Seminar 1 Week 2 Big Country Tobacco solution

Seminar 1 Week 2 - BigCountryTobaccoCo. ,

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including a market-leader brand of cigarettes.  With the opening up of China  and its move to a market-based economy, the company has made the decision to  sell its cigarettes in this large market from the beginning of next month.  The  cigarettes will be sold in packs of 30. John Carter, marketing manager, is discussing the design of the cigarette packet  for   the   Chinese   market   with   Harry   Wills,   the   company’s   public   relations  manager.  Having agreed upon the basic design of the pack, Harry raised the  issue of whether to include the traditional health warning on the pack, which  had   to   be   displayed   under   Australian   law.   He   emphasised   recent   medical  findings which predicted many hundreds of thousands of deaths from cigarette  smoking in the next few years, particularly in the developing countries. John Carter was strongly opposed to the suggestion that a ‘health hazard’  warning   be   included   on   the   packs   destined   for   the   Chinese   market.     He  explained: ‘It is not a legal requirement in China to display a health warning on  cigarette packs.  If Chinese law is subsequently amended then we will be one of  the first to comply.  Besides, the managing director supports me on this one.’ Note: Since this case study was written, the law in China has been changed to  require such health warnings. However the case study still provides a means of  discussing the relevant  ethical issues Using the Ethical Conflict Resolution Process structure your response: identify the issues - both accounting and ethical for Big Country Tobacco and the stakeholders involved. Explore
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This note was uploaded on 06/10/2011 for the course ACCT 1002 taught by Professor Angela during the Three '10 term at University of Sydney.

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Seminar 1 Week 2 - BigCountryTobaccoCo. ,

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