KEY AREA PAPERS - PUBLIC AFFAIRS
I Corporate Issues
2. External Relations
3. Media
4. Smoking and Health
Communication
Environmental Tobacco Smoke
Marketing Restrictions
Health Warning Clauses
Tobacco Additives
Deliveries of Tar, Nicotine and other components
5. Pressure Groups
6. Communication and Co-Operation
7. Training and Development of Public Affairs
staff
8. National Manufacturers Associations
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BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
CORPORATE ISSUES
Background
International companies and industries are being
increasingly criticised for
their activities and behaviour in many parts of
the world. Much of the
criticism is politically motivated, particularly
by those opposed to the free
enterprise system. Critics argue that the
interests and objectives of
international business are incompatible with the
interests and well-being
of national communities.
While this is not true, these views receive wide
coverage and have a
considerable number of subscribers. They are
certainly used by the anti-
smoking lobby to attack both the tobacco industry
and companies in the
BAT group.
It is therefore important that operating companies
implement programmes
to develop and promote a good corporate image for
themselves and the
group and that all steps are taken to ensure that
the company enjoys a
good corporate reputation.
The benefits of a good image and reputation within
local and national
communities are becoming increasingly apparent.
Access can be easier
to decision makers and opinion formers, the
company can become more
attractive in terms of recruitment and it is more
difficult for legislators to
enact harsh regulations affecting companies which
have the support of
local and national communities.
A good corporate image and reputation is judged on
many factors
including financial performance. corporate
behaviour and ethical
practices. community involvement and contribution
and environmental
awareness and sensitivity.
Polk y
Operating companies should have a co-ordinated
programme to establish
their corporate image and reputation.
Corporate image/reputation should be assessed
regularly and
programmes adjusted to take account of changing
opinions and attitudes.
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BATCO document for Province of BritiSh Columbia 23
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Objectives
The overall objective of corporate
image/reputation programmes should
be community support for the company's business
objectives and
activities.
Programmes and action should address:
Financial standing - to ensure that: the company
is able to
maximise the benefits and the commercial advantage
of financial
credibility through; favourable banking terms,
preferred terms with
suppliers, etc.; Government recognises the
econornic contribution
and views of the company when determining policy;
the company
enjoys a fair share price.
Ethical standards - to ensure that: the group's
strict standards
regarding observance of local laws and customs,
payments of
taxes and charges are observed; that proper and
fair relationships
are observed with distributors, suppliers,
farmers, etc. and in the
conduct of relations with elected and government
officials.
Environmental practices - to ensure that strict
standards are
observed in relation to disposal of waste,
recycling, utilisation of
local resources and other issues, set out
separately in BATCo's
environmental policy and that due recognition is
sought on
appropriate occasions.
Employment practices - to ensure strict observance
and due
recognition of employment policies and conditions
and safety
standards and that management quality and employee
opportunities are communicated and understood.
Community contribution - to ensure that community
programmes
respond to the needs and aspirations of local and
national
communities and are relevant to local development
needs.
Corporate identification - to ensure that all
visual identification
such as logo, letterhead and stationery, signage,
vehicles meet
acceptable standards of consistency, clarity and
professionalism.
30 th May 1991
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BATCo document for Province of British Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
EXTERNAL RELATIONS
Background
Even the freedom retained by free enterprise in
the western democracies is a
qualified one and is under greater pressure than
before. Increasingly,
communities are demanding that international
corporations justify their
franchise do business. Companies such as SAT must
not only be good world
citizens, they must demonstrate that this is so.
Po/1c y I
It is BATCo policy* that operating companies
should pursue a pro-active
programme of regular contact with Government
officials, politicians and
ministers on matters of mutual interest. They
should be made aware of SAT's
positive contribution to the national economy.
Assistance will not be
forthcoming if a company approaches a potential
helper only when problems
arise. Contact should also be maintained with
other key audiences whose
goodwill and co-operation can help companies reach
their business objectives.
These groups can include, for example, employees,
suppliers,
customerstsmokers, the trade local community
leaders. leaders of the financial
sector, competition, politicians, the public,
tobacco growers, advertising
agencies and business leaders.
Steps should be taken to ensure that non-executive
directors are given the
opportunity to play a full and appropriate role in
relationships with government
and other appropriate audiences.
Objective
The objective of external relations activity is to
ensure that the full support of
an operating company's key audiences is enlisted.
In this way a company will
help itself to sharpen its competitive edge and
maintain the freedom to conduct
its business in a responsible manner.
SAT's business contributions and practices should
be recognised to be of a
high standard and not open to criticism.
* this policy should be read in conjunction with
the Key Area Paper - Smoking
and Health - Communication.
30 th May 1991
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BATCO document for Province of British Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
THE MEDIA
Background
As major employers and contributors to the
economy, BAT companies are a
subject of legitimate interest by the media.
