Introduction
Not all business enterprises earn the same degree of understanding and support from society. Although basic regulations are common for any industry, factors are raising the public’s concern about certain corporations. The tobacco industry belongs to those whose ethics are often questioned by people in regards to the harmful effects that the product has on the consumers. However, in terms of business ethics, the producers of tobacco goods conform to the norms of free trade meaning that they have equal rights to take part in the market relations. As long as the industry supplies quality products, it has a right to take its place in free trade.
Arguments to Support Tobacco Industry
Many people consider tobacco products harmful and fight for reducing the business amounts. However, consumption is every person’s choice, and the tobacco companies provide people with such alternatives. Furthermore, there are governmental regulations for objective advertising and quality standards (Deyton, 2011). Tobacco industry conforms to these rules as it provides the consumers with proper instructions about the product. Thus, advertising is not the crucial factor in people’s choice whether to consume or not. Finally, the product’s potential unsafety is often discussed. However, the person’s safety depends on the amount of the consumption, just like with any other product. Therefore, tobacco industry may be considered responsible in terms of conforming to the government’s norms and social liability foundations (Friedman, 2009).
Role of Capitalism in Corporate Decision-Making
Being the decisive factor in the modern free trade development, capitalism pushes the industries to more advertising, bigger business rates, and higher earnings (Martin & Swank, 2008). Tobacco industry corresponds to the demands of capitalism as its corporate arrangements are determined by the purpose of obtaining higher profits. The peculiarities of the product suggested by tobacco companies lead to the industry being restricted. Thus, it makes everything possible to allow the potential customers to evaluate the outcomes of consuming the product.
Business Ethics in Tobacco Industry
Business ethics does not only comprise commercial relations and attitudes. It explores the decision-making at the levels of law, economics, and politics. Improper marketing methods have disrupted a number of business corporations, and the influence of their bankruptcy is still visible in the world of finance (DesJardins & McCall, 2014).
The predominant ethical theories (Kantian, utilitarian, and virtue ethics) emphasize specific factors shaping out the enterprises’ values. The kantian theory considers the moral law to be the key element of the industry. Under the utilitarian approach, the business is evaluated according to its outcomes. Virtue ethics suggests that the person’s choices are impacted by the surroundings (DesJardins & McCall, 2014). Despite many skeptical opinions about the tobacco industry, it corresponds to the basic ethical approaches. Virtue ethics is represented by people’s smoking preferences. Utilitarian theory is expressed via the results: only those people who want to purchase the tobacco industry products, buy them. Kantian ethics of the tobacco industry is revealed through the accessible objective advertising and letting people know the possible harms of the product. Thus, the tobacco industry conforms to the basic business ethical theories and has a right to operate.
Conclusion
If a company corresponds to the corporate strategy and does not disregard the consumers’ rights, it should not be treated with prejudice. The tobacco industry may not be the most useful one, but it balances its profits with the consumers’ interests. Therefore, it deserves an equal attitude with the other types of industries.
References
- DesJardins, J., & McCall, J. (2014). Contemporary issues in business ethics. Stamford, CT: Cengage Learning.
- Deyton, L. (2011). FDA tobacco product regulations: A powerful tool for tobacco control. Public Health Reports (1974-), 126(2), 167-169.
- Friedman, L. (2009). Tobacco industry use of corporate social responsibility tactics as a sword and a shield on secondhand smoke issues. The Journal of Law, Medicine, and Ethics, 37(4), 819-827.
- Martin, C., & Swank, D. (2008). The political origins of coordinated capitalism: Business organizations, party systems, and state structure in the age of innocence. American Political Science Review, 102(2), 181-198.
- Svensson, G., & Wood, G. (2007). A model of business ethics. Journal of Business Ethics, 77(3), 303-322.