FOREWORD Deborah Arnott Director BAT’S AFRICAN FOOTPRINT
Since British American Tobacco first set foot in Africa in 1908 it has been the continent’s dominant force in tobacco production and consumption. To mark this 100th anniversary, Action on Smoking & Health examines BAT’s heavy footprint on Africa.
has a virtual monopoly in parts of Africa, both in terms of amongst the world’s biggest tobacco producers. In 2005 the BAT BAT tobacco manufacturing and sales of cigarettes. In ten sponsored Tobacco Grower of the Year award went to a newcomer to the African countries BAT has more than a 90% share of the cigarette industry, Monica Chinamasa, the wife of Zimbabwe’s Justice Minister, market. This report examines some of the health, social and economic Patrick Chinamasa, who, with her husband, had been accused of seizing impacts of BAT’s activities in Africa over the past century. Although the the farm two years’ earlier.5 full effects of rising tobacco consumption - namely a steep rise in Most tobacco growers do less well out of their involvement in the industry. smoking-induced illness and premature death - will not be felt until well In Kenya today BAT provides loans for seeds, pesticides and fertilisers into the 21st century, Africa is already in the grip of a major tobacco and buys back the product at a price of their choosing. To quote one epidemic. There can be no doubt that, if left unchecked, BAT’s heavy farmer, “The loan the tobacco firm provides is really weighing down footprint on the African continent will continue to wreak havoc on the on us. Actually, after the deduction you get nothing”.6 There are health and welfare of its people. echoes of post-slavery America, where former slaves BAT’s presence in Africa is also undermining the “The loan the found themselves bonded by debt as “share croppers”, achievement of the Millennium Development Goals borrowing money from the land owners for seed and (MDGs) that are designed to help the world’s poorest tobacco firm provides materials and in return forced to sell the product to their former masters. people. The production and consumption of tobacco in is really weighing Africa directly runs counter to at least three of the eight BAT’S FOOTPRINT ON AFRICAN YOUTH. goals, namely to eradicate extreme poverty and hunger, down on us. Actually, BAT Chairman Jan Du Plessis claims: “We work with to combat diseases such as AIDS, malaria and after the deduction tuberculosis, and to ensure environmental sustainability.1 farmers through our leaf growing programme to try to In fact, effective tobacco control is key to helping achieve you get nothing” eliminate child labour.” It’s true that BAT and other all of the Millennium Development Goals.2 Currently sub- tobacco corporations fund the Swiss based “Eliminating 7 Saharan Africa is not on track to meet any of the MDGs3 Child Labour in Tobacco Growing Foundation”. However and, as this reports illustrates, BAT’s heavy footprint on Africa is hindering neither BAT nor the Swiss based charity would disclose how much BAT the continent’s ability to make progress in these important policy areas. contributes. The foundation’s entire income for 2006 was only 2.8 million Swiss Francs per year (US$2.7 million), around half the salary paid to BAT’S FOOTPRINT ON AFRICA’S HEALTH. BAT Chief Executive Paul Adams and one fifteenth of the amount the
It is impossible to be certain how many deaths are caused by tobacco in industry earns from unpaid child labour in Malawi alone. Africa because many countries do not collect the information. However, A similar sleight of hand can be seen in BAT’s duplicitous approach to based on an analysis of BAT sales in its Africa & Middle East region, it is tackling youth smoking. BAT’s corporate strategy recommends estimated that current rates of consumption will lead to at least 100,000 investment in high profile youth smoking prevention strategies that stress deaths each year. a minimum age for smoking. Given that so called “youth prevention strategies” which stress the adult nature of smoking have been found to BAT has also exerted indirect health consequences on the people of increase youth smoking, the industry can claim corporate responsibility Africa. In Uganda, for example, there are 12 million cases of malaria and stimulate under age sales at the same time. The other side to the every year, killing 110,000 people. Despite claims that it does not use strategy is an aggressive marketing campaign which purports to target political and economic leverage, BAT joined forces with other big young adults over 18, precisely the group which provides aspirational businesses to block a government malaria prevention programme to treat role models for underage smokers. farm workers’ homes with pesticides because of fears that the chemicals used might contaminate their crops . The businessmen claimed exports Despite the heavy toll that tobacco has wreaked on African society, at worth more than £200m (US$400m) and 600,000 Ugandan jobs could the close of BAT’s first century in Africa, the continent is rich in hope, be lost if crops were threatened.4 because Africa is now standing up to BAT. Across the continent communities are organising against the tobacco giants and the WHO BAT’S SOCIAL AND ECONOMIC FOOTPRINT. Framework Convention on Tobacco Control is being implemented. Africa, Zimbabwe is gripped by famine and corruption that leaves it scarcely able it seems, may be deciding precisely where on BAT she intends to leave to feed itself yet intervention by BAT means that the country remains her own foot print.
2 “We should not be depressed simply because the total free world market appears to be declining. Within the total market, there are areas of strong growth; particularly in Asia and Africa ... It is an exciting prospect ...” ~ BAT 3 Adinbode Oluwafemi Environmental Rights Action Friends of the Earth Nigeria Board member for the African region of the Framework Convention Alliance Photograph: Andrew Kerr
AFRICA FIGHTS BACK
To the tobacco industry, Africa is the continent of today and the future. We are the only trophy left in the tobacco industry’s reckless globalization of deaths, diseases and poverty associated with its products.
