Poland - Social Report 2006 - English - British American Tobacco

2006 

Social Dialogue 

Corporate Social Responsibility Report

This Social Responsibility Report has been published by British American Tobacco Polska. It presents the issues raised by the company’s Stakeholders 

during a dialogue held in 2006 (at individual and group meetings, by using an online forum and the website www.odpowiedzialnosc. 

pl), the commitments undertaken by the company in response to its Stakeholders’ expectations, essential facts and figures describing the company’s 

operations as well as an auditor’s assessment. 

The views presented in the Report are those of British American Tobacco Polska – unless it has been clearly stated that they are opinions 

of the Stakeholders, moderator or other people involved in the Social Dialogue (Social Reporting) process. 

The publication is not of a marketing nature and no information it contains is presented here for advertising purposes. 

CSR VERIFICATION 

The report has been submitted for verification by Bureau Veritas, an independent auditor of the Social Dialogue (Social Reporting) process, 

based on the AA1000 AS standard. You will find the following three types of auditor’s marks throughout the publication: 

Advanced: The information presented is supported by underlying evidence, the activities have been observed by the assuror and the activities 

described are aligned to the requirements of AA1000. 

Positive: Information reported is supported by underlying evidence and no material errors or omissions were identified. 

Basic: During the course of our review nothing came to our attention to indicate that there was any material error, omission or misstatement. 

Production: 

Text: British-American Tobacco Polska S.A. 

Edited by: Message House Agencja PR 

Graphic design and DTP: Akiku Graphics 

Printed by: Zakład Poligraficzny Drukpol 

Multimedia design: mediacyfrowe.pl 

ISSN: 1897-3353 

British-American Tobacco Polska S.A., seated in Augustow, zip code 16-300, Tytoniowa 16 street, registered in District Court in Bialystok, XII Economic Department of National Registry 

Court, in Entrepreneur Registry under number KRS0000024358, Tax Identification Number (NIP): 846-000-23-29, Initial Capital: 17.130.980,00 PLN, Paid In capital: 17.130.980,00 PLN

Table of contents 

Introduction 

About us 

Foreword: Luiz A. Heeren ...........................................................................................................................................................................................................................................................4 

Social Dialogue of a responsible company: dr Michał Boni ..................................................................................................................5 

CSR in company strategy: Marek K. Kosycarz ..........................................................................................................................................................................6 

Statement by Bureau Veritas ................................................................................................................................................................................................................................................7 

Opinion of Forum Odpowiedzialnego Biznesu ....................................................................................................................................................................8 

Opinion of PKPP Lewiatan .........................................................................................................................................................................................................................................................9 

British American Tobacco worldwide ........................................................................................................................................................................................................10 

British American Tobacco in Poland .................................................................................................................................................................................................................11 

Dialogue process management structure ......................................................................................................................................................................................12 

Statement of Business Principles ...........................................................................................................................................................................................................................13 

About Dialogue 

Social Reporting Process ............................................................................................................................................................................................................................................................15 

Dialogue 2003/2004 

Commitments from the 2003/2004 cycle and their fulfilment ....................................................................................................17 

Risk of smoking ..................................................................................................................................................................................................................................................................17 

Youth smoking prevention ..................................................................................................................................................................................................................19 

Responsible marketing ..................................................................................................................................................................................................................................21 

Community involvement ........................................................................................................................................................................................................................22 

Contraband and counterfeit ..........................................................................................................................................................................................................24 

Political and regulatory issues ....................................................................................................................................................................................................25 

The workplace ...................................................................................................................................................................................................................................................................26 

Cooperation with Polish tobacco growers ..................................................................................................................................................28 

Ecology ...............................................................................................................................................................................................................................................................................................29 

Social responsibility in practice ..............................................................................................................................................................................................................................30 

Dialogue 2006 

Expectations and commitments from the 2006 cycle ......................................................................................................................................37 

Risk of smoking ................................................................................................................................................................................................................................................................38 

Responsible marketing of tobacco products. 

Youth smoking prevention ................................................................................................................................................................................................................42 

Being a responsible company and the idea of Social Dialogue ...............................................................47 

Cooperation with local community ..............................................................................................................................................................................51 

Tobacco smuggling and legal issues .........................................................................................................................................................................55 

Taxes ............................................................................................................................................................................................................................................................................................................61 

Ban on smoking in public places ........................................................................................................................................................................................64 

Situation on the labour market ................................................................................................................................................................................................67 

Workplace .....................................................................................................................................................................................................................................................................................70 

Cooperation with Polish tobacco growers ...................................................................................................................................................74 

Dialogue 2006 – facts and figures ............................................................................................................................................................................................................................................78 

Process evaluation: statement by Bureau Veritas ............................................................................................................................................................................83 

Global Reporting Initiative. GRI indicators, with comments ............................................................................................................................85

4 

”There is a connection between the responsibility 

of a company and its readiness to change. It is thanks 

to the opinions of our Partners that we get better every day.” 

Ladies and Gentlemen, 

Readiness to change is one of the ways 

in which the responsibility of a company 

manifests itself, so please encourage us 

to change each and every day. 

Having been general director at British 

American Tobacco Polska for over two years 

now, I will frankly admit that I myself am 

impressed by the entire process of Social 

Dialogue and the deeper I get involved in it, 

the more I start to believe in its results. 

British American Tobacco was the first tobacco 

company in the world to start a regular 

process of Dialogue with its Stakeholders. 

We took the first steps in this area in 2001. 

Today this form of transparent communication 

with the environment is an inherent 

part of our business – and I cannot imagine 

ever functioning without it. 

This process is a success we share with our 

Partners. British American Tobacco has 

been listed – as the only tobacco company 

– in the prestigious Dow Jones Sustainability 

Index which spotlights public companies 

with the best prospects of long-term business 

operations. Noticing a constantly growing 

group of Stakeholders who want to talk 

to us and are eager to express their opinions 

in an open and sincere way – we believe that 

more and more people, institutions and social 

groups can see the tangible results of our 

Dialogue. Without doubt, everyone who 

cared to become involved in this dialogue 

has now gained a much better understanding 

of how British American Tobacco itself 

and the entire tobacco industry function. 

As a company operating in a controversial 

Luiz Augusto Heeren – responsible for implementation 

of Dialogue results by the company. 

General Director of British American Tobacco 

Polska. He has been with British American 

Tobacco since 1986 when he started his career 

in Brazil as Financial Manager at Souza 

Cruz, the group’s Brazilian subsidiary. He 

went on to work as Business Development 

Manager in the Acquisitions and Mergers 

Department at British American Tobacco’s 

headquarters in the UK, then as the Finance 

Director at Nobleza Piccardo (British American 

Tobacco’s subsidiary in Argentina), Regional 

Director for South and Central America and 

Managing Director in Peru and Ecuador. 

industry, we were once mostly a target for 

attacks and our communication was focused 

on refuting charges. Now we are holding regular 

dialogue with our Partners and consequently 

we succeed in working out, together, 

solutions that are beneficial to all. 

I must admit that I initially expected a more 

sceptical approach towards Social Dialogue 

from our Stakeholders. However I 

was very positively surprised by the high 

level of trust bestowed on us and won 

over with the openness demonstrated by 

members of various communities when 

they discussed with us issues which were 

important to them. 

From my own point of view, during this 

year’s dialogue sessions we managed to discuss 

the most important issues concerning 

relations between our company and its 

environment. I want to make it clear that we 

found some questions surprising; 

in some cases, we did not know the answers 

and had yet to work out solutions. But I find 

this perfectly understandable. This is just 

what the process of a frank exchange of views 

is supposed to look like. 

Now, in presenting you with this Report, 

which reiterates the current cycle of Social Dialogue 

and describes new commitments that 

British American Tobacco Polska will carry 

out in the near future, I would like to thank all 

the Stakeholders who got involved in the Dialogue, 

by participating in dialogue sessions 

or otherwise sharing with us comments concerning 

our business. 

I also hope that in the forthcoming cycles 

of Dialogue we will meet a growing group 

of Stakeholders, and receive even more 

suggestions that will help us develop our 

business in a way that takes into account the 

expectations of our Stakeholders. 

Luiz Augusto Heeren, 

General Director

”An open and unrestricted discussion based on partnership 

made it possible to map out new horizons of problems 

and expectations.” 

Ladies and Gentlemen, 

You are holding in your hands a report from 

British American Tobacco Polska, which 

presents the outcome of the process of dialogue 

and social consultations with a wide 

group of partners and stakeholders. Three 

years ago, after a series of meetings with 

representatives of different groups and having 

listened to their comments, opinions 

and expectations, the company – for the first 

time in the framework of Corporate Social 

Responsibility actions – presented its views 

in terms of how they related to declared 

objectives. It also committed itself to launching 

a number of actions and initiatives. What 

is more important – today we can say that 

practically all the commitments the company 

then made have been fulfilled. 

This is where the unique nature of a socially 

responsible business mission as understood 

by BAT Polska lies. A social dialogue 

is undertaken in order to lead to specific 

solutions – on the one hand fulfilling the 

expectations of social partners, on the other 

allowing the company to commit to feasible 

tasks in an honest and reliable way. 

This year’s edition of the project referred 

to the existing achievements. The meetings 

allowed the company board, local government 

community and institutions operating 

in Augustów, business partners, growers, 

trade unions and labour groups, nongovernmental 

organisations functioning 

on a national level, sales groups, the health 

service community, central administration 

representatives, members of parliament and 

journalists to exchange views and opinions. 

An open and unrestricted debate, based 

on partnership and free of taboos, made it 

possible to refer to commitments being fulfilled 

by BAT Polska, but also to map out new 

horizons of problems and expectations. 

It was very inspiring to watch how representatives 

from different sides approached 

difficult issues – whether discussing promotion 

of a ban and cutting down on smoking 

among minors, arguing about the role of a tobacco 

company in encouraging pro-health 

attitudes and actions supporting health prevention, 

or raising the issue of interrelations 

between increases in excise taxes, cigarette 

prices and growing contraband trade. 

All problems were specified by name and 

the process of dialogue ran transparently 

as this is how openness and mutual understanding 

can be guaranteed. It was not 

only the ideas that were discussed, but 

also specific solutions, rooted in facts, reality 

and concrete proposals. This is how, as 

a result of the previous debate, the then 

initiated ”Augustów Academy” (helping 

young people to find jobs in high-unemployment 

areas) gained recognition not only 

in the Podlasie region or in Poland, but all 

over the European Union – as an example 

of good partnership between business and 

the local community in their actions. 

It was evident that during the first edition 

of the project the partners were learning 

about each other. And now it has become 

clear that expectations toward BAT Polska 

have risen immensely. It comes as no surprise 

– if it turns out that one can do something 

well, we would like them to do more 

to become not just a leader, but a ”superleader” 

in a number of areas and tasks. Consultations 

with social partners have shown 

us how much Poland misses both leadership 

and leaders in a variety of public affairs. 

It is a huge commitment that we have undertaken 

this year, and great sense of expectation 

goes with it. Even so it was inspiring 

to watch how the company’s representatives 

answered questions and explained 

difficult issues right away during the debate 

– with passion, great emotions and commitment 

– and how they immediately declared, 

with a sense of mission, what lay within their 

capacity to achieve. 

It has been an outstanding lesson in social 

dialogue and responsible debate. One more 

important message arises from that lesson 

– a socially responsible company is supposed 

to generate initiatives that encourage 

wider activity, on the part of other entities 

also, which is the best way to create the conditions 

for common responsibility. 

With many thanks to our partners from all 

sides, I recommend that you read this report 

as it is a real piece of Polish life. And a piece 

of truth about ourselves. 

Michał Boni, 

Moderator 

Michał Boni made sure that the course 

of Dialogue was appropriate and unbiased. 

Holder of a Ph.D. in sociology of culture, 

activist of the clandestine ”Solidarity” trade 

union and contributor to underground publications, 

member of the union’s national 

executive body. Minister of Labour and Social 

Policy in 1991, and later – secretary of state 

in the Ministry responsible for labour market 

policies. 

Speaker at international conferences 

on the labour market. Collaborator of such 

institutions as the Centre for Economic and 

Social Research (CASE), Centre for International 

Relations, Polish Economic Transformation 

Foundation ”Wiedzieć jak” (”To know 

how”) and the Polish-American Freedom 

Foundation. He represents the Polish Confederation 

of Private Employers Lewiatan 

in the European Foundation for the Improvement 

of Living and Working Conditions. 

Introduction 

5

6 

”Social responsibility cannot be – and is not in our case 

– a promotional action.” 

Dear Stakeholders 

of British American 

Tobacco Polska, 

For British American Tobacco Polska, 

social responsibility is an inherent element 

of the company’s operations and even more 

– it is one of three key pillars of our strategy, 

both globally and locally. 

We are aware of the fact that we operate 

in a controversial industry. Smoking carries 

the risk of developing a tobacco-related illness. 

There is no such thing as a ”safe” cigarette. 

Moreover, one cannot suggest in any 

way – in line with the provisions of Polish law 

– that some tobacco products are less harmful 

than others. The only way to avoid the 

health-related risk is to not start smoking or 

to quit – which is difficult, but not impossible. 

For all these reasons we hold a view that 

our products can be consumed only by adult 

persons, aware of the risk they take. 

It is important to remember that 10 million 

adults in Poland value the pleasure of smoking 

higher than any associated risks. Cigarettes 

are a legal product and taxes on their 

sales generate 6% of total state budget 

revenues. 

A lot of people claim that the world would 

be a better place without tobacco. I have no 

doubt that even they will realise that a world 

without legal tobacco companies is an entirely 

different scenario altogether. As long 

as there are consumers who consciously 

choose to smoke, their needs should be 

catered by legal tobacco companies, 

operating in accordance with the law, 

and most definitely not by illicit tobacco 

manufacturers. 

The approach taken by British 

American Tobacco Polska 

to the issue of corporate 

responsibility is unique. 

Pillars of British American Tobacco global strategy 

Marek K. Kosycarz, 

CORA Director 

We are the only company in Poland which 

is bold enough to let its Stakeholders define 

– in a Dialogue that is open, unrestricted 

and conducted under independent supervision 

– what we should do in order to deserve 

the reputation of a responsible business. 

We do not declare in advance that ”we are 

going to do this or that since it is socially responsible”. 

We listen to expectations voiced 

within our community first and on that basis 

undertake commitments. In our opinion, 

this is the best way to define corporate social 

responsibility, and also – in a broader perspective 

– to define the presence of tobacco 

companies in a society. 

Irrespective of the market in which we operate, 

responsibility is an inherent part 

of the group’s management strategy. British 

American Tobacco publishes Social Reports 

in 43 countries and they are not publications 

of a promotional nature but documents that 

summarise a multi-stage process of meetings, 

interviews and decisions which follow. 

Both of these reports, and the report that 

sums up achievements in the sphere of social 

responsibility on a global level, are available 

from our website www.bat.com. 

I would like to use this opportunity to give 

special thanks to the independent experts 

and the acknowledged authorities who 

provided comments on our Report. Consequently, 

the readers may get to know other 

points of view, sometimes different from 

ours, which in my opinion is yet another 

proof of the openness of the process.

Statement by Bureau Veritas 

British American Tobacco Polska has established 

an effective process for consulting 

with its key stakeholders, enabling the capture 

of material concerns in a structured 

and consistent manner. 

Social responsibility is integrated into the organisations’ 

standard business activities 

through policies, objectives, management 

structures and awareness programmes. 

This Report reflects the broad range of environmental, 

social and economic issues that 

British American Tobacco Polska is currently 

addressing, including those for which it has 

legal responsibility. 

Stakeholders react positively to the process 

of social dialogue and reporting and have 

as an expectation: ”To continue the dialogue 

process and implementation of commitments”. 

Introduction 

7

A strategic approach to the process of dialogue with stakeholders is 

not, unfortunately, typical for businesses operating in Poland. While it is 

true that a number of Polish companies use the term CSR, their involvement 

does not tend to be of a strategic nature and amounts, at most, 

to slightly more enlightened forms of philanthropy. Enterprises fear the 

transparency that is inherently linked to the process of social dialogue 

and perceive the dialogue, usually in a very limited form, as a commitment 

enforced by law and solely concerning relations with trade unions 

or employee councils. Consequently, they confine their social responsibility 

to occasional benevolence towards various social groups. 

The company’s day-to-day value depends primarily on its financial 

results. But there is an important condition for posting good results 

in a longer time frame – effective management of all resources 

of the company, including human capital, the customer and business 

partner base, product and service quality, and relations with diverse 

groups of stakeholders. Responsible owners or shareholders, honest 

and efficient employees, loyal customers, favourably inclined members 

of the local community – these are all valuable assets, crucial 

to enhancing the company’s long-term value. 

It is hard to measure such resources and even harder to spot them 

in the annual report. This is why we talk about the intangible or social 

value of the company – and it is created with reference to stakeholders. 

Therefore, while a lot depends on the knowledge and skills of managers, 

as much depends on the state of social awareness, on expectations 

directed toward business, and on the everyday attitudes of employees 

and customers. In order to effectively build the social value of the company, 

one essentially needs to improve the methods and scope of social 

partnership. A transparent social dialogue, such as the one pursued with 

determination by British American Tobacco, becomes one of the pillars 

of a market economy in a modern democratic state and makes it possible 

to effectively build the social value of the company. 

8 

Social reporting is a significant dimension enhancing the benefits for 

the company and its stakeholders. Social reports have already been 

appreciated by a number of global market players and some companies 

operating in Poland are also beginning to warm to the idea. 

The biggest challenge faced by a company that decides to develop 

such a report is the content. What facts to present? What measures 

of effectiveness to apply? Should the report be submitted for external 

audit? How to make the company’s key stakeholders want to read 

the report in the first place? 

The best way to ensure the report will be read is to seek maximum 

involvement of all stakeholders at the stage when the report is developed. 

Therefore, conducting a dialogue is at the same time a natural 

mode for preparing a social report. Stakeholders express their expectations, 

talk to the company, come up with interesting ideas concerning 

improvements in the management process and product quality, 

and propose important social initiatives. The company’s benefits are 

twofold – it can better fulfil social expectations and also develop a report, 

in which those expectations are addressed. The report becomes 

an important aspect of creating a close relation between the company 

and its environment; it results in carefully considered and relevant 

solutions enhancing both the company’s value and the social environment 

in which it operates. 

Mirella Panek-Owsiańska 

General Director 

Forum Odpowiedzialnego Biznesu 

The views expressed above are personal opinions of the respective Stakeholders and do not represent the position of British American Tobacco on a given issue.

The business community in Poland starts to think not only about 

current problems, but also about long-term strategies, long-term 

relations between the company and its environment, as well as its social 

image. It is a very interesting phenomenon. It means that the 

Polish economy, in particular the private sector, is leaving behind its 

childhood phase and gradually coming of age, entering into social 

interactions and caring about both its effectiveness and its image 

at the same time. 

A ”responsible company” concept is not only about being aware 

of the importance of the company’s social role. It is also about acting 

in one’s own well-understood, long-term interest. Funding human 

capital growth (including actions that apparently have nothing 

in common with business, such as co-funding of cultural initiatives or 

basic research projects), launching environmentally friendly actions, 

development of social sensitivity, backing civil society growth – all 

these initiatives serve the purpose of creating the deepest foundations 

of the country’s economic competitiveness. And only in a truly 

competitive country can truly competitive businesses emerge 

and grow. 

Some companies take up responsible business ideas on their own initiative, 

being aware of long-term benefits, while others are forced to do 

so by the market. Consumers demand that companies act in harmony 

with environmental principles and treat both their employees and local 

communities with respect. Businesses cannot ignore it. 

British American Tobacco Polska, PKPP Lewiatan’s direct member, develops 

the concept of responsible business in a conscious and creative 

way, regarding it as a comprehensive management style. The company 

demonstrates in practice how one can and should create conditions 

– in a socially responsible way – for a constructive dialogue with 

one’s environment, which results in tangible projects that are important 

to all interested parties. 

This approach, which says that the company’s commitments 

in the area of social responsibility are in agreement with its social 

environment and not defined at will, deserves admiration and widespread 

recognition, since it is an expression of cooperative attitude, 

aiming to find out what the real needs of the community are. Commitments 

resulting from this method of social dialogue will definitely 

be of high value to the company’s stakeholders. 

Among over 100 proposals submitted during this year’s cycle of BAT 

Polska’s Social Dialogue, Lewiatan is particularly inclined to support 

those which ask that the company promotes the idea of corporate 

social responsibility among small and medium-size enterprises. Today 

the concept is usually pursued by big, highly-developed companies. 

It is high time they attracted more followers. The whole economy 

– and consequently all of us – will benefit from that. 

I wish BAT Polska a great deal of success, stemming from the idea 

of corporate social responsibility. 

Henryka Bochniarz 

President 

The Polish Confederation of Private Employers Lewiatan 

The views expressed above are personal opinions of the respective Stakeholders and do not represent the position of British American Tobacco on a given issue. 

Introduction 

9

About us 

British American Tobacco worldwide 

British American Tobacco was established 

in 1902. Today it is the most international 

tobacco group listed on stock exchanges 

around the world. 

We operate in 180 countries and our share 

in the global tobacco market amounted 

to 16% in 2006. We offer adult consumers 

over 300 brands of tobacco products – not 

only cigarettes, but also cigars and roll-yourown 

tobacco. We hold robust market positions 

in each of our regions and have leadership 

in more than 50 markets. The British 

American Tobacco Group owns 85 factories 

in 66 countries, which manufactured 

10 

over 900 billion cigarettes in 2006. British 

American Tobacco’s companies, including 

associates, employ nearly 97,000 people 

worldwide. 

We manufacture high-quality tobacco 

products that address the varied needs 

of millions of adult consumers. We see it 

as our goal to offer products that would 

best satisfy the needs of adult smokers. 

At the same time, we highlight the fact that 

our commercial strategies are carried out 

in accordance with the rational expectations 

that society may associate with a responsible 

manufacturer of tobacco products 

in the 21st century – the same expectations 

that we wish to learn more about, including 

through the process of Social Dialogue (Social 

Reporting). 

British American Tobacco pays over £15 

billion (PLN85 billion) a year in taxes worldwide; 

this amount is over 8 times the British 

American Tobacco Group’s profit after tax. 

To learn more about British American Tobacco’s 

operations, both globally and in particular 

countries, please visit our website: 

www.bat.com.

British American Tobacco in Poland 

British American Tobacco has been 

present in Poland since 1991. In November 

1995, a privatisation deal was signed, 

under which British American Tobacco 

acquired a 33% stake in Przedsiębiorstwo 

Wyrobów Tytoniowych S.A., a joint-stock 

company based in Augustów. On 1 January 

1997 the company assumed the name 

of British-American Tobacco Polska S.A. 

In September 1999, after a global merger 

of British American Tobacco plc and Rothmans 

International BV, the world’s fourthlargest 

tobacco company, their operations 

were consolidated in Poland too. British 

American Tobacco (Hamburg International) 

GmbH currently controls 96.64% of its 

Polish subsidiary’s share capital; other 

shareholders include the State Treasury, 

employees and tobacco growers. 

Today British American Tobacco employs 

a total of over 1,000 people in Poland. Apart 

from our factory in Augustów we have 

a branch office in Warsaw and a countrywide 

sales network. The plant in Augustów 

alone occupies an area of 10 hectares 

and employs over 500 staff. Two trade 

unions operating there represent about 

60% of the workforce and cooperate with 

the Board on all employee-related issues. 

In late 2002 our Augustów plant was 

found to meet the requirements of the ISO 

9001:2000 Quality Management System. 

We have also been granted an ISO 14 001 

certificate. 

In 2005 British American Tobacco Polska 

sold 11.35 billion cigarettes, which gave us 

an average share in retail sales amounting 

to over 15% and the second place 

in the Polish tobacco sector. Our revenue totalled 

1.97bn zloty in 2005; we posted a profit 

of 6.1m zloty in that year, while the state 

budget received over 1.6bn zloty in excise 

tax and over 430m zloty in VAT. 

Until now, British American Tobacco’s investments 

in Poland have exceeded $200m; 

the funds were earmarked chiefly for modernisation 

of the Augustów plant as well 

as for a co-operation and support programme 

aimed at local tobacco growers. 

To learn more about British American Tobacco 

Polska’s operations, please visit our 

website: www.bat.com.pl. 

About us 

11

Dialogue process management structure 

The proper course of Social Dialogue as well as fulfilment of the undertaken commitments is taken 

care of by the board of British American Tobacco Polska, composed of the following members: 

The entire company is involved in the process of Dialogue; for instance, all commitments presented in this Report have been drawn up in 

relevant departments and by a specially appointed steering team called the Social Reporting Committee, consisting of the following members: 

12 

Luiz Augusto Heeren 

General Director 

Marek K. Kosycarz 

CORA Director 

Christine Castillon-Dubus 

Marketing Director 

Dariusz Tychowski 

Legal Director, 

attorney at law 

Rafał Ogrodnik 

Finance Director 

Monika Ferdin 

HR Director 

Luiz Augusto Heeren General Director 

Marek K. Kosycarz CORA Director 

Hanna Bielewicz Tax and Treasury Manager 

Magdalena Cierpiał Brand Performance Manager – Viceroy and Local Brands 

Michał Mikiewicz Organisational Development Manager 

Andrzej Kornatowski Legal and Regulatory Affairs Manager 

Krzysztof Andruszkiewicz Operations Communication and Stakeholders Manager 

Roman Jamiołkowski Project Manager 

Steve Rae 

Plant Director 

Roman Maret 

IT and Administration 

Director

Statement of Business Principles 

British American Tobacco is a commercial enterprise and our primary 

role is to build long term shareholder value. However, we realise 

that we face increasing demands to be more transparent 

in our operations and to demonstrate high standards of corporate 

conduct. 

Large and successful businesses can be perceived as influential 

and exclusively self-interested organisations and therefore face barriers 

when it comes to winning people’s trust. 

As a tobacco business, we can expect to face more distrust than others. 

In order to address such challenges, based on experience gathered 

in several countries in the first cycle of Social Dialogue, the British 

American Tobacco Group developed the Statement of Business Principles. 

They were set out in cooperation with Stakeholders and with substantial 

help from the Institute of Business Ethics (IBE). We believe these 

principles cover the key issues that underpin Corporate Social Responsibility 

and are particularly useful to describe a specific environment 

in which a tobacco business operates. The principles are demonstrated 

on the following pages, along with examples of their use in practice. 

we take responsibility that our marketing 

actions do not impede in any way 

efforts to cut tobacco consumption 

among minors 

We will: 

we should 

take the lead 

and can act 

effectively 

on our own 

• strive to ensure that our marketing 

actions (that are directed solely 

at adult smokers) have the least possible 

impact on minors 

• make all possible efforts to avoid 

any content in our marketing communications 

that might be attractive 

to minors 

we should 

work 

with others 

and effective 

actions require 

cooperation 

we should work with other 

organisations, including retailers, 

to reduce access of minors to our 

products 

On our part, we will: 

Those social expectations which our company faces may concern 

a number of different areas, including those the company can influence 

and those that are beyond the scope of its operations. The company 

should definitely take the lead in actions concerning some 

issues, while in other cases actions taken in cooperation with Stakeholders 

turn out to be most effective; there are also areas where other 

institutions or organisations should be the prime movers. Therefore 

we have defined three Areas of Responsibility: 

• areas where we should take the lead and accept responsibility, 

• areas where we want to work together with our Stakeholders, 

and 

• areas where we believe other institutions or organisations 

should take the lead. 

