have often met with scepticism. Last month the editor of the British Medical Journal resigned as professor at Nottingham University over its decision to accept $5.4million (£3.8m) from BAT to set up an International Centre for Corporate Social Responsibility (EP8, 2001).