OR the past two decades, the tobacco companies have intensified incorporates all the provisions of the treaty. Besides, several other Fmarket expansion strategies in several African countries. They have countries such as Nigeria and Ghana have completed draft national used music to target youths and children. They organised fashion legislation. These draft bills provide for a comprehensive ban on shows to lure women into smoking. They offered kids free cigarettes on tobacco advertising, sponsorship and promotion, periodic increases in the streets and for a very long time undermined efforts by governments taxes to reduce consumption, warning messages to include pictures, a to put in place effective tobacco legislation. They actively participated ban on smoking in public places, and mass education to discourage in the smuggling of tobacco products into the youth smoking initiation. continent. Worse still, tobacco companies persuaded However, one of the milestones in the burgeoning some African governments to promote tobacco The tobacco industry resistance to the tobacco industry across the continent cultivation as a major source of foreign earnings. And promised jobs but is the litigation in Nigeria. In April 2007, the Lagos in recent years, the tobacco industry has resorted to State government in South West Nigeria, in using Corporate Social Responsibility (CSR) to brought deaths; they conjunction with Environmental Rights Action/ Friends massage its image and cover its tracks. promised wealth but of the Earth, Nigeria (ERA/FoEN) filed a suit against a The result of the tobacco industry onslaught is evident number of tobacco companies. In the lawsuit, the in rising smoking rates, particularly among young escalated poverty. plaintiffs are seeking special, punitive damages to the people and women, and increasing tobacco related Africa is outraged. sum of $26 billion from the defendants including British deaths and diseases. Tobacco leaf dependent American Tobacco, Philip Morris International and the economies like that of Malawi and Zimbabwe rank Tobacco Institute. among the world’s poorest. The tobacco industry promised jobs but Since the filing of the suit by the Lagos State government, Nigeria’s brought deaths; they promised wealth but escalated poverty. Africa Federal Government and four other states have filed similar suits is outraged. against tobacco companies. The Nigerian suit (a replica of similar The World Health Organisation’s (WHO) initiated - Framework cases in the United States) and increased pressure by tobacco control Convention on Tobacco Control (FCTC) provides a unique platform for groups provide strong evidence that Africa has decided to fight back. the mobilization of African governments and civil society groups for There is no doubt that the tobacco industry’s heavy footprint on Africa organised resistance against the tobacco industry. will take a long time to erase but Africans are now standing up to the National legislation is undergoing review in countries like South Africa. industry and are full of hope that the tobacco scourge will be wiped Kenya has introduced a comprehensive tobacco control law which from this continent over the course of this century.
4 CONTENTS
Executive summary ...... 6
BAT’s Scramble for Africa ...... 7
BAT’s footprint on society ...... 9
BAT’s advertising and promotion footprint ...... 10
Covering their tracks – BAT’s CSR “marketing favourite” ...... 14
BAT’s footprint on the environment ...... 20
BAT’s footprint on child labour ...... 21
Links and further information ...... 22
References ...... 23
ASH receives core funding from Cancer Research UK and the British Heart Foundation. This report was funded by Cancer Research UK
Photograph: Marty Otañez, PhD, American Cancer Society Postdoctoral Fellow, Center for Tobacco Control Research and Education, University of California, San Francisco.
5 “Throughout the continent, tobacco manufacturers are building brands to gain market share before the markets go dark, and if the statistics are anything to go by, they are succeeding.”
World Tobacco September 2007.8
EXECUTIVE SUMMARY
BAT is the second biggest cigarette multinational in the world and is dominant in Sub Saharan Africa with over a 90% market share in eleven African countries.9,10 BAT claims to be “a responsible company” but in Africa BAT is:
Aggressively marketing cigarettes contrary to the WHO’s Gardens Kew, to run projects in Africa to improve BAT’s image Framework Convention on Tobacco Control directive for a and sway public opinion. comprehensive ban on tobacco advertising, promotion and Running counter productive youth smoking prevention sponsorship.11 Tactics include: programmes that encourage children to see smoking as Running competitions that require participants to buy something to aspire to in adulthood and that it is OK for over cigarettes in exchange for a chance to win exciting 18 year olds to smoke. prizes such as cars. Taking advantage of poor African tobacco farmers who Issuing invitations to youth orientated music events that regularly end up in debt to BAT rather than making a decent would appeal to teenagers. living.
Running high profile HIV, youth smoking prevention, child Claiming credit for projects to reduce child labour but failing to labour and other greenwash programmes1 in Rwanda, Malawi, address the fundamental problem of poverty among tobacco Nigeria, Cameroon and Kenya as a promotional tactic, to farm workers. deflect criticism and to avoid regulation. Putting tobacco farmers and their families at particular risk Seeking out partnerships with respected environmental Non from tobacco growing which is both unhealthy and Governmental Organisations (NGOs) such as Earthwatch, environmentally damaging, with problems ranging from Fauna and Flora International and the Royal Botanical pesticide exposure to nicotine poisoning.12
1. ‘Greenwash’ has been defined as disinformation disseminated by an organization so as to present an environmentally responsible public image.
