11994KEYISSUES. CORPORATE AFFAIRS
1. Corporate Image
2. External Relations
3. Media
4. Marketing Restrictions
5 Packaging
6. Pressure Groups
7. Communication and Co-operation
S. Training and Development ofCorporaE-2 kffiirs
Staff
9 National Manufacturers Associations
10. Internal Communications
0810303
CD
L_j
BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PA PER CORPORATE AFFAIRS
CORPORATE UNTAGE
BACKGROUND
A company's corporate:mage is a valuable asset.
From a commercial perspective, the
benefitsofa ood image and reputation within local
and national commuruities are
9
becoming increasingly apparent. The products ofa
company with a good corporate
image are often more attractive to consumers.
Access can be easier to decision makers
and opinion formers, the company can become more
attractive in terms ofrecruitment
and it is more difficult for legislators to enact
harsh regulations affecting companies
which have the support oflocal and national
communities.
With the changing political climate, there are
Increasing opportunities for international
businesses in manv new markets around the world. A
strong corporate image can
assist with the export of produc-s and setting up
Joint ventures in new countries.
Intemational companies and Mdustries are often
criticised :or their activities and
behaviour in many par-,s oCthe world. Much ofthe
criticism is politically motivated,
particularly by those opposed to the free
enterprise system. Critics argue that the
interests and objecczives ofinternational business
are incompatible with the interests and
well-being of national communities.
%Vh~e this is ncc 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 -.obacco industry and companies in the
BAT group.
A - I I
good corporate image and reputation on many
factors including financial
performance, corporate behaviour and ethical
practices, community involvement and
concribui:on and environmental awareness and
sensitivitv
Ic Is therefore important -,ha: 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 :he company enjoys a good
corporate reputation.
POLICY
Companies should have a co-ordinated programme to
establish and maintain their
corporate image and reputation.
As part of their corporate image programmes,
companies should associate themselves
with British,iinerican Tobacco Company on
stationery, including the BATCo logo, in
accordance with the corporate identity guidelines.
General communications should
refer to being part of the BAT group, e.g-, total
group volume should be quoted rather
than BATCO's and group operations should refer to
North America. all ofEurope and
Latin Ame6ca. although reference should not be
made to BAT Industries as such. The
generic term BAT will be the communication
reference.
C-
00195
Ln
BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER CORPORA TE A FFA IRS
Corporate image/reputation should be assessed
regularly and programmes adjusted to
take account ofchanging opinions and attitudes.
OBJECTIVES
The overall objective of corporate
imageireputation programmes should be to achieve
the highest reputation within the industry sector
among key target audiences to ensure
community support r-or the company's business
objectives and activities and to assist in
gaining competitive advantage.
BAT should be positioned as the paceserter in the
following areas:
Financial management and profit performance
Ethical standards
Marketing standards and practices
Product quality
Customer relations
En,~ironmental practices
Employment practices
Community contribution
Corporate i d eriu", cation
Programmes and anon 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 economic contribution and views
ofthe company when
determining policy; the company enjoys a fair
share price
Ethical stnndards - 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, far-ners, etc and in -he conduct
ofrelations Vvith elected and
govemment officials
Marketing st.-indards and practices - to ensure
that the company's code of
marketing practice is observed and :hat the
company operates within local laws
and voluntar,: agreements.
Product quality - to ensure that the company is
able to gain competitive
advantage thrcugh the marketing of superior
quality products and that all
communications material is of the highest quality
standards.
Customer relations - to ensure that customer
enquiries are handled efficiently
and quickly and that the company demonstrates care
and concern to achieve
customer satisfaction.
(D
rll~
C71
r1 l)
N)
-pI..Ik.pIk.p.,2 DIU03195
Ln
U1
BATCo document for Province of BritiSh Columbia 23
April 1999


KE Y AREA PAPER coRpoRA-rE AFFAIRS
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 BATs 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
communicies and are relevant to
local development needs. Programmes should be
selected from one ofthe
four areas so :hat BAT is recocanised as a
consistent supporter of
ipecific initiatives-
health
environment
cuiture
business development
Corpornte identification - to ensure that all
%,isual ideritification such as logo,
letterhead and stationery, signage, vehicles
comply with BATs corporate
identity rules to achieve consistent corporate
identification. Where
appropriate, companies should seek to associate
company with the brands.
OS,03"95
C:~
NJ
CN
Qrl
BATCo document for Province of BritiSh Columbia 23
April 1999


