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The Ontario Teachers' Pension Plan (OTPP) owns a stake
in Altria Inc. valued at $40 million.
Previously known by the name Philip Morris Inc., Altria
is a conglomerate that includes the Marlboro, Kraft, and
Nabisco brands. Another subsidiary, Philip Morris USA, is
the largest tobacco company in the United States.
On April 14th, 1994, William Campbell, then CEO and President
of Philip Morris, appeared before the Subcommittee on Health
and the Environment. In response to a question, he, along
with other tobacco company executives, stated: "I believe
nicotine is not addictive". However, Health Canada,
the Royal College of Physicians, and the US Surgeon General
all agree that nicotine is a highly addictive substance.
Then, in July 2001, Philip Morris released a study it had
commissioned, which reminded the Czech government that the
country's smoking population had saved it $147 million.
This was calculated by subtracting the lost income tax revenue
from the money saved in reduced health-care expenses. A
Philip Morris spokesperson said the corporation "deeply
[regretted]" the suggestions of the beneficial economic
effects of smoking.
In the past, Philip Morris has also attempted to market
its tobacco products to an increasingly younger audience.
In an internal document, the company once stated, "We
wonder whether such children may not eventually become cigarette
smokers in their teenage years as they discover the advantage
of self-stimulation via nicotine. We have already collaborated
with a local school system in identifying some such children
in the third grade. . ." The corporation continued,
in another document, to state, "If we don't do something
fast to project the sense of industry responsibility regarding
the youth access issue, we are going to be looking at severe
marketing restrictions in a very short time."
In spite of its questionable policies and actions, the
OTPP remains a shareholder in Altria Inc. The OTPP lacks
specific ethical guidelines for choosing equity investments.
When questioned about its choice of stocks, communications
manager Lee Fullerton stated, "We do not feel we are
in a position to judge [the companies in which we invest]."
Regardless, in a recent poll of Martingrove staff members,
an overwhelming 96% answered "no" to the question,
"Would you personally invest in a cigarette manufacturer
that has attempted to sell its product to children and has
denied that nicotine is an addictive substance?" One
staff member even said he saw Philip Morris as a "purveyor
of death" and personally boycotts all Altria products.
Another noteworthy OTPP investment is in the Potash Company
of Saskatchewan. The state of Louisiana recently imposed
a fine of $1.75 million on the company for violating the
US Clean Air Act. This was the largest single fine for an
environmental crime ever imposed by the state.
Additional Information: Factbox
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