Photograph: Marty Otañez, PhD, American Cancer Society Postdoctoral Fellow, Center for Tobacco Control Research and Education, University of California, San Francisco. 6 BAT’S SCRAMBLE FOR AFRICA
“We should not be depressed simply because the total free world market appears to be declining. Within the total market, there are areas of strong growth; particularly in Asia and Africa… It is an exciting prospect . . . ” 13
~ Statement from a 1990 internal BAT document, made available to the public due to a legal settlement requiring BAT to provide public access to its document archives.14. 15
has historically held a virtual monopoly over cigarette BAT sells its cigarettes in over 38 African countries although it is BAT sales in many African regions where Britain formerly difficult to get an exact picture as BAT itself refuses to release this controlled colonies; in 1912 BAT was among the world’s 12 richest information and smoking prevalence data is difficult to obtain.28, 30, 31 companies.17 BAT continues to reap benefits from this colonial legacy The large number of cigarette brands that BAT markets across the today maintaining a stranglehold on Africa’s cigarette markets and is continent indicates the extent of its promotional agenda. Brands responsible for over 90% of cigarette sales in the following countries: include: Sportsman Gladstone Cartier 18 Ghana = approx 99%. 555 Satin Leaf Consulate Kenya = approx 92%.19 Bristol Paul Revere Embassy Ransom Sweet Menthol Royals 20 Malawi = approx 91%. Life Royal Standard John Rolfe Mauritius = approx 98%.21 Craven A Three Rings Winfield Camel Dunhill Lexington 22 Nigeria = approx 92%. Impala Players Gauloises South Africa = approx 94%.23, 24 Crown Bird Kent Satin Leaf Intore Lucky Strike Vogue 25 Sierra Leone = over 98%. Safari Pall Mall Gunston Uganda = approx 90%.26 Score Peter Courtleigh Crescent & Star Stuyvestant London 27 Zambia = over 99%. Albany Rothmans Mills Zimbabwe = approx 99%.28 Tom Tom Slides from a presentation to shareholders by BAT South Slide from a BAT South Africa investor presentation, Africa in 2007 which illustrates BAT’s growth in sales in Africa, the showing how BAT is focusing on selling “premium brands” to world’s poorest continent, and other developing countries.16 smokers under the age of thirty.16
Global Drive Brands The Engine of BAT Volume & Value Growth Diversified Brand Portfolio
Pall Mall Dunhill Kent Lucky Strike 125 Bn Focus on International and Premium brands, 120 113 Bn 114 Bn Lights and adult smokers under the age of 30
79 Bn (ASU30) 100 93 Bn 85 Bn Global Drive Brands 7979 BnBn 80 Dunhill 60 Kent Lucky Strike 40
Global Volume(Billions) Global 20 International brand Peter Stuyvesant 0 1999 2000 2001 2002 2003 2004 2005
This dominance appears to be paying off for BAT as profits in its “Africa and Middle East region” grew by £2 million (US$ 4 million) to £470 million in 2007 and sales Right Markets, Volume and Brands Generate Volume, Value and Consumer Share in South Africa and Nigeria were particularly strong.32 For the six months ending June 2007, British American Tobacco Kenya 2005 Overall Market Company Profile Volume Trend (% Company announced pre-tax profits and gross turnover growing by 26% to 7.08 Since 2000 Vol.) E Europe Up 19% billion Kenyan Shillings ( US$ 107,358,125), up from KES 5.6 billion Asia Pacific Up 24% (US$84,916,031) the previous year.33 Middle East Up 6% Africa Up 6% BAT Uganda predicted it would double export earnings in the financial Markets Total Growing 56% year ending 2008 and achieve earnings worth $58 million. Shareprices Total Declining 44% Latin America Down 16% are also rising as the company posted half year profits of 31 million American Pacific Down 17% Ugandan Shillings.34 W Europe Down 11% In Nigeria in 2006, BAT’s market share and cigarette sales grew, 4 Source: shipments database especially its Benson & Hedges and Pall Mall brands, resulting in higher profit for BAT.35
7 8 BAT’S FOOTPRINT ON SOCIETY
As BAT increases cigarette sales and profits in African countries in the quest to become the global leader of the tobacco industry, the increasing numbers of smokers across Africa are having a huge impact on health-care costs as well as lost productivity due to tobacco related illnesses and premature deaths.
