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Civilizar 15 (29): 113-134, julio-diciembre de 2015

Corporate social responsibility of Colombian


tobacco industry: Is it a strategy?1

Responsabilidad social empresarial de la industria de


tabacalera en Colombia: ¿Es una estrategia?
Recibido: 09 de abril de 2014 – Revisado: 21 de julio de 2015 – Aceptado: 14 de septiembre de 2015

Diana Niño Muñoz2

Abstract
This research focuses on Corporate Social Responsibility (CSR) by tobacco
companies in order to answer whether these companies used CSR initiatives
in Colombia as a strategy to enhance the corporate image and counter their
bad reputation, as part of its strategy to prevent further advances in regulation.
I used a qualitative data analysis to process the documents available on its
official internet pages and major national media between 2008 and 2011. The
most important conclusion is that the tobacco companies appear as a strategic
partner in efforts for development of the country, with two possible objectives: 1
Research paper that is a result of
to improve their image and gain influence in political processes. It is necessary the project “Making the Colombian
to consider these strategies especially in light of the scope of the ban to anti-tobacco law work” at Escuela
de Economía of Universidad Sergio
sponsorship and promotion that the industry has. Arboleda, Bogotá, Colombia. I was
funded by Bloomberg initiave supor-
Keywords ted by Unión Internacional contra la
Corporate Social Reponsibility, CSR, tobacco control, monitoring. Tuberculosis y Enfermedades Respi-
ratorias and Organización Panameri-
cana de la Salud. (Opinions, mistakes,
Resumen omissions are the exclusive author´s
Esta investigación se centra en la Responsabilidad Social Corporativa (RSC) responsibility). The author thanks
Prabhat Jha and Blanca Llorente for
de las compañías tabacaleras con el objetivo de responder si estas compañías their comments and support in the
usaron las iniciativas de RSC en Colombia como una estrategia para mejorar process of building up this paper.
2
Magister in Interdisplinary Studies
la imagen corporativa y contrarrestar su mala reputación, como parte de su on Development from Universidad
estrategia para evitar mayores avances en la regulación. Utilicé un análisis de de Los Andes, Bogotá, Colombia and
datos cualitativos para procesar los documentos disponibles en sus páginas Specialist in Organizations, Social
Responsibility and Development at
de internet oficiales y en los principales medios de comunicación nacionales this University. Ba.Sc. Economics and
entre el 2008 y el 2011. La conclusión más importante es que las compañías B.PH. Philosophy at Universidad Ser-
gio Arboleda. Researcher and profes-
tabacaleras aparecen como un socio estratégico dentro de los esfuerzos de sor at Escuela de Economía of Uni-
desarrollo del país, con dos posibles objetivos: mejorar su imagen y ganar versidad Sergio Arboleda, Bogotá,
Colombia.
influencia en procesos políticos. Se hace necesario considerar de manera Email: diana.nino@usa.edu.co
especial estas estrategias a la luz del alcance de la prohibición al patrocinio y For citation use: Niño-Muñoz, D.
promoción que tiene la industria. (2015). Corporate social responsibili-
ty of Colombian tobacco industry: Is
it a strategy? Revista Civilizar Cien-
Palabras clave cias Sociales y Humanas, 15(29),
Responsabilidad Social Corporativa, RSC, Control de tabaco, Monitoreo. 113-134.
114 Diana Patricia Niño Muñoz

Introduction section describes the qualitative methodology


applied to organize and analyze the information.
In Colombia there are two major players in Section five shows the main results obtained
the tobacco industry: Philip Morris International after applying the different codes defined in the
(PMI) and British American Tobacco (BAT). methodology to classify the information. To
In 2005 PMI acquired Coltabaco and in 2011 introduce the abundant material in a tractable
BAT purchased Protabaco, both tobacco way, results are presented in three stages.
manufacturing companies in the country. Before First, tobacco industry’s activities reported in
these firms entered the Colombian industry, they the official media between 2008 and 2011 are
already used Corporate Social Responsibility described in terms of a timeline, linking them
(CSR) as a tool to build a positive image and to the normative developments that allowed
counteract the bad reputation coming from the inception of the Tobacco Control Act in
the devastating health consequences deriving Colombia (Ley 1335 de 2009). The latter is
from consuming their products (Fooks et al., the main reason to choose that period, which
2011; Hirschhorn, 2004). More recently, public was the most active in terms of discussion and
documentation from Coltabaco also recognizes adoption of regulatory changes fostered by the
not only its intentional use of this strategy to implementation of the Framework Convention
discourage tobacco control efforts, but also to on Tobacco Control (FCTC). Second, CSR of the
report success in its efforts (Patino, 2013). two major tobacco companies in Colombia are
exposed according to the evidence found in the
Based on these authors, this paper pre- official websites between 2008 and 2011 with
sents the following research question: Are tho- a review in 2015. The results section ends with
se transnational firms using CSR initiatives in an exposition of other salient findings. Section
Colombia as a strategy to prevent stronger re- six discusses the previous results considering
gulation? To answer it, this paper used a Qua- some of the key theoretical elements mentioned
litative Data Analysis to process a monitoring in section two. Finally, the last section offers
of the documents available in their official web conclusions and recommendations.
pages and in local main media between 2008
and 2011. The most important conclusion is that Corporate Social Responsibility
the tobacco companies appear as a key partner approaches
in the country’s development efforts with two
possible objectives: to improve image and to Porter and Kramer (2006) are pioneers
gain influence on political processes. The pro- proposing CSR as a business strategy to acquire
cedure and results of this research may provide competitive advantage. Strategy is different from
an outline for a mechanism to monitor those activities or practices, because these are a part of
practices regularly and to contribute to inform the strategy. In this sense, Lindgreen, Córdoba,
valuable tobacco control strategies for both the Maon and Mendoza (2010, pp. 230-231) consider
government and the civil society. Hopefully, that organizations’ strategies must “fit their
this analysis will also provide more elements to social context and find meaningful ways to work
understand the challenges of regulation to coun- with local communities by combining various
teract their strategies. elements of CSR practices”. Then, strategic CSR
must go beyond the best practices and shift from
The paper is structured in six sections, a fragmented posture to an integrated approach
including this introduction, as follows: section (Porter & Kramer, 2006).
two presents some of the most salient approaches
to CSR. Section three reviews the background Nevertheless, CSR is not a univocal
about the CSR of the Tobacco Industry. The next concept, and it has not been adopted in the

