10.18 Corporate links with charities and social causes

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Corporate sponsorship of sporting and cultural events was an important and highly effective source of tobacco advertising in Australia before it was banned by a number of states during the late 1980s and finally by federal legislation in 1992.[43] As well as enhancing their corporate image, sponsorship provided endless hours of visual and verbal brand exposure, linked cigarette brands with positive imagery and iconic events, bought considerable support for the industry when it needed friends, and effectively gagged potential anti-smoking advocates (such as sportsmen and women whose sport benefited from tobacco funds).

Termination of these sponsorships has caused Australian tobacco companies to look elsewhere for ways in which to promote themselves. The advent of an agenda in corporate responsibility has lead to a focus on charities and groups with impeccable credentials, including aid for sick children, combating domestic violence and environmental stewardship.

During 1999, PMA claimed credit in publicity material for supporting a number of charities in Australia, including Jeans for Genes Day, Red Nose Day,[44] the Lions Club and Ronald McDonald children's charities. None of these charities had knowingly accepted funding from Philip Morris, since the money had either been received via a corporate entity related to PMA (Kraft—which owns Vegemite and other iconic food brands) or because donations had been made through employees of PMA apparently acting on their own behalf, rather than at the behest of the company. The revelation that donations could be attributable to a tobacco company caused consternation among the beneficiaries.242 In February of 2003, PMA co-sponsored a high-profile conference on domestic violence. The conference, 'Breaking Point: A Corporate Conference on Work and Family Conflict,' was organised by the Federal Government's Office for the Status of Women.243, 244 Along with Senator Amanda Vanstone, then Minister for Family and Community Services, Philip Morris representatives from Australia and the USA spoke at the event.245

The Office for the Status of Women was strongly criticised by representatives from the Australian Medical Association243, 244 the Federal Opposition244 and the public health sector245 on the grounds that tobacco is a major killer of women, and that acceptance of tobacco sponsorship detracted from the importance of the issue of domestic violence, while enhancing the corporate image of PMA.

More recent industry efforts by PMA to take the stage in Australia have failed. At a conference in 2004 a company representative was scheduled to deliver an address on public relations and corporate communications. After being made aware of PMA involvement, other speakers threatened to withdraw, and the conference organisers removed PMA from the program.246 The following year, an attempt by BATA to be associated with a conference on corporate social responsibility precipitated the exodus of other companies, including McDonald's, Pfizer and the mental health group Beyond Blue.247 In the international arena, at least one similar 'ethical' event has been shunned by non-tobacco companies once tobacco industry involvement has been exposed.246

Nevertheless BATA appears to have had some success in forging connections with several 'charity partners.' The logos and web links for these organisations[45] appear on the BATA website.1 Employees may choose to make donations to BATA's charity scheme, and BATA pledges to match donations dollar-for-dollar. One of the charities to receive BATA support is Guide Dogs Australia, which provides services to the blind. Noting the well-established connection between smoking and blindness, [46] one commentator has described this as an especially cynically calculated partnership.248 As part of its corporate responsibility strategy for the environment, BATA also supports the Butt Littering Trust (see Section 10.17).

On its international website, Philip Morris pledges its support for 'five defined areas: hunger and extreme poverty; education; environmental sustainability and living conditions in rural communities; disaster relief and domestic violence.' In 2006, Conservation Volunteers Australia received $75,000[47] from PMA.5 PMA has also supported Keep Australia Beautiful,238 along with ITA236, 237 (see Section 10.17). Imperial Tobacco makes no other specific mention of its activities in Australia, but states a preference for supporting charities or not-for-profit organisations in which its employees are actively involved and matching funds raised by employee activities.3

Corporate philanthropy is unapologetically connected with corporate advertising in the USA. There, Philip Morris has run television advertising campaigns informing the public of its good works, such as funding shelters for the homeless, food donations for the needy and programs against domestic violence.249 In fact Philip Morris spends millions more dollars on publicising its charitable works in the USA (US$150 million) than it actually donates ($US115 million).245 This advertising has also allowed Philip Morris to generate its own positive publicity in mainstream media although direct tobacco advertising is banned on television in the USA.249

[43]Exceptions were made for some events. See Chapter 11 for further information.

[44] Ironically, funds raised by Red Nose Day support counselling services, research and education into Sudden Infant Death Syndrome. See: http://www.rednoseday.com.au/. Exposure to cigarette smoke, before and after birth, is a cause of SIDS. See Chapter 3, Section 3.8.2.

[45]The following organisations are listed: Mission Australia, Conservation Volunteers Australia, Guide Dogs Australia, The Benevolent Society, Lifeline, Barnados, The Northcott Society, Life Saver Rescue Helicopter and The Abused Child Trust.

[46]Smoking is a cause of cataract and is a major risk factor for developing age-related macular degeneration, both of which may result in blindness. See Chapter 3, Section 3.10.

[47]It is not clear from the PMI website whether this amount is in US or Australian dollars.

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