UE to the limited reach of health care and surveillance it is difficult According to a Ghana Health Service Demographic Survey in 2003 the Dto estimate the number of tobacco deaths in Africa. However most economically disadvantaged region in Ghana is also the region according to Sir Richard Peto, Professor of Medical Statistics at the with the highest incidence of smoking. Over 14% of students at junior University of Oxford, “One death results from every tonne of tobacco secondary schools had smoked cigarettes.47 which makes 1 million cigarettes. If BAT continues selling 100 billion “In developing countries, among poor families, the proportion of cigarettes a year in Africa and the Middle East, this will in the long run household expenditures used to purchase tobacco products can easily cause 100,000 deaths per year.” represent up to 10% of total household expenditures.” Report of the SMOKING RATES Secretary-General, United Nations Economic and Social Council (2004).2 African countries are experiencing the highest increase in tobacco use amongst developing countries. During the 1990s, total tobacco In 2007 US media company, Forbes, calculated that the loss of income demand in Africa grew by a record 3.5 percent per year, compared to per smoker per year in Namibia was about US$448.61. With just over an average annual increase of around 1.7 percent across all developing 1 million smokers, the national income loss equates to about $461 48 nations.36 However, according to the latest WHO estimates, tobacco million. consumption in Africa is increasing by 4.3% a year.37 Researchers in 2003 found people from across the social spectrum in Niger spending substantial proportions of their incomes on their Kenya is one of the ten heaviest smoking countries in the world.38 smoking habit with students spending 40% and manual According to the Kenyan Ministry of Health up to 15% of labourers spending 25% of their respective incomes on under 15 year olds now smoke and approximately 45% cigarettes.49 of 18 to 30 year olds.39 If BAT continues HEALTH IMPACT One in five young Nigerians smokes cigarettes, while the selling 100 billion Tobacco is a risk factor for six of the eight leading causes number of young female smokers rose ten-fold during cigarettes a year of death in the world.50 A 2004 study of tobacco the 1990s.2 attributable deaths in South Africa concluded that about About 50% of Ugandan men smoke and according to the in Africa and the 8% of all adult deaths were caused by smoking.51 2002 Global Youth Tobacco Survey, smoking rates of Middle East, this However, data on the effects of tobacco are largely 13 to 15 year olds top 33% in some parts of Uganda.40, 41 will in the long run lacking across Africa and studies are needed throughout Tobacco use among young people in Malawi is on the the continent to assess the effects of tobacco on the rise. In 2005 the Global Youth Tobacco Survey of 13 to cause 100,000 occurrence of specific diseases, and to monitor the 15 year-olds found over 19% of boys smoked while the deaths per year.” evolution of the epidemic. rate among girls had risen to 16% from 10% in 2001.42, 43 There is growing evidence of an association between ECONOMIC IMPACT smoking and the spread of tuberculosis. A 2005 South African study found areas of Cape Town experiencing high rates of TB The WHO has observed that people who smoke tend to be poorer and where 82% of TB sufferers were smokers or ex smokers.52 Dr Peter that cigarettes contribute to this poverty through loss of income, loss of Ormerod of the British Thoracic Society commented: “This study productivity, disease and death.2 supports other evidence showing an association between In Egypt, where BAT reported particularly strong sales in recent years, smoking and TB risk. …People who smoked would more than 10% of household expenditure in low-income homes is spent therefore be more at risk of acquiring TB.” 53 South Africa on tobacco.44, 35 is burdened by one of the worst TB epidemics in the world with an Malawi is one of the poorest countries in the world and people from its estimated 180 507 cases in 1997, amounting to 419 per 100 000 of the most disadvantaged communities are more likely to smoke.45,46 total population.54
9 ADVERTISING AND PROMOTION FOOTPRINT
The tobacco industry strongly opposes, and lobbies heavily against tobacco advertising and promotion bans because they are highly effective in reducing tobacco use.
Peter Stuyvesant advert outside a sports club in Blantyre, Malawi. Photograph: Peter Luckham, April 2006.
Pall Mall shop sign. Photograph: Folorunsho Moshood, Educare Trust, Nigeria, 2008
Screengrab from The Daily Times 2007
2008 Pall Mall cigarette advert for a BAT 2008 promotion competition in Nigeria. “Buy a pack of Pall Mall for a ticket to and win an instant gift + a raffle ticket for a Metro Groove chance to WinBig.” party, available on purchase of a Photographs: Folorunsho Moshood, pack of Pall Mall. Educare Trust, Nigeria, 2008
10 ESPITE the massive socio-economic and health burden smoking entertainment as well” is placing on African societies, BAT continues to market cigarettes D According to the Daily Times, “The customers stand a chance of here, as elsewhere, by associating its brands with glamour, style, winning various prizes. They will be required to buy one pack of Pall vitality, beauty, sport, sexual allure, celebrity, contemporary fashion Mall Embassy or Kings to enter the competition.” and modern living - methods it claims to have voluntarily given up using in the UK thirty years ago.55 In 2007 BAT Kenya’s The grand prize of a million Malawi Kwacha was communication manager equal to over US$7,255 - forty two times the Furthermore, BAT has been found to be in breach of told the tobacco industry average annual Gross National Income in Malawi.59 its own weak marketing code by allowing its journal, World Tobacco that BAT Other prizes included HiFis, TVs, bicycles, T-shirts, cigarettes to be sold singly rather than in packs of caps, shopping vouchers, travelling bags, key rings 10 or 20.55 In Nigeria, advertisements were even “... has cushioned and packets of cigarettes.60 produced detailing the price of 1, 2 or 3 “sticks”.56 itself from the Following ASH’s protestations in 2007, BAT UGANDA business impact of acknowledged that it had begun an investigation BAT is also using promotional events to market into the alleged marketing breaches but has failed the enactment of brands in Uganda. Jay, a Kampala based blogger to report publicly on its findings. the [smoke-free] law reported on a “festive and colourful” Dunhill launch at Because BAT cannot be trusted to keep within even by adopting self Speke Resort, Munyonyo in 2006.61 its own marketing codes of conduct in countries where regulation in Jay, a smoker himself, writes: “Besides young advertising bans are partial or not fully implemented, Ugandans smoke to [sic] much already and they only a comprehensive ban will protect people from its advertising and are starting younger. We do not need more marketing tactics and reduce tobacco consumption. In marketing, to ensure temptations for those impressionable wannabes. 2000, a global review of the effect of tobacco I am waiting to see what coolness they will “. . . a smooth transition advertising bans on consumption concluded that associate Dunhill with. I can already see the a comprehensive set of tobacco advertising bans can that will not hurt our yuppies displaying their shiny Dunhill packets at reduce tobacco consumption but a limited set of bottom line.” 8 counters from SteakOut to Silk Royale.” 61 advertising bans will have little or no effect.” 57, 58 NIGERIA: MALAWI: Folorunsho Moshood from the Nigerian Educare Trust says: BAT held a series of Pall Mall promotion shows across Malawi in 2007 “The presentation of Metro Groove happened at venues across and 2008 to which the entertainment section of The Daily Times of Nigeria in 2007. The prize was a ticket to attend a groove where Malawi gave further publicity. (Photograph page10) BAT supplied cigarettes… Many young people attended the After the Pall Mall Embassy show, a BAT representative said, “Much as Metro Groove at Cotton’s Club, one of the largest club houses in this is a promotion, we also know that our customers need Ibadan, Nigeria’s third largest city.62
11 Foloronsho Moshood also reports that BAT supported shops are springing up across Ibadan. These photographs are of a parade of shops opposite the Cultural Centre in Mokola district:
“The name of each shop in the area doubles up as a Pall Mall banner and the whole street is covered in BAT branding and advertising. The children featured in my photographs were visitors to the Cultural Centre and many secondary schools are also located around this area. The closest Oba Akinbiyi High School One is about three hundred meters away.”