Civilizar 15 (29): 113-134, julio-diciembre de 2015


Corporate social responsibility of Colombian tobacco industry: Is it a strategy? 115

same way by the firms. Thus, it is convenient The approach known as cause-related
to understand some of these approaches before marketing conceives CSR as strategies to im-
undertaking the task of analyzing CSR in prove the firm’s image, increasing sales and
tobacco companies in Colombia. The literature economic benefit. This should not be interpre-
on this topic identifies several classifications ted as a criticism against the firms’ efforts to
about CSR theories (Argandoña, 2007a, 2007b; communicate the positive social effects emer-
Carroll, 1999; Garriga & Melé, 2004, 2013; ging from their activities. Stakeholders –in-
Melé, 2004). For the purposes of this paper the cluding shareholders, but also other groups
classification suggested by Garriga and Melé concerned with the firm’s sphere of influence–
(2004) is appropriate because it has a wide have the right to be informed (Hoyos-Vásquez
scope that presents a rather complete landscape & Solarte, 2007) and with this communication
of the debates and consensus surrounding the companies have the possibility to align corpo-
types of CSR and the strategies that the firms rate behavior with stakeholder expectations
should adopt or actually use. An analysis (Dawkins, 2005). Even more, “spreading the
of this classification was developed in a information on CSR activities performed by
previous study (Niño-Muñoz, 2012), where the firm might motivate other firms to adhere
the reader can deepen the explanation of the to that same vision and effort” (Pezoa, 2004,
categories presented in this paper. Among all p. 280). Likewise, communication about the-
the categories identified by Garriga and Melé se practices promotes among consumers the
(2004), four of them seem quite relevant for firm’s reputation, its credibility and honesty
the type of analysis intended here: maximizing and increases their loyalty to the firm’s pro-
the shareholder value, cause-related marketing, ducts (Park, Lee, & Kim, 2014). The problem
corporate constitutionalism, and the common with this approach emerges when the content
good approach. of the communication is not a consequence of
the firm’s actions (Pezoa, 2004). When benefi-
The main exponent of the first category ciaries are not related with the company’s core
–maximizing the shareholder value– is Friedman business, it generates suspicion with regard to
(septembre 13th, 1970) who stated that ‘‘there is the sincerity of the firm (Yoon, Gürhan-Canli,
one and only one social responsibility of busi- & Schwarz, 2006). In consequence, “acti-
ness to use its resources and engage in activities vities, which typically exploit cause-related
designed to increase its profits so long as it stays marketing, are classical musical concerts, art
within the rules of the game’’. Although this pos- exhibitions, golf tournaments or literacy cam-
ture implies limitations, this is not the place to paigns” (Garriga & Melé, 2004, p.55).
get into that discussion. Suffice to say that the
objective of this paper is not to stigmatize eco- Continuing with the suggested category
nomic profit. It acknowledges the fact that profit review, corporate constitutionalism understands
allows the functioning, maintenance and expan- the firm as a social institution with a certain
sion of the firms (Debeljuh, 2009). In fact, sa- amount of power over the society, power that
feguarding the optimum use of the resources to should be used in a responsible manner (Garriga
obtain benefit is a central responsibility of any & Melé, 2004). Likewise, this approach views
firm. But it does not follow that this should be the firm as a political organization “because it
the only or even the main responsibility. The firm contributes to the shaping of society” (Paladino
should go “beyond the mere economic contract & Willi, 2004, p. 111). In a continuously glo-
with society” (Paladino & Willi, 2004, p. 91) balizing world, where transnational companies
and should remember that wealth accumulation control an increasing piece of the world eco-
is good as a means to a higher end (Aristóteles, nomy, their actions have a bigger impact. Thus,
2013, original in 1475). the political dimension of these firms becomes

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116 Diana Patricia Niño Muñoz

larger and even more real in terms of their po- Background about the CSR of the
tential to act and improve the quality of their tobacco industry
own milieu. Davis (1960), a pioneer in this sub-
ject, states that one of the essential laws in the In the last years, CSR has become an
management of the firm’s social power is the important facet of any company; especially
iron law of responsibility. According to this law, in those with bad reputation (e.g., tobacco
“in the long run those who do not use power in firms) which are interested in improving their
a manner which society considers responsible negative image through CSR activities (Yoon et
will tend to lose it because other groups even- al., 2006). It is expected that CSR creates trust
tually will step in to assume those responsibili- in the company and it will bring an improved
ties” (Davis, 1960, p. 63). perception of the firm (Park et al., 2014).
However, it depends on the perceived sincerity
Last, this analysis considers relevant the of the company’s motives to achieve positive or
common good approach, which stands among negative effects (Yoon et al., 2006).
the ethical theories of CSR. This approach
sees the organizations as intermediate social Sincerity in CSR initiatives of Tobacco
institutions between the individual and companies is questioned, because on one side
society, and in turn, the organizations have a cigarettes cause harm and death, and, on the
responsibility in this relationship: to contribute other, they make marketing efforts to target
to common good (Aguilar, 2011; Melé, 2004). young people (Chapman, 2004; Palazzo &
The common good should be understood as Richter, 2005; Yoon et al., 2006) and women
“the set of all conditions of social life which (Ho, Shi, Ma, & Novotny, 2007). Thus,
allows groups and every member of these CSR initiatives constitute a “strategic goal
groups to reach their perfection in a fuller and to distract attention from their controversial
easier way” (Catecismo Iglesia Católica, CIC, activities, lessen the negative consequences
1992, p.427). This view assumes that CSR as a of stigmatization and neutralize the impact of
set of “policies and programmes generated by litigation proceedings” (Grougiou, Dedoulis, &
the firms and enforced voluntarily, in order to Leventis, 2015, p. 295). In fact, studies found
face their responsibilities to their stakeholders that tobacco companies have used CSR in UK
and society in general” (Argandoña, 2007c, (Fooks et al., 2011) and in USA (Hirschhorn,
p. 1), and with the purpose of improving their 2004) as a tool to build a positive image and
milieu, and contributing to common good. counteract the bad reputation coming from the
devastating health consequences deriving from
In sum, this previous analysis allows consuming their products.
highlighting conditions of a complete CSR
behavior. A responsible firm should get profit CSR of tobacco companies has also been
to secure functioning, maintenance and ex- questioned because academics have asked
pansion of the company (Debeljuh, 2009); it for two requirements of CSR concept: i) to
should communicate sincerely companies’ ac- contribute to the well-being of society; and ii)
tivities to align corporate behavior with stake- to abolish Corporate Social Irresponsibility
holder expectations (Dawkins, 2005) and to (CSI), such as cheating customers (Lin-Hi
motivate other firms to follow the same path & Müller, 2013). Avoiding CSI is a central
(Pezoa, 2004, p. 280). Although, a responsible precondition to be socially responsible (Lin-Hi
firm understands its power over society and & Müller, 2013). From this perspective, in a
contributes to shape it (Paladino & Willi, 2004, historical approach, Palazzo and Richter (2005)
p. 111) and to promote the common good found that tobacco companies have presented
(Melé, 2004). the following behavior: massive lobbying