KE Y AREA PAPER CORPORATE AFFAIRS
EXTERNAL RELATIONS
BACKGROUND
The free enterprise system is now a world wide
phenomenon, however that &eedom is
qualified and under great prmure. Increasingly,
communities are demanding that
intemational corporations Justify their franchise
to do business. Companies such as
BATCo must not only be good world citizens, they
must demonstrate and communicate
that this is so
POLICY
It is BATCo policy that systemouc pro-active
programmes ofregular contact with
szovernment officials, politicians and ministers
on matters of mutual interest be pursued.
Contact programmes should also be carried out with
appropriate international bodies,
such as the World Bank and World Trade
OrzanisaEion. Audiences should be made
aware ofEhe company's positive contribution to the
national economy. Assistance will
riot be forthcoming if a company approaches a
potential helper only when problems
arise. Sisrematic contact should also be
maintained with other key audiences whose
zoodwill and co-operation can help compar~ies
achieve their business objectives. These
groups can inc!ude, for example, employees,
suppliers, customers/smokers, the trade,
local community leaders, leaders ofthe 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 oppormnity
to play a full and appropriate role in
relationships with government and other
appropriate audiences-
This policy should be read in conjunc-,ion with
the Key Area Paper on Smoking and
Health - Communication.
OBSECTI'VE
The objective of external relations' activity Is
to ensure that the full support of key
audiences is enlisted. In this way a company will
help itselfto sharpen its competitive
edge and maintain the freedom to conduct its
business in a responsible manner.
BATCo's business contributions and practices
should be recognised to be ofa high
standard and riot open to criticism
)&03193
U_
C~
L n
BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER CORPORATE AFFAIRS
THE MEDIA
BACKGROUND
As major employers and contributors to the
economy, BATCo companies and
operations are the subject oflegitimate interest
by the media. Dealing with the media
car. have -- significant impact on the company's
business. Relations with press, radio and
television are an important means ofdeveloping
corporate reputation and mishandled
can have a significant negative impact on the
company.
POLICY
It is BATCo's policy to be open and honest in all
its dealings with the media and to
conduct smematic. pro-acuve media relations
programmes to promote the company as
a responsible business. Media relations' plans
should be developed and revised annually,
to inc!ude keyjournalisEs to contact. subj.-c:s
and messages to communicate and
programmes for rezular contact.
Corricanies should nominate a med:a sockesman who
should receive re,-,ular 'Issues and
media trainin and is the only person in zhe
company, apart from the No 1. who is
9
authcrised to talk o the media.
When company spokesmen are dealing with commercial
issues affecting the local
business. information made avallabie should be
cleared with the 'No I - W hen providing
commercial and financial information, close
attention should be paid zo local laws, stock
exchange rules, etc.
Opportunities for general commeir 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 aereement of the No 1.
When discussing any smokiniz and
health issues, spokesmen should be aware of
product liability implications and scientific
accuracy and should fully understand the company's
stance
Corporate Affairs Department, Millbank. should be
kept Informed ofstignificant media
contact and coverage which may ha,,e international
or damaging local impact and should
be consulted ifthere is anv doubt about handling
any specific contacts.
OBJECTIVES
-Medla relations programmes should contribute to
the achievement ofcorporate
objectives by ensuring that the company is well
known and highly regarded by its key
audiences.
A more detailed paper - Guidelines Cor Dealing
with the Media - has been circulated by
Corporate Affairs Department, Nfillbank. L
011
0*1J,p,%L.,p,Up-d 03/03195
03
BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER CORPORA TE AFFAIRS
,IIARY,ETLNG RESTRICTIONS
BACKGROUND
In response to recommendations from WHO and a
number ofinternational 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' ofyoung
people from the in?uence oftobacco advertising and
sponsorsh~ip. 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 overall
consumption oftobacco.
POLICY
It is BATCo policy to protect marketing Freedoms
in all instances. Wherever possible,
ne,,,oEiated voluntar., codes are to be preferred
to legislation, and companies should
consider adopting sLC-i codes throughout the
industry in their countrw, where they do
not already exist, in :he hope of pre-eMpEing
legislation.
OBJECTIVES
To preserve the H izh: of companies to advertise
and market their products within sociay
acceptable standards and practices.
To preserve their ability to inform their
consumers ofproduct developments and
Innovations.
To ensure rhar companies are able to compete and
increase their market share.
0 :~PIAWLapkkap-z "'Sio3i9s
cr,
Ln
BATCo document for Province of BritiSh Columbia 23
April 1999


