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Philip Morris Stakholders

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Submitted By vautohost
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): Phillip Morris International has successfully become the number one tobacco company in Indonesia and it owns 30% of the market. PMI has had its success because of targeting children as customer for their tobacco products such as cigarettes knowing “Since 1st October 2007 it is illegal to sell tobacco products to anyone under 18 years of age.” In a poverty place like Indonesia, there are very few regulations on selling and consumption of tobacco; PMI is using this to advertise directly to children. There are billboards promoting PMI’s cigarettes outside schools in the capital city of Indonesia. Children are very easily influenced because of their insufficient knowledge; a prime example is the “Smoking Baby” who became a YouTube superstar after a video was posted of the baby smoking cigarettes. The two year old baby smoked 20 cigarettes a day. Furthermore, a two year old baby whose grandfather allows him to smoke because it “tastes good.” PMI has increased revenue by the sales of cigarettes as the youth smoking rates have doubled, and the CEO of the company had this to say ,"I think we're doing the most responsible thing in Indonesia and that we've been very vocal advocates for restrictions."

Moral problem: Should Phillip Morris International target children as customers of their poisonous tobacco products to increase revenue given that: (1) it is illegal to advertise and sell cigarettes to children; and (2) there are few regulations on tobacco in a poverty country like Indonesia?
ANALYSIS:
Stakeholders are most influential to corporations as stakeholders have the highest interest in corporations. Their satisfaction should be the main priority for corporations. The interest of stakeholders can immensely influence change to corporations.
The company itself as the owner, Phillip Morris International, would be the first primary social stakeholder with high

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