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Corporate social responsibility of Colombian tobacco industry: Is it a strategy? 117

and misinformation campaigns publicly; also the Internet archives of El Tiempo and El Es-
sponsored researches to put on doubt scientific pectador, because they are the most important
evidence about the addictive character of mass media in Colombia with national covera-
nicotine and the association between cigarettes ge and larger records in internet. This collection
and lung cancer; and a political hidden agenda method is similar to the exposed by Atusin-
to get lower tobacco taxes. gwize, Lewis and Langley (2015). In sum, 824
news reports were collected.
Methodology
The search terms of news monitoring were
A process of data collection and then a developed in relation to the tobacco industry’s
qualitative data analysis were implemented to activities. The following key terms were used
answer the research question. Two forms of data to perform the searches in the data bases of
collection were used. First, a search of CSR ini- media: Tobacco, cigarette, Phillip Morris, British
tiatives that tobacco companies reported it was American Tobacco, Protabaco and Coltabaco.
done in 2011, July 8 using the official documents During the process a number of obstacles limited
available in www.pmi.com, www.batcolombia. the scope of the search. First, the years with
com, www.protabaco.com (Coltabaco did not information available in the databases of El
have web page, because it shared it with PMI). Tiempo and El Espectador went as far back as
14 CSR programmes self-reported by BAT, Pro- 2008. The TV channels CityTv and Caracol (both
tabaco and PMI were identified (Annex 1). This with news shows) provided information only
review was rerun on 2015, September 30 to iden- since 2009. In 2010 and 2011 the information
tify any relevant change since the original search available came from a wider range of sources,
date. In this new report, www.protabaco.com such as RCN (TV news show), La República and
disappears because BAT acquired Protabaco and Portafolio (newspapers), Semana (magazine),
now they share the same web page. among others. A second limitation was the lack
of standardized terms in the search engines
Second, a monitoring of news in the (unlike more specialized sources), because the
country’s most important mass media was per- search results obtained with the selected key
formed, considering the period between 2008 terms produced many irrelevant results, so the
and 2011. The selected period of time looked manual selection involved considerable time.
for monitoring possible changes in the firms’
strategies before and after the approval of the After data collection, a Qualitative Data
tobacco control act of 2009 in Colombia (Ley Analysis was used inspired by Cisterna-Cabrera
1335 de 2009). This period was the most active (2005) and Ulin, Robinson, and Tolley (2006).
in terms of discussion and adoption of regula- First, deductive categories were constructed to
tory changes fostered by the implementation allow an organized compilation of news and
of the FCTC. In addition, monitoring media documents. In the case of CSR initiatives that
were identified as a useful methodology be- tobacco companies reported, they were classi-
cause stakeholders expect to know about CSR fied in four topics: Health; Agricultural; Envi-
activities through firms’ communications and ronmental; Social (Annex 1). For monitoring of
unbiased media sources (Dawkins, 2005). The news, I used two organized parameters: i) the re-
following media databases were searched to search question and ii) the objective of looking
identify tobacco industry’s activities: El Tiem- possible changes in the firms’ strategies before
po; El Espectador; CityTV; Portafolio, Semana, and after the approval of Law 1335 in Colom-
Caracol; RCN. In addition, other publications in bia. Initially five topics have been included for
Colombia were identified using Google News. news monitoring. One was related with CSR
Nevertheless, most of the search was done in and community activities of the tobacco com-

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118 Diana Patricia Niño Muñoz

panies in Colombia. The other four were chosen fumadores en sus casas, 03 de enero de 2008)
considering key topics in the FCTC, which are and Turkey (EFE, 2008)– started to develop
involved in the Colombian Law 1335: Smoke- tobacco control laws following the example of
free areas; sales of cigarettes individually; pro- successful experiences in other countries like
motion, advertising and sponsorship; prices, ta- England, Canada and Uruguay. At the same
xes and smuggling. A monitoring news’ matrix time, the World Health Organization (WHO)
was built to distinguish each category. published in its report on the global tobacco
pandemic, that “tobacco consumption will
Second, I identify other typologies that increase in poor countries as a result of the
emerge from data. In the case of CSR initiatives, tobacco industry’s strategy to attract young
the results were presented in five final categories: people and women in these nations, where now
cultural events; youth campaigns; community live 80 % of smokers” (Las tabacaleras buscan
campaigns; environmental programmes and más fumadores en países pobres, 08 de febrero
regulation. In the case of news monitoring, de 2008). In the meantime, in Colombia the
besides those already exposed, I included seven National Cancer Institute (INC) released their
new categories related with general tobacco estimates on the impact of tobacco consumption
issues and CSR programmes: Colombian Law in Colombia, which caused 20,000 annual
1335 of 2009; tobacco industry; international deaths and a financial burden of 2,2 billion
.
context; health; campaigns (smoking cessation pesos (about U$ 1 118.454,51) (Las tabacaleras
and education for prevention); agriculture; and buscan más fumadores en países pobres, 08 de
other information. It was necessary to establish febrero de 2008). The results from the global
limits of each topic and to check the first youth tobacco survey (GYTS) showed that
monitoring news’ matrix. 29.8% of students from a sample of 50 schools
in Bogotá between 6th and 9th grades, were
Third, a data reduction was done to smokers and 61.6% had tried cigarettes at
synthesize the information and to identify least once (Tabaquismo en Niños, Lío Mayor,
important concepts and essential relationships. 2008). This scenario indicates that the worries
The information was analyzed with three about tobacco consumption as a public health
approaches: i) tobacco industry’s activities problem were present in the media.
were described in terms of a timeline; ii) CSR
initiatives and other important findings were Despite these warnings of initiatives to
exposed with the mentioned categories; and iii) reduce consumption such as the adoption in
classification of CSR theories presented in this Colombia of the FCTC in 2006, the tobacco
paper was used to deduce CSR strategies of the industry continued with expansion projects
firms: maximizing the shareholder value, cause- in the country. In December 2008 Coltabaco
related marketing, corporate constitutionalism, announced its intention to increase the cultivated
and the common good approach. Finally, I area (Coltabaco impulsa el cultivo de 500
achieved results and conclusions. hectáreas de tabaco en la costa norte, 03 de
diciembre de 2008). In 2009 it communicated its
Results. plans to invest more than US$130 million during
the following four years (Dominguez, 2009)
Tobacco industry activities along a and expand its export goals to Brazil, Mexico,
timeline Costa Rica, Guatemala, Dominican Republic
and Europe (Coltabaco Exportará, por Primera
In the international scenario, at the vez, sus Productos a Brasil, 2009). Within this
beginning of 2008 many countries –such as strategy, the company intended to promote
Germany, France, Portugal (Leyes confinan a tobacco production in areas affected by long-