Dealing with the media can have a
significant impact on the company'3 business.
Relations with press, radio and
television are an important means of developing
corporate reputation and
mishandled can have a significant negative impact
on the company.
P0 lic y
It is BAT's policy to be open and honest in all
its dealings with the media and
to conduct effective media relations programmes to
promote the company as a
responsible business. Media relations plans should
be developed and revised
annually, to include key *,ournalists to contact,
subjects and messages to
communicate and programmes for regular contact.
Operating companies should nominate a media
spokesman who should receive
regular issues and media training and is the only
person in the company, apart
from the No. 1, who is authorised to talk to the
media.
When company spokesmen are dealing with commercial
issues affecting the
local business. information made available should
be cleared with the No. 1.
When providing commercial and financial
information. close attention should be
paid to local laws, stock exchange rules. etc.
Opportunities for general comment on all smoking
issues should be carefully
reviewed and pursued if it is considered that the
company's views can be
adequately represented. This should be with the
agreement of the No. 1.
When discussing any smoking and health issues.
spokesmen should be aware
of product liability implications and scientific
accuracy and should fully
understand the company's stance.
Public Affairs, Millbank, should be kept informed
of significant media contact
and coverage which may have international or
damaging local impact and
should be consulted if there is any doubt about
handling any specific contacts.
Objective
Media relations programmes should contribute to
the achievement of corporate
objectives by ensuring that the operating company
is well known and highly
regarded by its key audiences.
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with the Media - has been
circulated by Public Affairs Department, Millbank.
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BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
SMOKING AND HEALTH - COMMUNICATION
Background
A large number of doctors and scientists believe
that smoking has been shown
to be harmful to health. However. the company's
position Is that whether or
not smoking is a cause of human disease has not
been scientifically
established. Indeed, the processes and mechanisms,
which lead to the
development of the so-called smoking associated
diseases are not yet known,
nor is it known what role, if any, smoking plays
in the development of these
diseases. Many scientific studies have claimed
statistical associations between
smoking and disease, but these studies by their
nature cannot determine cause
and effect. BATCo. continues, together with other
cigarette manufacturers, to
support independent scientific research.
Policy
BATCo.'s views on smoking and health should be
clearly communicated to key
audiences whenever suitable opportunities arise.
It is important that such views
be expressed accurately and in a non-emotionaf
manner. It should, however.
be noted that companies should not adopt a
proactive approach to the
communication of the company's views on smoking
and health without careful
consideration and prior discussion with Public
Affairs Department, Millbank;
however. they should take advantage of appropriate
opportunities to express
their views when requested to do so.
Objective
To encourage the recognition, even amongst those
firmly committed to the
anti-smoking point of view, that smoking and
health is an extremely complex
subject and to promote the adoption of a more
balanced view of the issues
involved.
To ensure that key elected representatives,
government officials and company
employees are aware of the company's views on
smoking and health.
30 th May 1991
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BATCO document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
SMOKING AND HEALTH - ENVIRONMENTAL TOBACCO
SMOKE (ETS)
Background
The claim that the health of non-smokers may be
adversely affected by ETS is
being increasingly used to justify restrictions on
smoking in a wide range of
public places and the workplace. It is the aim of
those opposed to tobacco to
make smoking increasingly socially unacceptable.
However, our position
continues to be that there is no convincing
evidence that ETS causes diseases.
such as lung cancer and heart disease in non
smokers.
polic y
Operating companies should communicate BATCo's
position on the science of
ETS where appropriate. A pro-active approach
should be adopted, however
this should not extend to paid advertising
campaigns on the science. The
company's policy is to promote the sensible
accommodation of both smokers
and non smokers in indoor areas and other places
where total smoking bans are
proposed. The company endorses smoking bans on the
grounds of safety such
as in places where flarnable liquids are stored.
Objectives
To encourage recognition that the claims regarding
the health effects of ETS
cannot justify legislative action (smoking bans
etc.).
To prevent smokers being victimised on the grounds
that their tobacco smoke
is harmful to others when this has not been
established.
30 th May 1991
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BATCO document for Province of British Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
SMOKING AND HEALTH - MARKETING RESTRICTIONS
Background
In response to recommendations from WHO and a
number of international
pressure groups. governments are introducing a
wide range of restrictions on
marketing activities relating to tobacco. These
include restrictions or bans on
advertising in some or all media, on brand
sponsorship, particularly of sports,
and on trademark diversification activities. It is
often stated that such
restrictions are aimed at the 'protection* of
young people from the influence of
tobacco advertising and sponsorship. However,
major studies and experiences
in various markets clearly demonstrate that
advertising or sponsorship is not
significant in influencing young people to begin
smoking, or that advertising or
sponsorship bans have any demonstrable effect on
the consumption of
tobacco.