For instance, as far as the Principle of Responsible Product Stewardship 

is concerned, we express our belief that ”under-age people 

should not consume tobacco products”; the responsibility for different 

aspects of the issue and forms of actions resulting from that belief 

can be depicted in the following way: 

• cooperate with tobacco retailers so 

that minors are prevented from obtaining 

access to our products 

• analyse, together with stakeholders, 

whether we can play a role in any 

other actions aimed at reducing access 

of minors to tobacco products 

other 

institutions 

should take 

the lead 

and we can help 

where 

possible 

we believe that the whole society is responsible 

for reducing tobacco consumption 

among minors, with particular emphasis 

on government and education institutions, 

as well as educators and parents 

We will contribute by: 

• supporting education programmes, 

if our key stakeholders find it 

appropriate 

About us 

13

The principle of Mutual Benefit is the basis on which we build our 

relationships with our stakeholders. We are primarily in business 

to build long-term shareholder value and we believe the best way 

to do this is to seek to understand and take account of the needs of all 

our Stakeholders. Therefore: 

14 

The Principle 

of Mutual Benefit 

• We believe in creating long-term shareholder value (which can 

be exemplified by boosting exports of our plant in Augustów); 

• We believe in engaging constructively with all our Stakeholders 

(which is best exemplified in the process of Social Dialogue 

as such); 

• We believe in creating inspiring working environments for our 

people (which is exemplified in the programme ”Bądź Aktywnym 

Twórcą” (Be An Active Creator), under which each employee 

can submit an idea aimed at streamlining any business process); 

• We believe in adding value to the communities in which 

we operate (which is exemplified by the ”Augustów Academy”, 

an initiative aimed at helping unemployed graduates in the Augustów 

region); 

• We believe that suppliers and other business partners should 

have the opportunity to benefit from their relationship with us 

(therefore we hold regular meetings with our key trade partners, 

focused on the issues of current and future cooperation 

as well as the condition of the industry). 

The Principle 

of Good Corporate Conduct 

The principle of Good Corporate Conduct is the basis on which all our 

businesses should be managed. Business success brings with it an obligation 

for high standards of behaviour and integrity in everything 

we do and wherever we operate. These standards should not be compromised 

for the sake of results. In line with this principle: 

• We believe our businesses should uphold high standards of behaviour 

and integrity (therefore we have developed and implemented 

the Standards of Business Conduct); 

• We believe that high standards of corporate social responsibility 

should be promoted within the tobacco industry (therefore 

we share our experience with other companies and work with 

the Responsible Business Forum in this area); 

• We believe that universally recognised fundamental human 

rights should be respected (therefore we have implemented 

uniform Employment Principles); 

• We believe our industry should have a voice in the formation 

of government policies affecting it (therefore we provide representatives 

of relevant authorities with analyses and reports 

concerning changes in excise tax regulations and destruction 

of smuggled cigarettes); 

• We believe in achieving world-class standards of environmental 

performance (therefore we have made successful efforts to ensure 

our plant in Augustów is granted the ISO 14001 certificate). 

The Principle 

of Responsible Product 

Stewardship 

The principle of Responsible Product Stewardship is the basis on which 

we meet consumer demand for a legal product that is a cause of serious 

diseases. Therefore, our products and brands should be developed, 

manufactured and marketed in a responsible manner. We aspire 

to develop tobacco products with critical mass appeal that will, 

over time, be recognised by scientific and regulatory authorities as posing 

substantially reduced risks to health. In line with this principle: 

• We believe in the provision of accurate, clear health messages 

about the risks of tobacco consumption (therefore we have 

created a section focused on smoking and health issues on our 

corporate website; we also held an internal company debate 

on the issue); 

• We believe the health impact of tobacco consumption should 

be reduced whilst respecting the right of informed adults 

to choose the products they prefer (therefore work is underway 

in British American Tobacco’s key markets to develop products 

that could be, following independent assessment, recognised 

as posing reduced risks to health – however there is no such 

thing as a ”safe cigarette” at the moment and not smoking is 

the only way to avoid health risks); 

• We believe that relevant and meaningful information about our 

products should continue to be available (therefore we have 

published on our corporate website a list of additives we use 

to produce our cigarettes); 

• We believe that under-age people should not consume tobacco 

products (therefore we have been actively involved in the Responsible 

Sales Programme since 1998 and we put a notice 

”Sale to minors prohibited” on all packs of cigarettes we manufacture); 

• We believe that our brands and products should be marketed 

responsibly and directed at adult consumers (therefore we audit 

our consumer databases and have introduced a clause 

to our trade contracts allowing us to terminate agreements 

with trade partners selling cigarettes to minors); 

• We believe in the appropriate taxation of tobacco products 

and the elimination of illicit trade (therefore we continue 

surveys to assess the scale of smuggling and have introduced 

a clause to our trade contracts that we reserve the right to terminate 

the agreement if our partner is involved in illicit trade); 

• We believe in regulation that balances the interests of all sections 

of society, including tobacco consumers and the tobacco 

industry (therefore we support a tax excise policy that will 

guarantee revenue for the state budget and ensure the market 

is not destabilised due to smuggling); 

• We believe that public smoking should be approached in a way 

that balances the interests of smokers and non-smokers (therefore 

we hold a view that it should be possible to create smoking 

rooms in the workplace).


Social Reporting Process 

”A dialogue in which we engage our Partners makes it possible to work out how 

a responsible tobacco company should achieve its business goals.” 

Along with advancing economic development, 

the society’s expectations from 

global business leaders are also rising. 

Successful companies are no longer perceived 

solely as business organizations, 

but evaluated also in terms of their usefulness 

for the society. As a tobacco company 

we want to meet such expectations and use 

our potential to address social issues, too, 

proving our responsibility for the natural 

environment and acting ethically, 

in a transparent and responsible way. 

Running business in a responsible way is 

possible only when a company listens to its 

stakeholders and reacts to their doubts, 

opinions and expectations. The circle of our 

Stakeholders includes all institutions, organisations 

and social groups that are impacted 

by British American Tobacco’s operations 

and that impact us with their activities. 

British American Tobacco, as the first tobacco 

company, has started a process known 

in English as Social Reporting – the process 

we decided to call Social Dialogue 

here in Poland. The idea of the Dialogue is 

that a company undertakes some specific 

commitments to address the expectations 

of Stakeholders which have been raised 

during dialogue sessions. Consequently, 

we can carry out projects that actually meet 

the needs of our environment and avoid 

building social responsibility strategies 

based exclusively on our own ideas. 

The process of carrying out the undertaken 

commitments and reporting 

about its outcome is, to some 

extent, similar to the process of reporting 

the company’s financial or 

environmental performance. In order 

to ensure high standards and objectivity 

at all stages, the Dialogue is conducted by 

external bodies and the course of the process 

– as well as this Report – is verified by 

an independent audit company. The auditor 

– Bureau Veritas, operating in over 140 

countries (in Poland since 1958) – performs 

the following functions: 

• Monitoring of the way in which 

the process is conducted 

• Examination and verification of the accuracy 

of reports from dialogue sessions 

• Monitoring of the Report, which 

describes the course and results 

of the process 

Roman Jamiołkowski, 

Project Manager 

• Examination and verification 

of the conformity of our replies 

and the presented data with reality 

The same way of conducting the process 

and publishing Social Responsibility Reports 

has been implemented in all British 

American Tobacco group companies that 

engage in the Dialogue. All of the companies 

use Global Reporting Initiative guidelines 

(for more information, refer to page 85) 

and the AA1000 / AA1000 AS reporting 

standard, developed by the Institute of Social 

and Ethical Accountability). It means that: 

• we take into account the views and expectations 

of all stakeholders; 

• we open the dialogue to all areas 

of business operations that have a social 

or ethical nature; 

• we adapt the scope of the Dialogue 

to our guests’ needs, interests and expectations; 

• we make regular reports during 

the course of the process; 

• we make sure that the process is 

verified by professional, independent 

bodies; 

• we inform partners about social aspects 

of the company’s operations 

and the Dialogue process (Social Reporting 

process) in a reliable way; 

• we provide information that allows 

to make comparisons, both historic 

and with other companies; 

• we incorporate the Dialogue process 

(Social Reporting process) rules into 

the practice of business operations, 

as well as decision-making and management 

processes; 

• we undertake, under proper supervision, 

steps aimed at improving social 

aspects of British American Tobacco’s 

operations in reaction to signals from 

Stakeholders. 


15

The course of the process is presented most 

briefly in the diagram above, which covers 

essential stages of planning, listening, replying 

and reporting, repeated in each cycle. 

Information on the actions undertaken 

in Poland during the current edition 

of the Dialogue can be found on page 37 

of this Report. 

The process of Dialogue benefits all of its 

participants. It is important for a number 

16 

Advanced: The information presented is supported 

by underlying evidence, the activities have been 

observed by the assuror and the activities described 

are aligned to the requirements of AA1000. 

of Stakeholders to be able to participate 

in an open, frank exchange of views with 

the company management, to ask difficult 

questions and to look for compromise solutions. 

Representatives of various social 

groups have an opportunity to influence 

the company’s operations and to launch 

joint initiatives that are able to solve specific 

problems and address specific needs. 

Social Dialogue is an invaluable tool for us, 

one that lets us better understand our part- 

Positive: Information reported is supported 

by underlying evidence and no material 

errors or omissions were identified. 

ners and makes us take another look at every 

decision that may have a direct impact 

on them. Higher levels of trust and understanding 

from Stakeholders go hand in hand 

with increased loyalty and commitment 

from our employees and trade partners. 

Basic: During the course of our review nothing 

came to our attention to indicate that there was 

any material error, omission or misstatement.


Commitments from the 2003/2004 cycle 

and their fulfilment 

We initiated the Social Dialogue process in 2003 as the first tobacco company in Poland. We organised 15 dialogue sessions, which were 

attended by nearly 90 people representing 46 institutions, organisations and social groups. Participants of the meetings submitted 

over 100 requests regarding various areas – from issues such as responsible marketing and youth smoking prevention to protection 

of the environment and cooperation with a number of groups, including the local community and tobacco growers. In order to meet 

the expectations raised by our Stakeholders, we grouped them according to the most common themes and we undertook 72 commitments; 

the most common of which (twenty commitments) was related to the workplace area. 

Today we can say with satisfaction that we have managed to fulfil the vast majority of the commitments. A lot of them are of a permanent 

nature and we encounter them on a day-to-day basis as they have become an integral part of our standard management practices. 

We reported developments in fulfilling particular commitments on our website, www.bat.com.pl, and in a brochure published in 2005. 

On the following pages of this Report you will find: 

• a table summary of all commitments made by British American Tobacco Polska in the previous cycle of the Dialogue and brief information 

about their fulfilment status, verified by an independent auditor; 

• several examples of actions related to the area of corporate social responsibility. 

Area: Risk of smoking 

Commitment Fulfilment of the commitment 

(1) In the first quarter of 2004, we shall publish the list 

of all substances and materials used in our products 

on our corporate website, www.bat.com.pl. 

Status: Commitment fulfilled. 


(2) We will include a new section on our website, 

devoted to issues of smoking and health. 

(3) We will also try to provide links from 

www.bat.com.pl to websites of publicly recognised 

Polish health protection institutions. 

(4) We will ask organisations promoting healthy 

lifestyles and organisations helping people to quit 

smoking for their consent to have their websites’ 

addresses placed on www.bat.com.pl. 


The list of such substances is updated each year, submitted to the Ministry of Health 

and subsequently published on the bat.com.pl website, in the section entitled 

”Palenie a zdrowie” (”Smoking and Health”). 

The ”Smoking and Health” section was created in June 2004. The following issues 

discussed include: quitting smoking, passive smoking as well as the question ”could 

there be a ‘safer cigarette’?”. 

With consent of the organisations promoting healthy lifestyles and helping people 

to quit smoking, links to the following sites have been provided in that section: 

- www.rzucpalenie.com.pl; 

- www.mediweb.pl; 

- www.promocjazdrowia.pl; 

- www.venus.ci.uw.edu.pl; 

- www.zdrowie.med.pl. 


17

18 


(5) In line with provisions of the EU Directive which 

regulate the contents of health warnings, we will 

place a hotline number of the organisation helping 

individuals who wish to quit smoking on the packs 

of cigarettes we produce. 



(6) As of 2004, we will forward research 

applications submitted by Polish scientific 

institutions to the Scientific Research Group of 

British American Tobacco for evaluation. 



(7) In line with legal provisions, all packs of 

cigarettes manufactures by British American 

Tobacco Polska will continue to conform with 

current and future legal regulations in this 

area. Prior to the implementation of new health 

warnings, we will develop trade and consumer 

information packs discussing the subject. 



(8) Within 12 months beginning in November 

2003, we will invite all employees of British American 

Tobacco Polska to take part in a discussion on 

smoking and health, based on globally developed 

British American Tobacco materials and enhanced 

with issues raised in Poland in 2003 during the Social 

Reporting process. 






New health warnings placed on cigarette packs as of September 2004 include the one 

that reads: ”Call the 0 801 108 108 hotline for assistance on quitting smoking”. 

Information on the possibility of submitting research applications to the Scientific 

Research Group of British American Tobacco has been published on the bat.com.pl 

website. 

In line with the directive, we stopped using the term ”light” (”lekkie”), which could 

suggest reduced harm from the products and introduced new health warnings. We 

informed our trade partners about the changes by distributing information packs 

(brochures, CD-ROMs, leaflets and posters). We provided similar information at 

points of sale and in trade magazines. 

Consumers whose personal data are stored in our database received the brochures 

by post throughout the year. Moreover, a special information insert was put into each 

pack of selected brands from our portfolio from August to November 2004 – its total 

print-run amounted to over 43m copies. 

We published a special brochure entitled „Smoking and Health” (”Palenie a Zdrowie”) 

and handed it out to our staff at meetings where the issue of „Smoking and Health” 

was discussed. 







Area: Youth smoking prevention 


(1) We will work towards making it legally possible 

for tobacco companies to support, financially and 

via in-kind contributions, people and institutions 

dealing with education, culture and health – as 

long as such support does not entail making 

tobacco products visible. 



(2) We will strive to engage more partners in 

subsequent editions of the Responsible Sales 

Programme (RSP), including state authorities and 

government institutions, such as, for instance, the 

Commercial Inspection. 



(3) We will increase our contribution to the 

Responsible Sales Programme’s budget in 2004 by 

almost 20%. 



(4) We will conduct comprehensive annual 

evaluations of the Responsible Sales Programme. 

(5) If needed, we will adjust the projects scheduled 

for subsequent years in line with the results of such 

evaluations. 


In May 2004, we sent letters enquiring whether relevant regulation could be 

amended to the speakers of Sejm and Senate, Deputy Chief Sanitary Inspector and 

MPs who were members of the Sejm’s health committee; unfortunately, the letters 

were not replied to. 

In 2004, together with partners of a coalition for responsible sales, we persuaded 

local authorities in 9 districts to join the Programme; they co-organised the Days of 

Responsible Sales. In 2005 the Days took place in 14 cities/districts. 

In 2005 the Days were held under the auspices of city presidents and mayors; city 

guards, police and often scouts’ patrols handed over the Programme materials to 

retailers, and special training sessions for retailers were also organised. 

Both central and local media were invited, once again, to promote the RSP objectives 

and the trade media were invited to assume patronage over the RSP. 

In 2004 we increased our contribution to the RSP budget by 28% compared 

to the previous year, from 250,000 to 320,000 zloty. 

”Mystery Shopper” surveys conducted in 2004 and 2005 demonstrated positive 

impact of actions taken by local governments and Programme partners on behaviour 

of the retailers, including more frequent verification of the age of persons wishing to 

purchase cigarettes. 


19


(6) We will analyse what programmes/projects 

might be launched in order to reach parents with 

information on juvenile smoking, and in order to 

impact their attitudes to the problem. 

20 



(7) We will continue to participate actively in the 

process of implementing regulations that give 

retailers the right to demand that individuals 

wishing to purchase tobacco products produce 

a document confirming their age. 



(8) We will regularly audit our consumer database 

to ensure that it contains the data of adult smokers 

only. 

(9) In the first quarter of 2004, we will include 

information concerning our consumer age 

verification protocol on the British American 

Tobacco Polska website, www.bat.com.pl. 

(10) We will make sure that our sales 

representatives stress the importance of the 

Responsible Sales Programme during contact with 

our trade partners. 

Status: Permanent commitment, being fulfilled. 







The analysis led to the conclusion that a social campaign would be conducted, 

targeted also at parents. Support received from another tobacco company made it 

possible to run regionally a two-week social advertising campaign under the slogan 

”React when a minor wants to buy cigarettes”, which accompanied the Days. 

For more information please visit: http://www.mediarun.pl/news/id/5520 


(11) In the first quarter of 2004, we will include a 

clause into our trade contracts reserving the right 

for British American Tobacco Polska to terminate the 

contract if the contractor sells cigarettes to minors. 


The amendment to the law on health protection from the effects of using tobacco 

and tobacco products – which took into account expectation voiced by the tobacco 

industry – came into force in 2004. It gave retailers the right to demand that younglooking 

persons wishing to purchase tobacco products produce a document 

confirming their age. Providing retailers with information about the regulation was 

the main objective of RSP in 2005. 

Moreover, special training sessions on responsible sales of tobacco products were 

held for 320 sales assistants. 

The data in our database is regularly audited by our marketing departments. 

Additionally, we signed an agreement with the Ministry of Home Affairs and 

Administration in July 2004, under which the entire database was inspected by the 

Ministry experts in the summer of 2004. Consequently, the data of 3000 persons 

(out of 900,000 entries), who turned out to be minors, was removed. 

Information on verification rules concerning the age of persons added to 

the corporate database was posted on the bat.com.pl website, in the ”Social 

Responsibility” section, in March 2004. 

Before each edition of the RSP we provide all our sales representatives with 

information about the Programme’s objectives, rules and materials. It is one of their 

responsibilities to deliver the materials to the points of sale they visit. 

Such additional clauses, reserving the right to terminate the contract immediately if 

we have reports from reliable sources that the trade partner sells cigarettes to persons 

under the age of 18, are a standard part of out trade contracts. 







Area: Responsible marketing 


(1) We will continue to ensure that all our 

marketing activities comply fully with Polish law 

and the International Marketing Standards. 

(2) We will encourage our Stakeholders to share 

information with us where they believe we do 

not meet these commitments so we can take 

appropriate action. To assist this process, the 

International Marketing Standards are attached 

to this report. They are also available on our 

corporate website, www.bat.com.pl. 

(3) We will tighten control over the distribution of 

corporate marketing materials to ensure they are 

directed to, and received by, adult smokers only. 

(4) We will regularly audit our consumer database 

to ensure that it only contains the data of adult 

smokers. 

(5) In the first quarter of 2004, we will include 

information concerning British American Tobacco’s 

consumer age verification protocol on our 

corporate website, www.bat.com.pl. 





(6) Prior to the implementation of the EU product 

directive regulations we will develop and issue 

special trade and consumer information packs 

discussing the issue of meaningful differentiators 

describing brand variants. 


We verify all our marketing materials to ensure that they are compatible with Polish 

law and the International Marketing Standards; legal and CORA departments are held 

responsible for this. 

In June 2004, we published the International Marketing Standards on our corporate 

website along with a request to our Stakeholders to notify us if they believe that 

any of British American Tobacco Polska’s actions do not seem to be in line with the 

regulations. 

A symbol of compliance with the International Marketing Standards and a link to 

the www.bat.com.pl website are printed on marketing materials sent to consumers 

whose data are stored in our consumer database. The following warning notice 

is included: ”The material is intended solely for adult smokers. Please return 

immediately if delivered to a minor or non-smoker.” 

The database of British American Tobacco Polska stores data of adult smokers who 

have agreed, in writing, to receive information and marketing materials from us. 

The database is regularly audited by the Marketing Department of British American 

Tobacco Polska. In addition, in July 2004 we signed an agreement with the Ministry 

of Internal Affairs and Administration to verify the age of people whose data is stored. 

Following the audit conducted by the Ministry specialists in 2004 the data of 3000 

minors (out of 900,000 entries) was removed. 

Information on verification rules and methods concerning the age of persons added to 

the database of British American Tobacco Polska was posted on the www.bat.com.pl 

website, in the ”Social Responsibility” section, in March 2004. 

In line with the directive, we stopped using the term ”light” (”lekkie”), which could 

suggest reduced harm from the products and introduced new health warnings. We 

informed our trade partners about the changes by distributing the information packs 

(brochures, CD-ROMs, leaflets and posters). We provided similar information at 

points of sale and in trade magazines. 

Consumers whose personal details were available from the corporate database 

received the brochures by post. An information insert was put into packs of selected 

brands from our portfolio from August to November 2004 – its total print-run 

amounted to over 43m copies. 


21


(7) We will provide our trade partners with 

additional information concerning trade margins 

before the end of 2003. 


(8) We will continue regular meetings with our key 

trade partners to discuss issues such as current and 

future cooperation and state of the industry. 

(9) We will also continue to measure, via Customer 

Satisfaction Measurement (CSM), wholesalers 

and retailers’ satisfaction with British American 

Tobacco Polska’s performance. 


(10) We are investigating the feasibility of setting 

up a call centre to allow adult smokers to express 

their views on product-related issues. 

(11) We are also looking at the most effective ways to 

communicate the call centre’s telephone number; 

one option is to display it on our cigarette packs. 

Area: Community involvement 

22 








Wholesalers and retailers received the information in late 2003 / early 2004. At that 

time the retail price of a cigarette comprised the following elements: 

product costs 9.85% 

producer’s margin 9.12% 

total trade margin 12.05% 

VAT 18.03% 

excise tax 50.95% 


(1) We will establish the so-called ”Augustów 

Academy” – a project aiming to help unemployed 

university graduates in the region of Augustów. 

The project is managed by the Białystok College 

of Finance and Management, while our managers 

will share their practical business knowledge and 

such skills as, for instance, job-seeking or planning 

a career with an international organisation. 


In 2004 we held meetings with our key suppliers and buyers. Apart from ongoing 

trade issues the agenda of these meetings included Social Reporting and new 

regulations concerning tobacco products that resulted from the implementation of 

EU laws. 

The CSM survey started in February 2005 and its results were presented to the 

management board of the company in April 2005. 

We set up the Consumer Interaction Centre (CIC) in 2004, which serves as a 

point of exchanging information about our products, as well as other areas of our 

activity. Three phone lines operate within the Centre, one dedicated to corporate 

issues (801 228 228) and two dedicated to specific cigarette brands. The respective 

telephone numbers were printed on cigarette packs. We also provided an option to 

contact the Consumer Interaction Centre by e-mail. 

The ”Augustów Academy” – an original project designed by British American 

Tobacco Polska in close co-operation with local self-government partners, education 

establishments, employers, schools and universities from the Augustów region 

– was inaugurated in 2004. Management of the Academy programme, which aims at 

preparing the youth, the unemployed and graduates of partner schools to be able to 

engage in dynamic, independent and well thought out actions on the labour market, 

was vested in the Foundation for the Development of Entrepreneurship in Suwałki. 

More on the subject: page 69 of the Report and www.akademia.frp.pl 








(2) We will investigate what possibilities we have 

for starting regular co-operation with schools and 

universities, so that students can visit our factory to 

get information in the areas they are interested in. 

(4) We will co-operate with the local media to 

enhance awareness of new initiatives aimed 

at providing economic education to the local 

community. 



(3) We will start cooperation with the Foundation 

for the Development of Entrepreneurship, to 

promote trainee programmes for students and 

manage a programme of preferential credits for 

business start-ups. 




In October 2004, we started co-operation with selected universities. The project was 

aimed at sharing with students the knowledge related to the area of social corporate 

responsibility, gained through British American Tobacco’s Social Dialogue process. 

As part of the project we placed our ”ambassadors” at 10 universities in Poland. It was 

their duty to organise meetings for students and professors so that we could present 

corporate social responsibility issues and our actions in the area. 

As part of the ”Augustów Academy” university and high-school students visited our 

plant in Augustów. 

Each year we inform students about an opportunity to take part in our summer 

internship programme as well as ”The Challenge Initiative” management programme 

for graduates. 

Cooperation is taking place as part of the ”Augustów Academy” project. 

More on the subject: page 69 of the Report and www.akademia.frp.pl 


(5) We will assist local charity campaigns, and in 

2004 we will allocate to charity sums of money 

corresponding to the amount that was earmarked 

for the cause in 2003. 


Regular cooperation has been established – for instance, local media are invited to 

cover all important events related to the ”Augustów Academy”. 

In 2003, the amount we allocated to charity totalled almost 180 thousand zloty. In 2004, 

we donated 340 thousand zloty to charity, and, in the next year, 570 thousand zloty. 

Due to legal restrictions we cannot publicly disclose the beneficiaries or even the 

nature of donations. 


23

Area: Contraband and counterfeit 


(1) We will strive to have the Memorandum 

of Understanding signed. 

(2) We will continue research into the scale of 

cigarette smuggling into Poland. 

(3) In 2004, we will also implement, together with 

other tobacco companies, a project aimed 

at destroying smuggled cigarettes. 

24 







(4) We will also implement a project to support an 

anti-smuggling campaign in the Augustów region. 






We have undertaken steps to have the Memorandum of Understanding signed 

– a declaration of joint actions to be taken by the Ministry of Finance and British 

American Tobacco Polska aimed at eliminating smuggling of tobacco products into 

Poland. In line with the submitted draft, the forms of potential cooperation would 

include exchange of information and training sessions for customs officers. 

Research into the scale of smuggling was carried out in 63 cities in July 2004 by the 

ALMARES Consulting and Market Research Institute. 

The analysis of the collected data showed that the share of illegal cigarettes in the 

national marketplace had fallen to 13.6% in 2004. However, the percentage of illegal 

cigarettes kept growing in the eastern and northern region. 

Another survey, carried out in late 2005, did not indicate any substantial changes 

compared to 2004. 

Together with the tobacco industry, we managed to have the Penal and Fiscal Code 

regulations amended so that it is obligatory to destroy illegal cigarettes seized after 

17 December 2005. 

We cooperate with the Białystok Customs Chamber, helping on a day-to-day basis to 

identify smuggled and confiscated cigarettes in our laboratories in Poland and abroad. 

We also organise meetings focused on methods of fighting contraband. We have 

organised, together with the Customs Control Department of the Republic of Poland 

and under patronage of the Head of Customs Service, two international conferences 

on methods of fighting illegal tobacco products. 








(5) In the first quarter of 2004, we will include a 

clause into our retail contracts reserving British 

American Tobacco Polska the right to terminate 

contracts with contractors who sell smuggled 

products. 



(6) If requested, we will give the authorities access 

to our laboratory to conduct product tests. 

Area: Political and regulatory issues 



(1) We will maintain high levels of attention to the 

conformity of our actions with the law. 

(2) All our lobbying activities will continue to be 

undertaken in line with our current principles of 

transparency and in conformity with Polish law. 



(3) We will maintain the principle of not funding 

political organisations or parties in any way. 


We have introduced a clause to all contracts with trade partners, which gives us the 

right to terminate the contract immediately if we receive reliable information that the 

given trade partner participates, in any form, in illegal trade in tobacco products. 

With regard to annexes to trade contracts with wholesalers offering tobacco products 

in the areas adjacent to the western border of Poland, we have also included a clause 

there which reserves the right for us to refuse to sell tobacco products to a trade 

partner when the quantity ordered is not justified by the previous levels of the given 

partner’s sales, thus creating reasonable grounds to suspect that tobacco products 

bought from us may be subject to smuggling. 

We have informed the customs authorities about the possibility for them to use our 

laboratory and the type of tests that can be carried out there. 

We act in line with the principles of transparency and the conformity of our actions 

with Polish law. Our views on proposed legislative changes – worked out either 

in co-operation with other companies, members of the National Manufacturers’ 

Association or on our own – are submitted to the public administration authorities 

in writing. 

Audits conducted by an independent company in 2004 and 2005 confirmed that no 

donations had been made to political causes. 


25

Area: The workplace 


(1) We will ensure that all possibilities are 

considered prior to making any employees 

redundant. 

(2) We will continue to cooperate with trade 

unions on this issue. 

(3) We will consider such options as part-time 

employment. 

(4) We will also continue to offer outplacement 

services to all employees leaving the company 

as a result of redundancies. 

(6) We will encourage our employees to improve 

their professional qualifications as long as it meets 

the needs of the company. 

