In Ukraine, the tobacco industry engages in CSR practices

The United Nations Global Compact (UNGC) for Ukraine recently named Imperial Tobacco as "one of the most responsible and forward-looking companies in Ukraine." These awards are the result of the industry's social responsibility strategies aimed at improving its public image and rehabilitating it among decision-makers as a legitimate partner.[1].

The United Nations Global Compact (UNGC) is a United Nations initiative that seeks to encourage the business world to engage in socially responsible practices. The legally non-binding Global Compact encourages companies to adhere to ten universal principles related to human rights, the environment, and anti-corruption, or to implement measures to achieve the UN Sustainable Development Goals (SDGs).

Tobacco industry excluded from UN Global Compact

The UN Global Compact's award to Ukraine is contrary to the policy of this international initiative. Until 2017, the UNGC stated that it "actively discouraged tobacco companies from participating in the initiative" and did not accept funding from cigarette companies.[2]. However, the tobacco industry was free to join the initiative. In September 2017, the UNGC revised its official policy on tobacco companies, publicly announcing the removal of tobacco companies from the initiative as of October, along with companies earning revenue from the production or sale of anti-personnel mines and cluster bombs.[3]. Thus, for four years, the UNGC has recognized "a conflict of interest between these products and human rights, the right to public health, international security and peace."

The scourge of smoking in Ukraine

This decision to award is all the less appropriate given that tobacco is a human, economic, and environmental scourge in the country. According to 2015 figures from Tobacco Atlas, more than 40% of men aged over fifteen were smokers, compared to 11.5% of women.[4]This prevalence of smoking comes at a high price for public health, as nearly 100,000 Ukrainians die prematurely each year due to active or passive smoking. Cigarette companies also engage in illegal activities in Ukraine, designed to keep smoking at a high level. In February 2021, the Pivnichny Court of Appeal for Economic Affairs upheld a court ruling requiring Imperial Tobacco Ukraine and Imperial Tobacco Production Ukraine to pay €260 million for engaging in anti-competitive collusion.

Improvement in the situation in Ukraine

These social responsibility strategies aim to improve the tarnished image of tobacco manufacturers. CSR practices also serve as a public relations tool for cigarette companies, allowing them to promote themselves to decision-makers as responsible partners, and thus influence public decision-making. This image-building strategy for the manufacturer is all the more essential given that Ukraine has been distinguished by an ambitious tobacco control policy for several years. While the price of a packet of tobacco remains very low, at around $2, successive tax increases have increased it by a factor of 27 in ten years, significantly reducing smoking prevalence while significantly increasing tax revenues. Furthermore, in 2017, Ukraine adopted an anti-tobacco plan, which notably involves increasing taxes on products by 20% per year until 2025, with the aim of achieving European standards.

Keywords: Ukraine, CSR, Imperial Tobacco, Global Compact

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[1] Kyiv Post, Big Tobacco tries to improve its image through “greenwashing”, 04/10/2021, (accessed 05/10/2021)

[2] Tobacco Tactics, United Nations Global Compact (UNGC), 03/16/2021, (accessed 10/05/2021)

[3] UNGC, Who should join?, (accessed 05/10/2021)

[4] Tobacco Atlas, Ukraine, (accessed 05/10/2021)

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