Political/ Legal
Generally, tobacco industries are enforced regulatory control by imposing taxes and duty charges. Also restrictions on marketing, advertisement, and exhibition of the product, avoid descriptions like, light and mild, nicotine, carbon monoxide smoke yields and tobacco ingredients, prohibition of smoking in public places - BAT is aware of these aspects and employ lawyers to have legal advice on these social responsibilities, marketing and stakeholders issues.
Economic
Tobacco duty was raised in line with inflation. The impact of high taxation in the UK cigarette market resulted in high prices, which led to reduced annual industry volumes, greater price competition and trading down by consumers to lower-price cigarette brands. Imposing taxes on tobacco causes major revenue for government around the world. Such industry, like BAT contributes considerably to the financial system of more than 150 countries. About 100 million of people worldwide do have job opportunities from the industry.
Social and Culture
Due to risks to health number of smokers has decreased over the years as people are becoming educated. BAT is aware and manages operations responsibly. They are working through dialogue in advertisement objectives, alarming about health hazardousness on packets, prohibition of smoking in public places and bans on displaying at POS.
Technology
Due to advancement in technology making of cigarette is fully automated into machines, from processing of tobacco to cutting cigarette paper and filters. Packaging are also automated, cigarettes are filled into respective brand packs, wrap in protective film and placed in cartons. Factory machines at each location are contemporary and those cannot be redeployed are destroyed. BAT itself participate in technological progress by carrying their own researches either into their department or other institutions for innovating new and fresh ideas and production. They believe in testing and adapting new available technology for their production. BATB has also developed and promoted new cultivation methods that to replenish soil by using organic substance for better fertility structure as well as having environmental benefit. They work with BAT Biodiversity Partnership and Bangladesh Agriculture University.
Certainly, tobacco is harmful and can cause major health risks to the smokers.
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