Pall Mall promotions on umbrellas, table cloth, chairs, & awnings. School students in check shirts. Photographs: Folorunsho Moshood, Educare Trust, Nigeria, 2008
12 Photograph: Laura Seay Laura Photograph:
DEMOCRATIC REPUBLIC OF CONGO: Above: Young man wearing a BAT branded Sportsman t-shirt in The Democratic Republic of Congo in 2007.
KENYA: Left: BAT Sportsman branded cigarette stall in Kenya 2007. SOUTH AFRICA: Below left: ASH uncovered the slide on BAT’s website revealing how in South Africa BAT is specifically researching and targeting the black community which it refers to as “black diamonds” in a cynical bid to increase premium brand sales and dominate the market.16
UGANDA:
Photograph: http://www.flickr.com/photos/aardvark/465519676/in/set-21576000 98409014/) http://www.flickr.com/photos/aardvark/465519676/in/set-21576000 Photograph: In 2007 the tobacco industry journal World Tobacco noted that BAT in Uganda is “…quite aggressive in the promotion and marketing of its products”. The journal reported BAT’s widespread advertising and Black diamonds, the drivers of our frequent competitions in the press.8 economy According to Jackie Tumwine from the Health and Environmental
Black middle class grown by Rights Organisation, Uganda, 30% in one year 2.6 million “Low female smoking rates in Africa are due to the social
Spending power of black and cultural taboo against women smoking... The diamonds risen from R130 billion to R180 billion tobacco industry is steadily breaking these cultural norms through aggressive and deceptive promotion of 2% of South Africa’s black population account for 54% of cigarettes as symbols of empowerment, equality, all black buying power vs 10% accounting for 43% 15 glamour, modernity, sophistication and Western style months ago independence.”
Source: Unilever Study Below: BAT Embassy adverts in a restaurant in 2007.
Photographs: Jackie Tumwine, Health and Environmental Rights Organisation (HERO), Uganda
13 COVERING THEIR TRACKS: BAT’S CSR “MARKETING FAVOURITE”
“I hope it is not immodest to say that we have been something of a trailblazer for CSR in Africa.”
BAT chairman Jan du Plessis 63
HROUGH voluntary Corporate Social Responsibility (CSR) key health, socio-economic, human rights and environmental impacts Tprogrammes BAT purportedly addresses its social and of cigarettes.66, 67, 68 environmental impacts. BAT has established a Corporate and The slide (below) from a BAT South Africa Investor presentation to Regulatory Affairs Department (CORA) to oversee a CSR agenda that financial services company Citigroup illustrates how BAT uses CSR promotes BAT as engaged in contributing to “Civic Life and projects to make itself attractive to investors and to convince them of its Empowerment” by encouraging branches around the world “to enrich social and environmental credentials.16 public and community life.” 64, 65 Internal BAT documents have been made available to the public due to It is well documented that the gap between BAT’s CSR goals and their a legal settlement that required tobacco companies to provide public actual impact is stark. BAT’s reported achievements sit uneasily access to its document archives.14,15 In the archives ASH found alongside aggressive cigarette marketing and do little to address the documents that illustrate the real thinking behind BAT’s CSR strategy.
“Corporate social responsibility schemes are a current tobacco industry marketing favourite.”
