Megha ChawlaArpit KulshresthaPeeyush MittalRohit GhoshSukhvinder SinghRishi Malhotra

INTRODUCTION

Diverse global workforce of more than 91,000 employees.

Since March 28, 2008, PMI has been independent and is listed on the NYSE.

Started by Mr. Philip Morris in 1847.

Leading international tobacco company Owns 7 out of the top 15 international

brands in the world.

Goals - high quality and innovative

products for adult smokers. superior returns for

shareholders. Operating the business

sustainably and with integrity.

CODE OF CONDUCT

Communicating on the health effects of smoking

Advocating comprehensive tobacco regulation on harm reduction.

Enforcement of laws on minimum age for tobacco purchase and implementing youth smoking prevention programs

Combat illicit trade in counterfeit cigarettes

Reduce impact on environment Promote sustainable tobacco farming Support local communities through

charitable giving

Agricultural Labor Practices (ALP) program For addressing

the problems of child labor.

SUSTAINABILTY EFFORTS

ENVIRONM

ENTAL FO

OTPRINTS

Particular focus on reducing energy from fossil fuels.

Increasing the share of our energy that comes from renewable sources

PRIORITIES

PROG

RAMS

Good Agricultural Practices

Our Contributions Program

Access to Education

Providing Economic Opportunity

Empowering Women

Disaster Relief and Preparedness

P E S T ELPOLITIC

AL

ECONOMICAL

SOCIAL

ENVIRONMENT

AL

LEGAL

TECHNOLOGIC

AL

POLITICAL

ECONOMICAL

P E SSOCIAL

Government policies and programs.

The developed and under developed nations.

The significant increase in cigarette-related taxes.

The demand of tobacco products can be considered as inelastic.

Huge changes on the economic development growth rate are probable to have a parallel effect on the industry volume trends.

Currency exchange rates - net revenues and operating income will be affected by devaluation/strengthening of U.S. dollar and foreign currencies.

The increase health awareness among consumers.

The diminishing social acceptance of smoking represents.

Organizations eg. FCTC.

T EENVIRONMENT

AL

TECHNOLOGIC

AL

New product technologies that may reduce the health problems caused by the consumption of tobacco products.

Need to invest in technologies that will enable them to reduce the business impact on the environment.

Highly affected by weather and climate changes.

The tobacco growing is pointed as a cause of deforestation in many areas of the world; smoking is considered as a contributor to climate change due to the production of greenhouse-effect gases, such as carbon dioxide and methane; and the irresponsible use of cigarettes is a common cause of forest fires worldwide.

Main catalyst for increase in the number of regulation and legislation currently displayed in the tobacco industry, is the FCTC. The World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC

Tobacco consumption reduction measures encloses: regulations on sales to minors; bans on advertising, marketing, promotions and sponsorships; restrictions and bans on the use of ingredients, such as: ceilings on tar, nicotine, carbon monoxide and other smoke constitutes; litigations against tobacco product manufacturers; restrictions on smoking in public areas; bans on the sale of duty free tobacco sales; plain packaging, among other legislations.

L LEGAL

Analysis of

Current CSR

System

Establishing

Vision for a New CSR

Program

Building Support

and Leaders

hip

Designing a New CSR

Structure

NEED FOR CSR RESTRUCTURING

RECOMMENDATIONS

PMI’s code of conduct says very little about the expected behavior from employees both inside the company as well as when dealing with outside stakeholders like suppliers and customers.

It does not cover important areas like responsible advertising and marketing as well as human rights, two issues that have plagued the company in the past.

Imperial Tobacco Group of UK - has published a 65 page long document detailing the group’s stands on a much more comprehensive list of issues including business and trade integrity, responsible commercial practice and code of conduct in the workplace.The Imperial Tobacco group also includes what the company expects its employees and other stakeholders to do and not do, something which is missing in the code of conduct of Philip Morris.

Health effects of Smoking

Analysis of Current CSR

System

Tobacco regulations

Health effects of Smoking

Youth Smoking Prevention Programs

Illicit Trade of Cigarettes

Impact on Environment

Charitable Giving

Building Support

and Leadership

Involves influencing and educating the various internal stakeholders

Buy-in from the board of directors and executive level management

Bad Press

Comprehensive CSR Program

Sustainability Report

Analysis of Key StakeholdersAnalysis of Key Stakeholders Identification of Key IssuesIdentification of Key Issues

Setting Goals & Targets

Setting Goals & Targets

Preventive Policies & Procedures

Roles & Responsibilities

Ownership & Communication

Corrective  Rewards &

Punishments

  

MonitoringMonitoring

  

ReportingReporting

  

      LearningLearning

Strategic Alliances

Standards & BenchmarksStandards & Benchmarks

Managing Risks & Problems

Managing Risks & Problems

Designing a New CSR Structure

Identification of Key Stakeholders Consumers

Employees

Investors

Dealers and Retailers

Society

Governments and NGOs

Suppliers

Manage Closely

Minimum Effort

PromotersLatents

Defendants

Apathetics

Governments and NGOs MediaInvestors

Consumer Employee Dealers and Retailers

Suppliers

Power/Interest Matrix

Archie’s Carroll

Key Issue and Drivers PMI’s Code of Conduct

Marketing and Responsible Labor Practices

Employees - Codes of conduct governing business integrity issues like money laundering and bribery and employee treatment issues like discrimination and harassment.

Investors - Accuracy of accounting and financial record keeping, prevention of conflicts of interest and insider trading.