(7) We will also continue to actively participate in 

global career development programmes, ensuring 

that Polish employees are given the opportunity 

to work abroad. 

(8) We will ensure, too, that such opportunities are 

properly communicated to the staff. 

26 








Due to restructuring, 12 people left our Warsaw office in 2004 upon mutual 

agreement. During the process, part-time employment possibilities were considered 

and the company offered assistance and severance packages exceeding standards 

specified in the Labour Code to all of those persons. The reasons for restructuring 

were communicated to all employees. 

We hold regular dialogue with trade unions, and – where relevant or required by 

legal provisions – the unions are also involved in the decision-making process related 

to changes in our employment structure. 

More information in the GRI table (LA1), page 88 


(5) We are committed to ensuring that British 

American Tobacco Polska’s training and development 

strategy meets the needs of the company. This 

strategy will be reviewed on a regular basis, measured 

to check its effectiveness, and communicated to all 

employees. In addition, feedback from employees will 

be actively sought in the development of the strategy. 



(9) We will maintain the company social fund in line 

with the Labour Code requirements. In addition, 

we will consider specific requests for financial 

assistance for employees who are experiencing 

exceptional hardship in their private life. 


The training and development strategy has been communicated to all employees 

of the company. 

Opinions on the strategy were collected during the ”Your Voice” opinion poll 

conducted among employees in 2004 and 2005. The results of the poll were taken 

into account during the verification of the strategy premises. 

We hold regular meetings with employees to assess their achievements so far 

and their career development plans (Career Development Meeting). 

The employees receive information about all job openings abroad by means 

of the internal communication system. 

15 employees received support from the company in 2004 to improve their 

professional qualifications through participation in courses and programmes; 

7 employees were supported in that way in 2005. 

The company social fund is maintained in line with legal requirements. 








(10) We want all our managers to be fully aware 

of their legal and corporate responsibilities 

related to the functions they hold and to undergo 

appropriate training in this respect. 



(11) We will develop our remuneration strategy 

in line with British American Tobacco global 

standards, ensuring that performance is 

recognised and that the strategy itself is easy to 

understand and transparent. 

(12) We will continue to offer equal development 

prospects to all our employees, regardless of their 

gender. We expect our employees to inform the 

Human Resources department about any events 

that stand in conflict with this principle. 

(13) We guarantee that we will act immediately on 

documented cases of violation of this principle. 


(14) We will develop an internal communication 

programme aiming to make all our employees fully 

aware of what the company objectives are, how 

successful the company is in achieving them, and 

what steps will be required when performance is 

not satisfactory. 

(15) We will ensure that our managers communicate 

all relevant information to employees and gather 

their opinions and comments. 

(16) We will ensure that environment protection 

and work safety issues are featured in corporate 

communication policy. 

(17) Information on product quality will be put on 

the agenda of department information meetings 

(Team Briefing). 



Information on changes in employment law and the resulting responsibilities of 

management was incorporated into a career development programme introduced 

in Q1 2005. Corporate responsibilities were formulated in the ”Standards of Business 

Conduct” document presented to all staff in 2004 

A new internal communication strategy was set up in August 2004 


(18) We will regularly assess all communication 

channels existing in the company so as to review 

their effectiveness. 


Details of our remuneration strategy were communicated to staff in 2004. Feedback 

on the strategy was collected during the ”Your Voice” employee survey. 

The female-to-male ratio in executive positions is regularly measured and 

communicated as part of the system of HR key performance indicators. Currently, 

approximately 25% of all executives at British American Tobacco Polska are female, 

which is broadly in line with global British American Tobacco statistics. 

All employees are encouraged to report possible cases of gender discrimination. We 

have set up the White Line procedure, which guarantees anonymity and makes it 

possible to bypass official channels when irregularities are reported. No such reports 

have been received so far. 

During monthly all-staff meetings (Team Briefing), the employees fill out 

questionnaires that permit us to assess their perception of the company’s situation. 

Communications regarding work safety and accident rates are made available at 

information points in the Augustów plant. The issue of company accidents involving 

company cars was raised in Team Briefing presentations. 

The product quality information was included in Team Briefing presentations. 

The ”Your Voice” employee opinion poll included questions concerning evaluation 

of the functioning of internal communication channels and tools in our company. 

In addition, during each Team Briefing meeting employees fill out questionnaires 

evaluating the clarity of presentation. 


27


(19) In order to build good relationships between 

people, departments and locations, we will put 

emphasis on cross-functional and multi-location 

teamwork. 

28 



(20) We are committed to developing links with 

universities. Through these links we will seek to 

popularise the company, the opportunities it offers 

to graduates and to work closely with universities 

in educating students on career development 

issues. 


Area: Cooperation with Polish tobacco growers 


(1) We will provide adequate support when it 

comes to establishing the so-called ”producers’ 

groups” in our region and maintaining crop 

quality standards by the group. We will determine 

details of the support in the course of regular 

cooperation with growers’ unions and the group 

itself. Moreover, we will support Polish growers by 

providing them with any necessary information 

in the context of Poland’s accession to the 

European Union. 

(2) We will also share our experience from 

other markets, so that Polish tobacco becomes 

competitive in terms of both quality and price. 



(3) We will continue to participate in negotiations 

with the Ministry of Agriculture. 

(4) We will also continue to provide the government 

with arguments supporting the efforts of Polish 

tobacco growers to increase both the competitiveness 

and profitability of tobacco growing in Poland. 






The ”Your Voice” opinion poll carried out in 2004 indicated that cross-functional and 

inter-departmental cooperation had improved significantly within the organisation. 

In October 2004 we started cooperation with selected universities in the context 

of corporate social responsibility. The project was aimed at sharing with students 

the knowledge related to the area of social corporate responsibility, gained through 

British American Tobacco’s Social Dialogue 

The ”ambassadors” of our company were recruited at 10 universities in Poland. Their 

responsibility was to organise meetings for students and faculty staff where we 

presented corporate social responsibility issues and our activities in this area. 

As part of the Augustów Academy, university and high school students visited our 

plant in Augustów. 

We also inform students each year that they can participate in summer internships 

and the ”The Challenge Initiative” management programme for graduates. 

We regularly hold training sessions and workshop meetings for the Tobacco 

Producers’ Group and the Association of Tobacco Growers, including meetings on 

various aspects of Poland’s EU membership and tobacco growing. 

In 2004 we took part in meetings with the National Manufacturers’ Association 

(NMA) and associations of tobacco growers to discuss supplementary subsidies 

to farmers. We also played a consulting role in negotiations with the Ministry 

of Agriculture concerning those subsidies. 

We support growers’ actions by issuing opinions about draft laws concerning tobacco 

growing, submitted by the NMA. 








(5) We will continue to organise workshops to 

provide farmers with knowledge about running 

a business (the first such workshop was organised 

in September 2003). 

Area: Ecology 



(1) We will strive to achieve ISO 14001 certification 

(confirming international standards of the 

environmental management system) for the 

Augustów plant in 2004. 



(2) We will assess the feasibility of incorporating 

a ”take care of the environment” / ”no littering” 

logo on our packaging. 



(3) We will publish information addressed to our 

consumers on the corporate website 

www.bat.com.pl, dealing with the need to dispose 

of packs and stubs in appropriate places. 


As discussed above – we regularly hold workshops and training sessions on tobacco 

growing, including aspects related to running a business. 

Our plant in Augustów successfully passed audit by Lloyd’s Register Quality Assurance 

and was granted an ISO 14001:1996 certificate in November 2004. A transfer to the 

new version of the standard (ISO 14001:2004) took place in April 2006. The plant 

currently owns the ISO 14001 certificate number GDK0400430/E. 

We have introduced a logo of that kind on packs of our cigarettes together 

with the new health warnings and other elements conforming to the EU legislation. 

Information concerning the potential impact of cigarette packs and stubs on the 

environment, along with a request to consumers to dispose of packs and stubs in 

appropriate places, was published on the www.bat.com.pl site in June 2004. 


29

Social responsibility in practice 

International Marketing Standards 

The International Marketing Standards were 

launched by the leading tobacco companies 

in 2001. As a signatory to the Standards, 

we agreed to limit marketing and promotion 

activities for our products. The limitations 

of our International Marketing Standards 

often go beyond the minimum required 

by law. However, should the legal requirements 

in force in a given country be more 

stringent then the legal regulations will take 

precedence. 

The adoption of these tougher requirements 

inclined us to conclude that we should 

withdraw from participation in all Formula 1 

racing events. Consequently, we gave up all 

sorts of communication in the mass media, 

believing that we should focus our efforts 

on retail outlets visited by adult smokers. 

The last race where we promoted our brand 

took place during the Brazil Grand Prix 

in October 2006. 

The few following pages bring the full text 

of the International Marketing Standards; 

it is also available from our website, 

www.bat.com.pl. 

30 

1 Example 

During 2005, Stakeholders in Dialogue 

carried out by British American Tobacco 

asked the company to review the content 

of the Standards to ensure that it continued 

to be appropriate. BAT has always accepted 

that the Standards should be kept relevant 

as the international marketing and regulatory 

environment evolves. In 2005-06, 

the company has thoroughly reviewed 

and updated the Standards, taking account 

of developing regulation, Stakeholders’ 

views and discussions with Group companies 

internationally. The revised 

version is to be launched in 2007. 

Magdalena Cierpiał, 

Brand Performance Manager 

– Viceroy and Local Brands

• The parties subscribing to these Standards (the "Participants") 

wish to record their belief that tobacco products should be 

marketed in a responsible manner and that reasonable measures 

should be taken to ensure that the promotion and distribution 

of tobacco products is: 

− directed at adult smokers and not at youth, and 

− consistent with the principle of informed adult choice. 

• These Standards should be observed in both their letter and intent. 

• In subscribing to these Standards, the Participants wish to encourage: 

− all others who manufacture or market tobacco products 

to join them as Participants; and 

− all others who are associated with the manufacture, sale, 

distribution or marketing of tobacco products to embrace 

the principles of these Standards. 

• The practices of the Participants should not be less restrictive 

than these Standards unless required by law, but any more restrictive 

legal requirement or voluntary undertaking shall take 

precedence over these Standards. 

• The Participants should incorporate these Standards into their 

own internal codes. 

• The Participants intend to support the comprehensive incorporation 

of these Standards into national laws. 

• These Standards do not apply to the relationship between Participants 

and their suppliers, distributors or other trade partners, 

although those parties are encouraged to comply with 

the Standards in any dealings they have with consumers. 

• The Participants shall take reasonable measures to prevent third 

parties from using their tobacco product brand names or logos 

in a manner which violates these Standards. 

• These Standards are not intended to prohibit the use of any 

trademarks as brand names or on packaging. 

• A Participant shall comply with these Standards as quickly 

as possible, and in any event no later than 12 months from 

the date that it subscribes to the Standards or, where existing 

contractual provisions prevent earlier compliance, in any 

event by December 31, 2002, provided in all cases compliance 

is not in breach of relevant laws. The timetable for compliance 

with the Sponsorship Standards is set out in paragraphs 17 

and 19. 

Definitions 

International Tobacco Products 

Marketing Standards 

The following definitions are provided to assist in the interpretation 

of these Standards. 

adult 

A person who is at least 18 years old, except where legal requirements 

or voluntary undertakings entered into by the Participants specify 

a higher minimum age for the lawful sale, purchase, possession or 

consumption of tobacco products, in which case the term ”adult” 

means a person of at least that minimum age. 

advertisement 

Any communication by or on behalf of a Participant to consumers 

which has the aim of encouraging them to select one brand of tobacco 

products over another. 

promotional event 

An event or activity organised by or on behalf of a Participant with the aim 

of promoting a brand of tobacco product, which event or activity would 

not occur but for the support given to it by or on behalf of the Participant. 

sponsorship 

Any public or private contribution to a third party in relation 

to an event, team or activity made with the aim of promoting a brand 

of tobacco product, which event, team or activity would still exist or 

occur without such contribution. 

tobacco products 

Manufactured cigarettes, cigars, cigarillos, pipe tobacco, fine cut tobacco, 

and pre-formed tobacco rolls. 

youth 

Any person who is not an adult. The term also includes the plural. 

Content Standards 

1. The following Content Standards are intended to cover all communications 

by or on behalf of a Participant to consumers which have 

the aim of encouraging them to select one brand of tobacco products 

over another. Certain communications associated with sponsorship 

activities are subject to separate requirements set out in paragraph 19. 

2. No advertisement shall: 

• be aimed at or particularly appeal to youth 

• feature a celebrity or contain an endorsement, implied or express, 

by a celebrity 

• depict any person under or appearing to be under 25 years of age 

• suggest that any of the following is enhanced by smoking: 

- sporting or athletic success, 

- popularity, 

- professional success, or 

- sexual success, or 

• suggest that most people are smokers. 

3. All new advertisements published or disseminated after subscription 

to these Standards, including renewals and replacements of 

existing advertisements, shall contain a clearly visible health warning 

except those which: 

• appear on point of sale material the advertising display area 

of which is smaller than 250 square centimetres, 

• are, either individually or in deliberate combination with other 

advertisements, smaller than 25 square centimetres and are 

placed on promotional merchandise, or 

• until December 1, 2006 are used at and connected with sponsored 

activities 


31

Media Usage Standards 

4. Print: 

4.1 No advertisement shall be placed in any printed publication 

unless there is a reasonable basis upon which to believe that 

(a) at least 75% of the readers of such publication are adults, 

and 

(b) the number of youth who read it constitute less than 10% 

of all youth in the country of circulation. 

4.2 No advertisement shall be placed on the packaging or outside 

cover of a magazine, newspaper or similar printed publication 

intended to be read by consumers. 

4.3 Reasonable measures shall be taken to ensure that no advertisement 

is placed in printed publications adjacent to material 

that particularly appeals to youth. 

5. Outdoor and Billboard: 

5.1 No advertisements shall be placed on any billboard, wall 

mural or transport stop or station which: 

• is located closer than 100 metres from any point of the perimeter 

of a school attended predominantly by youth, or 

• either individually, or in deliberate combination with other 

such advertisements, exceeds 35 square metres in total size. 

6. Cinema: No advertisement shall be displayed in a cinema unless 

there is a reasonable basis upon which to believe that at least 75% of 

the audience are adults. 

7. Television or Radio: No advertisement shall be placed on television 

or radio unless and until: 

(a) each person seeking access to the channel or programme 

on which such advertisement is placed provides verification 

that he or she is an adult, and 

(b) the broadcast is restricted to countries where such advertisements 

are not prohibited by law. 

8. Internet: No advertisement shall be placed on the Internet unless 

and until: 

(a) each person seeking access to the Internet site on which 

such advertisement is placed provides verification that he 

or she is an adult, and 

(b) access is restricted to those countries where such advertisements 

are not prohibited by law. 

9. Video, Audio and Computer: No electronic advertisement shall be 

incorporated within any video or audio cassette, compact disk, digital 

video disk or similar medium unless reasonable measures have been 

taken to ensure that the intended recipients of the item are adults. 

For the avoidance of doubt, Participants may distribute video or 

audio cassettes, compact disks, digital video disks and similar media 

provided that the contents, cover, packaging and means of distribution 

comply with these Standards. 

10. Product Placement: There shall be no direct or indirect payment 

or contribution for the placement of tobacco products, advertisements 

or items bearing tobacco brand names, within the body of any: 

• motion picture, 

• television programme, 

• theatrical production or other live performance, 

• live or recorded performance of music, 

32 

• commercial film or video, 

• video game, or 

• any similar medium 

where such medium is intended for the general public. 

Promotion and Event Standards 

11. All activities and communications concerned with 

• promotional offers 

• promotional events 

• promotional items, or 

• sampling 

shall comply with the Content Standards. 

12. Promotional Offers 

12.1 Promotional offers and programs for specific brands which 

appear on the package, at the point of retail sale, by mail or 

through other communications shall be directed only to adults 

and, unless prohibited by law, only to smokers. 

12.2 Reasonable measures shall be taken to ensure that youth 

and (unless prohibited by law) non-smokers are excluded from 

direct mailing lists. 

12.3 Participation in promotional offers by the general public 

will be conditional upon evidence of age eligibility and (unless 

prohibited by law) confirmation of smoker status. 

12.4 Where promotional offers permit an adult smoker to be 

accompanied by other persons at a third party event or in an 

activity, such other persons shall be adults. 

13. Promotional Events: Each Participant shall ensure that only adults 

are allowed access to promotional events. 

14. Promotional Items: 

14.1 No advertisements shall be placed on: 

• items where those particular items are marketed to, or intended 

to be used predominantly by, youth, or 

• shopping bags. 

14.2 No advertisement larger than 25 square centimetres – either 

on its own or in deliberate combination with other advertisements 

– shall be placed on any items (other than on items with a smokingrelated 

function) which are to be sold, distributed or offered to the 

general public. 

14.3 Any item of clothing which is offered for sale or distribution by or 

on behalf of a Participant shall only be offered in adult sizes. 

15. Sampling: Reasonable measures shall be taken to ensure that: 

(a) sample tobacco products are not offered to youth or to 

non-smokers 

(b) samples are only offered in a segregated area access to 

which is restricted to adults 

(c) personnel employed directly or indirectly by Participants 

to offer sample tobacco products or to conduct promotional 

activities 

(i) are at least 21 years of age, and 

(ii) verify the age and (unless prohibited by law) smoker 

status of those to whom the samples and promotions 

are offered, and 

(d) unsolicited tobacco product samples are not distributed, 

either directly or through a third party, by mail.

Sponsorship Standards 

Sponsored Events 

16. No sponsorship shall be provided for: 

• an event or activity which bears a tobacco product brand 

name, unless there is a reasonable basis upon which to 

believe that all persons who compete, or who otherwise 

take an active part, in the sponsored events or activities 

are adults, or 

• a team or an individual which bears a tobacco product 

brand name, unless all persons sponsored by Participants 

are adults. 

17. As from December 1, 2006, no sponsorship shall be provided 

unless: 

(a) there is a reasonable basis upon which to believe that attendance 

at the sponsored event or activity will comprise 

no less than 75% adults, and 

(b) there is a reasonable basis upon which to believe that the 

sponsored event or activity will not be of particular appeal 

to youth, and 

(c) the Participant does not anticipate that the sponsored 

event or activity will receive exposure, other than as a 

news item, on television or radio or the Internet, unless 

such exposure complies with these Standards, and 

(d) success in the principal activity associated with the sponsorship 

does not require above-average physical fitness for 

someone of the age group of those taking part. 

Sponsorship Advertising 

18. All individuals authorised to bear tobacco product advertisements, 

logos or brand names at sponsored events or activities shall 

be adults. 

19. All forms of advertising associated with or ancillary to sponsorship 

shall comply with the provisions of these Standards. The following 

are excluded from these Standards until December 1, 2006: 

• on-site signage at sponsored events 

• incidental television and radio broadcasts of sponsored 

events 

• applications of trade marks or logos to people or equipment 

participating in sponsored events. 

Packaging, Sales and Distribution Standards 

20. Cigarettes shall not be sold or distributed to consumers in packages 

containing fewer than ten sticks. 

21. Fine cut tobacco shall not be sold or distributed to consumers in 

pouches smaller than 10 grams. 

22. No incentive or materials shall be provided to support the sale of 

cigarettes in single sticks. 

23. All cigarette packs and all primary packaging for other tobacco 

products shall carry a clearly visible health warning. 

24. All cartons and bundles offered for sale duty-free shall carry a 

clearly visible health warning. 

25. Reasonable measures shall be taken to prevent youth having access 

to cigarettes in vending machines. 

Youth access and minimum age restrictions 

26. Youth Access: The Participants shall make sustained efforts, in cooperation 

with governments and other regulatory agencies, customers 

and others to prevent youth having access to tobacco products. 

They shall also seek ways in which to reinforce and give effect to 

measures that will prevent youth having access to tobacco products. 

27. Minimum Age Restrictions: The Participants are committed to 

the enactment and enforcement of minimum age restrictions for 

the lawful sale or purchase of tobacco products in every country in 

which their tobacco products are sold. The Participants support efforts 

by appropriate authorities, manufacturers of tobacco products, 

distributors and retailers to ensure the effective enforcement of such 

restrictions. 


33

34 

2Example 

we challenge you 

to shape our 

world 

Magdalena Szumna, Recruitment Manager, talks about 

”The Challenge Initiative” programme 

People are one of the key assets of British American Tobacco Polska and we developed 

the Challenge Initiative programme in order to select candidates for executive positions 

and offer them the best training. Over 70 people have taken part in the programme since it 

was launched in 1997. 

Since the very beginning of the programme we have been running a campaign among high 

school students and university graduates entitled ”We Challenge You... to Shape our World”. 

We conduct information activities related to the Challenge Initiative programme in cooperation 

with the leading websites in Poland focused on labour market issues; tools that we use 

include various publications, articles and job advertisements. 

Direct contact with universities, student organisations and career offices is also important 

in this campaign. For three years, British American Tobacco Polska staff, along with trainees 

employed in a given period, have been visiting universities to present both the company itself 

and the development opportunities we offer to students and graduates. Moreover, we try 

to share with them the knowledge they may find useful in situations other than the recruitment 

process at British American Tobacco Polska. The company presentation is accompanied 

by workshops that aim to make participants familiar with the nature of ”Assessment Centre”, 

a candidate selection tool that is most often used by British American Tobacco Polska. 

During the last ”We Challenge You” campaign, in the academic year 2005/2006, we proposed 

a few new solutions that made it easier for candidates to apply for training (such 

as an interactive web-based form) and showed them the company’s operations as seen by our 

employees (for instance, a special newsletter called BATzone). 

Here is a summary of the campaign ”We Challenge You” in figures: 

• 12 presentations and workshops conducted at universities across Poland in March 

2006 (8 were conducted in 2005); we visited some cities for the first time, including Lublin, 

Łódź and Olsztyn 

• About 1800 applications from candidates for trainees (up from nearly 400 in 2005) 

• 145 people taking part in a chart during the Online Job Fair (up from 85 participants 

in 2005) 

• Nearly 38,000 people who saw our company’s presentation at the site www.pracuj.pl 

(up from nearly 9,500 in 2005) 

A ”three-day job sample” is a unique element of the trainee recruitment process at British 

American Tobacco. Candidates are assigned business tasks to solve and they work with us 

for three days in the office, factory or in the field. They have an opportunity to get familiar 

with British American Tobacco’s corporate culture and find out whether the place really suits 

them. At the same time we, the employer, get a chance to learn much more about male 

and female applicants and watch them in a real business environment. 

Wojtek Otręba, one of trainees, talks about his personal experience 

As a trainee in the Finance Marketing department I had an opportunity to work on projects 

that were strictly related to the area of marketing. The significance of my projects is demonstrated 

by the fact that the ”value” of decisions based on them amounted to millions 

of zloty. I was given some operational jobs as well – I controlled budgets and made a number 

of analyses needed by my department. Trainees in the Finance Department learn about 

the nature of work in other departments as well – it is an essential part of a manager’s training 

programme. The development of knowledge and leadership skills is taken care of by the programme 

coordinator – an experienced manager who holds one-to-one meetings with each 

trainee to discuss and assess the results of his or her work and to determine directions for further 

development.

3 Example 

Everyone can help or join in volunteer programmes at British American Tobacco Polska 

Participation in employee volunteer programmes 

makes you more sensitive to other 

people’s problems, expands horizons 

and generates a lot of positive energy. It is 

an excellent way to integrate employees 

from all levels and departments. 

We went to Revita for the first time in 2005. 

Since then, we have visited that Otwockbased 

centre for mentally disabled adults 

about a dozen times. We tidied up the garden, 

made a number of repair works, 

brought Christmas gifts, but most importantly, 

we just spent time with the centre’s 

residents with whom we managed to make 

friends very quickly. Time passes much more 

slowly at Revita than it does in Warsaw. Each 

time we arrive there I am under the impression 

that nothing has changed, as if we left 

yesterday. The centre’s residents wait impatiently 

for our arrival. Even though they 

usually get up at about 10 a.m., they are up 

as early as 7 a.m. on the day we arrive. 

Not long ago we ran the second Christmas 

auction in the office with works 

of art made by Revita’s charges put up 

for bidding. Our employees raised nearly 

2,000 zloty from the event a year earlier. 

Our friends used this money to renovate 

the day room and get new chairs for it. 

We also brought a lot of presents – embroidery 

and painting accessories as well 

as toys. We almost managed to double 

the amount collected in the previous 

year and that’s good since the Otwock 

centre’s needs keep growing. I hope 

that our gift will allow them to renovate 

the bathroom where the floor collapsed 

and to replace the draughty front door. 

The bidding itself was very exciting 

– and we thank everyone for their 

participation! The fiercest battle was 

fought for an embroidered picture 

of a boat. It was sold for over 300 zloty, 

setting a new record. Of course 

we do hope that the record will be 

broken next year. 

The Revita Foundation was 

established in 1990. It was 

founded by parents of mentally 

handicapped people. 

Thanks to the joint efforts 

of the foundation board 

and associated persons, a 24hour 

Care and Rehabilitation 

Centre was opened in Otwock-Śródborów 

at 13 Zamenhoffa 

Street on 23 October 

2000. It is a home for people 

of both sexes, aged 30 to 50, 

requiring permanent care. 

Hanna Bielewicz, 

Tax and Treasury Manager 

35

36 

4Example 

Good Agronomic Practices and Social Responsibility in tobacco production 

In over 20 countries, British American Tobacco 

Polska works with nearly 250,000 growers 

who are the first link in a supply chain that 

provides about 300,000 tonnes of tobacco. 

With the aim of ensuring invariably high 

quality of products, the company decided it 

would handle manufacturing of the key tobacco 

varieties on its own, through direct contracts 

and processing, involving 23 activities 

we call ”operational programmes”, that are 

carried out in a number of countries on several 

continents. Tobacco growers play a key 

role in those programmes. British American 

Tobacco is a global pioneer in establishing 

partnership relations with growers, dating 

back to 1919. On the basis of accumulated 

experience, the company has developed 

the Integrated Crop Management System. 

It combines Good Agronomic Practices 

and Corporate Social Responsibility, helping 

to maintain a balance between economically 

viable tobacco production and environmental 

management. It also combines traditional crop 

management with the latest in scientific research. 

Agronomic Practices in British American Tobacco’s 

direct farming programmes contain sections 

of the Integrated Crop Management 

System related to the following environmental 

and social issues: 

• integrated pest management and reduction 

in the use of agrochemical agents, 

• environment protection, 

• soil conservation and fertility improvement, 

• protection of water resources, 

• use of fuels in tobacco curing, 

• afforestation, 

• farmers’ health protection and reduction 

of heavy (manual) labour, 

• training programmes for farmers, 

• optimisation of crops, quality and farmers’ 

profits while ensuring competitiveness, 

both globally and locally. 

In Poland, British American Tobacco is not 

involved in direct contracts regarding tobacco 

leaf farming and processing. It cooperates 

closely in this area with Universal Leaf Tobacco, 

a company whose operations in Poland benefit 

several tobacco manufacturers and the effect 

of scale makes them economically viable. 

Nevertheless, British American Tobacco made 

and fulfilled commitments to invest over 20m 

zloty in loans for farmers to modernise their 

essential equipment and other forms of aid. 

The Growers’ Fund, established by British 

American Tobacco when the tobacco sector 

was privatised, is still operational and helps 

to implement components of our Integrated 

Crop Management System. The key elements 

are included in Good Agronomic Practices, 

published by Universal and distributed among 

growers as recommendations concerning tobacco 

production. The scope and nature of aid 

required is consulted and agreed on with Universal 

as well as representatives of the Growers’ 

Union and Manufacturers’ Group. 

The reduction in use of firewood in our district 

by 80% of farmers growing the Virginia variety 

is one of the many notable results of partnership 

that have been achieved. It was possible 

due to providing them with modern, automated 

container curing barns, where thermal energy 

is generated by burning fuel oil. However, 

plans to impose a higher excise tax on this fuel 

without adequate compensations for tobacco 

growers may impede progress in the area or 

even cause a decline, affecting achievements 

in the field of environmental protection. 