Tobacco industry journal, World Tobacco.8
The above slide is from a BAT South Africa Investor presentation
14 Today’s reality
Terms of reference
British American Public opinion The anti-smoking To drive the development of a pro-active global Tobacco movement reputation management strategy To agree the CORA strategy To agree key deliverables To agree the responsibilities of: - The end markets - The regions - The centre
What we want to achieve
Understanding Stakeholders - Research Model
British American The anti-smoking Tobacco Public opinion movement Identify stakeholders and understand the level and nature of their influence. Classified according to three criteria: Their impact on the business Their hostility/sympathy towards tobacco Their willingness to change their views
Extracts from BAT Corporate and Regulatory Affairs (CORA) roadmap, 2000.69 Understanding Stakeholders - Research Model
Decision-makers Individuals and institutions whose decisions will have a direct and immediate impact on our ability to achieve profitable growth over the next five years Influencers Individuals and institutions who have no immediate impact on our ability to achieve profitable growth but who, nonetheless, expert influence over the views and activities of decision makers or other influencers
15 The BAT exhibition hall at the Jua Kali exhibition in Uganda. Photograph: Jackie Tumwine, 2006
OR BAT it was essential the CORA strategy be mobilised on a In 2007 in Nigeria and Rwanda BAT also gained considerable publicity Fconsistent basis worldwide. To this end the roadmap was for sponsorship of an HIV/AIDs conference and donated US$6000 presented to regional managers in Africa in 2000 to be adopted, (£3000) to People Living with HIV/AIDs.73 Previously ASH and other planned and driven forward into the 21st century.70, 71 NGOs have uncovered how BAT’s internal documents reveal aims to encourage tobacco farmers groups to “Target WHO's blind spots on By 2007 the tobacco industry Journal World Tobacco noted BAT using key primary health priorities, such as HIV/AIDS prevention and CSR schemes in Uganda to improve its image and as a means of malaria.” 67, 74 “deflecting criticism and unwanted regulation” in addition to its use as a “marketing favourite”.8 In Malawi BAT attracted publicity for donating prizes to its distributors as a reward for selling the most cigarettes in the most places. The Examples include BAT’s annual sponsorship of the East African rewards included motorbikes as well as cash prizes. The Daily Times exhibition for local craftspeople, known as Jua Kali. This serves a newspaper reported a BAT representative as saying “The motor bikes number of purposes for BAT: have been provided based on coverage and business growth and we Jua Kali is a place where BAT can advertise itself and its brands, want you to use them for its intended purposes and that is to grow your it attracts substantial press coverage for BAT, and businesses further.” 75 it is used as a venue where BAT can meet, greet and impress local In Zimbabwe in 2005 BAT gave a “Tobacco Grower of the Year” politicians. award to Monica Chinamasa, the wife of Zimbabwean Justice Minister, In 2007 BAT used many similar CSR events as advertisements and as Mr. Patrick Chinamasa. Two years’ earlier, in September 2003, it was opportunities to influence and impress dignatories. In Uganda BAT reported that the Minister and his wife. had seized the Tsukumai Farm, also solicited media attention for hosting and sponsoring the forcing off the owners with threats of violence.5 BAT presented Mrs Commonwealth Business Forum where BAT representatives met Chinamasa with the Zimbabwe $24 million prize (US$1000) and trophy heads of state and ministers.72 as the 2004/2005 top grower at a ceremony in Harare.76
Dunhill adverts featured inside the BAT exhibition hall. Photograph: Jackie Tumwine, 2006
16 YOUTH SMOKING PREVENTION STRATEGY launched the campaign.79 Meanwhile BAT and other tobacco companies currently face lawsuits A number of BAT’s CSR campaigns in Africa focus on what BAT refers in Nigeria for targeting young and underage smokers by sponsoring to as “Youth Smoking Prevention”. However, there is no evidence that such schemes decrease smoking among young people but there is events such as pop concerts and of promoting the sale of individual evidence that they can be counter-productive.77, 78 Such schemes cigarettes. Although Lagos recently withdrew a lawsuit, the tobacco encourage children to see smoking as an adult activity and therefore industry still faces similar suits from the federal government and two something to aspire to. They also give the impression that cigarette other states are hoping to recover the costs incurred in treating addiction is a youth issue and that once a young person reaches 18 it smoking-related diseases.81, 82 is acceptable to smoke. Despite BAT’s purported stance on youth Even as these court cases are getting underway and despite BAT’s smoking prevention it is clear that because so many long term smokers purported intentions regarding youth smoking prevention, in 2008 BAT die in middle age, the tobacco is displaying adverts and industry is in perpetual need of competitions with youth new young customers. appeal by shops near schools. NIGERIA “Nigeria’s [youth smoking prevention] campaign reached Poster downloaded over 100,000 sale points, with from BAT website.80 posters and stickers. ..” 79 -boasts BAT’s website and takes the Screengrabs of extracts from opportunity to publicise the BAT’s Corporate and Nigerian minister responsible Regulatory Affairs Guidelines for youth development who for West Africa 2001-2002. 71
BAT Gambia Youth Smoking Prevention billboard. Pall Mall display case next to sweets displayed near Photograph: Paul Hooper, 2005. schools in Nigeria complete with BAT designed ‘Youth Smoking Prevention’ logo.62 Photograph: Folorunsho Moshood, Educare Trust, Nigeria, 2008
17 BAT Corporate and Regulatory Affairs (CORA) strategy document from 2000.69
Where to focus?
Much pressure emanates from labour/human rights and environments NGOs ENVIRONMENTAL STRATEGY NGO engagement will start in these clusters The following extracts from an internal presentation reveal how a strand of BAT’s CSR involved a calculated strategy to collaborate with NGOs in order to gain public support for its environmental policies.
