Batm : Ethical Case Study Essay

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Pages: 6

| A grim contradiction: The practice and consequences of corporate social responsibility by British American Tobacco in Malaysia * British American Tobacco Malaysia (BATM) was formed from he merger of Rothmans of Pall Mall (Malaysia) Berhad and Malaysian Tobacco Company Berhad on 3 November 1999. * Today, British American Tobacco Malaysia is the clear market leader with approximately 63% market share, and ranks amongst the top 25 companies on Bursa Malaysia Securities Berhad in terms of market capitalisation. * British American Tobacco Malaysia manufactures and markets high quality tobacco products designed to meet diverse consumer preferences. Their portfolio includes well-established international names such as Dunhill, Kent and …show more content…
Good corporate governance is all about ensuring that the needs and interests of all organization’s stakeholders are taken into account in a balanced and transparent manner. Being charitable like BATM can build up good reputation thus increase the company profit. BATM gave RM1.27 million of net profits to community, civil society and other groups in 2004 and increased its donation to RM3.32 million due to support for restructuring the tobacco growing and curing industry. Therefore, being charitable is a part of good corporate governance as in long term perspective the company can build customer loyalty and directly assisting the socio-economic development of Malaysia’s major and meet stakeholder’s interests. For example, BATM regards its Foundation as contributing to national development by assisting with education of Malaysians. In some case scholarships have been given to students to study medicine or allied health courses. Since majority involved in tobacco production are Malays, it directly helps the socio economic development of Malaysia’s major and politically dominant ethnic group, employing the term ‘tobacco farming and curing community’. Contribution on education can assists the company in achieved their objective of increased shareholder’s wealth indirectly.
Q4. What is the "Grim contrast" in this