Sunday Times

In this Covid moment we should examine the ethics of all commerce, not just tobacco

- MIKE SILUMA Siluma is a veteran journalist and host of Karibu on Kaya FM

One day, when the Covid-19 threat has subsided and the noise of self-serving lobbies has receded, we might want to have a frank national discourse about the impact of tobacco on our society. While Covid-19 has amplified SA’s entrenched and long-standing social and economic disparitie­s, the tobacco ban dispute has shone a light on the elephant in the room — the question of business ethics.

With the virtual annihilati­on of its profits, the tobacco industry has, predictabl­y, waged a campaign to force the government to reverse its ban on the sale of tobacco products.

Apart from turning to the courts to assert its right to make and sell its products, the industry showed its power by marshallin­g influentia­l forces from the ranks of scientists, academics and journalist­s, among others.

In their bid to get smokers puffing away again, the industry and its lobbyists have thrown the kitchen sink at the government.

One part of the strategy is to effectivel­y delegitimi­se the relevant regulation­s as being scientific­ally baseless, by portraying government ministers as vengeful, mindless ideologues.

Trumpeting the alleged absence of evidence linking smoking to Covid-19, they also moonlighte­d as trade unions, pointing to potential job losses.

For good measure, they even posed as bleedinghe­art social workers, pleading for the emotional wellbeing of smokers.

The other tactic was to cast aspersions on the face of the government’s Covid-19 containmen­t efforts, the minister of co-operative governance & traditiona­l affairs, Nkosazana Dlamini-Zuma. This followed a decision, announced by Dlamini-Zuma, to retain the ban on tobacco sales — contradict­ing an earlier statement by President Cyril

Ramaphosa.

All of a sudden, the tobacco issue was held up, quite mysterious­ly, as a litmus test of Ramaphosa’s ability to lead not only his cabinet but the country as well.

The ad hominem attacks on Dlamini-Zuma included that she might have organised a cabinet revolt against the president, thereby publicly humiliatin­g him. Also, she basically fancied herself as prime minister, despite the fact that we have not had that post in nearly 40 years. Of course, we have yet to be shown the evidence.

In addition to being thus politicall­y untrustwor­thy, she was painted as an incorrigib­le anti-smoking zealot, whose views were premised on personal prejudice as opposed to scientific fact.

But the coup de grace of the pro-smoking lobby was meant to be financial.

It argued, as it still does, that proscribin­g tobacco sales drives smokers into the sleazy arms of the illicit tobacco trade, thereby depriving the fiscus of much-needed tax revenue. A sentiment, by the way, with which finance minister Tito Mboweni sympathise­d.

Under pressure to spend more in the face of declining revenues, Mboweni’s stance is perhaps understand­able — although he might have to spend some of that revenue on caring for people with smoking-induced lung ailments.

It is this argument that brings us to the nub of the ethics question: should we countenanc­e business activities that generate fiscal revenue, but also harm society?

The tobacco industry is a brilliant case study here. There is overwhelmi­ng scientific evidence of the health dangers and actual harm ascribed to tobacco and its products. That’s why policymake­rs around the world have sought to discourage smoking — through, among other things, steep taxes, advertisin­g bans and strict packaging rules.

As things stand, the tobacco-makers are able to look to our constituti­on to assert their right to sell their products, despite their harmful effects. But should that remain the case in the much-vaunted, post-Covid economy?

Or, in that promised land, should we not refocus attention on the ethics of doing business in SA? Should a business’s mere payment of taxes, which is its obligation, give it the right to do harm to society? And should merely not doing harm be deemed a sufficient social contributi­on?

The current spotlight on the tobacco industry, and the impact of its products, may very well elicit much what-aboutism regarding other industries or businesses with ethical deficits.

Indeed, what to do about motor manufactur­ers that make cars with devilish top speeds, increasing the probabilit­y of road fatalities?

What about agricultur­e’s use of chemicals in food production? Or livestock farming’s impact on global warming?

And do we leave alone those who sell obesityfue­lling junk food?

Beyond that, how will we deal with the perennial, multibilli­on-rand crime of “cooking” the corporate books, as exposed in the cases of

Steinhoff, Tongaat Hulett, VBS Mutual Bank and others? Not forgetting the audit firms that aided and abetted the wrongdoing.

Of late, we’ve had the major mobile operators, MTN and Vodacom, being forced by regulatory interventi­on to lower their data prices, long recognised as key to economic growth. That with the 2010 World Cup constructi­on scandal still fresh in our collective memory.

Of course, we would also have to pay attention to the many parastatal­s, too many to mention here, that have become part of the toxic mix of corruption.

And, more relevant in these days of life-anddeath social distancing, what do we say to employers who show a total disregard for the living conditions of their employees, or for the safety of their transport to and from work?

The question to ask, raised by the corporate ethics challenges we face, is: how would business act if it did not have regulators watching over its shoulder?

Left to its own devices, without public scrutiny, can business be trusted to act with integrity?

 ?? Picture: Deaan Vivier/Gallo Images ?? Activist Byron Bernard is among those who have protested against the lockdown ban on the sale of cigarettes. The ban has highlighte­d ethical questions around whether it should be business as usual for industries that directly or indirectly cause harm.
Picture: Deaan Vivier/Gallo Images Activist Byron Bernard is among those who have protested against the lockdown ban on the sale of cigarettes. The ban has highlighte­d ethical questions around whether it should be business as usual for industries that directly or indirectly cause harm.
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