Witold Kasprzak 

British American Tobacco Polska 

The article was published in the farming newspaper 

”Chłopska Droga”, issue no. 39/2006.


Expectations and commitments from the 2006 cycle 

During this year’s dialogue sessions our 

Stakeholders, much like the previous cycle 

of Dialogue, submitted nearly 100 various 

expectations toward British American Tobacco 

Polska. What makes this cycle different 

from the previous one is the introduction 

of new channels of communication to facilitate 

the exchange of opinions and reach an 

even wider group of Stakeholders. Therefore, 

we collected expectations towards our 

company not only during dialogue sessions 

with particular groups of Stakeholders, 

but also at individual meetings, by mail 

and by using an online forum at the Pall Mall 

brand website. Anyone who visited the website 

www.odpowiedzialnosc.pl could take 

part in the Dialogue; we also posted reports 

from subsequent meetings at this site as well 

as expectations submitted, our responses 

and new commitments. 

The following pages of this Report present 

a list of all expectations toward British American 

Tobacco Polska expressed in the current 

cycle of Dialogue, along with commitments 

undertaken by the company, delivery 

deadlines and measurements of fulfilment 

of particular commitments. If we could not 

undertake a specific commitment in response 

to a particular expectation, we included 

a relevant comment in the ”Comments” 

box. A lot of individual expectations 

coincided with each other or concerned 

similar issues and differences in the wording 

of such expectations were often of a purely 

linguistic nature. Consequently, with the 

consent and under control of the auditor, 

we took the liberty of grouping some expectations 

around the most frequently occurring 

theme – therefore the final number 

of expectations presented in the Report 

amounts to 64. You will also find a note next 

to each expectation, stating which dialogue 

session(s) it was submitted in. 

Expectations and accompanying commitments 

have been grouped in the following 

way: 

• Risk of smoking; 

• Responsible marketing of tobacco 

products. Youth smoking prevention; 

• Being a responsible company 

and the idea of Social Dialogue; 

• Cooperation with the local community; 

• Tobacco smuggling and legal issues; 

• Taxes; 

• Ban on smoking in public places; 

• Situation in the labour market; 

• Workplace; 

• Cooperation with Polish tobacco 

growers. 

Each of these thematic blocs opens with 

a brief introduction describing our views or 

practice so far in a given area. The standpoint 

of our company has been supplemented with 

survey results as well as the opinions of people 

and institutions to let the readers get 

a broader perspective on the issues discussed. 

We would like to cordially thank all 

the Stakeholders we had the pleasure to talk 

to – at dialogue sessions, by mail or online 

– for any comments, opinions and expectations 

they voiced. 

We present the dates of particular meetings 

and the full list of all Stakeholders invited 

to this edition of the Dialogue in the chapter 

”Dialogue 2006 – figures, listings, additional 

information” on page 78. Below you will find 

a map of Social Dialogue Space and Stakeholders 

participating in the Dialogue. 


37

38 

Risk of smoking 

”Of all the topics we discussed with our Stakeholders during 

dialogue sessions, smoking and health is the most difficult one.” 

A lot of issues related to our products 

raise heated debates. The pleasure 

of smoking is accompanied by health 

hazards in the form of serious diseases, 

such as lung cancer, respiratory tract diseases 

and heart diseases. To put it shortly 

– smoking causes a number of specific diseases 

and a lot of people find it difficult 

to quit smoking. 

Opinions about health hazards affecting 

smokers are based mostly on epidemiological 

surveys (population statistics), which 

examine risk factors for large groups of people. 

In fact, epidemiological surveys carried 

out for many years indicate that the rate 





of developing some diseases is much higher 

among smokers than among non-smokers. 

Scientific methods cannot determine 

beyond doubt which smokers will fall ill 

and which won’t. The only way to avoid 

the related risk is not to smoke, and the best 

way to reduce the risk is to quit smoking. 

Surveys linking smoking to a number of diseases 

had an impact on the launch of efforts 

aimed at finding an answer to the question 

of whether it is possible to modify cigarettes 

so that they become safer. As practice shows, 

a great number of people will keep smoking 

even if they are aware of related health 

hazards. 

In our opinion, efforts should be continued 

to develop such cigarettes – or, to put 

it more broadly, such tobacco products 

– that would entail a potentially lower risk 

and would be accepted by consumers. 

The development of a potentially ”safer” 

cigarette – especially one that would gain 

the support of the authorities responsible 

for public health – would definitely be 

beneficial both to the tobacco industry 

and smokers. It is a high-priority task for 

us. We seek the cooperation of lawmakers, 

medical experts and relevant scientific bodies 

to find out what product modifications 

might be welcome, how they should be 

tested and how consumers should be 

informed about their properties. 

We have been conducting tests 

on possible modifications to cigarettes 

since the 1950s when the scientific 

and medical communities 

started to point out the impact 

of smoking on health. Studies 

are currently under way on very 

low tar cigarettes where some 

smoke components have also 

been reduced, as well as in- 




novative solutions that change the content 

of cigarette smoke altogether. However, it 

should be emphasised that no ”safe cigarette” 

has been developed that makes it possible 

to avoid the risk of tobacco-related diseases. 

In two of our markets, in South Africa 

and Sweden, we are testing a less harmful 

form of tobacco consumption – snus. 

The research results indicate that snus is 

much less hazardous to health than cigarettes. 

Snus is not smoked; it is finely ground 

moist tobacco that comes either loose or 

in tiny sachets and is placed under the upper 

lip. Market tests of that product address 

expectations of a number of health 

service professionals who have found that 

snus, in regulated portions, can contribute 

to reducing the health impact of tobacco. 

It is also a response to the consumers who 

have declared in the course of our Dialogue 

that developing less harmful products is 

one of the most important things a tobacco 

company can do. 

We cannot launch snus in the European 

Union where a ban on sales of most kinds 

of smokeless tobacco was introduced 

in 1992. This ban does not apply in Sweden 

where snus is a traditional product, and this 

country negotiated derogation to the ban 

in its accession to EU. Snus supporters, 

including a few independent health experts, 

believe that the ban should be lifted. 

We share that view and hope that a debate 

on the EU level will be possible over our experience 

from the markets where the product 

is being tested. 

Of all the topics we discussed with Stakeholders 

during dialogue sessions, smoking 

and health is the most difficult one. Therefore 

we are particularly pleased with all the 

constructive suggestions and valuable comments 

those meetings have brought forth. 

Andrzej Kornatowski, 

Legal and Regulatory Affairs Manager 




Area: Risk of smoking 

Expectation (1) Commitment 

Measurements 

”To inform the public about what 

progress has been achieved in pursuing 

the company’s mission to limit risks 

related to its products, including the 

search for new, less risky products. 

To communicate more broadly the 

activities being taken to develop a safer 

product.” 

Session(s): parliament 

We will share knowledge about our own 

research on risks inherent in tobacco 

products. To that aim (1) we will strive 

to hold a conference with British American 

Tobacco experts to which representatives 

of the medical communities will be invited. 

(2) We will publish materials on 

snus (smokeless tobacco) and invite 

representatives of the Polish scientific 

community specialising in tobacco research 

to compare publicly available information 

on snus and cigarettes. 

(3) Moreover we will, where appropriate, 

communicate our actions in this area to the 

public, after consulting regulators. 

Medical communities invited to take part 

in a conference on risks inherent in tobacco 

products. 

Specialists mapped and invited to compare 

information on snus and cigarettes. 

Consultations with the authorities and 

promotion of actions (if taken) documented. 

Time line: We will fulfil these commitments before the start of the next cycle of Social Dialogue. 


Measurements 

”To introduce the topic of smoking 

hazards to training for retailers organised 

within the Responsible Sales Programme.” 

Session(s): growers 

In 2006 we limited our support for the 

Responsible Sales Programme to promoting 

the idea at various conferences on social 

responsibility. We suspended our active 

involvement in the Programme itself, which 

was carried on by its existing Partners. 

(4) In 2007 we will continue to run the 

Responsible Sales Programme. 

Actions within the RSP and the programme 

budget documented. 

Time line: We will fulfil this commitment before the start of the next Social Dialogue cycle. 


Measurements 

”To inform about a contingency plan 

(e.g. alternative production) the company 

has in case all smokers give up smoking 

quickly.” 

Session(s): additional expectation 

submitted by telephone 

(5) Where practical, we will publish surveys 

on current levels of tobacco consumption and 

trends, both in Poland and globally, on our 

corporate web site (www.bat.com.pl). 

We will supplement the surveys with 

a commentary presenting our view on 

business prospects for the tobacco industry. 

(6) We will also continue our dialogue with 

stakeholders on smoking harm reduction, 

for instance with reference to smokeless 

tobacco. 

Time line: We will fulfil these commitments before the end of April 2007. 

Materials on tobacco industry trends 

published on our corporate web site 

(www.bat.com.pl). 


39

Expectation (4) & (5) Comments 

”To set up or support an existing 

foundation helping people who have 

developed tobacco-related diseases, 

putting emphasis on rural areas and 

addressing actions particularly at people 

in early stages of the disease.” 

”To start discussion about potential 

support for the public health service, 

including setting up an additional 

insurance fund for smokers” 

Session(s): parliament; local authorities; 

Pall Mall Forum; individual sessions 

Expectation (6) Comments 

”To introduce product innovations in the 

cheap cigarette segment also.” 

40 

Session(s): business 


”To undertake actions which would result 

in health warnings being put on roll-yourown 

tobacco also.” 



”To encourage people to undergo 

periodical medical check-ups. To support 

measures aimed at detecting lung cancer 

in the early stage of the disease.” 

Session(s): health professionals 


”To examine whether new health warnings 

could be placed on cigarette packs or on 

flyers, such as ‘Do you smoke? Remember 

about medical check-ups, then’.” 

Session(s): health professionals 





We cannot undertake commitments that would fulfil the expectations described above. 

Due to Polish law restrictions, tobacco companies cannot sponsor. However, current 

regulations require 0.5% of the money the State Budget collects via the tobacco excise tax be 

earmarked to finance a state-run programme defining health, social and economic policies 

aimed at curbing tobacco consumption. Public health policy is a matter for the Government. 

We believe that the expectation has been fulfilled. 

We have already introduced an active charcoal filter - one of the most innovative solutions in 

the Polish tobacco market – in our economy brands. Since March 2006 we have been using 

the technology in our cheapest brand, Viceroy (Viceroy Charcoal Filter). The same kind of 

filter is also used in our medium-priced and premium brands, Pall Mall and Kent. In the near 

future, we do not foresee the possibility of introducing such solutions in other brands of our 

portfolio. 

We believe that the expectation has been fulfilled. 

In line with the regulations, we place health warnings on roll-your-own tobacco packaging. 

The content of warnings and the way they should be put on tobacco packaging are specified 

in § 4 of Health Minister’s ordinance of 24 February 2004 on examination of the content 

of some substances in cigarette smoke and information/warnings placed on the packaging 

of tobacco products. 

We cannot undertake commitments that would fulfil the expectation described above. 

We believe that smokers are well aware of the risks of serious diseases that can be caused 

by smoking. Public health policy measures are a matter for the Government. 


The content of health warnings used in Poland is compliant with European Union 

requirements. Currently the European Union’s directive defines a closed list of health 

warnings that can be put on tobacco products. 







1 Comment 

Professor Marek Naruszewicz from the Pomeranian Academy 

of Medicine talks about the risk of smoking and prevention 

It is annoying that programmes related 

to social policy and programmes that teach 

assertiveness die of natural causes so often. 

I toured Poland with such programmes myself, 

but eventually the money dried up. But 

people respected by the society and scientific 

community should try to exert influence 

on children and youths. 

Toxicity of smoking is neither the only nor 

the most important problem among children. 

One should remember that the risk 

of smoking is different for different people. 

For instance, there are 4, 7 or maybe 20% 

of families with a history of ischemia – and it 

is such families that should do whatever it 

takes to refrain from smoking or quit immediately. 

But, in my opinion, trying to reach 

the whole of society is just wasting money 

– since when you try to reach everyone, you 

end up reaching no one effectively. 

Let us also notice the following phenomenon: 

”early prevention” is the subject of 50% 

of symposia in the West; in Poland 90% are 

focused on treatment, which is a misfortune 

of the Polish healthcare system. We would 

spend less money and achieve better results 

by focusing on higher-risk groups. It would 

be relatively easy to reach such people 

through first-contact doctors (general practitioners) 

– one need only ask simple questions 

like: „Have any of your family members 

aged below 55 suffered from cardiovascular 

diseases or been diagnosed with tumour?”. 

Nowadays, pharmaceutical companies use 

doctors to provide patients with information 

on drugs and treatment; we could also provide 

knowledge to doctors and patients in order 

to prevents smoking-related diseases. 

The programme, if it were created, could use 

simple questionnaires – patients in the US fill 

out surveys on the medical history of family 

members at the first appointment; in Poland, 

this tool is very seldom used. 

In the case of minors, reaching families, 

mothers in particular, is worthwhile. If a man 

has a heart attack, his wife will take more care 

of him for about 3 months, on average, then 

the threat ”fades out” in her consciousness. 

But as far as children are concerned, such 

a threat is never forgotten – it only needs 

to be communicated to the mother. 


41

42 

Responsible marketing. 

Youth smoking prevention 

”Youth smoking is unacceptable – I am saying this as a marketing director, 

but first of all as a mother.” 

As tobacco smoking is linked to a risk 

of developing serious diseases we agree 

that the tobacco industry should be governed 

by some special legal regulations. 

All marketing activities related to tobacco 

products should be targeted solely 

at adult smokers. 

British American Tobacco is a signatory 

to the International Marketing Standards, 

under which several international tobacco 

companies voluntarily agreed to adopt 

limitations, very often more restrictive than 

the existing provisions of the law. The Standards 

envisage, among other things, that 

communication in our industry should not 

be targeted at minors, employ celebrities or 

suggest links between smoking and popularity 

or sporting achievements. Withdrawal 

from the sponsorship of Formula 1 racing 

events is an example of how we adapt our 

marketing strategy to those rules. 

British American Tobacco Polska fully abides 

by the Standards; moreover, we are trying 

to persuade other companies that the Standards 

should be recognised as a single code 

of conduct by the entire tobacco industry 

in Poland. 

We believe, however, that both manufacturers 

and sellers should have the right 

to pass on information about cigarettes 

– controversial, but legal products – to adult 

smokers, obviously in a responsible way. 

In our company, marketing is not equivalent 

to persuading people to smoke. We seek 

to fulfil expectations of those consumers 

for whom smoking is a conscious choice 

and also to ensure our brands stand out 

against the competition. Not all tobacco 

products are the same – we want consumers 

to be well-informed about the properties 

and quality of our company’s products. 

Christine Castillon-Dubus, 

Marketing Director 





We always act in accordance with the law 

and intend to conduct our marketing activities 

in a way that reflects the reasonable 

expectations of our Stakeholders. Therefore 

we take a pro-active approach to communication 

with our consumers as well as people 

and institutions interested in restrictions 

that should apply to sales of tobacco products 

– we listen to their opinions and take 

specific steps. 

We do not want minors to have access 

to cigarettes. A rise in tobacco consumption 

among the youth is a major social problem; 

counteracting the trend poses a big challenge. 

There are over 200,000 outlets selling 

our products in Poland, cigarettes can 

be bought almost anywhere. It is retailers 

that play a crucial role in a huge project 

called the ”Responsible Sales Programme”, 

which is aimed at preventing minors from 

having access to tobacco products. The Programme 

would never succeed without their 

commitment. Retailers took an active part 

in training sessions, meetings and information 

campaigns carried out under the ”Responsible 

Sales Programme”. 

In 2006 our company suspended active participation 

in the Programme, which was continued 

by the other partners. However, 

during this year’s 

dialogue sessions 

our Stakeholders 

voiced a great 

number of expectations 

with regard 

to continuing the Programme 

and changing its format. 

In response to suggestions made 

by retailers and in order to increase 

the effectiveness of a ban on selling 

tobacco products to minors, 




together with other tobacco companies 

we successfully lobbied for a law that allows 

retailers to verify the age of young customers 

wanting to purchase cigarettes. It was 

one of the most remarkable achievements 

in nearly 10 years of the Programme’s history. 

A lot has already been done. A growing 

number of retailers are paying attention 

to the issue of youth smoking, also social 

awareness of the problem is on the rise. 

Even though some might not consider such 

positive results to be spectacular enough, 

we believe that the ”Responsible Sales Programme” 

should be continued and we will 

seek the involvement of more partners to increase 

its effectiveness. 




Area: Responsible marketing. 

Youth smoking prevention 


Measurements 

”To increase the clarity of terms used in 

company communications. For example: 

to use the term ‘a controversial industry’ 

instead of ‘an industry perceived as controversial’.” 


(7) We will change terms we use in 

communications concerning our industry 

accordingly, both on our website and in 

the brochures we produce. 

Terms used on the website and in the 

publications changed. 

Time line: We will fulfil the commitment by the end of the second quarter of 2007. 


Measurements 

”To initiate a debate of the whole industry 

on tobacco marketing standards.” 


(8) We will invite organisations grouping 

industry representatives to discuss the issue 

of International Marketing Standards (IMS). 

We will recommend specific solutions 

in terms of respecting IMS by the whole 

tobacco industry and strive to reach 

an agreement in this area. 

Time line: We will fulfil the commitment before the end of 2007. 


Measurements 

”To continue the Responsible Sales 

Programme (RSP). To broaden its scope 

by involving new partners, particularly 

from the tobacco and alcohol sectors, 

and to enrich the Programme with new 

forms. To support and motivate retailers 

not to sell cigarettes to minors. To 

support actions limiting children’s access 

to cigarettes and to cooperate with other 

organisations in this respect. To strive 

to broaden the outreach of such social 

campaigns.” 

Session(s): businesses; local authorities; 

parliament; health professionals; Pall Mall 

Forum 

In 2006 we limited our actions related to 

the Responsible Sales Programme (RSP) 

to promoting the idea on the occasion of 

various conferences on social responsibility 

and we suspended active involvement in the 

Programme itself, which was continued by 

its existing partners in 2006. 

We will resume our involvement in RSP in 

2007. (9) We will develop and share with 

the Programme partners initiatives aimed 

at broadening the group of companies 

involved in its execution, with particular 

emphasis on companies from the tobacco 

and alcohol sectors. (10) We will also 

propose actions that could expand the 

current scope of the RSP. If other companies 

accept our proposals, we will come up with 

specific projects to be carried out jointly 

during the next edition of the Programme. 

Documentation of the meetings with 

the National Manufacturers’ Association and 

the Polish Tobacco Industry Association and 

of the submitted recommendations. 

Continuation of the Responsible Sales 

Programme in 2007. 

Actions taken to broaden the Programme 

with new partners and new initiatives. 

If approved by other partners in the coalition 

for responsible sales, specific projects in the 

area proposed and carried out. 



43


Measurements 

”To distribute information materials 

concerning the Responsible Sales 

Programme (posters, press ads) 

at least two weeks in advance so 

that the initiative is better publicised.” 

44 

Session(s): local authorities 





(11) We will agree with the Programme 

partners, well in advance, the type of 

information materials supporting the RSP as 

well as distribution methods and deadlines 

in the next editions of the programme. 

Time line: We will fulfil the commitment before the end of 2007. 


Measurements 

”To look for new forms of youth smoking 

prevention. To focus on actions directly 

targeting the youth, including primary and 

secondary schools (gymnasium), smaller 

towns and children belonging to a high-risk 

group in terms of developing tobaccorelated 

diseases. To create a programme 

teaching assertive attitudes in the face of 

negative pressures from the peer group, for 

instance – to continue the ‘Nałogom nie’ 

(‘No to addiction’) campaign carried out 

before. To educate why it makes sense not 

to start smoking by promoting a fashion for 

non-smoking. To carry out the undertaken 

action in cooperation with the police, health 

professionals, teachers and representatives 

of the entire tobacco industry.” 

Session(s): parliament; health 

professionals; local authorities; employees; 

Pall Mall Forum; individual sessions 

(12) We will start a dialogue with the 

Ministry of Education on possible inclusion 

of the discussion of risks inherent in smoking 

into the school curricula. Should the 

Ministry look favourably on this initiative, 

we will participate in developing such 

a programme and preparing required 

materials in cooperation with the teaching 

community. 

(13) We will also approach the Ministry 

of Interior and Administration to sign an 

agreement to audit the personal data 

collected in our database, including the age 

of persons whose data is stored there. We 

will add a new clause to the questionnaire 

filled by persons wishing to be included in 

our database to highlight the responsibility 

for submitting false information. 




Documentation of the distribution 

of materials and meetings or relevant 

correspondence with stakeholders. 

A request submitted to the Ministry of 

Education to support the initiative. If 

approved by the Ministry, the project 

developed and carried out in cooperation 

with the teaching community. 

Attempts made to sign an agreement with 

the Ministry of Interior and Administration 

to audit the personal data collected in our 

consumer database. 

Documentation of the attempts made to 

sign an agreement with the Ministry of 

Interior and Administration; if the Ministry 

agrees, a written confirmation that the 

agreement has been signed. 

New clause added to the questionnaire. 



Measurements 

”To support promotion of sports among 

the youth.” 

Session(s): local authorities; Pall Mall 

Forum 

As a tobacco company we are not involved 

in any sport-related activities. 

In line with the International Marketing 

Standards, the promotion of sports or any 

actions aimed at the youth undertaken 

directly by our company would qualify as 

a prohibited form of communication. 

The Polish law bans sponsoring by tobacco 

companies, which is a serious impediment 

to our support for such initiatives. 

(14) What we can and will do is to provide 

additional funding to support sports 

activities among our employees and their 

families, via the company’s social fund. 

Report on the usage of the social fund on 

sports-related initiatives presented. 

Time line: We will fulfil the commitment before the start of the next cycle of Social Dialogue. 





Measurements 

”To run activities inreasing parents’ 

awareness of the consequences of 

smoking around children for instance, 

in cooperation with the clergy.” 


(15) We will suggest to RSP partners 

activities aimed at increasing parents’ 

awareness of the consequences of 

smoking around children. If our proposals 

are approved, we will invite parents’ 

representatives to get involved in carrying 

out the Programme’s goals. 

(16) We will submit a request to the clergy 

to address the issue of not smoking in the 

presence of children. 

Documentation of the proposals made to 

RSP partners. 

A written request submitted to the relevant 

church authorities. 



Measurements 

”To promote the British American 

Tobacco corporate identity, for instance 

by running such programmes as the 

Responsible Sales Programme.” 

Session(s): employees 

(17) We will continue to place our corporate 

logo on marketing materials to identify our 

family of products. (18) We will promote the 

British American Tobacco corporate identity 

at conferences and other events we attend, 

such as the Responsible Sales Programme, 

subject to limitations required by law. 

Documentation of the actions taken to 

promote the British American Tobacco 

Polska corporate identity. 



Measurements 

”To maintain close relationships with 

all organisations that make up the sales 

chain (including semi- wholesale).” 


(19) We will maintain regular contacts with 

all organisations making up our sales chain 

thanks to the establishment of the new 

wholesale department structure. 

Documentation of the rules of cooperation 

with various organisations that make up the 

sales chain. 

Time line: We will fulfil this commitment before the start of the next cycle of Social Dialogue. 


Measurements 

”To ensure British American Tobacco 

products are available in key retail 

outlets in Augustów. To have a sales 

representative in Augustów.” 


(20) We will aim to ensure our products 

are more visible and better distributed in 

Augustów, both at traditional retail outlets 

and hotels, restaurants and clubs (the socalled 

HoReCa sales channel). To that aim, 

we will increase the number of visits by our 

sales representatives in the region’s retail 

outlets. 

The number of visits by our Sales 

Representatives in Augustów increased. 



45

2 Comment 

Professor Wojciech Gasparski, The Centre for Business Ethics at the Institute of Philosophy 

and Sociology, Polish Academy of Sciences and L. Kozminski Academy of Entrepreneurship 

and Management talks about ethics in business 

Visitors to the home page of the Business 

Ethics Centre (a joint unit of the Institute 

of Philosophy and Sociology, Polish Academy 

of Sciences and Leon Kozminski Academy 

of Entrepreneurship and Management) 

at www.cebi.pl are likely to know my paper 

– ”The Ethicality of Marketing as the Marketing 

of Ethicality”, delivered in 2004 at a conference 

on controversies over marketing 

in Poland. The key point of this paper is that 

the ethicality of marketing is of a particular 

kind. What kind of ethicality is it? It is ethicality 

spread between the two extremes: 

(a) the negative pole, defined by a limiting 

morality, i.e. behaviour ”whose motivation 

is oriented towards the lowest possible 

limit of what is permissible” [W. Schöllgen, 

Grenzmoral: Soziale Krisis und neuer Aufbau, 

Dusseldorf 1946, p.19 ] and even ”exceeding 

downwards [...] the marginal level 

of the ethos” [A. Dylus, Erozja standardów 

etycznych w biznesie (Erosion of Ethical 

Stands in Business), in: J. Mariański, ed., 

Kondycja moralna społeczeństwa polskiego 

(Moral Condition of the Polish Society), 

WAM Publishers, Cracow 2002, p. 288], 

and (b) the positive pole, defined by high 

morality. 

What ethics, then, is presented by the BAT 

Report with relation to the company’s 

marketing operations in Poland? The ethics 

here is not limiting at either of the opposite 

sides of the range. Guided by the International 

Marketing Standards, it aims to be 

as far as possible from the negative pole, 

which has been clearly stated by Christine 

46 

Castillon-Dubus. First of all, the company 

aims to prevent children and youths aged 

below 18 from getting access to tobacco 

products. The company is not responsible 

for everything and a lot depends on retailers, 

but the company has ways to influence 

their behaviour. Are its efforts sufficient? 

It seems that the suspension of participation 

in the Responsible Sales Programme 

in 2006 (in which the company had taken 

part before) had an impact on demands 

from social partners to withdraw resignation 

and return to the programme. 

Furthermore, the company declares it has 

given up advertising in Formula 1 racing 

events, which is of high importance in Poland 

due to the participation of Robert 

Kubica in those events. The company also 

declares it complies with ethical minima 

respecting the law and refrains from advertising 

its products outside of points 

of sale, in the hope that only adults will pay 

attention. Hope is hope, but adults do not 

always walk on their own. A lot of them send 

children to the newsagent’s and shopkeepers 

want to make money. A difficult issue, indeed. 

Maybe it would make sense to reward 

responsible parents and sellers? 

The marketing of tobacco products described 

in the Report puts emphasis 

on things the company prevents from happening 

and those it would like to avoid. 

It is therefore a preventative marketing. 

The author of the chapter realises that, since 

she writes that the positive results achieved 


might not be regarded as spectacular 

enough. I would recommend paying more 

attention in the future to something that is 

the essence of marketing, i.e. the part of it 

aimed at customers and consumers. I know 

from conversations with the company’s executives 

that it wishes to encourage tobacco 

buyers to purchase its products and not 

those offered by other companies (”making 

our brands stand out from the competition”). 

Doesn’t the marketing aimed at competing 

for customers raise objections from rivals 

and the Office of Competition and Consumer 

Protection? It is a pity that the report 

is silent about it. The company also states 

that it wants ”consumers to be well informed 

about the properties and quality of products” 

– the issue deserves a wider coverage 

in the Report, especially since it is not a question 

of good will, but a legally defined obligation. 

It would also be worthwhile to make 

a clear reference to the controversial issue 

of the quality of more expensive products. 

The point is whether such products are 

”healthier” (if the adjective is suitable for tobacco 

products), as cheaper products, free 

of additives, are sometimes thought to be 

less harmful. 

The marketing of controversial products 

is not an easy matter. It is a kind of slalom 

between tight gates. I believe that the company 

aims at an evaluated position in this 

discipline. It is evident in the declarations 

of plans and commitments that address 

challenges being targeted at the company 

by its stakeholders.

Being a responsible company 

and the idea of Social Dialogue 

”Some people claim that the tobacco industry and responsibility are mutually exclusive. 

