CSR activities of the tobacco industry in Southeast Asia

A report by the Southeast Asia Tobacco Control Alliance (SEATCA)[1] describes the tobacco industry's CSR activities in the ASEAN region over the past decade (2010-2020) and reveals how the tobacco industry has exploited the COVID-19 pandemic, natural disasters, the situation of vulnerable populations, children and the Sustainable Development Goals (SDGs) to promote its new products and attempt to position itself as a legitimate player.

According to the WHO Framework Convention on Tobacco Control (FCTC)[2], tobacco-related CSR activities are a form of sponsorship and should be banned. In the ASEAN region, only Laos, Myanmar and Thailand have, to date, completely banned CSR activities by the tobacco industry while Brunei has partial restrictions[3].

CSR, the tobacco industry's Trojan horse

As the ASEAN region becomes increasingly aware of the devastating effects of tobacco and governments tighten regulation of the tobacco industry, tobacco companies are resorting to more discreet tactics to promote their companies and products in order to reach consumers.[4]. Corporate social responsibility (CSR) activities have become one of the key strategies used by the tobacco industry to improve its image and try to maintain its legitimacy in the public and commercial spheres. CSR contributions are a modality that the industry exploits, especially when all other forms of tobacco advertising, promotion and sponsorship are prohibited. To counter any criticism, the tobacco industry targets the most vulnerable populations and conducts charitable activities during natural disasters. The money that tobacco companies spend on CSR activities is part of their marketing expenses and should not be considered as a philanthropic activity.

According to international literature, the evaluation of CSR actions by the tobacco industry has been assessed[5]-[6]It appears that, given the extent of the damage caused to the community by the very activity of this industry, CSR operations in no way represent a contribution to the common good likely to mitigate their responsibilities.

The Covid19 pandemic, an opportunity for the tobacco industry

During the COVID-19 outbreak, the tobacco industry has stepped up its CSR activities in the ASEAN region, particularly in five countries: Indonesia, Malaysia, Myanmar, the Philippines and Vietnam, which are important markets for the industry. In Indonesia, major tobacco companies PT Gudang Garam and PT Djarum donated an ambulance to the Red Cross, respectively.[7] and funds to the task force working on COVID-19 prevention[8]. In Malaysia[9], JTI donated funds to an NGO initiative, “MyKasih,” to support those affected by the pandemic[10]. In Myanmar, the Cheroot (a type of cigar) producers association donated to government agencies to support their COVID-19 work. In Vietnam[11], Vinataba, a branch of Philip Morris, has donated to a hospital to fight COVID-19. In the Philippines[12], in March 2020, LT Group, which is the holding company of Fortune Tobacco Corporation and Philip Morris Fortune Tobacco Corp. (PMFTC), donated medical supplies and personal protective equipment to government agencies.

Using the SDGs to promote the tobacco industry as a legitimate partner

   

The tobacco industry claims to be aligning its operations with several of the Sustainable Development Goals (SDGs)[13] of the United Nations to give credibility to its CSR activities.

The 17 SDGs of the 2030 Agenda for Sustainable Development officially came into force on 1 January 2016, with governments committing to implement them through long-term plans based on partnerships.[14]In 2017, the United Nations Economic and Social Council (ECOSOC) adopted a resolution defining good practices for agencies of the United Nations system to protect themselves from tobacco industry interference. Its members are thus encouraged to develop and implement their own policies.[15]The United Nations Development Programme (UNDP), at the forefront of implementing the SDGs, has a clear policy of non-engagement with the tobacco industry.[16]. However, the industry continues relentlessly to associate its CSR programs with the SDGs, and its documents and reports are peppered with the term “sustainability”, along with “sustainable agriculture”, “sustainable communities” and “sustainable environment”.[17]-[18].

So, PMI created a program, “Business for 2030”[19], claiming that its CSR activities are directly aligned with several SDGs (Ensure food security, ensure healthy lives, achieve gender equality and ensure access to safe drinking water for all). In reality, tobacco use is detrimental to public health and sustainable development. Tobacco products and the tobacco business itself are in conflict with almost all the SDGs, particularly SDG 3 which aims to achieve good health for all through the implementation of the FCTC and the reduction of tobacco use. However, PMI has hijacked the SDG 3 goal to promote its global “smoke-free” campaign and its new tobacco and nicotine products (heated/grilled tobacco and vaping products).

For its part, BAT tactically chose December 10, 2020 - United Nations Human Rights Day - to launch its own human rights report.[20] which claims to be aligned with the United Nations Guiding Principles. The tobacco company focuses on improving farmers' livelihoods, ensuring the long-term sustainability of rural communities, and claims to guarantee the health and well-being of all employees. However, the evidence to date shows that the tobacco industry remains the main obstacle to the elimination of forced child labor and good working conditions for tobacco farmers.

Natural disasters and education to engage with the most vulnerable and young people

The tobacco industry exploits natural disasters and weak government policies in some countries to address natural disasters to implement its CSR activities. In 2018-2019, PMI spent approximately USD 2 million to organize disaster-related activities in Indonesia and the Philippines[21]-[22]In Indonesia, PMI donated 118,000 $ to the Kappala Foundation for the reconstruction of a school destroyed by the earthquake and nearly 90,000 $ to Skala Indonesia for the construction of temporary shelters and sanitation facilities in earthquake-damaged areas.[23].

