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Case Description: Heineken and Promotion Girls in Cambodia

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European Business Ethics Cases in Context

Part of the book series: Issues in Business Ethics ((IBET,volume 28))

Abstract

In Cambodia so-called promotion girls (PGs) working in bars and restaurants play a large role in marketing beer. PGs’ work and the circumstances in which they work are far from ideal. The situation is made more complicated by the fact that some PGs have sexual contact with pub customers after hours to earn more money. Among the most frequently cited dangers to which PGs are exposed is the risk of becoming infected with HIV. Although many parties are involved in the circumstances in which PGs work – chiefly the local pub owners, local distributors and the Cambodian government – foreign media focus mainly on the role of international brewers. Heineken is one of the companies operating on the Cambodian market. This brewer developed a programme for PGs that promote its brands. This case study describes Heineken’s position in Cambodia, PGs’ position in Cambodia, the way the PGs’ relation to foreign brewers drew international attention and, finally, Heineken’s policy on the PGs’ working conditions.

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Notes

  1. 1.

    www.asianlabour.org/archives/000627.html 12 Feb. 2004.

  2. 2.

    One study by the Cambodian government says that 40% of PGs report doing this (see also Stecklow and Marshall, 2000).

  3. 3.

    This case study reflects the situation at the start of 2005. Heineken helped with the study by granting access to internal company information and offering advice on its incorporation in the text.

  4. 4.

    General information on Cambodia taken from John Kleinen and Tara Mar, Cambodja. Amsterdam: KIT publishers, 2004.

  5. 5.

    http://www.visit-mekong.com/cambodia/background/history.htm 25 October 2004; http://www.ncbuy.com/reference/country/backgrounds.html 25 October 2004.

  6. 6.

    General information on Heineken is taken from the company’s annual report for 2003 and the company web site.

  7. 7.

    In 2004, the brand came in 99th in BusinessWeek’s global brand scoreboard: BusinessWeek. 2 Aug. 2004.

  8. 8.

    http://www.apb.com.sg/profile/profile.html 4 Nov. 2004.

  9. 9.

    See also Heineken, Annual Report 2003 (Amsterdam: Heineken NV, 2004) 77: “Proportionally consolidated participating interests: The companies listed below [among which are APB and CBL] are proportionally consolidated because control of [sic] these companies is exercised jointly and directly by virtue of an agreement with the other shareholders.” See also http://www.heinekeninternational.com/content/live/files/downloads/InvestorRelations/H_ENG_JV2002_07_tcm4-4466.pdf. Last viewed 11 Oct. 2009.

  10. 10.

    http://www-nl.heinekeninternational.com/about/who/breweries/cambodia_brewery.jsp.20 May 2005.

  11. 11.

    For Heineken NV’s total beer volume in 2003 see http://www-nl.heinekeninternational.com/images/NVNLjaarverslag_tcm7-10002.pdf. 20 May 2005.

  12. 12.

    http://www-nl.heinekeninternational.com/about/who/breweries/cambodia_brewery.jsp.

  13. 13.

    APB, Annual Report 2003 on http://www.apb.com.sg. 4 Nov. 2004.

  14. 14.

    This did not always run smoothly in the past: Jacobs & Maas (1991).

  15. 15.

    Care Cambodia (2004). See http://www.fairtradebeer.com/reportfiles/CARE/CAREendlinereport2005.pdf. Last viewed 22 Oct. 2009.

  16. 16.

    Heineken provided this information.

  17. 17.

    Data in this section are based on Stecklow and Marshall (2000); Mc Court (2002); Shine (2003); van Luyn (2004).

  18. 18.

    In 2003, CBL used a standard wage annex bonus system for sales over a given limit as well as a disincentive. That was an amount, up to 10%, deducted from wages when sales were under a given minimum. The monthly wage for a CBL PG was then US$50. Heineken provided this information.

  19. 19.

    http://www.actionaid.org/asia/325_1_31.html. 25 Oct. 2004.

  20. 20.

    One study by the Cambodian government says that 40% of PGs report doing this: Stecklow & Marshall (2000). A Behavioral Sentinel survey by the National Centre for HIV/AIDS reports 30–60%: Bainbridge & Nara (2002).

  21. 21.

    http://www.unaids.com. 1 Nov. 2004.

  22. 22.

    http://www.state.gov/g/drl/rls/hrrpt/2000/eap/681.htm. 25 Oct. 2004.

  23. 23.

    http://www.alterbusinessnews.be/nl/index.php. 16 Nov. 2004.

  24. 24.

    http://www.psycholoy.uoguelph.ca/research/lubek/cambodia/aidsep.html. 25 Oct. 2004.

  25. 25.

    See http://www.fairtradebeer.com/reportfiles/lubekheineken2004.rtf.

  26. 26.

    Heineken NV, in-house documentation.

  27. 27.

    Heineken NV, in-house documentation.

  28. 28.

    http://www.fairtradebeer.com/reportfiles/lubekheineken2004.rtf. 10 Jan. 2005.

  29. 29.

    http://www.asianlabour.org/archives/000627.html. 12 Feb. 2004.

  30. 30.

    Heineken NV, in-house documentation.

  31. 31.

    Heineken provided this information.

  32. 32.

    Heineken NV, in-house documentation.

  33. 33.

    Heineken provided the authors with this information.

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Author information

Authors and Affiliations

  1. Netherlands Institute of International Relations Clingendael, The Hague, The Netherlands

    Frans-Paul van der Putten

  2. Department of Social Science, VU University, Amsterdam, The Netherlands

    Rosalie Feilzer

Authors
  1. Frans-Paul van der Putten
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  2. Rosalie Feilzer
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Correspondence to Frans-Paul van der Putten .

Editor information

Editors and Affiliations

  1. , Department of Philosophy, Tilburg University, Tilburg, 5000 LE, Netherlands

    Wim Dubbink

  2. Fac. Business & Economics, Catholic University of Leuven, Naamsestraat 69, Leuven, 3000, Belgium

    Luc van Liedekerke

  3. Michelangelostraat 62, Amsterdam, 1077 CG, Netherlands

    Henk van Luijk

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van der Putten, FP., Feilzer, R. (2011). Case Description: Heineken and Promotion Girls in Cambodia. In: Dubbink, W., van Liedekerke, L., van Luijk, H. (eds) European Business Ethics Cases in Context. Issues in Business Ethics, vol 28. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-9334-9_7

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