The Big Three Tobacco Companies Ethical Issues, Essay Example

The Big Three tobacco companies have not acted ethically in the advancement of e-cigarettes in the American market for three reasons; (1) they have not acted fairly or honestly, (2) they have adopted dubious communication techniques, and (3) there is a general conflict of interest in the advancement of e-cigarettes in the American market.

Fairness and Honesty

Businesses ethics dictates that business operate in a fair and honest manner, as described for by the law. Furthermore, the level of honesty and fairness should not be limited to what is prescribed for by the law, instead, businesses are supposed to hold their clients, employees and competitors in high esteem (Stone, Ferrell and Hirt 44). This is meant to create an environment where all players, businesses, employees, customers and the government realize benefits, profits and utility without infringing on any other player’s rights and wellbeing.

One of the core concepts of fairness and honesty is the full disclosure by businesses about the potential benefits and negative effects of using their product(s). This aims at protecting the wellbeing of all customers, guaranteeing business continuity. While protecting the wellbeing of customers should be one of the fundamental aspects of any given business, it is not always the case.

A salient example lies with the actions of e-cigarette companies. The big three cigarette companies have opted to venture into the growing e-cigarette market by either developing their own version of the product or buying out existing e-cigarette companies. While these products contain nicotine in liquid form, there is very little information provided by these companies pertaining to the side effects of their use. Owing to the lack of regulations on the product, these companies have only revealed the fact that the use of e-cigarettes contains far less negative health implications compared to tradition cigarettes. There is much needed research on the negative impacts of using e-cigarettes. This research should involve all companies producing and distributing e-cigarettes.

Communications

One of the main channels through which businesses promote and increase awareness on their products is through communication in the form of advertising and selling tactics. Business are expected to adopt ethical communication techniques to increase awareness on their products. In effecting these communications channels and techniques, businesses are expected to inform consumers on product quality and safety (Stone, Ferrell and Hirt 47). This is particularly expected for businesses that produce and sell products with considerable impacts on the health of customers. As a matter of fact, for some products with considerable adverse effects, businesses are restricted or banned from communicating to customers pertaining to their products. Such products are used at the customer’s own risk.

Since the big three cigarette companies begun the production and sale of e-cigarettes, they have failed to offer any warnings pertaining to the negative effects of the use of their product. While the marketing of traditional cigarettes was banned, it is required that a clear warning be printed on their packets. However, e-cigarette packets fail to properly depict such warnings. Furthermore, such warning have been found to be lacking in their advertisements. This breaches the ethics standards required for considerably harmful products.

Conflict of Interest

Business ethics stipulates that any given business should not advance their own interests at the expense of other stakeholders within the market (Stone, Ferrell and Hirt 44). Decisions made in the execution of business processes should take into account the interests of all stakeholders. The failure of this amounts to the existence of a conflict of interests, when an individual unit’s interest is fulfilled at the expense of the welfare of other economic units involved.

Since 1971, marketing cigarettes has been illegal within the United States. This is owing to the adverse health effects associated with smoking cigarettes. Marketing of such products only increases their use within the nation, increasing the number of health complications associated with smoking cigarettes. The advancement of e-cigarettes within the United States has been accompanied by an increase in the number of advertisements propagated by the big three tobacco companies. Considering the fact that nicotine, the active ingredient in these cigarettes, is highly addictive, it is unethical to advance these products through advertisements. The lack of legislation to govern e-cigarettes has led to the increase in the number of e-cigarette advertisements that in turn have led to an increase in the number of individuals addicted to nicotine.

Furthermore, since the 1971 ban, the government and other interest groups embarked on a mission to increase the national health status by reducing the number of individuals suffering from the health implications of using cigarettes. However, the unregulated advertisement of e-cigarettes appears to threaten any considerable advancements made. Promotion of e-cigarettes would sanitize the smoking habit. This would lead to the general deterioration of the national health status. This has also been found to increase the number of underage individuals having access to the product, up by 7% between 2011 and 2012(Esterl, Holy Smokes: E-Cigarettes Ads Debut on TV).

In conclusion, The Big Three tobacco companies have not acted ethically in the advancement of e-cigarettes in the American market. They have failed to uphold ethical standards embodied in fairness and honesty, communication and an existing conflict of interest.

Works Cited

Esterl, Mike. “Big Tobacco is About to Dive Into E-Cigarettes.” The Wall Street Journal (2013).

—. “Holy Smokes: E-Cigarettes Ads Debut on TV.” Business (2013).

Stone, Mary S, et al. Business : A Changing World. London: McGraw-Hill, 2013.

Wieczner, Jen. “10 Things E-Cigarettes Won’t Tell You.” Sunday Journal (2013).