Over the last seven years, following through on its long term strategy to engage with “reasonable NGOs” BAT has fostered relationships with the Earthwatch Institute, Fauna & Fauna International, Royal Botanic Gardens Kew and The Tropical Short and medium term strategy Biological Association to particular effect.83 In 2008 BAT’s Short term strategy is to commence substantive Biodiversity Partnership boasts of supporting 43 projects, many engagement with well-respected and reasonable in Africa.84, 85 NGOs, centrally and at end market level - and to A number of the projects are ecologically themed “volunteering brand and communicate it and training” opportunities for BAT employees. BAT uses such Aim is to show that BAT is acting responsibly on projects as a way of promoting its biodiversity credentials while social and environmental agendas in order to boosting staff morale and skills.85 maintain its “licence to operate” Screengrab 2008 86 Outcome from above is build and grow partnerships “… this year the fellowship programme received official with NGOs and get their third party recognition as an important contributor to employees’ progress verification/support for BAT’s achievements and within the British American Tobacco leadership framework.” BAT standards of business integrity statement on Malawi project.86
Other BAT biodiversity projects in Africa include Mountain Gorilla conservation programmes in Rwanda, Great Ape Habitat Conservation Programmes in Nigeria and Cameroon and a project to enhance the conservation of Lake Victoria in Kenya.87 Concrete steps towards environment The WHO has observed that when BAT and others in the industry partnerships devote portions of profits to CSR projects, the companies are often disguising other aims: Earthwatch already in place “…socially responsible initiatives, so-called by transnational Through this, developing partnerships with four tobacco companies, sit side by side with their continued other NGOs:- involvement in aggressive advertising and sponsorship - Fauna & Flora International campaigns directed at young people, financial pressures they - Wildcru impose on countries that attempt to limit tobacco marketing, their - Royal Botanical Gardens Kew deliberate deception in many developing countries concerning - Tropical Biological Association the dangers of second-hand smoke, and attempts to actively undermine the tobacco control activities of the World Health Organization .” – WHO (2004)2
18 Screengrab from the Kenya Broadcasting Corporation 2007 91
INFLUENCING GOVERNMENTS documents in the public domain. The first claim - that they do not use “The law was actually drafted by us but the Government is to be political leverage to support their commercial interests - is contradicted congratulated on its wise actions.” BAT Regional Director, Norman by BAT internal documents. One, on influencing stakeholders defines Davies on the Kenyan government’s passing of a tobacco law decision makers as those who will “have a direct and immediate impact designed to stop poaching and out of season growing. 88 on our ability to achieve profitable growth over the next 5 years”.
The archives of BAT’s rival Philip Morris include an article from the In Kenya, BAT has been found to benefit from political connections that Sunday Times dated 14 May 1990 about BAT’s expansion in Africa. include close relationships with successive presidents.10 These Above the headline “Africa - Ashtray of the World” a Sunday Times relationships have been used to influence, dilute and delay Kenya’s “Insight” team report noted, “Francis Kabui started smoking because health laws.10 For example, in the 1990s BAT used contacts to everyone in the adverts wore shoes. Today he is dying of cancer.” 89 encourage the government to draft laws compelling farmers to sell Alongside the article, an internal BAT memo shows that the very next tobacco to BAT rather than to other leaf purchasers.10 As BAT was day the Public Affairs Department issued a strong rebuttal.90 already paying farmers less than other companies, these laws ensured farmers’ pay remained poor. The PR team denied that BAT uses economic and political leverage to support its marketing. They denied that their advertising played on the In 2004 BAT was still found entertaining ministers in Kenya when it and “desires of people in the third world to mirror western sophistication”; other tobacco companies were exposed in the press for inviting over 90 they even denied the proof that smoking cigarettes caused disease at MPs to an exclusive coastal resort to discuss proposed tobacco all. The second and third of these denials can be refuted through legislation.92
19 BAT’S FOOTPRINT ON THE ENVIRONMENT
A 1999 World Bank funded study estimated that forest removal related to tobacco was estimated to be approximately 41,900 hectares annually. In Malawi, Zimbabwe, Zambia, Tanzania, Uganda, Burundi, Ethiopia, Morocco, Tunisia, Togo and Nigeria the situation was close to criticality. 93
ALAWI has one of the highest rates of deforestation in the world “Most of the species used – such as acacia, eucalyptus, ipil ipil, neem Mand tobacco growing is a contributing factor. In 1999 over 26% and shishu – grow quickly to provide the small farmers with a of Malawi’s total annual deforestation sustainable fuel source for cooking and was related to tobacco production.93, 94 tobacco-curing.” 97 In 2004 New Internationalist magazine What the Social Report fails to mention interviewed a Kenyan tobacco farmer is that eucalyptus trees lower the water who spoke about the effect of table, adversely affect the nutrient cycle deforestation in the area where he lives: and soil properties, and that growing “We were never told that tobacco large quantities of such trees in place of growing would clear the forest that we indigenous trees has a monumental and relied upon for firewood. Today the land anti social effect upon the natural African is bare. The trees were cleared to meet habitat.98, 99 the high demand for wood fuel required BAT is aware these fast growing trees do in tobacco curing and a local stream - a not promote biodiversity but has done major source of water - has gone dry little to redress the difficulties they due to deforestation.” 95 Photographs: Marty Otañez, PhD, American Cancer Society caused. Although BAT has run a few Postdoctoral Fellow, Center for Tobacco Control Research and high profile small-scale schemes such as BAT makes much of its environmental Education, University of California, San Francisco. 2006 credentials and is keen to boast of one in Chile which returned eighty reforestation projects both on its own and other CSR websites.96 hectares of its eucalyptus plantations back to indigenous woodland, In its 2004 Social Report BAT boasts of a tree planting programme of such schemes are a drop in the ocean compared to the 267,000 more than five million eucalyptus trees in Uganda while the Ethical hectares of fast growing plantations BAT has been responsible for over 97, 100 Performance website notes that in BAT’s reforestation programmes: the last thirty years.
