Smoke and Mirrors or Real Progress?

What substance is currently responsible for the death of one in ten adults worldwide?

Tobacco.

And if that fact doesn’t blow your mind, this will: nearly one-third of the global population aged fifteen and older smokes, and each year nearly 600 million trees have to be destroyed to provide fuel to dry all the tobacco smokers consume. That’s one tree for every 300 cigarettes. (More on the environmental and social impact of smoking here.)

Given this scale, the sustainability efforts undertaken by the tobacco giants can have serious repercussions for the environment and society. The same goes for the energy and alcohol industries. However, such efforts are often met with scepticism. Take the case of Total, the French energy company: concerted efforts to improve its image in the wake of countless scandals have failed to change people’s perceptions. Why? The energy company is still in the petrol business – and, just like a tobacco company which will always be in the nicotine business – its well-PR’d “good works” can’t counterbalance the weight of business fundamentals.

Mainstream CSR practices – from corporate philanthropy and stakeholder collaboration to reporting and self-regulation – have shown to be either ineffective or counterproductive for controversial industries. From a philanthropic perspective, those organizations that accept so-called “dirty money” from these industries also accept high reputational risk. Stakeholder collaboration, too, is limited by perceived ethical complexities, and any CSR report will be subject to the criticisms of those who view the efforts as mere window dressing. Tobacco giant BAT published its first CSR report in 2002 and was heavily criticised for concealing central aspects of its business (i.e. the annual smoking-related deaths of millions of people). As long as transparency is perceived to be limited, the company’s claims will be considered by many to be illegitimate.

The social responsibility of a corporation is ultimately three-fold: to deliver the product quality expected by consumers, to demonstrate integrity through reverence for law and moral values, and to transcend self-interest on behalf of the common good. It is the transgression of the “common good” and “moral values” aspects of CSR that has exposed certain industries to much greater scrutiny. When it comes to talking about sustainability and social responsibility, the credibility of these industries (petrol, gas and cigarettes to mention but a few) will always be compromised. Inherent contradictions between business model and stated values provide purists ample fodder for criticism.

So does this mean that these industries should be left out in the cold?

On the contrary.

The introduction to British American Tobacco’s (BAT) 2008 Annual Sustainability Report argues it’s the controversial and oft-challenged industries that should be most devoted to sustainability efforts because “this is where the most significant issues exist and where the greatest progress can be made.” And the company is right.

Until deemed otherwise, cigarettes, oil and spirits are legal, and the businesses that deal in them have proven that they can positively impact the lives of an enormous amount of stakeholders (through job creation, charitable contributions, public works, environmental stewardship, etc.). No industry or company is perfect; perhaps these “most controversial” ones fall especially far from the mark, but to decry their improvements is highly counterproductive. After all, a tobacco farmer, and the company that pays him for his work, is providing us with a product that we – the consumers – buy in huge quantities. And if that farmer and that company can provide that product we demand in a way which reduces its negative impacts on environment and society, shouldn’t we encourage it? Shouldn’t we hope (as PeopleandPlanet.org has speculated) that tobacco becomes “the next fair trade frontier”?

Until we have learned to stop demanding en masse the products that do us harm, we should at least encourage the industries that proffer them to take on every CSR challenge they can. If their efforts bring us closer to our common goal – a sustainable economy and society – then we should refrain from condemning those initiatives simply on the grounds of their origin.

La Agencia Mas Efectiva