We believe that the nature of our products makes this responsibility all the more important.” 

We are working hard to prove that a tobacco 

company can be a responsible company. 

Since 2003 we have been conducting 

the process of Social Dialogue in Poland, 

a partnership dialogue with all institutions 

and communities interested in issues 

related to our products and the ways 

in which we operate. We are determined 

to act as openly and transparently as possible 

– by introducing the external world 

to the inside of the company. We listen 

carefully to the opinions of our Stakeholders 

– those whose operations we influence 

and those who have influence on us. 

In the first cycle of Dialogue we undertook 

over 70 commitments in response to expectations 

voiced by people representing dozens 

of institutions, organisations and social 

groups. Today we can proudly declare that 

we have fulfilled all of them and those which 

are of a constant nature are being fulfilled 

on a day-to-day basis. It should be noted 

that the entire process of Dialogue was 

submitted for verification by Bureau Veritas, 

an independent auditor, which confirmed 

we had actually fulfilled all the commitments 

undertaken. 

The previous cycle of Dialogue was 

described in a publicly available (for 

instance at www.bat.com.pl) Report. 

The current Report, the one you are 

holding in your hands right now, 

describes point by point the rules, 

sequence and results of the present 

cycle of Dialogue. In order to offer 

access to the information about 

the project to an even wider circle 

of people we have launched the site 

www.odpowiedzialnosc.pl. We let 

all Stakeholders monitor the course 

of the process via the website and ask 

questions related to the Social Dialogue 

we conduct. 

Suggestions and comments 

by Dialogue participants help 

us shape our commitments 

and future operations. The commitments 

– described in this 

Report – were worked out by 

Roman Maret, 

IT and Administration 

Director 

British American Tobacco Polska employees 

on their own; the company board did not 

impose any specific solutions on them, but 

only consulted and approved projects that 

should be undertaken according to different 

departments and groups of employees. 

We hope that it will let us become effectively 

involved in projects that actually reflect 

the needs of our environment and avoid 

building a social responsibility strategy 

based exclusively on our own ideas. 

Our Stakeholders appreciate this model 

of building open relationships with 

the business environment. We were 

asked a lot of times at dialogue sessions 

in 2006 to promote it among other companies 

and initiate a debate on social responsibility 

among the entire tobacco industry. 

As you will find out from the listing of expectations 

concerning the idea of Dialogue 

(in a table on page 49), we are committed 

to developing and presenting to the National 

Manufacturers’ Association a project 

that would allow the whole industry to carry 

out actions in the area of corporate social 

responsibility. 

We are happy that new topics and expectations 

are still raised in the course of Dialogue. 

We have realised that the Dialogue 

formula we proposed is necessary and that 

Dialogue itself is an open process, subject 

to constant development. As the capital 

of mutual trust and partnership relations is 

accumulated, both the company and its social 

environment can benefit from it. 


47

Area: Being a responsible company and the idea of Social Dialogue 


Measurements 

”To continue the process of Social 

Dialogue and to continue fulfilling prior 

commitments.” 


48 





(21) We will continue the process of Social 

Dialogue, and we will continue fulfilling 

prior commitments. We have submitted 

the fulfilment process for evaluation by an 

independent auditor. 

We will publish a report on fulfilment of 

the commitments from the present cycle of 

Dialogue in our next Social Responsibility 

Report. 

The next cycle of Social Dialogue will be 

carried out in 2–3 years depending on the 

pace of fulfilling commitments from the 

present cycle. 

Time line: We will start the next cycle of Social Dialogue before 2010. 




The next cycle of Social Dialogue 

documented. 


Measurements 

”To make public the expectations voiced 

during the Social Dialogue.” 

Session(s): business; local authorities 

(22) All expectations voiced during 

dialogue sessions held this year and 

commitments undertaken on the basis of 

those expectations have been verified by an 

independent auditor and published in this 

Report, which will be sent to all partners 

invited to take part in Social Dialogue. 

(23) Moreover, we will organise a press 

conference concerning the publication of 

the Social Responsibility Report. (24) The 

expectations and commitments will also be 

published on our corporate website 

(www.bat.com.pl). 

(25) In the next cycle of Dialogue we will 

publish the report on fulfilment of the 

commitments undertaken in the present 

cycle. 

Fulfilment of the commitments verified 

by an independent auditor. The results 

presented in the next Social Responsibility 


Time line: We will fulfil the commitments regarding the publication of the Report in the first quarter 

of 2007 and the one concerning documentation of the fulfilment of the commitments - upon the 

publication of our next Social Responsibility Report. 


Measurements 

”To publish a score sheet of costs related 

to the Social Dialogue process and 

benefits resulting from it.” 


(26) Prior to the start of the next cycle of 

Social Dialogue, we will publish a report 

to reiterate costs related to the Dialogue 

process and fulfilment of the commitments, 

as well as benefits for all parties resulting 

from conducting the Dialogue and carrying 

out initiatives in the area of corporate social 

responsibility born during the present cycle. 

A score sheet of benefits and costs of 

conducting Social Dialogue published 

in the next Social Responsibility Report. 

Time line: We will fulfil this commitment upon the publication of our next Social Responsibility Report. 





Measurements 

”To promote the idea of corporate social 

responsibility among SMEs. To consider 

drafting a code of business conduct for 

SMEs.” 

Session(s): parliament; local authorities 

(27) We will promote the idea of Corporate 

Social Responsibility (CSR) and share our 

know-how in this respect with others, 

by taking active part in conferences 

and seminars. (28) We will search for 

initiatives promoting the idea of CSR, for 

instance those organised by the Forum 

of Responsible Business (FOB) or the 

Polish Confederation of Private Employers 

Lewiatan, offering cooperation in this area. 

Time line: We will treat these commitments as ongoing ones. 


Measurements 

”To consider a possibility of establishing 

cooperation with other manufacturers of 

controversial products – such that would 

promote this model of co-operation 

with the local community (at home and 

abroad, especially across the eastern 

border).” 

Sessions(s): local authorities 

(29) We will get involved in the initiatives 

of the Responsible Business Forum, 

whose members include companies 

from controversial industries, promoting 

cooperation of businesses with the local 

community. (30) We will share our knowhow 

and expertise in this area with other 

companies through active participation in 

conferences and meetings on Corporate 

Social Responsibility. (31) We will also seek 

to promote internationally such initiatives 

of cooperation with the local community as 

the Augustów Academy. 

Time line: We will treat these commitments as ongoing ones. 


Measurements 

”To broaden the scope of responsibility, 

by including the area of the whole 

industry’s responsibility.” 


(32) We will present both the idea of Social 

Dialogue and the AA 1000 AS standard 

serving as a guideline for the Dialogue 

process to the National Manufacturers’ 

Association (NMA) and we will encourage 

NMA members to carry out similar actions 

on their own. However, we do not see the 

need for the whole industry to conduct 

Dialogue as we believe that the process 

should have a single specific ”owner” of all 

expectations, fully responsible for working 

out and fulfilling commitments. 

Participation in conferences and meetings 

discussing Corporate Social Responsibility 

issues documented. 

Documentation of participation in initiatives 

of the Responsible Business Forum and 

conferences focused on Corporate Social 

Responsibility, as well as actions undertaken 

to promote initiatives concerning Corporate 

Social Responsibility. 

The presentation to NMA members 

documented. 



Measurements 

”To donate spare IT and office equipment 

to various organisations in need of such 

support.” 


(33) We will continue our policy of donating 

IT equipment no longer needed by our 

company to organisations that will approach 

us with such requests. 

Equipment donated and charity actions 

documented. 



49

50 

3 Comment 

Bolesław Rok, Ph. D., Forum Odpowiedzialnego Biznesu 

(Responsible Business Forum) talks about responsible business 

Responsible business is a strategic and longterm 

approach, aimed at seeking solutions 

which all stakeholders can benefit 

the most from. Most responsible business 

definitions move away from the traditional 

approach of determining tasks facing 

the company that amount to making 

profit in line with the provisions of law or 

to boosting the company’s value. This basic 

task is obviously not ignored, but a number 

of accompanying factors are highlighted, 

essential for the company’s functioning 

and expansion in a competitive market. 

Consequently, attention is paid to the company’s 

conduct in the process of generating 

profits and to the results of that conduct, 

and at the same time the concept of profit is 

expanded, as it gains a social dimension. 

In various definitions of responsible business 

the following elements are usually highlighted: 

• generating a stable profit while building 

relationships wisely with all stakeholders 

• using the process of holding dialogue 

with stakeholders to improve the company's 

development strategy, 

• building a competitive advantage 

strategy based on creating longlasting 

value both for shareholders 

and other stakeholders, 

• supplying products and services 

in a way that does not degrade 

the natural or social environment, 

• taking account of ethical values in running 

a business, 

• honest fulfilment of commitments, 

• applying transparent business practices 

based on respect for employees 

and the community. 

These, basically similar, definitions are underpinned 

by the concept of a company 

oriented towards stakeholders, i.e. groups 

or individuals that may influence or are under 

influence of the company's operations 

through its products, strategies, manufacturing 

processes, management systems 

and procedures. 

The term Corporate Social Responsibility 

(CSR) popularised in Poland in recent years 

– largely thanks to actions of the Responsible 

Business Forum – is increasingly being 

replaced by the term Corporate Stakeholder 

Responsibility, which on the one hand 

makes it possible to retain the same wellknown 

acronym, CSR, but on the other 

hand, more importantly, emphasises 

in a special way that holding a dialogue with 

stakeholders is the essence of any responsible 

business. This is exactly the approach 

to responsible business presented by British 

American Tobacco Polska. 

A lot of management studies point out that 

CSR is, first of all, the art of fulfilling the expectations 

of major stakeholders, seeking 

a dynamic balance between the interests 

of all parties concerned. It is demonstrated 

by the example of the world's leading companies 

that CSR is a constant process of getting 

to know changing social expectations 

and including them in the management 

strategy and also monitoring the impact 

of that strategy on the company's competitiveness. 

Hence, the process of social dialogue 

conducted with determination by BAT 

is not an ”additional factor” meant to improve 

the reputation of the company – operating 

in a ”controversial industry”, as it is 

often called – but a manifestation of a modern 

and effective management strategy. 


Cooperation 

with local community 

”Our Partners – Augustów residents, local organisations 

and local government authorities – take an active part 

in the process of Social Dialogue. It is thanks to them that 

we have a better understanding of the environment in which 

we operate.” 

British American Tobacco has been 

present in Augustów for over fifteen 

years. In 2003 we decided to give a new 

shape to our relations with local Partners: 

the shape of Social Dialogue. It allowed us 

to get a better grasp of opinions about our 

operations and the needs of people from 

the city and region. In response to expectations 

that were voiced at the time 

we made several commitments and, consequently, 

took required actions; we carried 

out initiatives in areas such as education 

and entrepreneurship promotion, 

boosting employment opportunities for 

the youth in the Augustów region, support 

for local projects and charity events as well 

as for protection of the environment 

– a key issue in the region which ranks 

among the least polluted parts of Poland 

(more on that subject in the chapter ”Dialogue 

2003/2004”, p. 17). 

We met representatives of the local community 

again at dialogue sessions held this year. 

Such meetings and the involvement of local 

authorities are important to us and help us 

shape our future actions. We received a lot 

of valuable feedback on our operations, 

also from local government officials, who 

gave a positive assessment of the fulfilment 

of commitments made so far. 

We proved to be a responsible local investor, 

which is also reflected in the awards we have 

been honoured with: Company of Merit 

for the City of Augustów, presented to us 

in July 2006 by the Augustów City Council 

and the award chapter, or ”The Best Company 

in Podlasie” award we received from 

”Kurier Poranny” for three years in a row. 

The expansion of our operations proves that 

Augustów is a place friendly to business 

and open to new initiatives – and we will 

promote it as such. 

Steve Rae, Plant Director 

The next phase of the Social Dialogue 

process – fulfilment of subsequent commitments 

– is ahead of us. Some of them 

refer to the ”Augustów Academy” – an initiative 

aimed at teaching the youth active 

attitudes in the labour market and to share 

our knowledge and expertise (more 

on that subject on page 69). We plan 

to expand the Academy’s scope of operations 

in 2007 and to invite new groups 

of participants to join it. The project has 

proved to be a big success and therefore 

we care a great deal – just like representatives 

of the local communities – about its 

continuation. 

We would like employees 

of the Augustów plant to take pride 

in the fact that their company 

contributes to the development 

of the region and is a good 

member of the local community. 


51

Area: Cooperation with local community 


Measurements 

”To continue the Augustów Academy 

project and broaden its activities to 

involve handicapped people as well. To 

get high school (lyceum) youth more 

involved in the programme. To promote 

the activities of the Academy.” 

Sessions(s): local authorities; growers; 

employees 

52 





(34) We will continue the Augustów 

Academy project with special emphasis 

on promoting it at various events in the 

area of Corporate Social Responsibility. 

We will approach the Foundation for 

Entrepreneurship Development to expand 

the Academy’s scope of activities by projects 

aimed at facilitating the employment of 

handicapped persons. 

Time line: We will fulfil this commitment before the end of 2007. 


Measurements 

”To continue support for initiatives 

important to the local community 

of Augustów.” 


(35) We will continue to support the local 

community in the execution of projects 

that are important to it. To that aim we 

will maintain cooperation with the local 

authorities. (36) In order to ensure total 

transparency of the process, we will submit 

our donation policy and report on granted 

donations for verification by an independent 

auditor. We will publish the results of the 

audit in the next Social Responsibility Report. 




Actions taken to continue the Augustów 

Academy project documented. The annual 

report published, describing the Academy’s 

goals and completed actions. 

Actions supporting the local community 

documented. Independent audit of granted 

donations conducted with regard to 

their transparency and conformity with 

the company’s policy. The audit results 

published in our next Social Responsibility 


Time line: We will fulfil these commitments upon the publication of the next Social Responsibility 



Measurements 

”To start cooperation with so-called Local 

Action Groups (entities creating local 

public-private partnerships).” 

Sessions(s): parliament 

(37) We will determine whether Local 

Action Groups (LAG) function in the region 

of Augustów. To that end we will also 

approach interested stakeholders asking 

them to get us in touch with relevant 

institutions. If LAGs function in our region, 

we will propose talks on possibilities of 

establishing cooperation. 



Measurements 

”To run customs clearance, both for 

imports and exports, at the Customs 

Office in Augustów.” 


(38) We will get involved in actions aimed 

at maintaining the seat of the Customs 

Office in Augustów. To that aim we will 

cooperate with local authorities, customs 

authorities and other companies operating 

in Augustów. We will assess the current 

procedure of running customs clearance by 

our company, conduct an economic analysis 

and take steps to optimise the operation. 


Actions taken to identify Local Action 

Groups in the region of Augustów and 

possibly talks on cooperation prospects 

documented. 

Documented actions aimed at maintaining 

the seat of the Customs Office in Augustów. 





Measurements 

”To run campaigns promoting 

Augustów.” 


(39) We will continue to support initiatives 

important to the local community of 

Augustów. To that aim we will continue 

our cooperation with the local authorities, 

including involvement in projects 

promoting Augustów, 

(40) In our business relations we will 

continue to promote Augustów as a 

business-friendly environment, highlighting 

at the same time its tourist attractions. 

Documented actions taken to support 

initiatives important to the local community 

and aimed at promoting Augustów. 



Measurements 

”To educate (the public) on ecology 

issues.” 


(41) We will run the annual Augustów 

Channel cleaning action with the 

participation of our company employees, 

their families and the local community; 

we will inform the media about the 

event. Through such actions we will seek 

to make the local community aware of 

environmental issues. 


Preparations to and for cleaning of the 

Augustów Channel documented, including 

actions taken to promote the event in the 

local media. 


53

54 

4Comment 

Mr Leszek Cieślik, the mayor of Augustów, talks about 

cooperation with British American Tobacco Polska 

I am privileged to serve the fourth term 

as the mayor of Augustów. Since the very 

beginning of British American Tobacco’s 

presence in our town, the investor 

and the local government have held regular 

contacts based on partnership. It has continued 

right up until now. 

Today we can boast a number of joint initiatives. 

The presence of such a business 

partner in our region means not only business 

investments, such as creating new 

jobs and improving employee skills, but 

also investments in the social life of our 

town, such as support for the construction 

of a swimming pool or organisation 

of a number of cultural events in Augustów, 

such as the Augustów Theatre Summer. 

As a member of the Augustów Academy 

Programme Council, I am very proud 

of and pleased with the project, which 

has allowed us to effectively combat unemployment 

in our region over the last 

two years, by involving mostly young 

people. The chapter of the Award of Merit 

for the city of Augustów honoured British 

American Tobacco with a medal in 2006, 

thus expressing our recognition of the results 

of cooperation between the company 

and the local community. 

British American Tobacco is a very important 

partner for us as it lets Augustów develop 

faster and become more recognisable not 

only as a popular tourist destination, but 

also as a good place to run a business. 


Tobacco smuggling and legal issues 

”Illicit trade does not only mean huge financial losses. 

Regardless of scale, the practice is extremely harmful to society.” 

Illicit trade and product counterfeiting 

are problems that occur all over the world 

and they need to be faced by manufacturers 

of a number of goods, including 

electronic equipment, software or alcohol 

and tobacco. They are driven by 

differences in tariff and tax levels as well 

as prices of products, poor border protection 

and import restrictions. Smuggling 

can only be prevented by the governments 

of individual states. Smuggling also ruins 

our operations and therefore we actively 

cooperate with customs and tax authorities 

all over the world. We want to help eliminate 

the practice so that we can engage 

in an open and fair market competition. 

Let us make it clear – cigarette smuggling 

is often a crime that causes losses for everyone: 

the state budget, legal manufacturers 

and retailers. Moreover, consumers 

of smuggled and counterfeit cigarettes, 

that are of unknown origin and often fail 

to meet any quality standards, take an extra 

risk. Criminals are the only beneficiaries 

of this practice. 

The number of cigarettes smuggled into 

Poland is estimated at 8.2bn annually. It 

equals the output of a large cigarette 

plant, which – if it were allowed to operate 

legally – would give jobs and boost tax 

revenues to the State Treasury. Because 

of differences in prices of tobacco products 

between individual countries, the ”profitability” 

of the business of smuggling will 

keep growing; smuggling to Poland is profitable, 

but becomes a real money-spinner 

when it moves beyond the western border, 

to European Union countries. The information 

we get from the police, border guards 

and customs officers indicates that cigarette 

smuggling has now become the domain 

of organised crime, which means that 

the fight against this practice will become 

increasingly difficult. 

It is necessary to tighten controls on the eastern 

border of Poland – provide the border 

and customs police both with people and specialist 

equipment. Legal actions are also 

urgently needed, such as reducing the limits 

of cigarettes that can be brought into Poland 

by travellers (the channel is estimated to account 

for nearly 6.4bn cigarettes coming 

to Poland from Russia, Ukraine and Belarus). 

But it is equally important, if not more so, 

to work towards the elimination of social acceptance 

for sales and consumption of illicit 

tobacco products. The practice is particularly 

common in the eastern provinces of Poland, 

where nearly a half of purchased cigarettes 

comes from illegal sources. Moving towards 

the perception of smuggling as a harmful 

practice will be a long process, but we – i.e. 

all interested parties: tobacco manufacturers, 

traders, police, customs and border guards 

– must start it in the first place. 

For many years British American Tobacco 

Polska has been supporting customs 

and state authorities in their efforts to combat 

smuggling and counterfeiting. We have 

welcomed the introduction of regulations 

ordering the obligatory destruction 

of smuggled cigarettes. On our 

part, we have been cooperating 

with customs authorities, border 

guards and police for years 

in the area of identification 

of seized cigarettes (for that 

purpose, we provide the authorities 

with access to our 

laboratories). We attach a lot 

of significance to constant 

exchange of information 

and experience, by means 

of conferences, training 

sessions and workshops, 

often attended by international 

experts. We also 

intend to present a draft 

plan of wide cooperation 

on fighting tobacco smuggling 

to the Customs Policy 

Department of the Finance 

Ministry. 

British American Tobacco 

Polska pays a lot of attention 

to the issues of honesty 

and transparency – guided not 

only by the obligation to respect 

the laws adopted in a given country, 

but also by internal recommendations 

and statements. We require all em- 

Dariusz Tychowski, Legal Director 

ployees to act in accordance with our code 

– ”Standards of Business Conduct” dealing 

with such issues as corruption, competition 

protection or confidential information. 

Compliance with these norms of conduct is 

subject to external control, exercised by our 

company’s headquarters, but also to internal 

audit. We therefore strive to ensure that our 

actions meet the highest ethical standards. 


55

Area: Tobacco smuggling and legal issues 

Expectation (33) & (34) Commitment 

Measurements 

”To continue delivering on previously 

undertaken commitments in the area 

of limiting smuggling, more effective 

control and destruction of illegally 

obtained cigarettes.” 

Session(s): parliament; growers; 

employees; Pall Mall Forum 

”To share know-how gathered in other 

countries in the area of methods and costs 

of destruction of smuggled cigarettes.” 

Session(s): individual session at the 

Ministry of Finance 

56 





(42) We will continue our prior actions 

aimed at counteracting cigarette smuggling. 

We will develop a detailed proposal of 

cooperation with border police and customs 

offices in this area. 

(43) We will continue to conduct research 

in this specific scope in our laboratories 

on request of relevant state offices and 

agencies for the purpose of examining the 

origin of tobacco products. 

(44) We will present a report to the relevant 

authorities on procedures implemented 

in other markets to destroy smuggled 

cigarettes. 




A detailed plan of cooperation presented to 

the Ministry of Finance. Research conducted 

in the company’s laboratory on request of 

relevant authorities documented. A report 

concerning procedures for destroying 

smuggled cigarettes in other countries 

submitted to the relevant authorities. 



Measurements 

”To fight against social acceptance of 

the sale and consumption of smuggled 

cigarettes by emphasising that smuggling 

is a crime.” 

Session(s): business; growers; local 

authorities; employees 

(45) We will broaden the scope of the Anti 

Illicit Trade programme, under which British 

American Tobacco experts talk with local 

communities and authorities about issues 

related to cigarette smuggling. 

(46) We will run a local media campaign 

focused on problems related to cigarette 

smuggling in near-border locations in 

eastern Poland. The problem of social 

acceptance of illicit sales of tobacco 

products will be the main topic of the 

campaign. 

(47) We will seek cooperation in this 

area with manufacturers of other excise 

products, with special attention paid to 

members of the National Manufacturers’ 

Association and the Polish Tobacco Industry 

Association. 

Anti Illicit Trade Roadshows programme 

(working meetings with customs 

authorities) continued. 

Actions taken to broaden the scope of AIT 

Roadshows programme documented, 

including a media campaign focused on the 

problem of cigarette smuggling and talks 

on participation in the programme with 

manufacturers of other excise products. 






Measurements 

”To support the actions of Customs Service 

in their fight with illegal trade in tobacco 

products. To prepare and present to the 

Head of Customs Service a suggested plan 

of cooperation between the Service and 

British American Tobacco Polska. Such a 

plan should, in particular, cover research 

on the scale of smuggling, intellectual 

property protection (fighting counterfeit 

products) and training sessions for customs 

officers, police and border guards organised 

by British American Tobacco Polska.” 

Session(s): parliament; individual 

session at the Ministry of Finance; local 

authorities 

(48) We will continue cooperation with 

the Ministry of Finance in the area of 

counteracting smuggling of tobacco 

products. We will submit a detailed 

proposal of such cooperation for approval 

by the Ministry. 

A plan of cooperation in the fight against 

cigarette smuggling presented to the 

Customs Policy Department at the Ministry 

of Finance. 



Measurements 

”To increase the frequency of meetings 

between British American Tobacco Polska 

staff and the Customs Service , as well 

as other institutions cooperating with 

the company in the area of smuggling of 

tobacco products.” 


(49) We will continue to organise meetings 

with local institutions dealing with 

smuggling (Customs Chambers, Border 

Guards, Railway Protection Service, Police, 

City Guards) if they are willing to participate. 

We will invite representatives of those 

institutions from other near-border towns in 

eastern Poland to take part in the meetings. 

(50) British American Tobacco experts 

will remain at the disposal of the Finance 

Ministry’s Customs Service within the scope 

of consultations concerning the smuggling 

of tobacco products. 

Meetings and consultations with customs 

authorities documented. 



Measurements 

”To share information on illegal 

production of cigarettes with appropriate 

authorities. To pass onto relevant 

authorities information gained by BAT 

staff concerning illegal cigarette sales.” 

Session(s): local authorities; employees 

(51) If we come across any information 

on counterfeiting, illegal production or 

smuggling of cigarettes, we will share 

the information with the appropriate 

authorities. 

Documentation of such information being 

shared with the relevant authorities. 



57


Measurements 

”To lobby for the introduction of tools 

supporting legal sales, such as fiscal cash 

registers at points of sale and, as the next 

step, licensing of cigarette sales.” 

58 






(52) We will consult the impact of such 

solutions on the tobacco retail market with 

business organisations we are members of, 

doing our best to ensure competition in 

the market is preserved. The introduction 

of obligatory cash registers and licensing 

is a complex economic problem, where 

the interest of businesses should be taken 

into account. Moreover, the issue should 

be looked at from a wider, European 

perspective, which requires that actions 

related to the European Union’s internal 

market be taken into account. 




Documentation of the request submitted 

to the Polish Confederation of Private 

Employers Lewiatan and Business Centre 

Club to issue opinions on additional 

solutions for regulating sales of tobacco 

products in Poland. 



Measurements 

”To support toughening the penalties and 

punitive measures faced by smugglers. 

To support such legal solutions as, for 

instance, vehicle forfeiture or high fines.” 


(53) We will approach the National 

Manufacturers’ Association with a proposal 

to work out the industry’s position on 

the issue of toughening the penalties and 

punitive measures related to cigarette 

smuggling. If the industry’s common 

position is agreed upon, it will be presented 

to the Ministry of Finance along with 

the argumentation developed. 

The proposal submitted to the NMA as 

well as materials for discussion concerning 

the issue of toughening the penalties and 

punitive measures faced by smugglers. If the 

industry’s common position is worked out, 

presentation of the position to the Ministry 

of Finance documented. 



Measurements 

”To take part in social consultations 

accompanying the legislative process. 

To make a civil request – a plea to create 

stable and effective legal regulations.” 


(54) We will take active part in social 

consultations and use lobbying methods 

permitted by law. 

Participation documented in all social 

consultations the company is invited 

to. A report by an independent auditor 

confirming that no donations have been 

granted to political causes. 



Measurements 

”To co-operate with the Ministry of 

Finance in the area of intellectual 

property protection, particularly with 

regard to preventing the counterfeiting 

of tobacco products.” 


(55) We will continue activities aimed at 

eliminating counterfeit and smuggled 

products. To this end, we will continue to 

provide – as far as possible – the relevant 

state offices and agencies with access to our 

laboratories for the purpose of examination 

of the origin of tobacco products. 

A detailed plan of cooperation 

concerning the fight against smuggling 

and counterfeiting of tobacco products 

presented to the Ministry of Finance. 






”To launch an initiative to create a 

‘tobacco code’ – a uniform set of all 

industry-related regulations.” 



We believe that there is no need to create specific, complex regulations solely concerning 

tobacco products. The number of regulations specific for the tobacco industry is relatively 

small and they do not need to be put into the framework of a uniform code. 


59

5 Comment 

Paweł Motyczyński, IQS and Quant Group, 

talks about cigarette smuggling 

The research company IQS Quant Group 

conducted a survey on the scale of cigarette 

smuggling in late November/early December 

2005. The key objective of the survey 

was to estimate the volume of illicit 

cigarettes (hereinafter: DNP – Duty Not 

Paid) smuggled into the Polish market 

in 2005 and the popularity of such cigarettes 

among adult smokers. The estimates 

were based on the number of DNP cigarette 

packs among all packs collected from respondents 

and on their declarations regarding 

consumption levels of DNP cigarettes. 

