BATs big wheeze.pmd - Stivoro

BAT’s big wheezeThis report shows that British American Tobacco, while tryinghard to convince shareholders and government otherwise,flies the flag for corporate social irresponsibility.It is common enough to read about UK companies that putprofits before people and the environment, both here andabroad. But few are in the same league as BAT.• BAT makes products that addict and then kill theirusers, when consumed exactly as the manufacturerintends. BAT has a 15 per cent share of the worldwidetobacco market, a market responsible for aboutfive million premature deaths every year and is takingsteps to expand this market in poorer countrieswhere within 20 years as many as seven million peoplewill die every year as a result of smoking.• Evidence in this report also suggests that growingtobacco can be hazardous to the health of farmersunder contract to BAT. The pattern emerging fromBrazil and Kenya, and now Nigeria, Uganda andPakistan indicates that BAT is failing in its responsibilityto protect the health of its contract farmers whoroutinely use hazardous pesticides.• Tobacco production also damages local communitiesand the environment on which they depend.It is clear that there will be no voluntary change. So, whyisn’t the UK Government tougher on companies like BATthat do so much damage?Corporate accountability legislation, as proposed by LindaPerham MP and Andy King MP, could really make a differenceto the way in which BAT behaves.A duty on directors to report annually on the impact of theiroperations, policies, products and procurement practiceson people and the environment in the UK and abroad wouldforce BAT to admit – first and foremost – that their productskill up to half of the people that use them as directed. Itwould also force the company to declare the negative socialand environmental impacts of its tobacco plantations.BAT would also have to declare all its lobbying activitieswith Governments and legislators around the world. Finally,BAT would have to take whatever steps a court might consider“reasonable” in reducing its social and environmentalimpact.RecommendationsWe call on the UK Government:• to stop pretending that corporate responsibility canbe achieved through voluntary agreements alone.• to change the law so that UK companies must takeaccount of social and environmental concerns. Specifically,the Government must introduce:Mandatory reporting – requiring all UK companiesto report annually on the significantnegative impact of their operations, policies,products and procurement practices on peopleand the environment both in the UK andabroad (in a manner by which it can be independentlycertified). This should include publicationof independently conducted and verifiedstudies on the global health impacts ofBAT products.New legal duties on directors – to take reasonablesteps to reduce any significant negativesocial, health or environmental impactsForeign direct liability – to enable affectedcommunities abroad to seek redress in the UKfor human rights, health and environmentalabuses resulting directly from the operations,policies, products and procurement practicesof UK companies or their overseas subsidiaries• to introduce new and more effective tobacco controlpolicies as suggested by the Wanless Report, includingan end to smoking in the workplace and inenclosed public places• to publish the full results of the Department of Tradeand Industry’s investigation into BAT’s alleged involvementin tobacco smuggling.Foreign direct liability would also enable affected communitiesabroad to seek damages in the UK for damage totheir human rights, health and environment committed byBritish American Tobacco or its overseas subsidiaries duringthe production and consumption of tobacco.200425