LORENZ ELAIZA LIU

MBA 1

POSITION PAPER

1. Discuss the utilitarian, rights, justice and care issues that are raised by Phillip Morris’s
activities in the tobacco, beer and food industries.

Philip Morris International Inc. is a Swiss-domiciled multinational cigarette and tobacco

manufacturing company, with products sold in over 180 countries. It is headquartered in
Neuchâtel, Switzerland. The most recognized and bestselling product of the company is
Marlboro. Utilitarianism is an ethical theory that determines right from wrong by focusing on
outcomes. It is a form of consequentialism. Most of the outcomes of the customers of Phillip
Morris in his tobacco products got sick and even have cancer, we can say that his product is not
healthy and is not for the common good of people. Justice is just behavior or treatment while
care is protection of someone or something. I think both of these are not practiced by Phillip
Morris company. If they cared about their consumers they would give such warning or if they
knew that tobacco products are dangerous they should not have sold it. I think that they do not
care about their consumers overall.

2. Both the tobacco and beer industries have been characterized as “sin industries”. Comment
on the extent to which virtue theory sheds light on the company’s activities in these industries.

Religious beliefs designate certain activities as being sinful. Industries that have their
business models built around such activities are called sin industries. In the modern world,
conducting this business is legal in many countries. However, regardless of the legality, the
activities of these industries are largely frowned upon by the entire society. Common
businesses associated with the term sin industry are liquor business, tobacco business,
pornography, gambling and businesses related to war and weapons.
(https://www.managementstudyguide.com/investing-in-sin-industries.htm). Virtue theory is
the quest to understand and live a life of moral character. The company does not practice such
theory.

3. What in your judgement would be morally appropriate course of action for the government
agencies involved in the Phillip Morris’s case?

Government agencies should provide laws that would lessen the usage of harmful
products of Phillip Morris like the beer and tobacco. They should implement stronger laws like
no tobacco smoking and no drinking in public. They should also provide laws which the minors
cannot buy and have those products. And lastly they should provide laws that would minimize
the buying power of the people of these dangerous products or they should limit a buyer on
how many they can buy.

4. What other ethical theories many associated with this case and how should (if there is/are)
this/these be used to shell out business issues to be morally and socially acceptable?

Morality and Conscience. Morality is principles concerning the distinction between right
and wrong or good and bad behavior. While Conscience is principles concerning the distinction
between right and wrong or good and bad behavior. Phillip Morris is an unethical and immoral
business. It is immoral to be ignorant to the issues arising because of one’s business. As a CEO
they should know what are the negative effects of their products to the people. They should
not be the reason for letting the people be in a bad shape and in an unhealthy condition.
Because of their products people are having cancer. They should not sell products that has a
bad long term effect to its user.

5. Give some points/qualities that you are ethically competent in dealing with business and
social responsibilities.

Ethical competence is defined as the ability of a person to use a suitable problem solving
and decision making method when facing a problem, the ability to maintain suitable processes.

I can say that I have a competency because I have my moral and principles and ethics to guide
me solve problems that may arise during business years.