The survey covered a representative nationwide 

sample of smokers aged from 18 to 64 

(1763 people; the maximum estimation error 

for the respective random sample amounts 

to 2.4%) and additionally a representative 

sample in Warsaw (200 respondents). 

The survey showed that the share of DNP 

cigarettes, estimated on the basis of collected 

cigarette packs and average daily 

consumption in 2005, rose slightly from 

the previous year and amounted to 10% 

nationwide (9% in 2004). Eastern Poland 

remains the key region, where smuggled 

cigarettes are consumed on a large scale. 

Most DNP cigarette packs collected during 

the survey came form Russia and Ukraine. 

60 

A question arises here – why do consumers 

choose smuggled cigarettes? Illicit cigarettes 

are very easily accessible and price seems 

to be the key purchase driver – at the time 

when the survey was conducted, most DNP 

cigarettes could be bought at up to 3 zl per 

pack, while the minimum price of the cheapest 

legal brand amounted to about 4 zloty 

per pack. On average, a pack of illicit cigarettes 

was cheaper by 2 zloty at the time 

than a pack of legal cigarettes. Most 

of the surveyed consumers of DNP cigarettes 

did not see any advantages of such products 

– except for a lower price. 

It was also reported that DNP cigarette 

buyers purchased, on average, 3 times 

more packs per each shopping trip than 

buyers of legal cigarettes. In a period covered 

by the survey, DNP cigarettes were 

mostly purchased at open-air markets, from 

street sellers and through acquaintances. 

As many as 18% of the surveyed smokers 

declared they would buy cheaper foreign 

equivalents,of their preferred brand if prices 

of all domestic cigarettes rose. It indicates 

that a further rise in prices of legal cigarettes, 

due to higher excise tax, will prompt 

more people to choose illicit cigarettes. 


In 2005, consumption of illicit cigarettes 

in Poland rose compared to 

the previous year, amounting to 10% 

(up from 9% in 2004)

Taxes 

Taxes, in different forms, account 

for over 80% of our company’s revenue 

and have a colossal impact on our 

consumers, trade partners and the tobacco 

industry. We are very pleased that 

in the present cycle of Dialogue our Stakeholders 

paid attention to that significant 

aspect of British American Tobacco Polska’s 

operations. 

Taxes are an extremely important element 

of British American Tobacco Polska’s business. 

For instance, the excise tax and VAT 

account for 4.40 zloty in the retail price 

of a pack of mid-priced cigarettes, which 

amounts to 5.85 zloty. The state budget 

receipts from these two indirect taxes paid 

by our company alone account for over 1% 

of the state annual budget revenues. Moreover, 

other kinds of taxes (tax on employees’ 

earnings, land tax, other fees) contribute 

not only to the central budget, but also 

local government budgets, mostly in Warsaw 

and Augustów. In total, receipts from 

taxes paid by the tobacco industry account 

for about 6% of the state budget. 

Unfortunately, the tobacco industry 

in Poland is not generating any profit now 

and consequently fiscal receipts from 

the corporate income tax are very low, 

and in the case of some companies simply 

non-existent. This profitability level is directly 

related to price levels – determined by excise 

tax rates – that do not match the Polish 

consumer’s purchasing power. 

It should be noted that over the last 5 years 

excise rates have risen about 60% in the case 

of tobacco products, while average wages 

have grown by just about 20%. This rate 

of increases in excise rates was responsible 

for a rise in smuggling and a drastic fall 

in legal sales (about 20% over 5 years). 

The trend results in losses suffered by the industry 

and a significant decrease in budget 

receipts. Moreover, a fall in legal sales has 

further undesirable consequences, such 

as lower levels of employment in the industrial 

sector, falling orders with suppliers, 

rising turnover in the grey zone and expansion 

of organised crime. One should also 

note that the assumption that consumption 

can be reduced by steep rises in excise rates 

leading to a rapid increase in tobacco prices 

has proved to be untrue – a drastic fall in legal 

sales was accompanied by only a slight 

decrease in consumption. 

”Taxes, in different forms, 

account for over 80% of our company’s revenue.” 

The accession treaty regulations that oblige 

Poland to reach, by the end of 2008, the excise 

taxation rate of 64 euros per 1,000 

cigarettes, will cause rises in excise rates 

in 2007 and 2008. This entails the risk 

of escalating the negative trends described 

above – the lesson already learned by countries 

that opted for a too fast pace of implementing 

excise rises (for instance Hungary, 

which reported an over 20% fall in sales 

volume in one year). 

A tax policy toward tobacco products is 

an important part of the government’s 

economic and health policy. It should 

generate – in a predictable and controlled 

way – budget revenues at an appropriate 

level, and at the same time it can influence 

consumers’ purchasing decisions. However, 

when the policy is being developed it is important 

to weigh the risks related to an excessively 

aggressive approach to tax raising. 

British American Tobacco Polska treats these 

tax issues, so important to us and the entire 

industry, very seriously and responsibly. 

In the past, operating in the framework 

of the National Manufacturers’ Association, 

we actively supported legislative work 

on such issues as the introduction of excise 

markings and the maximum price printed 

on each pack or the implementation 

of a new excise system, harmonised 

with European Union directives. 

We believe that our efforts put into 

supporting work on the abovementioned 

solutions contributed 

to increasing the transparency 

and effectiveness of the tax 

system, while also ensuring 

stable foundations for operations 

in the tobacco industry. 

We continue our efforts 

in this area, such as drawing 

lawmakers’ attention and 

public opinion to the benefits 

of reducing excessive 

supplies or better regulation 

of the minimum excise rate. 

Due to the controversial nature 

of our industry and legal regulations 

being in force it is not easy 

to conduct a dialogue with lawmakers 

on the above-mentioned issues. 

In the framework of the existing regulations 

we would like to seek the creation 

of more possibilities to get the industry 

involved in work over new legal 

solutions concerning the issue of taxes 

on tobacco products. 

Rafał Ogrodnik, Finance Director 

We are very pleased that in the current cycle 

of Social Dialogue, our Stakeholders paid attention 

to this aspect of our activities. Issues 

such as low profit margins in the industry, 

regulations related to the excise system 

and the pace of increases in excise rates were 

raised during the dialogue sessions. We are 

certain that the approach of our Stakeholders 

shows their involvement in the issues 

of tax policy in our sector and understanding 

of the impact the policy has on both our 

company and its environment. 


61

Area: Taxes 


Measurements 

”To seek support for transferring part 

of excise tax and VAT proceeds from 

cigarette sales directly to the National 

Health Fund. To involve health and social 

institutions in such a discussion.” 


62 





(56) We will ask the National Manufacturers’ 

Association (NMA) to inquire – on behalf of 

the industry – at the Ministry of Finance how 

the funds collected via the tobacco excise 

tax are distributed. In line with the law, 

0,5% of the value of excise tax on tobacco 

products should be allocated to funding 

the programme defining health, social 

and economic policies aimed at curbing 

smoking. 



Measurements 

”To work out a common position of the 

tobacco industry and the government on 

excise tax policy. To lobby for such legal 

solutions on taxes that would encourage 

manufacturers to end the ‘price war’, 

which destabilises the market.” 


”To conduct actions at the European 

Union level influencing the law-making 

process concerning the excise tax.” 


(57) We will propose legal solutions to 

the Ministry of Finance that will prevent 

cigarette manufacturers from building up 

excessive warehouse supplies just before 

a raise of the excise tax. We will seek to 

introduce such increases in excise tax that 

would not destabilise the tobacco market 

in Poland. We will submit a proposal to 

the National Manufacturers’ Association to 

work out a common position of the whole 

industry on this issue. 


Measurements 

(58) We will hold talks – in cooperation with 

our office in Brussels – with representatives 

of EU institutions on adopting a reasonable 

timetable of increases in excise tax. 

(59) We will ask business organisations we 

are members of in Poland to support such 

solutions at the European level. 




A letter to the NMA with a request to 

investigate the issue. A possible reply from 

the Ministry published. 

A written proposal to work out a common 

position submitted to the NMA. Draft legal 

regulations concerning the functioning of 

the tobacco market in Poland submitted to 

the Ministry of Finance. 

Time line: We will fulfil this commitment before the start of the next cycle of Social Dialogue 

A written proposal submitted to the 

Polish Confederation of Private Employers 

Lewiatan and Business Center Club. 

Correspondence with our office in Brussels. 





6Comment 

Szymon Pakulski, Tax Advisor, 

Ernst & Young Tax Department, talks about excise tax 

Excise is an indirect tax charged on some 

consumption products and included 

in the price, thus being an important 

source of revenue for the state budget. 

Some of the most popular goods on which 

the tax is charged include: petrol, diesel oil, 

natural gas, beer, wine, vodka, cigarettes, 

tobacco, and electric power. In EU countries 

excise taxes are harmonised, which means 

common rules of production, shipment 

and storage of excise products as well as determination 

and collection of taxes on such 

products. 

The Polish government has been steadily 

raising the excise tax on cigarettes 

for the last few years. The timetable of raises, 

aimed at reaching the minimum excise 

burden required by the EU, was agreed 

during the accession negotiations, but it is 

not absolutely mandatory – the only thing 

that does matter is that Poland reaches 

the agreed threshold by the end of 2008. 

A rise in excise tax, entailing an increase 

in cigarette prices, may have three consequences: 

1. Cigarette sales will fall due to the price. 

As the demand for cigarettes is not very flex- 

ible, tobacco products from illicit sources, 

mainly contraband, will replace those from 

legal sources. 

2. The cigarette market as a whole 

(both legal and illicit) will shrink. 

3. A fall in cigarette sales will result 

in the shrinking of actual budget receipts 

from the excise tax on tobacco 

products. 

These unwelcome consequences may be 

diminished if the timetable for introducing 

the raises is changed. To that aim, however, 

the period of harmonising Polish excise 

rates with EU thresholds would have to be 

extended. 

State budget receipts from the excise 

tax on tobacco products will amount 

to over 11bn zloty this year, accounting 

for as much as 6% of the whole budget. 

Poland has to harmonise its tobacco excise 

tax rates with those required by the EU 

by the end of 2008. A pack of cigarettes, 

which currently costs 5.85 zloty, will retail 

at about 8 zloty by then. 


63

64 

Ban on smoking in public places 

”There are practical solutions that let us get rid of smoke 

– and not smokers.” 

Smoking in public places raises a lot 

of controversy, both among smokers 

and non-smokers. While some talk about 

passive smoking and want restrictions 

in this area, others would like to be able 

to smoke a cigarette in a bar, restaurant 

or any other public place. 

In our opinions, non-smokers should not be 

exposed to tobacco smoke, if they do not 

want to. On the other hand, smokers should 

not be discriminated against – they should 

be guaranteed the right to use legal products, 

such as cigarettes, in a way that does 

not expose non-smokers to having contact 

with tobacco smoke against their will. 

We do not think that everyone should be allowed 

to smoke wherever they wish. Good 

manners and simple politeness require that 

smokers respect the rights of non-smokers. 

We are convinced it is possible to find a way 

that will allow both supporters and opponents 

of smoking to co-exist in one environment. 

Therefore, we support such solutions 

as introducing rooms for either group in 

multi-room food service outlets and providing 

proper air-conditioning. Consequently, 

both smokers and non-smokers who do 

not want to inhale tobacco smoke will have 

the total freedom of choosing their surroundings 

without the need to introduce 

a total ban on smoking in public places. 

All over the world the introduction of smoking 

bans is the exception and not the rule. 

Self-regulation, such as a voluntary code 

of conduct for a particular industry, 

are an increasingly popular solution. 

In a number of countries they have been introduced 

in the form of agreements between 

the authorities and owners of hotels, restaurants 

and bars, who committed themselves 

to introducing solutions that would please 

both smoking and non-smoking customers. 

In Austria, for instance, the owners of eating 

establishments agreed to allocate at least 

40% of seats for non-smokers in outlets with 

a floor space of more than 75 sq. metres. 

In Germany, the Ministry of Health 

and the German Association of Hotels 





and Restaurants approved restrictions 

regarding smoking in places where meals 

are consumed and also approved a threephase 

plan of introducing clearly marked 

zones for non-smokers in 200,000 outlets 

owned by the association members. Also 

in the Netherlands and Spain, representatives 

of the hotel and catering industry 

voluntarily approved regulations aimed 

at gradual separation of places free of tobacco 

smoke. 

We fully support such initiatives as long 

as the solutions being introduced are sensible 

and reflect the rights of all interested 

parties, including smokers and non-smokers. 

We are, however, against solutions 

that eliminate smokers from social life, lead 

to their discrimination and restrict their civil 

liberties. In a debate that is currently taking 

place in Poland, over amendment to the act 

on health protection from the effects of using 

tobacco and tobacco products, we take 

the view that both smokers and non-smokers 

who do not wish to inhale tobacco smoke 

should have the opportunity to choose 

their surroundings in an eating establishment 

or in the workplace. Along with 

a part of the public we believe that a total 

ban on smoking in public places is unfair 

and unnecessary. The present regulations 

concerning smoking in marked areas are effective 

enough and do not need excessively 

restrictive prohibitions, but only some 

adjustments, for instance, in sections 

dealing with eating establishments. 

We will seek, by all methods permitted 

by law, to ensure the introduction 

of sensible regulations that 

keep a proper balance between 

the protection of non-smokers, 

which is no doubt an important 

issue, and of smokers’ rights. 

As far as the measures that we use 

to influence the legislation process 

are concerned, social consultations 

should be highlighted first 

of all. The Ministry of Health has 

regularly consulted the tobacco 

industry including the British American 

Tobacco specialists, on proposed 

Robert Derkacz, 

Head of Trade Marketing & Distribution 




amendments to the act regarding health 

protection against the effects of using tobacco 

and tobacco products. It should be noted 

that in the course of consultations a number 

of sensible and reasonable regulations that 

meet the expectations of all participants 

were adopted (implementation of the socalled 

Product Directive in 2004 may serve 

as an example). We hope that we will also 

manage to achieve a reasonable compromise 

on issues related to regulating smoking 

in public places and work out a long-lasting 

solution that will ensure smokers can use 

tobacco products in a way that does not infringe 

the rights of non-smokers. 

The problem of smoking being prohibited 

in public places affects not only consumers, 

but also employees of the tobacco industry 

and other sectors – hotel and catering industries 

in particular. We believe it should be unnecessary 

to introduce a total ban on smoking 

especially as this may also effect employment. 




Area: Ban on smoking on public places 

Expectation (47) i (48) Commitment 

Measurements 

”To promote respect for smokers’ rights 

with a view to the binding ban on 

smoking in public places.” 

Session(s): parliament; growers; 

individual session 

”To be actively involved in the ongoing 

public debate on smoking in public places 

and to oppose excessively restrictive 

regulations in this area.” 

Session(s): business; employees 

(60) We will seek, by all methods permitted 

by law, to ensure the introduction of rational 

regulations that permit keeping a proper 

balance between the protection of nonsmokers, 

which is no doubt an important 

issue, and of smokers’ rights. 

Letters sent to relevant institutions, taking 

part in meetings on the issue of smoking in 

public places. 



65

66 

7 Comment 

Ryszard Berent, Chairman of the Association of Polish Bartenders, 

talks about a ban on smoking in public places. 

There are nearly 60,000 people employed 

as bartenders in the catering and hotel industry 

in Poland and the comfort of their 

work should be ensured, particularly considering 

its specific conditions. 

No matter whether you are in a posh restaurant 

or a students’ club – it is first of all 

a place where people have a good time, 

where everyone should feel at ease. Guests 

return to their favourite places not only 

because of the attractive menu or interesting 

interior design, but also because of the 

specific atmosphere that can be found there. 

Smoking cigarettes is a part of the culture of 

eating out, a kind of custom associated with 

an easy-going climate of social meetings. 

On the other hand, there are people who 

find cigarette smoke disturbing and would 

rather be in a café where only the smell of 

freshly brewed coffee can be sensed. 

Hence, we expect such regulations that 

would protect the rights of both smokers 

and non-smokers, taking account also of 

the fact that excessively restrictive laws may 

have a negative impact on the development 

of the entire industry. 

Regulations concerning smoking restrictions 

in public places should match Polish realities, 

as the introduction of any amendments 

entails substantial costs and sometimes, in 

the case of one-room establishments, technical 

difficulties also. 


Situation on the labour market 

”We invest in the most 

valuable capital – human 

capital.” 

Unemployment is still Poland’s biggest 

socio-economic problem. A falling trend 

has been reported recently, the unemployment 

rate remains at high – in some 

regions of Poland, very high – levels. According 

to data from the Ministry of Labour 

and Social Policy, the unemployment 

rate for all of Poland amounted to 14.6% 

in November 2006. While the rate is similar 

in the Podlasie voivodship, where our 

plant operates, it amounted to nearly 

24%, according to various estimates, 

in the neighbouring Warmia 

and Mazury voivodship in the second 

half of 2006. 

Growth in employment is a consequence 

of the development of companies, 

including investments. Until now, 

British American Tobacco has invested 

over $200m In Poland and intends 

to continue investments. One should 

also remember that British American Tobacco 

Polska’s business means not only 

over a thousand jobs within the plant, 

office or sales force, but also jobs 

created by the company’s business 

partners. 

People are the most valuable 

capital of any company. 

Therefore, we continue 

to invest in the professional 

development 

of our employees, 

strive to offer them 

the best possible 

pay and benefits 

package and also 

let them take up jobs 

in British American 

Tobacco units 

worldwide (British 

American Tobacco 

group companies operate 

in 180 countries). 

We value our employees 

and seek to offer them stable jobs 

Monika Ferdin, 

HR Director 

– 71 people have been working in the company’s 

marketing department for over 10 years. 

Restructuring moves and layoffs are sometimes 

necessary, as in any other company; 

however, if redundancies cannot be avoided, 

we seek to provide assistance to our employees 

in finding a new job. 

Continuously high unemployment rates hit 

hardest against young people who are just 

entering the labour market – people with 

big potential, enthusiasm and good will. 

We seek to boost youth professional activity 

in the Podlasie region by getting involved 

in the ”Augustów Academy” project (more 

about the Academy on page 69). On a national 

level we cooperate with labour offices 

and students’ career offices at universities. 

We also organise training sessions and workshops 

for students, and our managers share 

their practical business knowledge with 

them. We hope that the participants of such 

meetings will gain the knowledge and skills 

contributing to the growth of their value 

on the labour market, and that eventually 

they will be offered jobs that match their 

qualifications and goals in life. 

We know that the efforts of individual 

companies are not enough to eliminate 

the problem of unemployment in Poland; 

through the membership in PKPP Lewiatan 

and Business Centre Club we seek, along 

with other employers, to actively promote 

the creation of a more flexible labour law 

and the reduction of labour costs, which 

in effect might contribute to a rise in employment 

in Poland. Joint actions aimed 

to combat unemployment also promote 

entrepreneurship and the creation of favourable 

conditions for those who start 

their businesses. In our opinion, systemic 

solutions, aimed at sustainable growth, are 

indispensable: combining economic growth 

with boosting employment and social inclusion 

levels so that no social groups, including 

the youth and disabled persons, are left 

out or discriminated against. 


67

Area: Situation on the labour market 


Measurements 

”To consider possibilities of closer cooperation 

with different partners to 

improve the situation on the labour 

market. To launch new initiatives to fight 

unemployment.” 

Session(s): parliament; business 

68 





(61) We will continue the Augustów 

Academy project, aimed at helping the 

unemployed in the Podlasie region. 

(62) Moreover, we will cooperate with local 

employment offices on issues related to the 

process of recruiting employees and trainees 

for our plant in Augustów. 

Time line: We will fulfil these commitments before the end of 2007. 


Measurements 

”To employ handicapped people.” 


(63) In our job advertisements we will 

inform that our Warsaw office is adapted to 

meet the needs of handicapped people. 

Both our recruitment standards and 

recruitment process (for instance, 

competency-based interviews) enforce 

mechanisms ensuring equal treatment 

of all applicants. (64) We will maintain 

the principle of equal employment 

opportunities and we will offer a nondiscriminative 

work environment. 

(65) We will also add a question about our 

prospective subcontractors’ policies with 

regard to employing handicapped people 

when we issue requests for quotes. 




Actions taken to continue the Augustów 

Academy project, as well as actions 

taken in cooperation with local employment 

offices and business organisations 

documented. 

Inclusion of information on the 

adaptation of our office to meet the 

needs of handicapped people in our job 

advertisements documented. 

Addition of a question about 

subcontractors’ policies with regard to 

employing handicapped people to requests 

for quotes documented. 



Measurements 

”To be a company open to students in 

terms of offering internships and trainee 

programmes.” 

Session(s): parliament; Pall Mall forum 

We are an open company with regard to 

internships and trainee programmes. 

(66) We will continue programmes for 

students and graduates, such as The 

Challenge Initiative (TCI) and Summer 

Internships Programme. (67) We will 

also continue to take part in conferences 

and workshops at Polish universities that 

promote our company as a good employer. 

Actions taken to continue the Challenge 

Initiative and Summer Internships 

Programme, as well as participation of the 

company in conferences and workshops at 

universities documented. 





8 Comment 

Andrzej Wasilewski, chairman of the board of the Foundation 

for Enterprise Development, talks about the Augustów Academy 

Responding to proposals submitted by 

stakeholders, in 2003 British American 

Tobacco Polska began to develop – as part 

of the corporate social responsibility programme 

– its Original Programme aimed 

at the local labour market. The Suwałkibased 

Foundation for Enterprise Development 

has been selected out of several nongovernmental 

organisations in the Podlasie 

region to carry out this very important programme. 

It was launched in April 2004 under 

the title of the Augustów Academy. 

Since then, many young people have been 

beneficiaries of this very significant activity 

of British American Tobacco as a responsible 

employer. The Augustów Academy comprises 

a whole set of services available to young 

people from Augustów and the surrounding 

region. The Academy is based on 4 pillars 

aimed at active people who want to make 

use of the support of experts employed by 

or cooperating with the Foundation. This 

kind of aid is not feasible without the support 

of the employer. Knowledge, skills, 

ability to change and readiness to learn 

from the experience of others are the keys 

to success. 

British American Tobacco Polska set high 

standards for the Programme contractor. 

This kind of experience has been constructive 

for both sides. The Augustów Academy 

programme is also a contribution 

of the biggest employer in the Podlasie 

voivodship, and of the Foundation for Enterprise 

Development, towards the goal 

of building a civil society and equalising 

opportunities on the local labour market. 

At the start of the third year of the Partnership’s 

functioning, it may be said that it is 

a good example to follow. The cooperation 

was recognised with a distinction granted 

to the Foundation – hence also to British 

American Tobacco Polska – under the first 

edition of the Company of Equal Opportunities 

contest. The competition singled out 

Polish business leaders that implemented 

the most effective solutions with regard 

to the equal status of men and women 

in the workplace. The winning companies 

received a Company of Equal Opportunities 

2006 logo. The Competition Chapter 

awarded a distinction to the Foundation 

for Enterprise Development in the category 

of small and medium enterprises for helping 

employees combine work and family life. 

Also, the European Commission singled out 

British American Tobacco Polska’s original 

programme carried out by the Foundation 

for Enterprise Development, in a report describing 

good practices in European Union 

countries. 35 examples are given, including 

two programmes from Poland; the Augustów 

Academy is one of them. 

On behalf of myself and my team I want 

to make a declaration: we will continuously 

strive to ensure that the intentions of British 

American Tobacco are carried out and the local 

community benefits as much as possible 

from the Programme. Also, let me thank 

the Staff, Directors and Board of the company 

for trust and faith in our skills. 


69

70 

Workplace 

”We create a kind of workplace where ‘how’ 

you do something is as important as ‘what’ you do.” 

Among a number of Stakeholders, our 

employees are undoubtedly an important 

group in the process of Social 

Dialogue; we pay special attention 

to their expectations and opinions 

about the company. It is obvious that 

we want to address, in the best possible 

way, the needs of our employees 

– the company’s most valuable asset. 

We realise that the expectations of graduates, 

who are only just beginning their career, 

are different from those of people who 

already have some professional experience. 

What characterises British American Tobacco 

Polska as an employer is that we have 

an attractive ”offer” for both. We let young 

people who begin their professional career 

gather experience in a dynamic and open 

work environment, where from the very 

start they are allowed to carry out projects 

on their own and where they can integrate 

with their team quickly, without surrendering 

their individuality. People with a longer 

work record are offered – apart from 

a friendly environment – a sense of stability 

and development opportunities, where they 

are able to choose from a number of options 

while planning their career. We hope that 

such an individualised approach to different 

groups of employees is a testament to our 

flexibility and versatility and proves that 

we have an attractive offer for each employee 

regardless of the current stage of their 

professional career. Regularly conducted 

opinion polls (such as Your Voice) confirm 

that our employees, no matter how long 

they have been working for the company, 

come to value British American Tobacco 

as an employer. We see they are happy 

to be part of the organisation with an open 

culture, one that encourages teamwork 

and at the same time respects the individual 

qualities of each employee. 





We know how to make use of the power 

stemming from the versatility of people, 

cultures and beliefs. We want each 

and every employee to have equal chances 

of self-realisation – regardless of their age 

or gender. Women account for nearly 30% 

of high-ranking executives; 2 women sit 

on the company board. We believe we have 

managed to create a stable work environment, 

one that lets employees combine their 

family life and professional career. 

We build British American Tobacco’s organisation 

culture in such a way that it meets 

the expectations of our employees. We realise 

that responsibility and ethics in management 

have a powerful impact on employees’ 

motivation and their readiness to identify 

with the company. We also strive to appreciate 

and reward the achievements of all our 

employees, irrespective of their position 

in the company’s hierarchy; we are proud 

to be able to present such achievements 

to the entire organisation. 

We believe that the company’s strategy – 

known to all employees – is clear, comprehensible 

and ensures a sense of stability 

for the staff. Seeking to put the strategy 

into practice we support professional 

development and education through 

training programmes, and as far 

as their form is concerned we take 

into account ideas and opinions 

voiced by the employees themselves 

and trade unions operating 

in the company. 

All the elements described 

above are important in building 

the British American Tobacco 

Polska brand. As an employer 

we have been making 

efforts for years to en- 

Bożena Soberka, 

Learning & Development Executive 




sure the company is ranked among the top 

20 employers in Poland. 

With respect to Social Dialogue, we are 

pleased that the entire company has become 

involved in it. The commitments 

we present in this Report have been worked 

out by all departments of British American 

Tobacco Polska, with the participation 

of employees from all levels. We are convinced 

it will encourage a lot of people to take 

an active part in fulfilment of the commitment, 

which means better results 

from the entire process of Dialogue. 




Area: Workplace 


Measurements 

”To consider such forms of education 

and vocational training for employees 

that could be undertaken through cooperation 

between the company and the 

trade unions.” 


We will continue to offer various forms of 

professional training for our employees. 

(68) To this end, we also plan to increase 

the company’s training budget. (69) As 

far as forms of training are concerned, we 

will continue to take into account ideas and 

opinions submitted by our trade unions. 



Measurements 

”To continue voluntary work initiatives.” 


(70) We will continue to support, financially 

and organisationally, voluntary actions of 

employees, both in Augustów and Warsaw. 

Documentation of the way the company’s 

training offer for 2007 is communicated to 

employees and the report on the execution 

of training programmes. 

Documentation of voluntary work 

initiatives, including financial and 

organisational support granted by the 

company to such initiatives. 



Measurements 

”To make the company’s internal 

communication more efficient so that it 

meets the needs of employees working 

at different locations. To make it possible 

for all BAT employees using company 

computers to access the electronic 

Bulletin Board.” 


(71) We will propose and implement a new 

internal communication system, taking into 

account both the information concerning 

the company as a whole and being of 

interest to local groups of employees. 

(72) All our employees using company 

computers will be given access to the new 

version of the electronic Bulletin Board. 



Measurements 

”To create standards better than those 

required under the labour code for 

people employed part-time.” 


We offer people employed part-time better 

standards than those required by law. 