Policy
It is BAT policy to protect marketing freedoms in
all instances. Wherever
possible, negotiated voluntary codes are to be
preferred to legislation, and
companies should consider adopting such codes
throughout the industry in
their country, where they do not already exist, in
the hope of pre-empting
legislation.
Objectives
To preserve the right of operating companies to
advertise their products within
socially acceptable standards and practices. To
preserve their ability to inform
their consumers of product developments and
innovations. To ensure that
companies are able to compete and increase their
market share.
30 th May 1991
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13 ATCO document for Province of British Columbia
23 April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
SMOKING AND HEALTH - HEALTH WARNING CLAUSES
Background
For many years, health warnings have appeared on
cigarette packets in
some markets and in others they have not. In
particular, health warnings
have been required by governments in most OECD
nations and it is the
perception of the company that, in these countries
at least, there is a
community expectation that all cigarette packets
should contain a warning
of some kind. As a responsible manufacturer, BATCo
believes it should
respond to those expectations and apply a health
warning to all products it
makes.
In many countries health warnings are also
included in advertising either
as a result of legislation or industry agreement.
Policy
It is BATCo policy to comply with any national
requirement to place health
warnings on cigarette packaging and in
advertising.
In most cases warnings are required by government
and should therefore
contain an attribution to the government.
In cases where there is no requirement or
agreement, health warnings
should be included on packaging but not in
advertising (guidelines for
implementation of warnings in these circumstances
will be circulated
separately).
Pictorial warnings, and those occupying a major
pack face or faces (front
and back) or a disproportionately large area of
advertising space, should
be resisted.
Objectives
To neutralise the controversy over pack warning
labels; to minimise the
damage to the Group's most valuable assets, trade
marks, pack designs:
and to minimise the disruption to advertising
communications.
28 May 1992
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BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
SMOKING AND HEALTH - TOBACCO ADDITIVES-
Background
In many regions of the world, WHO and other
anti-smoking groups are
calling for tobacco companies to declare lists of
additives that are used
with tobacco and, on some occasions, to list them
on packs. This issue
has in some countries been taken up by government.
This is an issue of considerable commercial
sensitivity and it is important
that po guarantees are made to government on these
issues without prior
discussion with Public Affairs department,
Millbank.
Policy
Unless legislation specifically requires
otherwise, it is BATCo policy not
to provide lists of additives on a company, class
of product or brand
basis to any outside agency, Government or
private. It is policy not to
list individual additives on product packaging or
include them on pack
inserts.
Should Government require such information, it
should be provided on an
industry basis taking into account various
international lists.
Information should not be provided prior to
consultation with Public
Affairs who will liaise with R&D at Millbank.
Objectives
To preserve the commercial confidentiality of
product formulae and
recipes.
To preserve the company's individual ability to
satisfy consumer tastes.
To prevent if(-informed abuse of the company. its
products and the
tobacco industry.
All additives must have received clearance from
the Additives and
Materials Guidance Panel.
30 th May 1991
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BATCo document for Province of British Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
SMOKING AND HEALTH - DELIVERIES OF TAR,
NICOTINE AND OTHER
COMPONENTS
Background
Largely in response to WHO recommendations and
often following
examples from other countries, an increasing
number of governments are
requiring the display of delivery figures for
cigarettes. In most cases this
covers NFDPM*ttar) and nicotine, but carbon
monoxide and other smoke
components may also be included.
Po/Icy
SATCo is not opposed to the display of information
regarding NFDPM(tar)
and nicotine preferably displayed on the side of
packets. Tar and
nicotine measurements must be made in accordance
with the ISO
method, or a nationally agreed standard method.
Unless legislation specifically requires
otherwise, operating companies
should not agree to the display of other smoke
components including
carbon monoxide either on cigarette packets or by
way of enclosures
because of the potential for misinterpretation and
misrepresentation.
Objectfve
To protect the integrity of the company's trade
marks and pack designs.
To prevent ill-informed abuse of the company, its
products and the
tobacco industry.
I Nicotine Free Dry Particulate Matter
30 th May 1991
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BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
PRESSURE GROUPS
Background
international issues including tobacco, have
become politicised such that
pressure groups sometimes regard themselves as
political groupings. Many are
well established, employing full time staff. A
bureaucracy has arisen 'with an
international career structure and world wide
information networks. It is most
important that the professional nature of pressure
groups and their motivations
be fully understood. Because of its business. size
and international character,
BAT is a special target.
The key strategy of anti-tobacco pressure groups
is to persuade governments
to introduce legislation to ban advertising,
reduce tar/nicotine levels, increase
taxation, to ban smoking in public and to
introduce crop substitution. By these
means pressure groups hope to achieve their
objective of eliminating tobacco
smoking.
