Question

In: Accounting

(1). Assume you have been hired by the head of a tobacco industry group to do...

(1). Assume you have been hired by the head of a tobacco industry group to do a cost–benefit analysis of whether the tobacco firms should disclose that nicotine is addictive. Assume this is before the federal government required such disclosure on all packages of cigarettes. Explain how you would go about determining what are the potential harms and potential benefits of disclosing this information voluntarily. Is there any information you feel cannot be included in the evaluation? What is it? Why can’t you include it? If you could include it, would it impact your recommendation to the head of the industry group? Analyze the situation from a rights perspective, justice, and virtue theory. How might these considerations affect your recommendation to the head of the industry group?

Solutions

Expert Solution

The following points should be kept in mind while disclosing nicotine is addictive on all packets of cigarettes.

The health risks of smoking tobacco have been known for many years.17 Combating major diseases such as cardiovascular disease and cancer will ultimately require individuals to make autonomous choices toward a healthy lifestyle. While most people would agree that promoting healthy lifestyles is an important social goal, most are also justifiably hesitant about permitting too much social intrusion into individual decisions about lifestyle and health behaviours.18 However, public policy measures such as prohibition of tobacco advertising, taxation on tobacco, banning of smoking in public places represent varying degrees of coercion and trade-offs between the interests of smokers and non-smokers.

It is easier for governments to ban new products compared with substances than have been widely used for many hundreds of years,

While virtually all smokers accept the validity of risk data, the conflicting information put out by the tobacco industry raises doubts in a smokers mind with questions such as if smoking is that dangerous then why hasn’t it be banned? or the government says everything is bad for you.

Information regarding number of deaths caused by tobacco each year should not be included in the evaluation.such information shall cause the smokers thinking of how harmful is smoking .

If such informations are included in the evaluation then the sell of cigarettes shall me fall considerably and indutry woud have to suffer a lot.


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