(73) We will consider, however, 

implementing new standards in this area. 


Implementation of the new internal 

communication system documented. 

Analysis of current work conditions for 

people employed part-time (and, possibly, 

a proposal of new solutions in this area) 

documented. 


71

72 


Measurements 

”To create standards – beyond those 

required under the labour code – for 

company conduct in extraordinary 

situations, such as the tragic death of an 

employee.” 






(74) We will continue to assist employees 

and their families in extraordinary situations. 

We believe, however, that extraordinary 

situations, such as the death of an employee, 

can not be subject to any specific procedure. 

Each case requires an individual approach, 

not regulated by any specific internal rules. 

We will not create special standards of 

conduct in extraordinary situations. 

Time line: We will treat this commitment as an ongoing one. 


Measurements 

”To continue the Augustów Academy 

project and ensure BAT employees can 

participate in it.” 


(75) We will continue to support the 

Augustów Academy. We will request 

the Foundation for Entrepreneurship 

Development, which carries out the project, 

to enable our company’s employees to get 

more involved in the Academy’s operations. 




Assistance offered to employees 

in extraordinary situations documented. 

Actions taken as part of the Augustów 

Academy project documented, including 

information provided to employees about 

the possibility of taking part in the project. 



Measurements 

”To consider the possibility of 

introducing flexible work time and 

changes in work organisation (e.g. ‘quiet 

work’ rooms).” 



”To increase cigarette allowance for 

employees.” 


We will continue to support a flexible 

approach to employment conditions. 

(76) In specific cases we will make it 

possible for employees to perform their 

duties out of office, as long as it has been 

agreed with their direct superior. 

(77) We will also introduce such solutions 

regarding work time for employees after 

parental leave that will make it easier for 

them to combine family life and professional 

career. 


Solutions creating flexible employment 

conditions documented. 


The current allowance for employees at manufacturer’s (zero-margin) price amounts to 

500 cigarettes a month. The allowance will not be changed. 




9 Comment 

Mirosław Chudecki, Chairman of ”Solidarity” Trade Union at BAT 

in Augustów (320 members). 

Krzysztof Gogowski, Chairman of BAT Polska Employees Trade Union, 

affiliated to the Forum of Trade Unions (146 members). 

The year 2005 and Poland’s membership 

in the European Union were landmarks 

for the operations of our factory; opportunities 

arose to launch production for other 

British American Tobacco markets, which 

resulted in higher manufacturing volume, 

new investments and something we are 

most pleased with – new jobs. Podlasie is 

a high unemployment region and the problem 

is significantly diminished by the expansion 

of the plant. 

British American Tobacco is a company 

that cares for its staff, striving to maintain 

the highest possible standards of work, 

employment and social welfare. New technologies 

and new systems create development 

opportunities for us, but also challenges 

that we, the factory staff, are facing. 

The plant’s privatisation and restructuring 

were difficult decisions in the past; now, 

a few years later, we think they have paid off. 

The plant exists and constantly increases its 

capacity, manufacturing tobacco products 

for a number of markets in Europe and elsewhere. 

It gives us a sense of relative stabilisation 

– we don’t have to worry about our 

living standards over the next few years. 

British American Tobacco is also a very 

important partner for Augustów and its 

residents, including families of the factory 

staff or families of tobacco growers. The factory 

employs people with a very long work 

record, making use of their experience 

and knowledge, but also creates opportunities 

for the young to fill various positions. 

We are happy that the Trade Unions operating 

at the plant are an active partner in implementing 

changes in the company and are 

able to take an active part in its development. 

The management appreciates our activity, 

which is demonstrated in a permanent dialogue 

– not confined to the negotiating table. 


73

74 

Cooperation with Polish 

tobacco growers 

”We support tobacco growers in taking advantage 

of the opportunities for farmers offered by the European Union.” 

Since Poland joined the EU, farming development 

also means caring for the good condition 

of the environment, preserving natural 

and scenic attributes. Farmers who have 

a direct influence on the quality of rural areas 

and shape their environment, should respect 

the rules of Good Agricultural Practice. 

The concept was introduced by European 

Union legislation at the stage of reforming 

the Common Agricultural Policy, particularly 

in the area of rural development. High farming 

standards were established, concerning 

in particular requirements related to the rational 

use of fertilisers, soil and water protection, 

preservation of valuable habitats 

and species found in farm areas, and protection 

of the landscape. 

Those requirements apply also to growers 

cooperating with British American Tobacco 

Polska – our Stakeholders. During this 

year’s dialogue, they raised issues related 

to the functioning of tobacco leaf purchase, 

implementation and funding of new tobacco 

varieties, as well as issues concerning 

management of the existing Growers’ Fund. 

The fund was established in 1996 and representatives 

of our company sit on its committee, 

beside members of the Association 

of Tobacco Growers. It aims to provide 

financial support for new forms of production, 

technologies and training programmes 

for growers. We have donated 4.9 m zloty 

to the fund, thus making it possible to offer 

zero-interest loans and finance research 

on the introduction of new tobacco varieties 

in the region. The fund, which was created 

under the privatisation agreement, operates 

uninterruptedly even though the legal 

obligation to keep it going has expired. 

Moreover, we have earmarked 15.9 m zloty 

for the purchase of specialist equipment 

handed over to growers who repay their liabilities 

with tobacco deliveries. 

Krzysztof Andruszkiewicz, 

Operations Communication 

and Stakeholders Manager 





The need to continue training programmes 

on the use of EU funds by our farmers has 

been highlighted during discussion sessions 

in this cycle of the Dialogue. It is extremely 

important to provide up-to-date information 

concerning issues of our EU membership 

and consequently improve chances 

of getting EU farm modernisation subsidies. 

Farmers who want to run modern agricultural 

businesses need specialist courses 

on running a business as well – for instance, 

VAT settlements or basic bookkeeping 

for farm businesses. 

We continue to support efforts made by 

the Association of Tobacco Manufacturers 

and the Union of Tobacco 

Growers to improve the supply 

of production resources 

and achieve progress in tobacco 

curing – in the scope 

of funding for the projects 

as well as in drawing up the 

required documents. 







Area: Cooperation with Polish tabacco growers 


Measurements 

”To consider new forms of supporting 

local varieties of tobacco and cooperation 

with tobacco growers. To look 

for and introduce new tobacco varieties.” 

Session(s): parliament; local authorities; 

growers 

(78) We will continue to run production 

tests with at least 2 new varieties of tobacco 

every year. We will also assess the usefulness 

and viability of those varieties in Poland. 



Measurements 

”To support Polish tobacco growers by 

training programmes and continuation 

of the ‘Social Responsibility in the 

Production of Tobacco’ programme.” 


(79) We will organise at least two training 

sessions every year, dealing with good 

agronomy practice and general business 

knowledge. The scope and timing of 

such training will be pre-agreed with the 

Augustów Association of Tobacco Growers. 

(80) We will continue the SRPT programme. 

Time line: We will fulfil this commitments before the end of 2007. 


Measurements 

”To pass the Tobacco Growers Fund onto 

the Growers Group or hand over the 

management of the Fund to the group.” 

Session(s): growers 

(81) We will hire a tax consultant to examine 

the current set-up of the Fund and to 

recommend whether the Fund could be 

managed in any alternative way, possibly 

more effective from a tax perspective. 

Presentation of the report on tobacco tests 

in 2007. 

Two training sessions for tobacco growers 

organised. 

An optimal way to manage the Growers’ 

Fund presented to the Growers’ Group. 



Measurements 

”To support efforts to introduce 

special supervision of tobacco buying, 

in cooperation with the National 

Manufacturers’ Association and the 

Business Centre Club.” 


(82) We will consult the impact of such 

solutions on the Polish tobacco market with 

the National Manufacturers’ Association 

(NMA) and the business organisations 

we are members of. The introduction of 

special tax supervision at such an early 

stage as tobacco growing is a very complex 

economic issue, which should take the 

growers’ interest into account. 


A written request submitted to business 

organisations and the NMA to issue opinions 

about possible solutions with regard to 

the regulation of tobacco buying. 


75

76 


Measurements 

”To organise training for tobacco growers 

on the subject of VAT settlements and 

getting access to EU funds planned for 

2007-2013. To set up a web site where 

tobacco growers could obtain legal advice 

concerning the way of calculating and 

the scope of VAT to be paid by a tobacco 

grower.” 

Session(s): growers; 

www.odpowiedzialnosc.pl 





(83) We will deal with the issues of getting 

access to EU funds and VAT during the 

training sessions for growers. The scope and 

timing of such training will be pre-agreed 

with the Augustów Association of Tobacco 

Growers. (84) During the training we will 

agree additional forms of providing support 

in the area of tax consulting, such as, for 

instance, a web site. 




Two training sessions for tobacco growers 

organised. 

Agreements made during the sessions 

documented. 





10 

Comment 

Jan Milanowski, chairman of the Association of Tobacco 

Manufacturers, talks about the situation of tobacco growers 

after Poland’s entry to the European Union 

Not all the expectations of Polish growers 

regarding EU entry have come true. We expected 

to have the same tobacco growing 

conditions as farmers from other EU countries. 

The reality has turned out to be different 

and Polish subsidies are much lower 

compared to the EU-15 countries. We also expected 

that tobacco subsidies, growing each 

year, would improve farming profit margins. 

Unfortunately, each rise in subsidies brought 

about a simultaneous fall in the so-called 

trade price offered by contracting companies. 

It results in lower, not higher, profit 

margins, especially when rapidly rising 

production costs (such as the cost of fuel, 

labour force etc.) are taken into account. 

News coming from Brussels about plans 

to give up tobacco farming after 2013 cause 

farmers to be concerned about the future 

of tobacco growing and make them reluctant 

to invest in tobacco crops. 

When aid programmes for the farm sector, 

such as SAPARD and SPO, were launched, 

quite a lot of growers seized the opportunity 

offered by the programmes and modernised 

their farms. The leaders have had significant 

achievements in this field. The PROW programme 

being launched this year creates another 

opportunity to develop farm businesses. 

We hope that a rising number of growers 

will take advantage of such aid schemes. 

In my opinion, the key challenges facing tobacco 

growers include: 

• ensuring that tobacco is grown 

in 2010 and the following years, 

• creating a mechanism, which would 

protect against excessive contracting 

(exceeding the country limit of 38,000 

tonnes), 

• maintaining the current system 

of subsidies. 

The challenges facing Polish growers were 

also the subject of our meeting with British 

American Tobacco Polska. Social Dialogue 

made it possible not only to exchange information 

on the topic, but also to implement 

specific solutions – such as training programmes 

on tobacco growing or running 

a business. 


77


– facts and figures 

In this part of the Report we present 

the list of Stakeholders invited to the Dialogue 

process in 2006. Our ”stakeholders” 

are individuals, institutions, organisations 

and social groups upon which we exert 

our influence and which influence ourselves. 

Their opinions and expectations of British 

American Tobacco Polska have been gathered 

during six dialogue sessions and three 

individual sessions with representatives 

of the Ministry of Finance, the Sejm Health 

Committee and the media. In this cycle, 

Dialogue has also been conducted on the Internet, 

via the www.odpowiedzialnosc.pl 

website and a discussion forum on the dedicated 

website for consumers of Pall Mall 

cigarettes. 

We have continuously been seeking to add 

new parties to those already taking part 

in our Company’s Social Dialogue. Its formula 

is one of openness and inclusiveness, 

78 





leaving no-one left in debates about what 

constitutes our responsibility. For example, 

during this year’s sessions and work 

on our commitments in response to your 

expectations, the theme of our competition 

emerged a number of times. As you may 

have noticed, in respect of some of the commitments 

we plan to invite other tobacco 

companies to join us, and we would also like 

to invite the competition to the next round 

of Dialogue. 

In the following pages comes the list of our 

Stakeholders, presented in two colours: 

• grey: the parties invited at the previous 

cycle of the Dialogue, in 2003; 

• orange: those who joined the Stakeholders 

group in 2006. 

We have also marked (√) the institutions 

whose representatives honoured us with 

presence at this cycle of Dialogue. 

Michał Mikiewicz, 

Organisational Development Manager 







Stakeholders of British American Tobacco Polska 

Ministries, central agencies 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

• Agency for Agricultural Restructuring and Modernisation 

• Agency for Agricultural Market 

• General Inspector for Environmental Protection 

• General Inspector for Sanitation 

• Inspectorate for Trade Quality of Food and Produce 

• Office of the Prime Minister of the Republic of Poland 

• Chancellery of the President of the Republic of Poland 

• Ministry of Finance 

• Ministry of Labour and Social Policy 

• Ministry of Agriculture and Rural Development 

• Ministry of State Treasury 

• Ministry of Internal Affairs and Administration 

• Ministry of Foreign Affairs 

• Ministry of the Environment 

• Ministry of Health 

• National Chamber of Apothecaries 

• National Chamber of Doctors of Medicine 

• National Health Fund 

• State Institute for Hygiene 

• Polish Information and Foreign Investment Agency 

• Polska Chamber of Commerce 

• Polish Standardising Committee 

• Government Centre for Legislation 

• City Guard 

• Office of the Committee for European Integration 

• Office for Competition and Consumer Protection 

Parliamentary committees 

√ • Sejm Committee for the European Union 

• Sejm Public Finances Committee 

√ • Sejm Physical Culture and Sports Committee 

√ • Sejm Defence Committee 

√ • Sejm Environment Committee 

• Sejm Committee for Family and Women’s Rights 

√ • Sejm Agriculture and Rural Development Committee 

• Sejm Foreign Affairs Committee 

• Sejm Health Committee 

√ • Senate National Economy Committee 

• Senate Committee for Family and Social Policy 

• Senate Agriculture and Environment Committee 

• Senate Health Committee 

Political parties 

√ 

√ 

• League of Polish Families 

• Civic Platform 

• Polish Peasants’ Party 

• Law and Justice 

• Self-defence 

• Democratic Left Alliance 

Associations, foundations 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

• Academy of Philanthropy in Poland 

• Business Centre Club 

• Caritas Foundation - Gniezno Archdiocese 

• Consumer Federation 

• Forum for Corporate Social Responsibility 

• Foundation for Public Communication 

• Foundation for Promotion of Local Democracy 

• Foundation for Enterprise Promotion 

• Varsovia Foundation 

• Gdańsk Institute for Market Economics 

• Institute for Public Affairs 

• Holy Trinity Convention 

• National Chamber of Commerce 

• National Manufacturers’ Association 

• International Advertising Association in Poland 

• Association of Distributive and Service Sector Employers 

• Polish Confederation of Private Employers Lewiatan 

• Polish Province of the Dominican Order 

• Polish Forum for Corporate Governance 

• ”Pro Marka” Association of Branded Goods Manufacturers 

• Association of Polish Journalists 

• Association of Polish Consumers 

• Association of Polish Barmen 

• The Conference Board 

• Association of Children’s Friends 

• Transparency International Polska 

• UNDP Polska United Nations House 

• Association of Polish Retailing Chains 

Dialogue 2006 – facts and figures 

79

Science and Academe 

√ 

√ 

80 

• Academy of Economics in Katowice 

• Academy of Economics in Poznań 

• Academy of Economics in Wrocław 

• Centre for Business Ethics, Leon Koźmiński 

Academy of Entrepreneurship and Management, Warsaw 

• Gdańsk Technical University 

• Wrocław Technical University 

• Business School, Warsaw Technical University 

• Academy of Agriculture 

• Warsaw School of Economics 

• Gdańsk University 

• Łódź University 

• Warsaw University 

Students’ science clubs 

√ 

√ 

√ 

• CSyneRgia, Leon Koźmiński Academy 

of Entrepreneurship and Management in Warsaw 

• ”BOSS” club for corporate social responsibility, 

Oskar Lange Academy of Economics in Wrocław 

• PRAKTYK management science club, Warsaw University 

• Students’ club for management, Białystok University 

• ”CSRtywni” students’ club, Łódź University 

• STRATEG students’ club, Gdańsk University 

• ”Oikos” students’ club for sustainable development, 

Warsaw School of Economics 

Medical profession 

√ • Academy of Medicine in Bydgoszcz 

• Academy of Medicine in Lublin 

√ • Academy of Medicine in Warsaw 

√ • Academy of Medicine in Wrocław 

• Oncology Centre, Maria Skłodowska-Curie Institute 

• Collegium Medicum, Jagiellonian University, Kraków 

• Children Clinical Hospital in Lublin 

• Institute for Patients’ Rights and Health Education 

√ • Polish Club of Toracosurgery 

• Polish Pharmaceutical Association 

√ • Polish Medical Association 

√ 

• Pomeranian Academy of Medicine 

• Silesian Academy of Medicine 

• Świętokrzyskie Oncology Centre 





Trade unions (central level) 

• Confederation of Tobacco Industry Trade Unions 

• Solidarity Trade Union — Tobacco Industry Division 

• Association of Polish Teachers 

Shopping chains, wholesalers, retailers 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

• Amex 

• Auchan 

• BP 

• Carmen Sochaczew 

• Carrefour 

• EMPiK 

• Frega 

• Jeronimo Martins (Biedronka) 

• Kiosk Garmond 

• Klub Alchemia 

• Klub Pauza 

• Klub Szuflada 

• Kolporter 

• Consortium of Tobacco Products’ Distributors 

• Lima 

• Milo 

• PKN Orlen 

• PMI Combera 

• Polski Tytoń 

• POS representatives 

• Real 

• Ruch 

• Salonik Prasowy 

• Shell 

• Statoil 

• Tesco 

• Zespół Sprzedażowy 

• Żabka 







Suppliers to British American Tobacco Polska 

√ • Amcor Rentsch Polska 

• Arval 

• BusinessPoint 

• DHL-Exel Solutions 

• Grey 

√ • Hotel Warszawa 

• ING Bank Śląski 

• Intercell 

• ITM Radom 

• Mettler-Toledo 

√ • Prografix 

√ • Rekopol 

• Telekomunikacja Polska 

√ • Universal Leaf Tobacco Poland 

• Wall MM Gravure Kraków 

Media 

√ 

√ 

√ 

√ 

√ 

√ 

• Medical Tribune / Kardiologia po dyplomie 

• Medicine Today Poland / Puls Medycyny 

• Ogólnopolski Przegląd Medyczny 

• Puls 

• Rynek Zdrowia 

• Gazeta Współczesna 

• Kontakty 

• Kurier Poranny 

• Nasze Krajobrazy 

• PAP, Białystok office 

• PAP, Suwałki office 

• Polskie Radio Białystok 

• Przegląd Augustowski 

• Przegląd Powiatowy 

• Telewizja Białystok, Suwałki office 

• TV Suwałki 

• Tygodnik Suwalski 

• Przekrój 

• Jar eprasa.com publishers 

Local government, Augustów area 

√ • Augustów Centre for Education 

• Comprehensive School II in Augustów 

• Customs Chamber in Białystok 

√ • Poviat Police Chief in Augustów 

• State Inspectorate for Labour 

• Police Chief for Podlaskie Region 

√ • Border Guards, Podlaskie Region Branch in Białystok 

• Office of Podlaskie Region Governor 

• Poviat Employment Office in Augustów 

√ • Augustów Town Council 

√ • Augustów Poviat Council 

√ • Office of Local-Government Chief Executive for Augustów Poviat 

• Customs Office in Suwałki 

• Office of Chief Executive of Podlaskie Region Government 

√ • Augustów Town Hall 

√ • Augustów Tax Office 

• Regional Sanitary and Epidemics Station in Białystok 

√ 

• Regional Trade Inspectorate in Białystok 

• Regional Inspectorate for Traded 

Produce Quality in Białystok 

• College of Finance and Management in Białystok 

• G. Piramowicz Comprehensive Schools 

Compound in Augustów 

Representatives of Regional Association of Tobacco Growers 

and individual growers 

√ 

√ 

• Augustów Association of Tobacco Growers 

• Individual growers 

British American Tobacco Polska workforce 

√ • NSZZ ”Solidarność” trade union at BAT Polska 

√ • OPZZ trade union at BAT Polska 

√ • BAT Polska employees (Augustów factory, Sales Force, 

Warsaw office and distribution centres) 

Dialogue 2006 – facts and figures 

81

Dialogue sessions 

The table below presents the schedule of Stakeholder sessions. 

Date of session Stakeholder group Attendance 

11 May 2006 Key ministries and state offices, parliamentary committees, political 

parties, NGOs, science/academia, trade unions (central level) 

12 May 2006 Ministry of Health, Sejm and Senate health committees, central state 

offices linked with health care, medical profession, medical periodicals 

15 May 2006 Shopping chains, wholesalers, retailers and other companies collaborating 

with BAT Polska 

25 May 2006 Tobacco growers 7 

25 May 2006 Local government, institutions and media, Augustów region 21 

26 May 2006. Employees 13 

Individual sessions Ministry of Finance, Sejm Health Committee, Przekrój weekly 5 

The next table compares attendance during dialogue sessions in previous and present cycles of Dialogue, as well as the number of expectations 

and our commitments in both cycles. 

82 








Dialogue 2003/2004 Dialogue 2006 

Individuals invited 205 428 

Individuals present 88 97 

Institutions invited 95 192 

Institutions present 46 72 

Expectations 110 64 

Commitments 72 84 

32 



any material error, omission or misstatement. 

5 

14

Process evaluation: 

statement by Bureau Veritas 

Introduction 

Bureau Veritas Poland (Bureau Veritas) has 

been engaged by British American Tobacco 

Polska to provide independent assurance 

of its Social Report 2006 (the Report). 

The preparation of the Report and its content 

is the sole responsibility of the management 

of British American Tobacco Polska. 

Bureau Veritas responsibility is to provide assurance 

on the reliability of the information 

therein and to express our overall opinion 

on the Report as per the scope of assurance. 

The objectives, scope, methodology, 

limitations and exclusions of our work are 

provided on the facing page. 

Objectives and scope 

1. The objectives of the assurance were 

to provide assurance over the content 

of the Report for the reporting period January 

2006 – December 2006 and to provide impartial 

commentary on the reporting process. 

The scope of our work was determined following 

discussions with British American 

Tobacco Polska and can be summarized 

as follows: 

2. Provision of three levels of assurance 

over selected information within the Report 

using the following symbols to describe 

the scope and nature of our work: 

Advanced: We provided advanced assurance 

over the stakeholder dialogue 

activities that were conducted from May 

11 th 2006 through to October 11 th 2006. This 

included: a review of processes for selecting 

discussion topics for dialogue; attendance 

at dialogue sessions; reviewing 

sample of stakeholder feedback regarding 

the quality of dialogue; detailed review 

of the independent reporting on the dia- 

logue and of information relating to British 

American Tobacco Polska responses 

to the points raised in dialogue. 

Positive: In relation to British American 

Tobacco Polska reporting systems, governance, 

policies and selected Core Beliefs, 

we assessed whether information reported 

in the Social Report 2006 was supported 

by underlying objective evidence through 

interview, detailed sampling and review 

of documentary evidence, including from 

third party sources where possible. 

Basic: Reported information including 

the GRI indicators and selected case studies 

were assessed through interview, selective 

sampling and high level review of documentary 

evidence. 

3. We considered the alignment of social 

reporting activity undertaken for the period 

January 2006 to December 2006 against 

the key requirements of AA1000 and have 

reviewed the complete Report to ensure its 

consistency with the findings of our work. 

The work carried out by Bureau Veritas is 

defined by the above symbols. Text that has 

undergone assurance can be identified by 

the presence of the appropriate assurance 

symbol posted alongside it. 

Basis of our opinion 

In conducting this engagement we have 

considered requirements of the AA1000 

Assurance Standard in our assurance work. 

Our work was planned and carried out to provide 

reasonable, rather than absolute, assurance 

and we believe that the work conducted 

as described in the scope of work above provides 

a reasonable basis for our conclusions. 

We relied on the representations made to us 

during the course of our assurance work by 

British American Tobacco Polska. Where information 

in the Report is directly sourced from 

British American Tobacco Polska’s financial data 

we consider this to be reliable as it has been 

audited by an independent Registered Auditor. 

Where we have provided assurance over numeric 

information, this has been achieved 

through review of processes and databases 

held at British American Tobacco Polska offices 

in Warsaw and its production site in Augustów. 

Assurance conclusions 

Where the following symbols are applied 

they indicate: 

Advanced: The information presented is 

supported by underlying evidence, the activities 

have been observed by the assuror 

and the activities described are aligned 

to the requirements of AA1000. 


by underlying evidence and no material errors 

or omissions were identified. 


came to our attention to indicate that 

there was any material error, omission or 

misstatement. 

• The Report provides a fair representation 

of this social accounting and reporting 

activity for the reporting 

period. 

• Information is reported in a clear 

and understandable manner and is 

considered to be reliable. 

• Safety, health and environmental 

information is derived from well managed 

and coordinated systems. 

Process evaluation: statement by Bureau Veritas 

83

• the Report addresses its main identified 

issues informatively. 

Alignment with the principles 

of AA1000AS 

Completeness 

• The Report reflects the broad range 

of environmental, social and economic 

issues that British American 

Tobacco Polska is currently addressing, 

including those for which it has 

legal responsibility. 

• All areas and activities of the organisation 

for inclusion in the reporting 

scope have been selected via established 

governance, risk management, 

and prioritization processes and performance 

indicators are realistic. 

Materiality 

• The Report content has been determined 

through a well structured process 

of prioritisation of issues deemed 

of material importance to the organisation 

and its stakeholders. It reflects 

all activities and impacts considered 

by British American Tobacco Polska 

and its identified key stakeholders 

as important through an inclusive 

and transparent process of stakeholder 

engagement and consultation. 

• The reported information can be used 

by the organisation and its stakeholders 

as a reasonable basis for their opinions 

and decision-making process. 

Responsiveness 

• The Report provides a complete 

overview of stakeholder expectations 

and British American Tobacco Polska 

responses to these expectations raised 

during open, individual and internet 

forum dialogue during this reporting 

cycle, and its response to stakeholder 

expectations identified during the first 

reporting cycle (May 2003 – February 

2004). 

• The information in the Report enables 

interested parties to follow in a timely 

manner the organisation’s contribution 

to issues specific to the tobacco 

industry and its products and its 

response to the needs of civil society. 

For those commitments that have not 

been implemented in a timely manner, 

this has been explained in the Report. 

• Whilst commitments and related performance 

indicators against defined objectives 

resulting from the 2 nd dialogue 

session are published on the website 

www.odpowiedzialnosc.pl certain 

84 

of the indicators are not measurable, 

nor are they established for all commitments. 

Commentary 

The following key areas have been identified 

in the course of our assurance of British 

American Tobacco Polska’s Social Report 

2006: 

• British American Tobacco Polska 

has established an effective process 

for consulting with its key stakeholders, 

enabling the capture of material 

concerns in a structured and consistent 

manner. 

• Social responsibility is integrated into 

the organisations’ standard business 

activities through policies, objectives, 

management structures and awareness 

programmes. 

• Stakeholders react positively 

to the process of social dialogue 

and reporting and have as an expectation: 

”To continue the dialogue 

process and implementation of commitments” 

Areas for ongoing improvement 

• Development of measurable indicators 

to track performance and evaluate 

the effectiveness of actions taken 

and of specific social responsibility 

indicators in conjunction with active 

stakeholder input; where appropriate 

these indicators could be selected 

from the Global Reporting Initiative. 

• Implementation of the internal audit 

system to identify gaps, to establish 

improvement planning and to monitor 

performance in order to respond 

fully to its stakeholders in the area 

of social responsibility. Such an audit 

plan could integrate with existing 

audit programmes (for example, 

quality and environment) at the Augustów 

factory and results reviewed 

and should be discussed at the appropriate 

management review stage. 

• Inclusion of roles and responsibilities 

concerning social responsibility into 

job descriptions for relevant employees 

within the organisation. 

• Inclusion of information regarding 

stakeholder responses to British American 

Tobacco Polska’s previous Social 

Reports. 

Limitations and exclusions 

Excluded from the scope of our work is information 

relating to: 

• Activities outside the defined assurance 

period with the exception 

of the overview of British American 

Tobacco Polska activities related 

to commitments taken as the result 

of the 1 st cycle of social reporting process 

and GRI table. 

