It is tough to think of a company calling itself socially responsible if it manufactures products that harm people, but on the other hand, if it generates more than R6 billion in annual taxes and sustains over 53 000 jobs, the company’s wider social obligations simply cannot be wished away either.
IOL – Business Report
British American Tobacco South Africa (Batsa) is the country’s largest cigarette manufacturer, producing nine out of 10 cigarettes smoked by more than 5 million adult South Africans a year. The company, a subsidiary of British American Tobacco (BAT), the second-largest tobacco group in the world, has been operating in South Africa for about a hundred years.
There is little doubt that smoking is a cause of certain diseases and is difficult to quit.
In an effort to confront its social responsibility, Batsa has released a second social report detailing its responses to the expectations raised by stakeholders.
The report includes the published views of its critics who have chosen not to engage in dialogue with Batsa because they believe it inappropriate for a tobacco company to be involved in corporate social responsibility.
Batsa claims the only meaningful way to approach corporate social responsibility is to not duck the issues around tobacco.
The second social report addresses issues such as the company’s criteria for social investment and research into lower risk products. It provides information on how to stop smoking, information on waste management, black economic empowerment and dealing with HIV/Aids in the workplace.
It also provides views on some of the difficult issues tobacco companies often face. For instance, tobacco companies are often accused of exploiting developing countries to compensate for the decline in smoking in the western world.
Batsa says it is not a “western” company recently expanding overseas. It has had a presence in India since 1902 and South Africa since 1904, among others.
“We have been a very welcome investor in developing economies for nearly 100 years.”
While cigarette consumption is declining in some western countries, these are still highly profitable markets to which BAT remains committed.
Cigarettes are legal product in every country and studies in Chad and Bangladesh have shown the overwhelming majority of people in developing countries are aware of the health risks associated with smoking.
Another issue Batsa tackles is health risks.
The cigarette maker’s report notes, “the only way to avoid the risks of smoking is not to smoke, and the best way to reduce the risks of smoking is also not to smoke”.
Based on statements from the Medical Research Council, the report says about 1.1 percent of all deaths in South Africa are caused by smoking-related lung cancer.
There are some lesser known facts, such as that the sale of individual cigarettes is, in fact, illegal. But Batsa notes, “it is almost impossible for authorities to enforce the law, especially in the informal sector”.
Batsa spent R30 million on community development projects last year. Recipients included eight universities with bursaries for information technology, commerce and engineering; sustainable development in rural areas; black economic empowerment initiatives; HIV/Aids; crime prevention; the environment; and agricultural research.