JKEYAREA PAPER CORPORATE AFFAIRS
PACXAGrNG
BACKGROUND
For many years, health wamings have appeared on
cigarette packers in some markets
and in others they have not. In particular, health
wamings have been required by
goverriments in most OECD nations and it is the
perception ofthe company that, in
these countries at least, there is a community
expectation that all cigarerte packets
should contain a warning ofsome kind. A., a
responsible manufacturer, BATCo believes
it should respond to those expectations and apply
a health waming to all products it
makes.
Moves have also been made In some markets to Force
manufacturers to sell cizaretres in
plain or generic packs.
In many countries health warnines are 31SO
included 'In advertising either as a result of
leuislation or indusm aere-e-nent
POLICY
Iris BATCo policy to comply with an, national
requirement to place health wamings on
cigarette packaging and In a., ernising.
In most cases wamines are re;uired by government
and should therefore contain an
attribution to the 2ove-nment.
In cases where there is no requirement or
agreement, health warnings should be included
on packaging but not in advertising (guidelines
for the application ofhealth warnings
where no government requirement exists are
circulated separately).
Pictorial warnings, and :hose occupying a. major
pack face or faces (front and back) or a
disproportionately large area cfadvertis;n!z
space, should be resisted, as should moves
to 'lain or generic packs Every efforT should be
made to protect the integrity ofthe
P
company's packs and zrade marks.
OBJECTIVES
To minirnise the damage to the Group's most
valuable assets, trade marks, pack designs,
To neutralise the controversy over pack warning
labels.
To minimise the disruction to advertising
zommunica,~ons.
0 :1p1-1Up,I,.pp..k 09103,-5
BATCo document for Province of BritiSh Columbia 23
April 1999


JKEYAREA PAPER CORPORATE AFFAIRS
PRESSURE GROUPS
BACKGROUND
International issues including tobacco, have
become politicised such that pressure
groups are sometimes regarded as political
groupings. Nfany are well established,
employing fLll time suff. A bureaucracy has arisen
with an international career st.rucrure
and world wide information networks. It is most
important that the professional nature
of-pressure groups and their motivations be Uly
understood. Because ofits business,
size and *international character, BAT is a
special target.
Tine key strateg I I
y ofant -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 force crop
substitution. By these means pressure groups
houe to achieve their objective ofe:lminadniz
tobacco smokinL,.
Mc5t anti-tobacco pressure groups are linked with
the WHO and affiliated agencies.
They include the Inte-national Union Against
Cancer (UICC), the International
Orzanisarion of Consumer Unions (IOCU), Ac:icn on
Smoking and Hea,'th (ASH) and
others, who are either reelonal or national.
Companies should be aware that pressure group
campaigns will often inc!-ade
public meetings
anti-tobacco media activity
defacement ofadverTisements
.smears' against individual :obacco company
executives
action at company AGIvIs
attempts to influence company shareholders
lobbying politicians
POLICY
BATCo policy is to pre-empt the 3tacks
ofadversaries through a review ofplans and
alleptions of pressure groups and ~o engage them
when it is in the of the
operating company to do so. Where an attack is
directed specifically at BATCo. the
operating company should co-ordinaie and lead the
defence OfEhe Company. Otherwise
pressure groups should be dealt with via the
national manufacturers' association, but if
necessary, the operating company can take I
leading role.
OBSECTIVE
To fitirther business objec-ives by the continued
defence and protection ofthe company's
interests and reputation.
To ensure balance and fairness to the debate
-Pi.-UP1k.PPs 0&,03.95
C;
r,_
0%
BATCO document for Province of BritiSh Columbia 23
April 1999


IKE Y A REA PAPER CORPORATE AFFAIRS
COMMUNICATION AND CO-OPEPL-MON
BACKGROUND
The issues affecting the international tobacco
business are now globalsed. The global
anti-tobacco policies of the WHO and its executive
ancillaries, are being implemented on
a reizional basis. The WHO activity is
administered firom regional centres in New Deh,
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.
Regional trading blocks exist in some parts ofthe
world and necessitate a regional
approach to public issues management.
In the BATCo group, companies have considerable
experience in dealingArith WHO's
smoking and health strarespes, and also with
criticism ofinternational businesses.
POLICY
A regional as bell as an international view should
be taken ofthe issues affecting a
company's business. The strategies ofWHO and
pressure groups should be monitored.
Strategies on smoking issues adopted by B.A.TCo
companies should be mindU of other
regional activities. Knowledge and experience
should be efficiently communicated
among BATCo companies within the region and to
Millbank so that all can benent.
Reizional issues and communications should be
managed through the Public k~fairs
managers in i;je Corporate .~ffcrirs department.
Millbank.
OBJTECTTVE
To maximise communication and cooperation on
public issues amongs: companies and
business units in regions covered by RBUs.
M03195
cr\
rQ
r,j
Oll
BATCo document for Province of BritiSh Columbia 23
April 1999