• Company position statements (excluded 

from our scope of assurance 

is any expression of opinion, belief, 

aspiration, expectation, aim or future 

intention provided by British American 

Tobacco Polska ). 

Warsaw, January 2007

Global Reporting Initiative 

GRI indicators with comments 

British-American Tobacco Polska S.A. performance indicators 

The GRI guidelines form a flexible framework for voluntary reporting on different aspects of a company’s performance – economic, environmental, 

social, etc. It is important to note that these guidelines are not: 

• a code or a set of principles of conduct, 

• a performance standard (e.g. they do not set emissions targets for specific pollutants), or 

• a management system. 

By using these GRI indicators, we sought to present our business, for the years 2004 and 2005, in the broadest possible way; unfortunately 

in some areas, due to lack of data, such presentation was not possible. 

All information contained in this section refers to British-American Tobacco Polska S.A. 

The indicators marked in red are usually referred to as ”core” indicators in the GRI framework, i.e. indicators that are deemed to be relevant 

to both the reporting organisation and Stakeholders. Those marked in black are referred to as ”additional”; they represent leading or best practice 

reporting. 

For more information on the Global Reporting Initiative please visit: www.globalreporting.org. 

Area GRI Ref. Performance Indicator 2004 2005 

ECONOMIC PERFORMANCE INDICATORS 

DIRECT ECONOMIC IMPACTS 

Customers EC2 Geographic breakdown of markets Total market share – 15.2% Total market share – 15.3% 

Suppliers EC4 Percentage of contracts that were 

paid in accordance with agreed 

terms, excluding agreed penalty 

arrangements. 

EC11 Supplier breakdown by 

organisation and country 

Employees EC5 Total payroll and benefits 

(including wages, pension, 

other benefits, and redundancy 

payments) broken down by 

country or region 

Number of all payments – 14,982 

Number of delayed payments – 7,481 

% of delayed payments in total 

payments – 50% 

Number of all payments – 15,029 

Number of delayed payments – 4,705 

% of delayed payments in total 

payments – 31% 

No British American Tobacco Polska supplier outside the British American 

Tobacco group meets the criterion of ”an expense of over 10% in total 

spending of British American Tobacco Polska” 

Total payroll and benefits 

– 86,200,000 PLN 

Total payroll and benefits 

– 89,845,000 PLN 


85

86 


Providers 

of Capital 

EC6 Distributions to providers of capital 

broken down by interest on debt 

and borrowings, and dividends 

on all classes of shares, with any 

arrears of preferred dividends to 

be disclosed. (Including all forms 

of debt and borrowings, not only 

long-term debt) 

Public Sector EC8 Total sum of taxes of all types paid 

broken down by country 

EC9 Subsidies received broken down 

by country or region 

EC10 Donations to community, civil 

society, and other groups broken 

down in terms of cash and in-kind 

donations per type of group 

ENVIRONMENTAL PERFORMANCE INDICATORS 

Materials EN1 Total materials use, other than 

water, by type 





None None 

Tobacco excise – 1,342,440,509 PLN 

VAT – 376,581,478 PLN 

Corporate Income tax – 0 PLN 




Tobacco excise – 1,611,721,401 PLN 

VAT – 433,013,034 PLN 

Corporate Income tax – 0 PLN 

Subsidies granted by the Polish government were given directly to the 

growers 

336,443 PLN 572,736 PLN 

Due to legal restrictions, we cannot publicly disclose either 

the beneficiaries, or the types and levels of donations made by British 

American Tobacco Polska 


EN2 Percentage of materials used 

that are wastes (processed 

or unprocessed) from sources 

external to the reporting 

organisation 

Energy EN3 Direct energy use segmented by 

primary source 

Tobacco – 6,726 tonnes 

Production materials – 11,554 tonnes 

Heating oil – 2,083 tonnes 

1% (150 tonnes) 0% 

Total energy 168,952 GJ, of which: 

• electricity – 37,566 GJ 

• heat – 62,602 GJ 

Energy consumption per million 

cigarettes produced – 14.03 GJ 

EN4 Indirect energy use 141,852 GJ 150,334 GJ 

EN19 Other indirect (upstream/ 

downstream) energy use 

and implications, such as 

organisational travel, product 

lifecycle management, and use of 

energy-intensive materials 

Transport of materials and 

products and business travel 

– 14,895 GJ 

Tobacco – 8,488 tonnes 

Production materials – 13,984 tonnes 

Heating oil – 2,098 tonnes 

Total energy 171,365 GJ, of which: 

• electricity – 39,813 GJ 

• heat – 69,019 GJ 

Energy consumption per million 

cigarettes produced – 12.80 GJ 

Transport of materials and 

products and business travel 

– 20,647 GJ 





Water EN5 Total water use 54,689 cubic meters 

4.54 cubic meters per million 

cigarettes 

59,900 cubic meters 

4.47 cubic meters per million 

cigarettes 

EN22 Total recycling and reuse of water. British American Tobacco Polska does not have a water reuse 

(reclaiming) system 

Biodiversity EN6 Location and size of land 

owned, leased, or managed 

in biodiversity-rich habitats. 

Emission, 

Effluence 

and Waste 

EN7 Description of the major impacts 

on biodiversity associated with 

activities and/or products and 

services in terrestrial, freshwater, 

and marine environments. 

EN23 Total amount of land owned, 

leased, or managed for production 

activities or extractive use. 

EN8 Greenhouse gas emissions 

(CO2, CH4, N2O, HFCs, PFCs, SF6) 

EN9 Use and emissions of ozonedepleting 

substances 

EN10 NOx, SOx, and other significant air 

emissions by type 

EN11 Total amount of waste by type 

and destination 

EN12 Significant discharges to 

water by type 

EN13 Significant spills of chemicals, oils, 

and fuels in terms of total number 

and total volume 

EN31 All production, transport, import, 

or export of any waste deemed 

”hazardous” under the terms of 

the Basel Convention Annex I, II, 

III, and VIII 

Not applicable 


9 hectares 

CO 2 – 17,203 tonnes 

Other emissions – no data 

Use and emissions of ozone-depleting substances 

About 100 kg, emitted by a total of 3 machines 

NOx – 11,681 kg 

SO2 – 14,646 kg 

CO – 1,168 kg 

dust – 17,356 kg 

Hazardous waste: 0 tonnes 

Other waste: 

81 tonnes sent to landfill 

1,708 tonnes sent to recycling and 

composting 

CO 2 – 6,670 tonnes 

Other emissions – no data 

NOx – 12,410 kg 

SO2 – 15,560 kg 

CO – 1,241 kg 

dust – 18,091 kg 

Hazardous waste: 1.17 tonnes, sent 

to recycling 

Other waste: 

89 tonnes sent to landfill 

1,835 tonnes sent to recycling and 

composting 

28,276 cubic meters 31,357 cubic meters 

No such instances 

Data reported under EN11, above (hazardous waste) 


87

88 


Products 

and Services 

EN14 Significant environmental impacts 

of principal products and services 

EN15 Percentage of the weight of 

products sold that is reclaimable 

at the end of the products’ useful 

life and percentage that is actually 

reclaimed 

Compliance EN16 Incidents of and fines for noncompliance 

with all applicable 

international declarations/ 

conventions/treaties, and national, 

sub-national, regional, and local 

regulations associated with 

environmental issues. Explain in 

terms of countries of operation 

Transport EN34 Significant environmental 

impacts of transportation 

used for logistical purposes. 

Overall EN35 Total environmental expenditures 

by type 

SOCIAL PERFORMANCE INDICATORS: LABOUR PRACTICES AND DECENT WORK 

Employment LA1 Breakdown of workforce, where 

possible, by region/country, 

status (employee/non-employee), 

employment type (full time/ 

part time), and by employment 

contract (indefinite or permanent/ 

fixed term or temporary). 

Also identify workforce retained in 

conjunction with other employers 

(temporary agency workers 

or workers in co-employment 

relationships), segmented by 

region/country 





The reduction of the environmental impact of packaging disposal is 

achieved by ensuring that packaging waste is used and recycled through 

the agency of recycling organisations, in line with legal requirements. 

Packaging materials comply with legal requirements as defined by 

EU Directive 94/62/WE; this was confirmed in the course of a relevant 

inspection by the Voivodship Environment Protection Inspectorate 

(WIOŚ) in October 2005 

The company fulfils the legal requirement to reclaim packaging waste 

through the agency of Rekopol Recovery Organisation 

None WIOŚ inspection in 2005 disclosed 

areas that needed improvement 

in water and sewage as well 

as waste management. WIOŚ 

recommendations have been 

implemented 

Emission of gas and dust Emission of gas and dust 

Packaging waste fees – no data 

Env ironm e nt al surc harg e – no d at a 

Type of employment (headcount): 

• Full time – 875 

• Part time – 46 

Type of contract: 

• Trial period – 1 

• Fixed term – 46 

• Indefinite term – 874 




Packaging waste fees – 115,000 

PLN, for fulfilment of the legal 

requirement to reclaim packaging 

waste 

Environmental surcharge 

–27,209 PLN 


LA2 Net employment creation and 

average turnover segmented by 

region/country 

Net employment creation: 0 

Average turnover: 8.58% 

Type of employment (headcount): 

• Full time – 866 

• Part time – 82 

Type of contract: 

• Trial period – 13 

• Fixed term – 56 

• Indefinite term – 879 

The company uses the workforce 

hired by other employers: 

12 people handle the reception 

desk and Help Desk (technical 

assistance). 

Net employment creation: 0 

Average turnover: 10.34% 





Employment LA12 Employee benefits beyond those 

legally mandated 

Labour/Management 

Relations 

Health 

and Safety 

LA3 Percentage of employees represented 

by independent trade 

union organisations or other bona 

fide employee representatives 

broken down geographically 

OR by percentage of employees 

covered by collective bargaining 

agreements broken down by region/country. 

LA4 Policy and procedures involving 

information, consultation, and 

negotiation with employees 

over changes in the reporting 

organisation’s operations 

(e.g., restructuring). 

LA13 Provision for formal worker 

representation in decision making 

or management, including 

corporate governance 

LA5 Practices on recording and 

notification of occupational 

accidents and diseases, and 

how they relate to the ILO Code 

of Practice on Recording and 

Notification of Occupational 

Accidents and Diseases 

All our employees are entitled to: 

• Sick leave allowance covered in 100% for all days of absence (Polish 

law requires employers to pay 80%), 

• Education support – English language lessons, university and postgraduate 

studies (when there is a relevant business need), 

• Company car usage for private purposes in line with the internal policy, 

• Financial assistance in relocation cases as per the company relocation 

policy, 

• Additional medical care and disability insurance, provided for all employees 

who are not covered by the Collective Labour Agreement. 

The Collective Labour Agreement (CLA) relates to the employees of the 

Augustów factory; in 2005 it covered 92% of the staff. The remaining 8% 

of the staff there have individual employment contracts and the terms 

and conditions are subject to the company Work Regulations and Remuneration 

Policy. 

In total, at the end of 2005 there were: 

• 503 CLA employees 

• 438 non-CLA employees 

Employment and remuneration rules and regulations are described in 

the Collective Labour Agreement, based on the Labour Code. The terms 

and conditions of the CLA are substantially more comprehensive than 

those stipulated in the Labour Code. Employees not covered by the CLA 

are employed on the basis of the Work Regulations and Remuneration 

Policy. Both documents ensure employment conditions superior to those 

defined in the Labour Code. 

In 2003 the European Employee Council was created, made up 

of representatives chosen by all British American Tobacco Polska 

employees. 

In accordance with legal provisions, the Employee Council was elected 

in 2006 (minutes of the election of the Employee Council and its 

chairman recorded on 5 November 2006) 

In accordance with our company statute, a freely elected representative 

of the workers sits on the Supervisory Board of the company 

British American Tobacco Polska’s procedures regarding occupational 

accidents and diseases are in line with the Polish Labour Code, the 

Company Safety Policy and best management practices 


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90 


Health 

and Safety 

LA6 Description of formal joint health 

and safety committees comprising 

management and worker 

representatives and proportion of 

the workforce covered by any such 

committees. 

LA7 Standard injury, lost day, and 

absentee rates and number of 

work-related fatalities (including 

subcontracted workers) 

LA8 Description of policies or 

programmes (for the workplace 

and beyond) on HIV/AIDS 

LA14 Evidence of substantial compliance 

with the ILO Guidelines for 

Occupational Health Management 

Systems 





In line with the Labour Code, a work safety & hygiene committee has 

been set up at our Augustów factory, made up of: 

• a Chairman: the EHS Manager, authorised by the employer 

represented by a board member and factory director 

• a Vice Chairman: a safety-and-health inspector 

• Members: 

• an employee of the EHS department 

• a doctor of occupational medicine 

• 2 individuals heading trade unions operating in the factory 

We have also set up an EHS committee, made up of: 

• a Chairman: the HR Director, member of the Top Team 

• Members: 

• the Social Labour Inspector 

• the Sales Department Director 

• the Security Manager 

• the EHS Manager 

• the Car Fleet Administrator 

• the Employee Services Manager 

The composition of the EHS committee ensures that representatives 

of the entire workforce take part in Committee’s proceedings. 

The Committee is the employer’s advisory and evaluation team. Its basic 

function is to assist the employer in fulfilling their duties in the area of EHS. 

Standard injuries resulting in 

temporary inability to work (limb 

injuries, bruises, dislocations etc.) 

Lost days: 

• Augustów – 37 

• Warsaw – 67 

• Total – 104 

LWCIR 

• Augustów – 0.42 

• Warsaw – 0.58 

• Total – 0.48 

Accidents 



• Total – 4 

No fatal accidents (deaths) 





Standard injuries resulting in 

temporary inability to work (limb 

injuries, bruises, dislocations etc.) 

Lost days: 



• Total – 103 

LWCIR 

• Augustów – 0.73 

• Warsaw – 1.27 

• Total – 0.93 

Accidents 



• Total – 8 

No fatal accidents (deaths) 

British American Tobacco Polska’s work safety management system 

is based on the Polish norm PN-N-18001 and on the Integrated 

Environmental, Health and Safety Policy Manual implemented in British 

American Tobacco units worldwide. The Polish norm PN-18001 conforms 

to the Guidelines for Occupational Health Management Systems ILO- 

OSH 2001. 

British American Tobacco Polska’s plant in Augustów has received a 

PN – ISO 9000 quality management certificate and a PN – ISO 14001 

environment management certificate. 

”Caring Employer” – a distinction awarded to British American Tobacco 

Polska in the 2 nd edition of the national competition. 





Health 

and Safety 

Training 

and Education 

LA15 Description of formal agreements 

with trade unions or other bona 

fide employee representatives 

covering health and safety at work 

and proportion of the workforce 

covered by any such agreements 

LA9 Average hours of training per 

year per employee by category 

of employee 

LA16 Description of programmes 

to support the continued 

employability of employees and 

to manage career endings. 

The key documents reflecting the agreement reached between 

the management board and the trade unions on work safety and 

hygiene are the Work Regulations (Warsaw) and the Collective Labour 

Agreement (Augustów). 

Chapter 7 of the Regulations discusses in detail such areas as: 

• accidents at work, 

• protective clothes, 

• individual & collective means of protection, 

• cleaning methods, 

• health prophylactics, 

• occupational illnesses, 

• meals and beverages provided by the employer, 

• fire protection, 

• environment protection, 

• radiological protection, 

• work safety and hygiene training 

2,056 training hours for 

managerial staff, type: local 

managerial training (number of 

employees trained - 193); average 

5.2 hours per employee. 

792 training hours for managerial 

staff, type: international 

managerial and functional 

(number of employees trained – 13); 

average 60.1 hours per employee. 

8,640 hours for non-managerial 

staff, type: local functional 

(number of employees trained 

– 216), average 40 hours per 

employee. 

440 training hours for managerial 

staff, type: international 

managerial and functional 

(number of employees trained – 7); 

average 62.8 hours per employee. 

6,880 training hours for nonmanagerial 

staff, type: local 

functional (number of employees 

trained – 195), average 35.3 hours 

per employee. 

We also support our employees in the following two areas: 

• formal programs of study, if related to an employee’s current or 

future role (examples: Master of Business Administration, Association 

of Chartered Certified Accountants etc.), 

• Language training – mostly English but also Polish for expatriates. 

Requests for such assistance are considered on an individual basis. 

The criterion for granting support is a demonstrated business need. 

British American Tobacco Polska has a code of conduct on issues 

concerning redundancies for reasons connected with the company. 

Employees leaving as a result of redundancies are offered a redundancy 

package, job loss compensations as well as a so-called ‘active package’ 

consisting of: 

• training increasing job-seeking abilities, 

• professional re-training courses, 

• training aligned to the needs of prospective employers, 

• business and professional advice. 

In cases of early retirement, retirement or disability leave, the company 

pays a retirement package as per the Collective Labour Agreement based 

on length of service with British American Tobacco Polska. 


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92 


Training 

and Education 

Diversity 

and Opportunity 

LA17 Specific policies and programmes 

for skills management or for 

lifelong learning. 

LA10 Description of equal opportunity 

policies or programmes, as 

well as monitoring systems to 

ensure compliance and results of 

monitoring. 

LA11 Composition of senior management 

and corporate governance bodies, 

including female/male ratio and 

other indicators of diversity as 

culturally appropriate. 





All programmes and activities mentioned in LA9 were designed according 

to the company’s guidelines and based on the training and development 

needs of our employees (managerial and non-managerial staff). 

In addition, the following three qualification improvement programmes 

have been offered: 

• The Challenge Initiative – a two-year programme designed to be 

a ”fast development track” for graduates eager to become managers; 

13 persons were enrolled in 2004, and 11 in 2005; 

• Management Development Programme; a two-year programme 

designed for junior managers and non-managerial employees. 

The objective of the MDP is to prepare future successors for Senior 

Management positions. Approx. 45 places are available; 

• The Champions League; a programme designed to prepare future 

successors for top executives (Management Board members). 

The programme is talent-focused and stresses participants’ individual 

responsibility for their own development. The programme, which 

covered 23 people, ended in 2005. 

The Polish Labour Code and the 

Company Internal Regulations 

stipulate strict observance of 

equal treatment of women and 

men and non-discrimination of 

any form at work. In addition, our 

internal recruitment policy clearly 

requires equal treatment during 

recruitment. 

Female/male ratio: 

management board – 0 women / 

5 men 

senior management – 12 women 

/ 40 men 




Since 2004 the Internal 

Regulations have been in force 

that were adjusted so as to reflect 

equal employment opportunity 

rules (hiring, promotions 

and retirement), irrespective 

of age, gender, social class, 

religion, smoking habits, sexual 

orientation, politics, or disability. 

The Human Resources 

Department provides training in 

methods of conducting interviews 

and assessing candidates with 

particular emphasis put on rules 

for avoiding discrimination based 

on age, gender, beliefs, social class 

etc. 

The Human Resources Department 

monitors employment levels 

on a regular basis, highlighting 

the importance of one of our 

Guiding Principles: ”Strength from 

Diversity”. 

Female/male ratio: 

management board – 1 woman / 

4 men 

senior management – 11 women / 

35 men 





SOCIAL PERFORMANCE INDICATORS: HUMAN RIGHTS 

Strategy and 

Management 

Nondiscrimination 

Freedom of 

Association 

and Collective 

Bargaining 

HR1 Description of policies, guidelines, 

corporate structure, and 

procedures to deal with all aspects 

of human rights relevant to 

operations, including monitoring 

mechanisms and results. 

HR2 Evidence of consideration of 

human rights impacts as part 

of investment and procurement 

decisions, including selection of 

suppliers/contractors. 

HR3 Description of policies and 

procedures to evaluate and address 

human rights performance within 

the supply chain and contractors, 

including monitoring systems and 

results of monitoring. 

HR8 Employee training on policies and 

practices concerning all aspects 

of human rights relevant to 

operations. 

HR4 Description of global policy and 

procedures/programmes preventing 

all forms of discrimination in 

operations, including monitoring 

systems and results of monitoring. 

HR5 Description of freedom of 

association policy and extent to 

which this policy is universally 

applied independent of local laws, 

as well as description of procedures/ 

programmes to address this issue. 

Child Labour HR6 Description of policy excluding 

child labour as defined by the 

ILO Convention 138 and extent to 

which this policy is visibly stated 

and applied, as well as description 

of procedures/programmes to 

address this issue, including 

monitoring systems and results of 

monitoring 

Forced and 

Compulsory 

labour 

HR7 Description of policy to prevent 

forced and compulsory labour 

and extent to which this policy is 

visibly stated and applied as well 

as description of procedures / 

programmes to address this issue, 



British American Tobacco Polska complies with both Polish laws 

and international treaties with respect to human rights. 

British American Tobacco Polska does not conduct any training 

related to human rights. 

Cf. LA10, above 

In line with the respective laws, we do provide freedom of association 

in the company. Two trade unions operate at British American Tobacco 

in Augustów, Solidarity and a union of BAT employees. They represent 

unionised workers and look after collective and individual employment 

rights and interests. 

Local legislation allows minors to be employed only after they turn 16 

years of age. Taking account of the specific nature of our product, the 

internal policy prohibits employment of people aged under 18. 

Forced and compulsory employment or illegal employment of 

immigrants is not relevant to British American Tobacco Polska, therefore 

such policy does not exist and no such need arises for us to create one. 


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94 


SOCIAL PERFORMANCE INDICATORS: SOCIETY 

Community SO1 Description of policies to manage 

impacts on communities in areas 

affected by activities, as well 

as description of procedures / 




Bribery and 

Corruption 

Political 

Contribution 

Competition and 

Pricing 

SO2 Description of the policy, 

procedures/management systems, 

and compliance mechanisms for 

organisations and employees 

addressing bribery and 

corruption. 

SO3 Description of policy, procedures/ 

management systems, and 

compliance mechanisms for 

managing political lobbying and 

contributions. 

SO5 Amount of money paid to political 

parties and institutions whose 

prime function is to fund political 

parties or their candidates. 

SO6 Court decisions regarding cases 

pertaining to anti-trust and 

monopoly regulations. 

SO7 Description of policy, procedures/ 



preventing anti-competitive 

behaviour. 





In 2003, we started the Social Reporting process applying both the 

global BAT standards and the international AA1000 auditing standard. 

The process helps us learn what our Stakeholders expect of us and 

align the way we do business to reasonable public expectations. The 

Augustów Academy is an example of a programme addressing the local 

community. 

We adopted the Standards of Business Conduct, which cover such areas as: 

• conflicts of interest, 

• insider trading / dealing, 

• payments to politicians and government officials, 

• competition law. 

Compliance with these standards is confirmed annually by the 

Board of Directors and monitored by the Audit Committee. 

The ”white line” procedure allows each employee to anonymously 

report suspected irregularities in this area, which will be carefully 

verified. 

We conduct lobbying activities with the National Manufacturers’ 

Association, Confederation of Private Employers and on our own 

– always only within the limits of the law. 

British American Tobacco Polska does not fund political organisations or 

parties, or donate contributions to such organisations. We also do not 

make financial contributions to any election campaigns. It is verified by 

an external auditor. 

None 

We meet all legal requirements of the Polish laws on competition. 

Such rules are also manifested through our Trade Policy. 








SOCIAL PERFORMANCE INDICATORS: PRODUCT RESPONSIBILITY 

Customer and 

Health Safety 

Products and 

Services 

PR1 Description of policy for preserving 

customer health and safety during 

use of products and services, 

and extent to which this policy 

is visibly stated and applied, as 

well as description of procedures/ 




PR4 Number and type of instances of 

non-compliance with regulations 

concerning customer health and 

safety, including the penalties and 

fines assessed for these breaches. 

PR5 Number of complaints upheld by 

regulatory or similar official 

bodies to oversee or regulate the 

health and safety of products and 

services. 

PR6 Voluntary code compliance, 

product labels or awards 

with respect to social and/or 

environmental responsibility that 

the reporter is qualified to use or 

has received. 

PR2 Description of policy, procedures/ 


compliance mechanisms related to 

product information and labelling. 



compliance mechanisms related 

to customer satisfaction, including 

results of surveys measuring 

customer satisfaction. Identify 

geographic areas covered by policy. 

Advertising PR9 Description of policies, 

procedures/management systems, 

and compliance mechanisms 

for adherence to standards 

and voluntary codes related to 

advertising. 

PR10 Number and types of breaches 

of advertising and marketing 

regulations. 

Detailed description of policies and/or programmes addressing 

consumer health-related issues can be found in the main text of this 

Report: 

Risk of smoking – see page 38 

Smoking in public places – see page 64 

Youth smoking prevention – see page 42 

Reduced risk products – see page 38 

There were no proceedings conducted by Polish authorities with regard 

to customer health and safety. No fines or penalties were levied against 

British American Tobacco Polska for breaches of the Act on Health 

Protection Against the Consequences of Smoking Tobacco and Tobacco 

Products. 

None 


We comply with the Act on Health Protection Against the Consequences 

of Smoking Tobacco and Tobacco Products. This law sets the standards 

for health warnings placed on all cigarette packs as well as the scope of 

information about tobacco products available at points of sale. 

We also comply with the voluntary International Marketing Standards, 

based on which all marketing materials sent directly to our consumers 

also carry health warnings. More on Marketing Standards on page 31. 

We also place a voluntary warning ”Sale to minors prohibited” on all 

packs of cigarettes we produce. 

The nationwide Customer Satisfaction Measurement research, designed 

to collect opinions of customers on our performance, was carried out in 

2005. The results were analysed according to sales regions. 

The Legal Department and Corporate and Regulatory Affairs (CORA) 

Department, together with the Marketing Department, are responsible 

for the compliance of all marketing materials with the voluntary 

International Marketing Standards. 

None 


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96 


Respect for 

privacy 




consumer privacy. 

PR11 Number of substantiated 

complaints regarding breaches 

of consumer privacy. 





We comply fully with the Act on Personal Data Protection. Consumer 

data, stored and managed by an external agency, is verified internally to 

make sure that the database contains details of adult smokers only. 

Our agreements with research agencies seek to ensure that individual 

consumer privacy is protected in all projects involved, by requiring that 

research agencies comply with data protection legislation and take the 

appropriate technical and organisational measures to ensure against 

unauthorised or unlawful processing of personal data and against 

accidental loss or destruction of, or damage to, personal data. 

Not measured as there are no systems to generate the required 

information. 







Acknowledgements 

British and American Tobacco Polska would like to express gratitude to the Stakeholders who have joined 

our Social Dialogue process. Their openness to dialogue and a frank expression of opinions will help us 

in seeking to conduct our business in line with public expectations. 

We would like to thank Dr. Michał Boni who served as an independent moderator, guaranteeing the transparency 

and objectivity of the process. 

Many words of thanks are due to the employees of British American Tobacco Polska who have treated corporate 

social responsibility on a par with their day-to-day business assignments. Consequently, our Commitments are 

the commitments of the Company as a whole, not just a narrow group of those in charge of the publication 

of the present Report. Particularly valuable contributions to this publication have come from members 

of the Social Reporting Committee, the head of the project, Roman Jamiołkowski, and Aleksandra Kubicka. 

We wish to thank Message House PR Agency, in particular Piotr Filipek, for cooperation and support 

in the Dialogue process. As a CSR consultant, the agency was in charge of planning and logistics, dialogue 

sessions and publication of this Report. 

We want to be a socially responsible company in a controversial sector, the manufacture of tobacco products; 

therefore we shall continue our Social Dialogue, in the expectation of significant contributions from 

all Stakeholders. 

Marek K. Kosycarz 

CORA Director 

British American Tobacco Polska

Thank you for taking your time to read this Report. 

If you would like to share your comments with us you are welcome to visit 

the www.odpowiedzialnosc.pl website or contact the Corporate and Regulatory 

Affairs Department of British American Tobacco Polska, phone: 022 575 43 00.

Poland - Social Report 2006 - English - British American Tobacco

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