Most anti-tobacco pressure groups are linked with
the WHO and affiliated
agencies. They include the International Union
Against Cancer (UICC), the
International Organisation of Consumer Unions
(IOCU), Action an Smoking and
Health (ASH) and many others, who are either
regional of national.
Companies should be aware that pressure group
campaigns will often include:
public meetings
anti-tobacco media activity
defacement of advertisements
smears' against individual tobacco company
executives
action at company AGM*s
attempts to influence company shareholders
lobbying politicians
Policy
BAT policy is to pre-empt the attacks of
adversaries through a review of plans
and allegations of pressure groups and to engage
them when it is in the
interests of the operating company to do so. Where
an attack is directed
specifically at BAT, the operating company should
co-ordinate and lead the
defence of the company. Otherwise pressure groups
should be dealt with via
the national manufacturers' association, but if
necessary, the operating
company can take a leading role.
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BATCo document for Province of l3ritish Columbia
23 April 1999


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Objective
To add balance and fairness to the debate. The
continued defence and
protection of the company's interests and
reputation to further business
objectives.
30 th May 1991
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BATCO document for Province of British Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
COMMUNICATION AND CO-OPERATION
Background
Th: issues affecting the international tobacco
business are now globalised.
Th global anti-tobacco policies of the WHO and its
executive ancillaries are
being implemented on a regional basis. The WHO
activity is administered from
regional centres in New Delhi, Manila,
Brazzaville, Washington DC, Copenhagen
and Alexandria. Over the next few years, the
regional structure of the
industry's opponents is expected to be
strengthened.
In the BATCo Group, companies have considerable
experience in dealing with
WHO's smoking and health strategies, and also with
criticism of international
businesses.
PoAcy
A regional as well as an international view should
be taken of the issues
affecting a company's business. The strategies of
WHO and pressure groups
should be monitored. Strategies on smoking issues
adopted by BAT companies.
shoud be mindful of other regional activities.
Knowledge and experience
should be efficiently communicated among BAT
companies within the region
and to Millbank so that all can benefit.
Objective
To learn from the experience of sister companies.
30 th May 1991
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13 ATCo document for Province of British Columbia
23 April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
TRAINING AND DEVELOPMENT OF PUBLIC AFFAIRS
STAFF
Background
The effectiveness of an operating company's Public
Affairs Department rests
upon the professional competence of public affairs
staff. In a worldwide group
such as BATCo, special efforts must be made to
establish uniformly high
standards of professional practice.
Poficy
It is essential that the head of public affairs
function be aware of the
company's policies, plan, directions and any
developments to be able to
operate effectively and provide informed advice to
the company.
It is policy that public affairs staff in
operating companies be trained in the
techniques necessary for communicating the
company's policies and views to
key audiences. Staff must be able to report
external views back to the
company so that management is always in a good
position to recognise
changing circumstances and to act accordingly.
The professional development of public affairs and
public relations staff should
be through external training programmes, but where
these are not available,
staff should be assisted by in-company training,
by co-operative programmes
with companies in the same region and with Public
Affairs Department.
Millbank.
Staff must be trained in appropriate
communications skills. Staff must also be
able to work with company departments so as to
identify the communication
needs which together will constitute the Public
Affairs Department's annual
work programme.
Objective
To ensure the highest standing of the company
within its local environment.
The objective of staff training is to ensure that
high professional standards are
maintained. In this way the company will be able
to communicate effectively
with and enlist the support of those groups and
individuals who can help it
maintain its commercial freedoms.
30 th May 1991 Ln
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BATCo document for Province of British Columbia 23
April 1999


KEY AREA PAPER - PUBLIC AFFAIRS
NATIONAL MANUFACTURERS' ASSOCIATIONS
Sackground
It is a recognition of the important economic
position often held by the tobacco
industry that governments will usually wish to
keep closely in touch.
Governments will normally prefer to do so via an
organisation which can
represent the interests of all national tobacco
manufacturers. Such NMA's can
also help companies by providing a source of
industry information and agreed
views on non-competitive issues for the media and
the public.
Polic y
It is BATCo's policy that wherever possible, the
views of a national tobacco
industry should be projected co-operatively
through a national manufacturers'
association.
Operating companies should be aware of the
competitive advantage
competitors can achieve through influencing
certain key issues at an industry
level.
Where there is insufficient industry
representation to form an NMA, the SAT
company itself should be prepared to represent an
industry view.
NMA's should be adequately staffed and funded.
They should establish
appropriate policies and measurable objectives.
Effectiveness should be
audited and reviewed regularly.
Objective
The objective is to ensure that the industry
present strong, consistent and
unified views to its audiences on non-competitive
tobacco issues. This unity
will give strength to the industry's case and so
help create favourable
conditions for the responsible conduct of
business.
30 th May 1991
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BATCo document for Province of British Columbia 23
April 1999