Tobacco Documents Online

CORPORATE ISSUES Public Policy Issues and Actions As the largest consumer packaged goods company in the world, we are taking action to defend our business in a number of fields of public interest. To join us in our efforts, or for further information, please write to the Corporate Affairs Department identified on the facing page. Excise Taxes. Our argument against large and abrupt increases in excise taxes on our products: they are discriminatory and regressive, and could increase unemployment and damage the economy. Marketing and Consumption Restrictions. We are taking energetic steps to preserve basic commercial and consumer rights, while funding responsible efforts to discourage under-age consumption of our products. Junk Science. We believe that the U.S. Environmental Protection Agency's 1993 report on environmental tobacco smoke manipulated data in order to reach a foregone conclusion. We have joined other plaintiffs in filing a federal suit against the E.P.A., asking -- among other things ~ that the court order the E.P.A. to withdraw its findings. Litigation Victories. The U.S. tobacco industry prevailed in all TK of its product liability jury trials, and even in an unusual small claims court case, in 1993. At the end of the year, TK cigarette liability cases were pending against the industry; TK of them named Philip Morris as a defendant. Reducing Our Impact on the Environment. In accordance with the Philip Morris Environmental Principles, we continued to reduce the impact of our production processes and packaging on the environment. Corporate Issues -- 1 12/27/93

Corporate Citizenship In 1993, we continued our tradition of responsible efforts to help our factory, office and consumer communities. We often leveraged our funding by working with academic leaders, foundations and government agencies. Disaster relief included contributions to aid victims of flooding in the Midwest United States [and Europe?], and of the war in Croatia and Bosnia-Herzegovina. We extended our successful Gateway adult literacy program to South Central Los Angeles; Jacksonville, Florida; and the state of Indiana. We announced a new, multi-year contribution to the United Negro College Fund, continued support for the National Hispanic Scholarship Fund and helped the National Asian Pacific American Legal Consortium establish a permanent base in Washington, DC. Since 1991, we have provided over $4 million to organizations that either fight AIDS or help people with AIDS. We provided funds to more than 70 such organizations in 1993 alone. In response to rising conflict at colleges and universities, we funded proposals from 11 colleges and universities under the heading of "Tolerance on Campus: Establishing Common Ground." During 1993, which marked our 35th anniversary of arts support, our cultural funding included a free public concert in New York's Central Park by the Alvin Ailey American Dance Theater. Through our "Helping the Helpers" program, we continued to support innovative organizations combating hunger in the U.S. We also funded the Urban Institute's ground-breaking "Hunger Among the Elderly" study. We contributed over $1 million to initiatives in environmental education, water conservation, farming and agricultural issues and solid waste issues. Corporate Issues -- 2 12/27/93

Box: Our Mission at Philip Morris is to be the most successful consumer packaged goods company in the world. We pursue our Mission by: Maintaining the highest quality of people. Protecting and building our brand franchises. Growing profitable new business with line extensions, new products, geographic expansion, acquisitions, and joint ventures and strategic alliances. Maximizing productivity and synergy in all businesses at all times. Making total quality management a reality in every aspect of our everyday operations. Managing with a global perspective. We judge our success not only by our financial results and the execution of our strategies, but also by the honesty, integrity and concern for others that we demonstrate in our business. Corporate Issues -- 3 12/27/93