In Thailand, PMI regularly funds the PDA, a well-known non-profit organization focused on community development, whose board of directors is comprised of senior policy makers, doctors, and academics. From 2016 to 2019, 14 of the last 15 PDA projects received funding from PMI, totaling more than $1.3 million.[24]In the Philippines, PMI funded 15 of the 22 projects of JVOFI (5.6 million $), an organization that works, among other things, for education, women's empowerment and social welfare.[25]. Like PDA, JVOFI's board of directors is composed of executives working in various socio-economic sectors, including agriculture and higher education.[26]The tobacco industry is thus targeting structures likely to constitute relays in support of the cigarette manufacturer in order to put pressure on political decision-makers and obtain decisions favorable to the interests of the industry.

From 2016 to 2019, PMI also spent nearly $27 million on education-related activities in Indonesia, Malaysia, the Philippines and Thailand. Indonesia, PMI’s largest cigarette market, received the bulk of this money (over 21 million).[27].

The non-governmental organization SEATCA makes recommendations to decision-makers in its report to limit the CSR activities of the tobacco industry.

1. Tobacco industry CSR activities should be banned by law.
2. In particular, the tobacco industry should be strictly prohibited from carrying out any CSR activity concerning children or the education system, both public and private.
3. Government officials and departments should exclude all funding and partnerships with the tobacco industry.
4. Government agencies and international institutions and organisations should publish, for example on their websites, their official position rejecting any partnership with the tobacco industry.
5. Public authorities should promote the cessation of all forms of tobacco consumption as part of the fight against the Coronavirus pandemic.
6. Public authorities should increase tobacco taxes to finance general interest activities.

Keywords: CSR, tobacco industry, ASEAN, Asia, SEATCA Photo credit: ©Expose Tobacco (STOP) ©Generation Without Tobacco

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[1] Southeast Asia Tobacco Control Alliance (2021). Whitewashing a harmful business: Review of tobacco industry's CSR activities in ASEAN. Bangkok: Southeast Asia Tobacco Control Alliance. [2] Guidelines for the implementation of Article 5.3 of the WHO Framework Convention on Tobacco Control [3] Southeast Asia Tobacco Control Alliance. (2019). SEATCA Tobacco Advertising, Promotion and Sponsorship Index: Implementation of Article 13 of the WHO Framework Convention on Tobacco Control in ASEAN Countries, 2019. Bangkok: Southeast Asia Tobacco Control Alliance. [4] 4 Southeast Asia Tobacco Control Alliance. (2020). ASEAN Tobacco Industry Watch: TI steps-up CSR activities during COVID-19 pandemic. Available at: https://tobaccowatch.seatca.org/index.php/2020/04/14/ti-steps-up-csr-activities-during-covid-19-pandemic/ [5] Fooks, G., Gilmore, A., Collin, J., Holden, C. & Lee, K. (2013). The Limits of Corporate Social Responsibility: Techniques of Neutralization, Stakeholder Management and Political CSR. Journal of Business Ethics, 112, 283-299. https://doi.org/10.1007/s10551-012-1250-5 [6] McDaniel, PA & Malone, RE (2012). “The Big WHY”: Philip Morris’s Failed Search for Corporate Social Value. American Journal of Public Health, 102(10), 1942-1950. https://doi.org/10.2105/AJPH.2011.300619 [7][7] Nugroho, A. Covid-19 in Kediri, Gudang Garam Handed Over Ambulance to PMI: Equipped with Emergency Medical Equipment. Jawa Pos. 7 April 2020, accessed 22 June 2021 [8] Djarum Donates Rp. 1.5 Billion for the Procurement of PPE in Kudus. Kompas. 2 April 2020, consulted on 22 June 2021 [9] MyKasih raises RM 3mil for food aid during MCO. Malaysiakini. 7 April 2020, accessed 22 June 2021 [10] MyKasih raises RM 3mil for food aid during MCO. Malaysiakini. 7 April 2020, accessed 22 June 2021 [11] Vinataba supports Bach Mai Hospital in the prevention of the Covid-19 epidemic. Baodansinh. March 29, 2020, accessed June 22, 2021 [12] LT Group supports fight against Covid-19. The Manila Times. March 26, 2020, accessed June 22, 2021 [13] United Nations. (2020). The Sustainable Development Agenda [14] Take Action for the Sustainable Development Goals, United Nations website [15] AN ECOSOC. United Nations Inter-Agency Task Force on the Prevention and Control of Non-communicable Diseases, E/2017/L.21. May 30, 2017 [16] United Nations Development Program. (2013). Policy on due diligence and partnerships with the private sector. [17] Jirathanapiwat, W. et al. (2017). Hijacking 'Sustainability' from the SDGs: Review of Tobacco Related CSR activities in the ASEAN Region. Southeast Asia Tobacco Control Alliance (SEATCA), Bangkok. Thailand [18] 4 Southeast Asia Tobacco Control Alliance. (Undated). SEATCA handout based on Hijacking ‘Sustainability’ from the SDGs: Review of Tobacco Related CSR activities in the ASEAN Region. (2017) http://www.seatca.org/dmdocuments/SDG%20CSR%20Handoud.pdf [19] Philip Morris International (2020). Business for 2030 [20] 8 British American Tobacco. (2020). BAT launches tobacco industry-first Human Rights Report [21] PMI-CSR in Indonesia: The Charitable Contribution of Philip Morris International in 2016 – 2019 [22] PMI-CSR in the Philippines: The Charitable Contribution of Philip Morris International in 2016 – 2019 [23] Philip Morris International. (2018). 2018 Charitable Contributions (Monetary Contributions) [24] Population and Community Development Association. Board of Directors [25] Jaime V. Ongpin Foundation Inc.. (2020). Annual report FY 2018 – 2019. [26] Jaime V. Ongpin Foundation Inc. (Undated.) Board of Trustees [27] Philip Morris International. Reports on charitable contributions (2016 to 2019) National Committee Against Smoking |