1. GOOD GOVERNANCE IN THE 21ST CENTURY
Mary Assunta, PhD
Senior Policy Advisor
SEATCA
Kuala Lumpur, 4 Sep 2014

2. Principles of Good Corporate Governance
1.Ethical approach – ethical basis to the business
2.Balanced objectives - congruence of goals of all interested parties
3.Strategic management: an effective strategy process which incorporates stakeholder value
4.Decision-making process in place - reflecting the first three principles and giving due weight to all stakeholders
5.Equal concern for all stakeholders
6.Accountability and transparency - to all stakeholders
http://www.applied-corporate-governance.com/best-corporate-governance-practice.html

3. seatca.org Annual Deaths Attributed to Major Tobacco-Related Diseases (2006-2012)

4. seatca.org
Tobacco Industry’s Profit (in USD)

5. Preventable Global Epidemic – Caused by one Industry
•6 million deaths every year globally
•100 million deaths in 20th Century
•1 billion deaths predicted in 21st Century
Tobacco Industry

6. •"Reversing this entirely preventable [tobacco] epidemic must now rank as a top priority for public health and for political leaders in every country of the world.”
Dr. Margaret Chan
WHO Director-General

7. Globalization of the epidemic
–restricts the capacity of countries to regulate tobacco through domestic legislation alone
–international coordination of policies is essential
FCTC: a global response
–first public health treaty under WHO – 179 Parties
Why the Framework Convention on Tobacco Control (FCTC)

8. FCTC Text
Art. 5.3 – General Obligations
◦to “protect these [public health] policies from commercial and other vested interests of the tobacco industry”

9. Tobacco is more than a narrow health issue
“Tobacco use poses a major health and human development threat. Avoidable and unnecessary, tobacco linked illnesses strike people in their prime, hit the poorest hardest, inhibit country productivity, burden already weak healthcare systems, and consume scarce national resources.”
Douglas Webb, UNDP

10. Not All Industries are the Same Tobacco Industry is Unique 1994 CEOs of 7 Tobacco Companies – said under Oath “Nicotine is not addictive”

11. 31 years earlier…
“Nicotine is addictive. We are, then, in the business of selling nicotine—an addictive drug.”
(BAT/Brown & Williamson, 1963)
A. Yeaman, “Implications of Battelle Hippo I & II and the Griffith Filter,”
17 July 1963, Doc No. 1802.05

12. The Policy Making Process and TI Interference Policy Draft legislation
Public hearings Higher body Committee /Cabinet Highest body Approval Implementation
Plenary
Scientific
Research Seek a seat Scientific Research
Pro Industry version Delay & weaken Front Group Manipulating science
Deceiving
the public
Discrediting
advocates
Corporate Social
Responsibility
Image building
Make friends Using economics Attack Regulation Subverting the law
Make
friends
Make friends Delay & weaken Complain
Front Group

13. Tobacco Industry - “Isolation” & “Transparency” are Needed
•because of the fundamental and irreconcilable conflict of interest between the goals of tobacco control and that of the tobacco industry, arising from the inherently deadly nature of tobacco products.
•The tobacco industry’s longstanding actions to subvert effective tobacco control policies

14. Anti Corruption Laws Already in Place in Most Countries
Aren’t national anti corruption laws sufficient?

15. Congruency Between Corruption Indicators and Article 5.3 Guidelines
Corruption Indicators
Article 5.3 Guidelines
Protecting against policy manipulation for profit
Safeguarding public health policymaking from TI
Bribing/financial disclosure
Government officials should not take money from or invest in TI.
Transparency of dealings and decision-making
Interactions between TI and Gov should be transparent
Lobbying and interest disclosure
Government officials disclose conflicts of interest, lobbying register
Code of Conduct to avoid conflicts of interest
A code of conduct that dictates the terms of interactions between government officials and TI
Public access to information
TI should release information to government

16. Anti Corruption Laws Already in Place in Most Countries
•Groundwork already laid
•Build upon current laws to protect against tobacco industry interference in line with Article 5.3.

17. Tobacco Industry Requests for a Meeting
•What do you do when you are subject to, or challenged by a team of corporate lawyers?

18. Code of Conduct
•Many governments already have ethical Codes of Conduct for their employees; with sanctions or penalties usually overseen by an Ombudsman.
•To incorporate Article 5.3 requirements, this code of conduct need to be updated to include preventing conflicts of interest among employees with the tobacco industry

19. What Good Governance in Interaction with Tobacco Industry means?
Interaction of Government with Tob Industry is for Regulation
•No Partnership with the Tobacco Industry
•Interactions should be transparent, record and disclose all meetings
•Government officials disclose conflicts of interest
•A code of conduct that dictates the terms of interactions between government officials and TI
•TI should release information to government

20. Primer on Good Governance in Tobacco Control

21. Good Governance: Exclude Tobacco from Trade & Investment Agreements - TPP
Exercise Policy coherence
Malaysia has taken a bold step and proposed exclusion of tobacco in the TPP.
Step in the right direction to demonstrate this business in not like any other business. It should not be treated as one.

22. Thank You