Civilizar 15 (29): 113-134, julio-diciembre de 2015


Corporate social responsibility of Colombian tobacco industry: Is it a strategy? 119

term violence, such as Montes de María (Las 11 de marzo de 2008) and established a
tabacaleras buscan más fumadores en países strategic alliance with Corpoica, Unisangil
pobres, 08 de febrero de 2008) and in the states and Universidad Nacional de Colombia to
(departamentos) of Sucre and Bolívar (Contratos develop five research projects approved and
para fomentar cultivo de tabaco, 2009). The co-financed by the Ministry of Agriculture
program included seeds supply, “free technical (Protabaco alista plan para mejorar cultivos,
assistance, financial aids for peasants and sales 19 de mayo de 2008). Similarly, in 2010 this
contracts with fixed prices to secure stable cash tobacco company jointly with the Agriculture
flows and reduce uncertainty about expected and Cattle Guarantee Fund supported small
crop revenues” (Coltabaco impulsa el cultivo farmers’ projects and helped them have
de 500 hectáreas de tabaco en la costa norte, 03 access to special credit lines offered by Banco
de diciembre de 2008, traducción del autor). All Agrario de Colombia (the government’s bank
these were also devised in an environmental- to promote agriculture), (Mantienen oferta de
friendly framework. With these investments, the crédito, 29 de mayo de 2010). During the rain
company declared they expected to contribute to emergencies in 2011 Protabaco, the Ministry of
the generation from 25.000 (Dominguez, 2009) Agriculture and MAPFRE offered an insurance
to 30000 (Quintero, 08 de junio de 2010) rural and subsidy program to secure crops and crop
employments, and to the consolidation of the quality (Cantillo, 2011).
peace process through the support of agricultural
activities for displaced families (La nueva cara In the legislative field, Colombia has
de El Salado, 08 de julio de 2011). By this token, also advanced rapidly. On 2008, May 30, the
Coltabaco stated: “[we] hoped that Colombia Ministry of Health issued a regulation on smoke
would become a tobacco leaf export center for free areas, Resolution 1956, which banned
other subsidiaries of PMI” (El país sembrará más smoking in closed public spaces (Prohíben
tabaco, 2009, traducción del autor). In the process, fumar en recintos públicos, 31 de mayo de
the company established cooperation bonds 2008). Although in an early stage the National
with institutions such as Quindio’s Economic, Bar Association had sent a letter of complaint
Rural and Environmental Development Office against this norm, later this organization
(Cultivos de tabaco generarán más empleos en el changed its position and provided full support
Quindío, 19 de marzo de 2010), the US Agency to one of the law draft on tobacco control (Ley
for International Development (USAID), the antitabaco supera otro escollo en el senado, 19
International Organization for Migration (IOM), de noviembre de 2008). The said letter stated
the National Commission for Reparation and the Association’s concern, among other things,
Reconciliation (CNRR), Semana Foundation about not having been included in the discussion
(Santos dice que en la Masacre de El Salado hubo of a norm that, according to the Association,
omisión, 08 de julio de 2011) and Social Action violated public freedoms of citizens and made
(the main government program developing owners of establishments responsible for the
social policies), (La nueva cara de El Salado, 08 behavior of their clients (Piden revocar medidas
de julio de 2011). contra los fumadores, 05 de julio de 2008).

Protabaco also promoted in the media Under these circumstances, early in


their expansion programs, although only their 2008, three law proposals were presented to the
brands Mustang and Premiere were produced Congress, all of them aiming at the regulation
with local tobacco leaf (Cantillo, 2011). At the of the FCTC (En el Congreso de la Republica
beginning of 2008, Protabaco signed new export tres proyectos de ley sobre el tema, 27 de
contracts with European countries (Protabaco mayo de 2008): The first law proposal, led by
firma nuevos contratos de exportación, Senator Dilian Francisca Toro, “emphasizing

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120 Diana Patricia Niño Muñoz

