In the late 1970s,
health authorities began calculating how much tobacco use
costs society in lost productivity, increased health care costs,
absenteeism, etc. This was called the "social costs" theory
and it was used sucessfully to advocate for effective tobacco
control measures. This internal tobacco industry
speech about the social costs of smoking was given in May
of 1979, apparently before members of ICOSI (the International
Committee on Smoking Issues, a group which consisted of the
major tobacco manufacturers worldwide, and which was created to deal
with the global decline in social acceptability of smoking). The
speech was prepared by George Berman, who was affiliated with Philip
Morris and the Tobacco Institute. In 1979, a George Berman
(whose signature is very similar to that on Philip Morris documents)
was listed as President of Devon Management Resources, Inc., which
apparently acted as a consultant to Philip Morris.
In the speech, Berman explains the industry's
strategy of avoiding a discussion of the social costs of
smoking by outlining a four-pronged attack on the theory
itself. Berman states,
"It would be pointless to just dispute these arguments
with similar data, to attack their numbers with our numbers.
Instead, our strategy is to attack the concepts of social cost
analysis...If we can undermine the concepts, then we do not have
to enter into public debate over specific numbers."
Berman then proceeds to outline the main points of the industry's
strategy for attacking the social costs theory of smoking:
"Our attack consists of four major themes:
1. These social cost concepts are bad economics.
2. They do not fit into a philosophy of personal
freedom and civil liberty.
3. Smoking benefits society and its members in many
complex ways.
4. Anti-smoking programs and groups are harmful to
our society."
Later in the paper, Berman
concedes that, "Indeed, there may be a few cases where
smoking creates uncompensated costs for non-smokers," but
then adds, "but the economists are quite certain that most
of the alleged medical expenses do not qualify as social costs, and
the much larger charges of absenteeism and lost productivity are not
social costs at all."
Quotes:
Dennis Durden has outlined the major social
costs thrusts against our industry. Various critics are
using a form of economic analysis to come up with an
invoice, a bill of smoking costs which are paid for by
society. It would be pointless to just dispute these
arguments with similar data, to attack their numbers with
our numbers. Instead, our strategy is to attack the concepts
of social cost analysis. We have found that these concepts
are most vulnerable. If we can undermine the concepts, then
we do not have to enter into public debate over specific
numbers.
Our attack consists of four major themes:
1. These social cost concepts are bad economics.
2. They do not fit into a philosophy of personal freedom and
civil liberty. 3. Smoking benefits society and its members
in many complex ways. 4. Anti-smoking programs and groups
are harmful to our society.
[from Page 9, Bates No. 502091602]
...Consider smoking in an elevator. The smoker
gets to smoke. But some people are made uncomfortable.
It is not reasonable to expect them to walk to their floor.
So some rules may be necessary. But a total ban on smoking
simply reverses the inequity: now the smokers are
uncomfortable for the sake of the occasional non-smoker who
objects. The proper aim of cost/benefit analysis would be to
help find a solution which is "fair" to both
sides.
President of Devon Management Resources, Inc.
1979. Presented a talk on social costs for ICOSI, the
International Committee on Smoking Issues. Appears to
have been on a social costs working group with the
Tobacco Institute around
1979-80.
Recipient:
ICOSI, the International Committee on Smoking
Issues
1994 Used by industry to discuss economic and
other impacts of OSHA regulation of workplace smoking.
Proposed consultant to comment on Federal OSHA proposal
on workplace smoking.
Berger,
P. Wildavsky, A. Rutgers University University of
California Russell Sage Foundation Nozick, R. Harvard
University Center For The Study of Public
Choice Feinhandler, S. Harvard Univ Medical School Durden, Dennis C. (VP of RJR Industries,
1984, TI Communications)
Director of RJR Corporate Public Affairs, 1975,
Dir. of Public Affairs Council, 1977, VP of R.J.
Reynolds Industries, 1984. Served on the Communications
Committee for the Tobacco Institute, 1977 (while an RJR
employee). TI
Communications
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password (which may be blank). 3. Click on "My Page" in
the left-hand column. 4. At the bottom of the screen in
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