20 BAT’S FOOTPRINT ON CHILD LABOUR
John Mhango, president of the Malawi Congress of Trade Unions says: “Child labour is an evil practice that contributes to Malawi’s poverty rates. Most of these children are denied schooling and grow up illiterate and uneducated. How can they contribute to real economic development?” 103
LTHOUGH tobacco farming is not unique in its use of child labour, and Mozambique ranging from school construction to education A these children are put at particular risk because growing tobacco projects. is both unhealthy and environmentally damaging with problems ranging However none of these initiatives addressed the problem of low 101 from pesticide exposure to nicotine poisoning. earnings of adult tobacco workers, or genuinely Malawi, where tobacco exports account for over implemented ECLT’s stated efforts to improve 70% of export earnings, also has the highest labour standards and raise “working conditions of incidence of child labour in Sub Saharan the plantation worker”.
102 Africa. Most tellingly, the ECLT had a budget of just $2.3 BAT chairman, Jan du Plessis boasts of tackling million over four years from 2002, compared to child labour problems, saying: nearly US$40 million in economic benefit the “We work with farmers through our leaf growing major tobacco multinationals’ receive through the programmes to try to eliminate child labour, but use of unpaid child labour in Malawi over the 104, 105 we know this is not enough. So three years ago same period. we established the pioneering Elimination of The research concluded multinational tobacco Child Labour in Tobacco-growing Foundation, in companies are using child labour projects to partnership with the International Tobacco “enhance corporate reputations and distract Growers Association and the trades unions in public attention from how they profit from low our sector. It now includes all the main wages and cheap tobacco”. 104
multinational tobacco manufacturers and Photograph: Marty Otañez, PhD, American Cancer The real reasons for BAT’s engagment with dealers and the International Labour Society Postdoctoral Fellow, Center for Tobacco Control Research and Education, University of child labour issues are found in the internal 7 Organisation advises its Board.” California, San Francisco. 2006 CORA roadmap from BAT’s document In 2006 researchers examined the Eliminating Child Labour in Tobacco archives rolled out in 2000. BAT wants to be seen as “proactive, (ECLT) programme that du Plessis credits BAT with establishing, and front-footed and already being recognised as such by other found it had established projects in Malawi, Tanzania, Uganda, Zambia. main partners.” 69
Child labour: Next major milestone
Conference on child labour and tobacco growing in october Involvement of unions, growers, governments, multilateral bodies, NGOs BAT proactive. front-footed and already being recognised as such by other main partners
2008 Screengrab from BAT website where BAT advertises helping establish the “Eliminating Child Labour in Tobacco Growing Foundation”
21 Photograph: Marty Otañez, PhD, American Cancer Society Postdoctoral Fellow, Center for Tobacco Control Research and Education, University of California, San Francisco.
LINKS AND FURTHER INFORMATION
Environmental Rights Action/Friends of the Earth Nigeria Essential Action Environmental Rights Action/Friends of the Earth Nigeria Essential Action is a US corporate accountability campaign (ERA) is a Nigerian advocacy non-governmental organisation group that helped launch Global Partnerships for Tobacco founded on January 11, 1993 to deal with environmental Control in 2000 to support and strengthen international human rights issues in Nigeria. tobacco control activities at the grass roots level. www.eraction.org http://www.essentialaction.org/ People against drug dependence and ignorance - Nigeria The Framework Convention Alliance for Tobacco Control Attaining societal advancement via promoting and protecting Made up of almost 300 organizations representing over 100 the rights to health and meaningful existence. countries around the world which are working to support the www.paddi.globalink.org/ signing, ratification and effective implementation of the Educare Trust - Nigeria Framework Convention on Tobacco Control (FCTC) and related protocols. An Education and Health NGO based in Ibadan, Nigeria’s www.fctc.org/ third largest city, with outreach in several other parts of the country. www.educaretrust.org/ World Health Organisation (WHO) Framework Convention on Tobacco Control National Council against Smoking - South Africa http://www.who.int/gb/fctc/ The National Council against Smoking’s (NCAS) mandate is WHO Report on the Global Tobacco Epidemic, 2008. The to improve public health by promoting non-smoking. MPOWER package www.againstsmoking.org/ www.who.int/tobacco/mpower/en/index.html The Tanzanian Tobacco Control Forum World Bank - Economics of tobacco control A non-profit organisation with the vision of enhancing public http://web.worldbank.org health through effective control of tobacco use. PO Box Guernsey Adolescent Smokefree Project 33105 Dar Es Salaam, Tanzania. Tel: + 255 732 924088 Guernsey Adolescent Smokefree Project (GASP) is a local The Environmental Action Network LTD - Uganda charity whose aim is to reduce smoking amongst the young The Environmental Action Network (TEAN) aims to institute people of Guernsey. GASP runs a project to support children public interest legal actions to protect the environment and who work in the tobacco industry in Malawi. promote the right to a clean and healthy environment. www.gasp.org.gg/ http://tean.globalink.org/ Tobacco and poverty: A vicious circle Sidewalk Radio World Health Organisation brochure outlining the vicious Collage of videos about the tobacco industry in Africa circle of tobacco and poverty: who pays, who benefits and http://www.sidewalkradio.net/ why tobacco control is a necessity. www.who.int/tobacco/resources/publications/wntd/2004/en/ British American Tobacco Documents Archives http://bat.library.ucsf.edu 22 REFERENCES
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