the protection of minors from the exposure 22 law proposals on tobacco control had not
to smoke and from industry’s advertising” prospered in Congress” (Rodríguez, 15 de junio
and banning individual cigarette sales; the de 2009). Bogotá’s Health Authority supported
second one led by Senator José David Name these statements (Citytv, 29 de mayo de 2009),
focussing in smoke free areas (De Espejo, 07 and even other senators accused the tobacco
de noviembre de 2008) as the last law proposal companies (Phillip Morris niega sobornos para
from Senator Zulema Jattin. Several aspects tumbar Ley Antitabaco, 12 de junio de 2009).
of the debate surrounding these proposals Regarding these accusations, PMI denied any
should be mentioned. First, the press exposed involvement in bribery. With the development
accusations about certain alterations to the two of the debates it came as a surprise the approval
last proposals, asserting that “they [did not of Senator’s Dilian Francisca Toro proposal
have] the exact content of the FCTC, which had in July, which became Law 1335 in 2009, the
already proven to be effective in the reduction current tobacco control Act in Colombia.
of tobacco consumption.” (En el Congreso de la
Republica tres proyectos de ley sobre el tema, Last, it is important to describe briefly
27 de mayo de 2008; Hay micos de senadores the acquisition process of Protabaco by one
en ratificación del convenio contra el tabaco of the largest and most powerful tobacco
Claudia Víctor, 12 de abril de 2009, traducción companies in the world. In July, 2009, PMI
del autor) Second, regarding the measures to ban announced its intention to buy this Colombian
individual cigarette sales, the president of the company (Philip Morris compra a Protabaco
Association of retailers, FENALCO, rejected por US $452 millones, 10 de julio de 2009).
the sanctions considered in the proposal, in view However, after a long debate in June, 2010, the
of the situation of small retailers. Other senators Superintendence of Industry and Commerce,
expressed concerns about the impact on the SIC, the agency in charge of anti-trust
informal street sellers (Polémica por venta fácil regulation in Colombia, rejected the operation
de cigarillos, 05 de mayo de 2009). Third, a due to violation of market concentration
letter of the vice minister of agriculture was sent restrictions (PMI already owned in 2005 the
to the National Television Commission to keep other tobacco manufacturing company in
cigarette advertising at night time (Rodríguez, the country, Coltabaco), (No fue aprobada
15 de junio de 2009). One final area of debate la compra de Protabaco por Phillip Morris,
was the accusation by Senator Name about 13 de junio de 2010). The announcement
bribes worth $500 million pesos as well as death was obviously unwelcomed and after several
threats pressing him to withdraw his proposal. months, finally it was BAT which purchased
He expressed his belief that these threats did not Protabaco in May 2011 (British American
come from the tobacco industry (De Espejo, 07 Tabacco compra a Protabaco por US$452
de noviembre de 2008). However, months later millones, 26 de mayo de 2011).
in the midst of a Congress debate that resulted in
the addition of two paragraphs which distorted CSR activities of tobacco companies
the original text of his proposal (Dmoteroa,
22 de mayo de 2009), Name “denounced the Continuing with the analysis, now the
industry’s constant lobby and pressures to sink CSR initiatives of the tobacco companies
the proposals that attempted to pass legislation are described through established categories.
to reduce tobacco consumption” (Con “Micos” The information comes from the websites of
en Ley antitabaquismo buscan eliminar these firms and from information published
espacios libres de humo, 21 de mayo de 2009, on the press. See Annex 1 for a summary of
traducción del autor). He added in another the initiatives reported in the websites of the
interview that “it [was] no coincidence [that] tobacco companies.

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Corporate social responsibility of Colombian tobacco industry: Is it a strategy? 121

The first category used to synthetized de decir no (Say yes to your responsibility of
information is cultural events. The sponsorship saying no) with the stated objective of increasing
of cultural events is particularly frequent for BAT awareness of retail sellers, reaching 41.000
through BAT Foundation. The Law 1335 bans the stores, supermarkets and gas stations across the
sponsorship when it “implies the direct or indirect country (No fue aprobada la compra de Protabaco
promotion of tobacco products and its derivates”. por Phillip Morris, 13 de junio de 2010). Other
But the manager of BAT Foundation explained two activities from Coltabaco mentioned in
that “the Foundation has never sponsored the the media were, on the one hand, a program to
brands of the company nor has mentioned promote student internships called Primer Paso
them” (BAT seguirá con salón de arte popular; (First step), offering university students working
Ley antitabaco no afectará su realización, 26 de opportunities in the company (Coltabaco busca el
julio de 2009, traducción del autor); therefore, mejor talento de las universidades en Colombia,
they do not have intentions to stop this practice. 23 de noviembre de 2010). On the other hand,
“The Foundation [has sponsored] 28 popular Coltabaco donated a soccer field, with changing
festivals, 12 itinerant exhibitions with the First rooms and stands with a beneficiary population
BAT Salon of Popular Art, 6 exhibitions with the of 500 children in Altos de Cazucá (a low income
second Salon, reaching up to 4 million visitors area in the outskirts of Bogotá), (En sus marcas,
and 8.177 artists” (En pro del arte, 22 de abril 16 de noviembre de 2011). Another campaign
de 2008, traducción del autor). The Third BAT with similar features was Fanáticos Mustang
Salon of Popular Art promoted the contest in the (Mustang is one of the leading brands from
framework of the celebration of the two-hundred Protabaco), which tried to encourage smokers to
anniversary of Colombia’s independence, with pick up cigarette butts and throw them in trash
the participation of 1644 works from all over the cans (Hernández, 13 de abril de 2011). Last, the
country (British American Tobacco, BAT, 2010). media covered the contest to design a Mustang
In the same lines, Coltabaco (PMI) organized the horse oriented to university students.
contest for short films by young artists, Instinto
Bogotá, and Protabaco has also sponsored In the category community campaigns, it is
regional festivals (Cabalgata, concierto, toros y worth mentioning two initiatives. One oriented
silletas son las actividades programadas para la toward the adaptation of former members of
fiesta de Sogamoso, 15 de julio de 2010). illegal armed forces and the other to support
victims of natural catastrophes (mainly due to
The following are programs classified in the heavy rainy seasons). Regarding the first
the second category, youth campaigns. Since groups, Coltabaco and other firms started three
2008 BAT Colombia, in cooperation with programmes: the first one, offered help to these
Fenalco, started a campaign called Prevención people to become managers in 25 mini-markets
de Fumadores en Menores de Edad (Smoking (Artuz, 24 de noviembre de 2011); the second
Prevention Among Minors) (Comprometida con one is a programme to engage them in tobacco
la prevención del consumo de tabaco en menores agriculture (Piden erradicar miedo de contratar
de edad, 30 de agosto de 2008). Likewise, desmovilizados, 05 de mayo de 2011), and the
Coltabaco reinforced this campaign with a third is the initiative Ruta Ciudadana (Citizen
programme oriented to small retailers called No path), which offered a tour around Medellin
somos adivinos muéstranos tu cédula (We are not with recreational purposes and workshops
psychic, show us your ID) (Campaña contra el about territory, identity, community life, among
cigarrillo para menores de edad, 20 de octubre de other topics (Mira, 31 de diciembre de 2011).
2008.). Later, in 2010, BAT Colombia, Fenalco, Otherwise, to the victims of the floods, BAT
RCN Compromiso Social and Petrobras started Colombia jointly with the foundation Un techo
the campaign Dígale sí a su responsabilidad para mi país (A roof for my country) organized a