KEY AREA PAPER coRPoRA-rE AFFAIRS
TRAINING AND DEVELOPMENT OF CORPORATE AFFAIRS
STAFF
BACKGROUND
The effectiveness of an operating company's
Corporate Affairs Department rests upon
the professional competence of staff. In
aworidwide group suc~as BATCo, special
efforts must be made to establish uniformly high
standarcis of profl~ssional practice.
POLICY
It is essential that the head ofcorporate affairs
function be aware ofthe company's
policies, plans, directions and any developments.
to be able to operate effectively and
provide informed advice to the company.
It is policy that the corporate affairs
stafftraining a-
I - genda be based on the technical skills
outlined in the PACE appraisal system and the
Corporate ~ffazrs training S:vllabyls now
adopted b.v the SA TCo Board
The professional develooment of corporate affairs
and public relations staff should be
throug ernal training programmes, but where these
are not available, staff should be
gh ext
assisied by in-company training, by co-operative
programmeswith companies in the
same region and with Corporate Affairs Department,
%fillbank.
OBJECTWES
To ensure the hiehest standin2 ofthe company
within its !ocal en-vironment.
The objective of staff:raining is to ensure that
hlszh professional standards are
maintained. In this way the company will be able
to communicate effectivelywith and
enlist the support ofthose groups and individuals
who can help it maintain its
commercial freedoms.
0 Ap1an*%kjp-k&pc&d W03/95
CN
Q1-4
BATCo document for Province of British Columbia 23
April 1999


r
KEY AREA PAPER CORPORATE AFFAIRS
NATIONALMAINTUFACTURERS' ASSOCIATIONS
BACKGROUND
It is a recognition of the important economic
posi6on often held by the tobacco
industry that governments will usually wish to
keep closely in touch. Governments
will normally prefer zo do so via an organisation
which can represent the interests of
all national tobacco manufacturers. Such NMAs can
also help companies by
providin,, a source of industry information and
agreed views on non-competi.tive
issues ir he media and the public.
POLICY
It; s BATCo's policy that wherever :)ossible, the
views of a national tobacco indus-,-v
should be projected co-operatively through a
national manufacturers' association.
Companies should be aware of the competitive
advanta-ge competitors can achieve
,nrough influencing key issues at an industry
level.
%Vhere there is insufficient industr;
re:)resentadon o form an N'NIA, the BATCo
company itself should be preparea w represent an
indust:-v view.
NN'NfAs should be ad.-cuaEe:v stafted and funded.
They should establish appropriate
policies and measurab le obi ecdves. Effectiveness
should be audited and reviewed
gularly.
reg
OBJECTIVE
To ensure that the industry present strong,
consistent and unified views to its
audiences on non-compeutive tobacco issues. This
unity will give strength to the
indusErv's case and so help create favourable
conditions for the responsible conduc-, of
business.
o:-P1..,k,.P,k.P.- 03,03M
C "I
-LU
BATCo document for Province of British Columbia 23
April 1999


KEY AREA PAPER CORPORA TE AFFAIRS
INTERUNAL COMMUNICATIONS
BACKGROUND
Research clearly demonstrates that companies with
clear policies and effective systems
for internal communications are more likely to be
successfW.
POLICY
It is the company's policy to be open and honest
in all its dealing's with employees,
involving them in business decisions and providing
regular and relevant information
a'-,out the company.
The company recognises that managers are the main
channel of information and wifl
car7; responsibility for the quality and
timeliness of information.
T'ne company undertakes hat;t will endeavour to
ensure that people hearnews first
of~ciallv ra
_ ther than through the grapevine.
Cornmunication is mort than impar-ing information
so managers will also 'waik the job'
Tire company recognises that communication is as
much listening as it is taiLirig andw-i-11
ensure that wherever possible, communication will
be face-to-face. It will also provide a
mechanism to enable staffto have questions and
concerns addressed in a timely way.
T'ne company will provide communications training
and development for employees.
-U m
. , anagers and supervisors will be appraised on
their commurtications sEls and
ac,avities.
i.he company will endeavour to adopt best
professional practices and methods of
cc-nmunication.
OB.TECTIVFS
To Increase understanding ofhe company's plans and
business decisions.
To ensure people have all the information they
need to do their jobs.
To help individuals feel involved.
0 01103195
0 \
C71
Uri
BATCO document for Province of BritiSh Columbia 23
April 1999