Civilizar 15 (29): 113-134, julio-diciembre de 2015 ISSN 1657-8953


122 Diana Patricia Niño Muñoz

volunteer plan to build 12 housing units in four (Mustang). Bakanica is a magazine edited
cities, an activity funded with the money and by a university with links to an international
time provided by the firm’s employees (Alianza health care organization, and distributed free
de BAT Colombia con un techo para mi país, 03 of charge in the main universities in Colombia.
de abril de 2010). The contest´s prize was the full payment of one
semester’s tuition.
In the fourth category, environmental pro-
grammes, Coltabaco organized the campaign The Federación Nacional de Comerciantes
Green Print to encourage among the company’s (Fenalco) produced a brochure about the Anti-
employees a reduction in the consumption of pa- Tobacco Law and its restrictions. The material
per and printing materials (Ambientes laborales is not explicitly linked to any tobacco company,
sanos, 24 de marzo de 2010). In 2010 Protaba- but BAT reports alliances with Fenalco. This
co received a recognition for his environmental brochure states that “the law does not restrict
friendly activities (Premiaron a 58 empresas bo- commercialization, production and distribution
gotanas por ser amigables con medio ambiente, of cigarettes.” This clearly misinforms the
22 de diciembre de 2010) and Coltabaco was a public because although Colombian legislation
candidate at the Portafolio Prizes in the Social allows engaging in these activities, they are
Responsibility category. In 2011, BAT Colombia clearly subject to restriction.
launched a project with Universidad Nacional to
promote organic tobacco crops, without using Finally, it is important to stress the pattern
artificial fertilizers and pesticides, with the pur- observed in tobacco industry’s CSR program-
pose of positioning Colombia as a supplier with mes, which always takes place in alliance with
denomination-of-origin cigarettes (Cigarrillos recognized institutions, mostly those dealing
con sello propio, 21 de junio de 2011). with problems in the agricultural sector. Many
of these projects become symbolic program-
The final category, regulation, appears mes of public-private partnerships addressing
in the review rerun on 2015, september 30. problems related with the efforts to advance in
PMI makes explicit in its web page its interest the development process of the country. This
of making “advocacy to establish regulations kind of interventions in the agricultural sector
around the world that help prevent tobacco is perceived as very important in the Colom-
consumption by minors” (Philip Morris bian case, considering local concerns about illi-
Internacional, PMI, 2015a). Additionally PMI cit crops substitution and poverty in rural areas.
considers its responsibility to make its “views Apparently, this is one of the image-building
clear to those who have the potential to affect strategies used by the tobacco industry to jus-
the laws, regulations, and policies that can tify the expansion of its tobacco production in
influence [its] global business” (Philip Morris Colombia.
Internacional, PMI, 2015b, traducción del autor).
Discussion
Other results
After understanding the Colombian con-
Other results that could be related with text and the trends in CSR strategies of tobacco
the tobacco industry´s CSR were identified companies in the country, the next step is the
during the search process: analysis of these activities from the perspective
of different approaches presented in a previous
The Magazine “Bakanica” included an section: Cause-related marketing, corporate
add promoting a contest to redesign the horse constructivism, maximizing the shareholder va-
symbol which identifies a leading local brand lue and the common good approach.

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Corporate social responsibility of Colombian tobacco industry: Is it a strategy? 123

Cause-related marketing. youth smoking prevention programs. Un-


surprisingly, most industry-sponsored youth
The cultural events, popular festivities programs employ measures known to have
minimal impact on youth smoking uptake. In
and contests sponsored by tobacco companies
many cases, they encourage smoking by asso-
may be understood as tools to improve image ciating the behavior with aspirational ideals of
or to create a smoke screen just with an external maturity and freedom (smoking as an “adult
makeover to divert criticism from NGOs. choice”) (p. 78).
In this way “many corporations have taken
up CSR less out of conviction and more to Corporate constitutionalism.
deflect criticism from NGOs, the commitment
being more apparent than real” (Hirschhorn, During the news search it became evident
2004, p. 448)2. Likewise, even if they are not that some institutions and regional entities
promoting directly cigarette consumption in recognize tobacco companies as a legitimate
these events, they are creating spaces to present party to perform interventions related with
a positive image of the company to smokers or development goals of the country. Tobacco
potential smokers, building this image around the companies frequently act in alliance with
ideas of credibility and honesty. Also, recalling government agencies to establish crop expansion
article 16 of the Colombian tobacco control act, programmes and they even use the support
“all forms of promotion of tobacco products of NGOs to develop their activities oriented
and their derivatives are banned”, this type of to former members of illegal armed forces or
event sponsorship should not be advertised. natural disaster victims. Thus, their projects
According to Asma et al. (2009), many authors usually are concerned with social issues of great
have reflected upon this issue: importance to the country. Some state that it is, in
the words of a small town major, “…satisfactory
In the area of advertising and promotion, the that such companies come to our municipality
tobacco companies have developed target because with them also arrives development and
marketing campaigns including sponsorship education for the most deprived young people”
of cultural and sports events, have worked (Leyva, 16 de septiembre de 2010). It is worth
to circumvent marketing restrictions when noting that this political and social recognition
attempts to prevent or modify marketing
has brought distinctions and awards to the
restrictions had failed and have developed
new products to continue to appeal to young tobacco companies granted by highly reputable
people (Dewhirst & Hunter, 2002; Pollay & institutions in Colombia.
Dewhirst, 2002; Neuman et al., 2002; Wake-
field et al., 2002; Assunta & Chapman 2004; However, in this analysis there are three
Barbeau et al., 2004; Smith & Maone, 2006; aspects that should be taken into consideration.
Anderson et al. 2005; Carpenter et al., 2005; First, it is appropriate to remember the study
LeGresley et al., 2006; MacKenzie et al., of Fooks et al. (2011) about BAT incentives
2007) (p. 1289). to perform CSR initiatives, with the purpose
of restoring its legitimacy among political
On the other hand, smoking cessation elites and manage its reputation. This study
or educational campaigns sponsored by the concludes that such activities are tools to
tobacco companies can be considered marketing secure access to key decision makers and
strategies. Shafey, Eriksen, Ross and Mackay influence their views.
(2009) states that
In this respect, BAT’s engagement with the
[…] the tobacco industry seizes the opportu- DoH illustrates the way in which CSR offers
nity to burnish its public image by funding companies with poor social or environmental

Civilizar 15 (29): 113-134, julio-diciembre de 2015 ISSN 1657-8953


124 Diana Patricia Niño Muñoz

records a structured environment of dialogue Maximizing the shareholder value


and engagement, which shifts attention away
from both the social costs associated with the Some organizations like WHO (Las
business and any past behavior that might
tabacaleras buscan más fumadores en países
cause doubts about the trustworthiness of the
pobres, 08 de febrero de 2008) have publicly
company and the relative merits of granting it
access (Fooks et al., 2011, p. 8).
denounced that tobacco companies’ strategies
aim at increasing cigarette consumption in
non-developed countries, mainly among
Otherwise, it is important to highlight that
women and children. The report of Harvard’s
PMI makes explicit in its web page its advocacy
School of Public Health also illustrates this
interests (PMI, 2015a, 2015b).
trend stating that “tobacco companies use a
deliberate strategy to recruit and engage young
Following the same path, in 1997, at
smokers, adjusting menthol levels to create
the face of the legal suits against the tobacco
a milder initial experience for those who are
companies in the United States, PMI consultants
just starting to smoke” (EFE, 16 de julio de
recommended the use of these type of strategies
2008). From this perspective, these strategies
to “clean” the company’s image and present could be understood as actions to increase sales
itself as a good corporate citizen (Hirschhorn, and maximize shareholders’ investment, and
2004). In other words, CSR initiatives, especially those related with
youth campaigns’ category, play the role of
[…] several transnational tobacco companies
complementary elements to reach that objective
have engaged in efforts to present themselves
and counteract negative image effects stemming
as socially responsible, demonstrating that
these efforts are no more than public relations from the consumption of their products.
campaigns in response to increasing litigation
against the industry, as well as increasing pu- Common good approach
blic perception of tobacco companies as un-
trustworthy (Asma et al., 2009, p.1289). The origin of the firms could be explained
as the wish to supply with products the needs
Second, the support provided by these expressed by the people. However, in the case
companies to tobacco cultivation should be of tobacco this need is turned into a health-
studied carefully in the future, because this damaging addiction that causes close to 6
activity is generating an increased dependence million deaths every year in the world (World
relationship between peasants and tobacco Health Organization - WHO, 2011). In fact,
companies. Tobacco companies own the seeds authors like Debeljuh (2009) explain why
provided to the small farmers and they become products such as tobacco are excluded from
the sole buyers of the crops. Third, and ethical investment funds. According to Debeljuh
considering the former idea, it is possible to “the central criterion to select [firms by ethical
infer that in the long run this type of strategies funds] is the nature of the products or services
is not sustainable. In view of the iron law offered by the firm … [and] the possible effects
of responsibility, gradually more national of these products on the environment or on the
and international organizations claim for health”, (2009, p. 68) thus, investment in tobacco
greater accountability of tobacco companies. companies is not considered a responsible
Examples of these are WHO, the World Heart investment. Likewise, the review by Hirschhorn
Federation, the National Cancer Institute, (2004) about firms selected in “social funds”,
the Colombian Cardiology Association, none of these considered tobacco companies
the Colombian League against Cancer, and suitable, with the exception of the Dow Jones
Corporate Accountability. Sustainability Index, which includes BAT3.

Civilizar 15 (29): 113-134, julio-diciembre de 2015


Corporate social responsibility of Colombian tobacco industry: Is it a strategy? 125

In this approach, the organizations have Considering these, a first recommendation is to


responsibility to contribute to common good review the current mechanisms established in
(Melé, 2004) offering some conditions for the country to secure compliance with FCTC
social life. Having this in mind, it might be commitments and dispositions in Law 1335
possible to consider whether tobacco companies regarding bans to advertising, promotion and
contribute to the objective proposed in the sponsorship. Additionally, it is necessary to pay
approach. But the nature of the product, the attention to tobacco industry’s advocacy because
evidence collected for this study and in the other it could point at the gap in regulation to secure
analyses mentioned above, it becomes clearer independence of public policy health objectives.
that these companies cannot be labeled as CSR
organizations. The dignity of the human being Other area that requires special attention
and their physical integrity should always be at is the breach created by the tobacco companies
the center of the debates, without forgetting that in the interpretation of the scope of the ban
social and economic development in a country to sponsorship. The FCTC defines tobacco
should be viewed as a tree-legged commitment, sponsorship as “any form of contribution to any
with private firms, civil society and government event, activity or individual with the aim, effect
joining forces to reach wellbeing for all or likely effect of promoting a tobacco product
members of society. Thus, every one according or tobacco use either directly or indirectly.”
to their role may contribute to the curbing of the (World Health Organization - WHO, 2003).
tobacco epidemic. Thus, the idea spread by some tobacco firm’s
representatives about the acceptability of their
Conclusions and recommendations sponsorship activities constitutes a misleading
interpretation of the ban, and this remains an
The first conclusion after performing area of violation of the dispositions both in the
this analysis is that tobacco companies in FCTC and in Law 1335. Therefore, it is relevant
Colombia have devised several CSR strategies to argue that the CSR strategies of the tobacco
surrounding their expansion plans in the industry should be classified as a promotion
country, supported by the idea that they are scheme, and consequently, that they should be
key partners in the country’s development restricted under the current ban to promotion in
efforts. Consequently, such programmes should Colombia.
be seen as tools to reach two objectives. The
first one is improving the companies’ image Another aspect that became evident
and counteracting the negative image impacts throughout the analysis was the similarity of
emerging from the damages caused by tobacco strategies used by tobacco companies in other
consumption. The second objective of this countries. This is one of the reasons why
expansion projects, closely related to the former mechanisms to secure a standard interpretation
one, is gaining influence on political processes of the FCTC are so important. It is also
and facilitating access to decision makers. The important to increase efforts in terms of making
frequent alliances with other organizations, these strategies visible and learn from the
mostly from the public sector, reinforce this experience in other countries dealing with the
idea. Recalling Fooks et al. (2011) this would attempts of tobacco companies to use CSR
not be the first time that tobacco companies use as a tool to by-pass sponsorship bans and to
CSR as a mechanism to restore their legitimacy increase accessibility to political elites. It is also
with the purpose of accessing to policymakers necessary to monitor regularly these activities
and having chances of influencing policy to interpret their maneuvers and generate
decisions related to tobacco regulation. This appropriate responses. Applying the following
efforts would be aimed to soften that regulation. message to the presented arena, Asma et al.

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126 Diana Patricia Niño Muñoz

(2009, p.1289) say that “[…] only by knowing right because for millions of people, smoking
its history and conduct, monitoring its current is part of an adult lifestyle… We are right
behaviour, and regulating and restricting the because cigarettes are a legal product… What
environment in which the industry operates, some people may not understand is that we are
can public health strategies be effective”. In this an ethical company. Our tobacco business may
case, the law compliance can be effective. From be controversial, but we are principled people
this perspective, it is important to actualize this who are honest and straight-dealing […]”
study in future researches. (Hirschhorn, 2004, p. 449).

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Corporate social responsibility of Colombian tobacco industry: Is it a strategy? 133

Annex 1. CSR initiatives of tobacco companies in Colombia

British American Coltabaco (Phillip Coltabaco (Phillip Protabaco SAS (In


British American Tobacco
Categories Tobacco Colombia Morris Internacional) Morris Internacional) process of acquisition by
Colombia (BAT 2015)
(BAT, 2010) (PMI, 2015a) (PMI, 2015b) BAT) (Protabaco, 2011)

Program of Smoking
Program of Smoking
Program of Smoking Prevention in Prevention in Children
Prevention in Children
Children in 2008 closely with retailers
in 2008
and other partners.

yy Alliance with the City


yy Alliance with the City Hall Bu-
Hall Bureau at Bogotá
reau at Bogotá to prevent children’s
to prevent children’s
tobacco consumption.
tobacco consumption.

Open and transparent  


yy Declaration of Good Practices information
Report on its webside
on sales of Alcoholic Beverages health consequences
yy Declaration of Good and cigarette, initiative of Bogota´s deriving from
Health Practices on sales of City Hall Bureau, FENALCO and consuming their
Alcoholic Beverages Red PaPaz. products.
and cigarette, initiative
of Bogota´s City Hall Massive campaign with the help of
Bureau, FENALCO Fenalco, RCN Compromiso Social
and Red PaPaz. and Petrobras to raise awareness
among traders and parents about
tobacco consumption by minors.

Harm reduction: Harm reduction:


Program to modify Program to modify
conventional tobacco conventional tobacco
product to reduce harm product to reduce harm  
caused by the activity caused by the activity
rather than to prevent rather than to prevent
the activity itself. the activity itself.

Good Agricultural Practices pro-


gram, GAP:
in collaboration with tobacco
Organic tobacco
farmers; suppliers companies, gov-
project: Colombian Agricultural
ernment agencies, NGOs and uni-
In alliance with Univer- Development: Support
versities. This program evaluates
sidad National and the farmers in areas where
child labor and the environmental
  Ministry of Agriculture
and sustainable dimension in
company operates with
to establish Colombia free agricultural advice and
agricultural practices.
as a leader in organic offer subsidizes, mostly for
tobacco production and farming and infrastructure.
In alliance with several NGOs
increasing employment.
to development new farming
techniques, vocational training pro-
grams and entrepreneurial projects.

Rural Living Condi- Rural Living Condi-


tions: tions:
Programs to protect Programs to protect
Policies and implemented programs natural resources, natural resources, Environmental manage-
to use fewer natural resources, promote conservation promote conservation ment:
Environmental reduce carbon dioxide emissions, agriculture, reforesta- agriculture, reforesta- Has a clean production
practice recycling and produce with tion, provide clean tion, provide clean system certified by the ISO
lower amount of waste. water, improve the water, improve the 14,000.
standard of living in standard of living in
rural communities and rural communities and
ensure food security. ensure food security.

Civilizar 15 (29): 113-134, julio-diciembre de 2015 ISSN 1657-8953


134 Diana Patricia Niño Muñoz

British American Coltabaco (Phillip Coltabaco (Phillip Protabaco SAS (In


British American Tobacco
Categories Tobacco Colombia Morris Internacional) Morris Internacional) process of acquisition by
Colombia (BAT 2015)
(BAT, 2010) (PMI, 2015a) (PMI, 2015b) BAT) (Protabaco, 2011)

Education
Global program to
Education offer education for
Volunteer Program
Program to renovate children in tobacco Employment
- 2010
rural public schools and areas and for teachers. Job Generation for
Alliance with founda- Supported in NGOs to improve lo-
to improve teaching displaced people by
tion “Un techo para cal communities through donations
curriculum for children Financial support to violence, illicit production
mi país” to help in and volunteer activities.
in rural communities in teachers, community or under extreme poverty
provisional housing
alliance with the Minis- groups and other conditions.
solutions.
try of Education. specialists to prevent
tobacco consumption
by minors

British American
Tobacco Colombia
Foundation British American Tobacco Colom- Hunger and Extreme
Hunger and Extreme
Created in 2000 this bia Foundation Poverty
Poverty
foundation intends Created in 2000 this foundation Global Programs to
Global Programs to pro-
to support cultural intends to support cultural activities provide direct relief
vide direct relief to poor
activities in Colombia, in Colombia, like popular festivals, to poor and hungry
and hungry people.
Social like popular festivals, national artists exhibition, etc. people.
national artists exhibi-
tion, etc.

Disaster Relief Disaster Relief


Programs to help and Programs to help and
identify essential needs identify essential needs
of the community where of the community
disasters occur. where disasters occur.

Domestic Violence:
Support refugees, child
Domestic Violence protection across the
Support refugees, child country, emergency
protection across the financial assistance
country, emergency and legal services.
financial assistance and
legal services. Training for women
in alliance with other
companies and govern-
ment organizations

“Advocacy to esta-
blish regulations …
to prevent tobacco
consumption by mi-
nors” (PMI, 2015a)

Clarify PMI’s views


Regulation “to those who
have the potential
to affect the laws,
regulations, and
policies that can
influence [its] glo-
bal business” (PMI,
2015b)

Note: This table summarizes, according to categories established by the author, the CSR programmes stated by BAT and PMI in their local and
international web pages respectively.

Civilizar 15 (29): 113-134, julio-diciembre de 2015

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