How Should CSR be enacted by fast food companies (Mc Donalds) in light of the current obesity epidemic in Australia?

How Should CSR be enacted by fast food companies (Mc Donalds) in light of the current obesity epidemic in Australia?

I will upload additional files later in my account How Should CSR be enacted by fast food companies (MC DONALDS) in light of the current obesity epidemic in Australia? ONLY DO THIS PART 1 Introduction (400 words) – 4 references + Garriga and Mele (2004) 3.3.1 Key Issue 1 (150 words) – 1 reference (journal article) 4 Method (50 words) 5.1 Issue 1: NAME ? 5.1.1 Discussion (50 words) – 1 reference 5.1.2 Recommendation (100 words) – 2 references SEE EXAMPLE BELOW

Assessment task title: Research conference paper

Details of Task: This is a GROUP assessment task. You are required to complete a conference paper based on your own group research conducted with colleagues in groups of four (4). The conference paper will address the question: How should corporate social responsibility (CSR) be enacted?

The response to this question must focus on one specific area:

•  industry (e.g. mining or banking);
•  management function (e.g. human resource management, marketing);
•  country, geographical region, type of country (e.g. China, a developing nation)
•  management practice (e.g. social reporting); organisation (e.g. ANZ Bank) OR
•  type of organisation (e.g. NGO, family run business, small business).

• To undertake this research you should use non-primary sources of data such as government documents, industry reports, media reports, company reports/websites, anti-corporate/social activist reports, reports from non-government organisations (NGOs) IN ADDITION TO scholarly literature.

My topic for the report is

How Should CSR be enacted by fast food companies (MC DONALDS) in light of the current obesity epidemic in Australia?

ONLY DO THIS PART

1 Introduction (400 words) – 4 references + Garriga and Mele (2004)

3.3.1 Key Issue 1 (150 words) – 1 reference (journal article)

4 Method (50 words)

5.1 Issue 1: NAME ?

5.1.1 Discussion (50 words) – 1 reference

5.1.2 Recommendation (100 words) – 2 references

SEE EXAMPLE BELOW

 

Structure for the Research Paper

1. Abstract – see ANZAM 2016 document plus How to write an abstract document
2. Introduction – Definition of CSR and purpose of the paper
3. Literature Review of relevant academic literature and theory to be used in the paper

• Key theories, evidence, concepts & definitions
• Arguments and debates
• Frameworks that may be of use

4 .The Case ‐ your company, sector, country, management function

• Context, background, existing CSR practice
• Key issues and problems that need addressing/improvement

5. Method ‐ the data you have collected and how you collected it.
6. Discussion and recommendations

• Analysis of how CSR is currently practiced by the entity
• Discussion of how should be practiced, now based on your data and on your selected  theoretical perspective/model/ideas.

Link your literature review (e.g. theory/concepts) to the problem identified in your company/ industry to explain ‘How CSR should be enacted…….’

7. Conclusion and Limitations of the study
8. Reference List

 

 

 

 

 

 

Example of  report:

How Should CSR be enacted by soft drink companies       (Coca-Cola)  in light of the current obesity epidemic?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Abstract

The purpose of this paper was to critically explore how manufacturers and sellers of soft drink should enact Corporate Social Responsibility (CSR), and how they market their products to consumers, given the current obesity epidemic Australia is faced with. To help answer this question in detail, Coca-cola and PepsiCo were looked at as examples. This paper used literature and frameworks in the CSR domain by Garriga and Mele, Galbreath and Smith, and used Porter and Kramer as a potential conceptual framework that may be of use to large soft drink companies to assist in the CSR implementation process. Secondary sources were used as the basis of the paper, including journal articles, government papers, CSR textbooks and statistics. While large soft drink manufacturing companies like Coca-Cola have taken some positive steps in implementing CSR strategies, this paper questions the motives of these companies in doing so, and whether these strategies are doing anything to curb the obesity epidemic in Australia and around the world. In light of this, this paper also provides some recommendations on how CSR can be embedded in the marketing of soft drinks to consumers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Introduction

The connection between corporate social responsibility (CSR) practises and initiatives and the marketing of products that pose potential health risks has been met with controversy. The question has been asked many times are what chances an organisation has to be socially responsible if it markets and sells harmful products (Yani-de-Soriano, Javed, & Yousafzai, 2012). There is little agreement on how the topic of CSR should be defined, furthermore there is little consensus on a single definition. This paper will use Galbreath’s (2006) model of CSR strategy, which shows how different companies and businesses may go about in implementing different CSR initiatives strategically, both locally and on a global scale. These strategies are a reflection of the four domains of CSR outlined in the article by Garriga and Mele (2004). More importantly, given the context of the industry and the environment in which it operates, the paper will also touch on the normative theory proposed by Smith (2003), which outlines what companies should be doing in relation to CSR, embedded in the ethical domain. This will be discussed in relation to the marketing of soft drinks by major companies.

The marketing practises of large soft drink companies have increasingly come under the microscope by a range of parties, given the rising rates of obesity in Australia and the significant contribution high levels of sugar in a diet make to perpetuate this health risk, particularly in younger children (World Health Organisation, 2014). Despite the warnings that have been given regarding the dangers of consuming high levels of sugar, consumption levels remain high due to the heavy marketing that has been taking place for such products, including soft drinks (World Health Organisation, 2014). Even attempts made to tax sweetened drinks have gone unheeded by many manufacturers and consumers (Tigerstrom, 2012). Given this evidence, it is imperative that large soft drink manufacturers and sellers

(e.g. Coca-Cola) always have the issue of CSR at the forefront of their minds when marketing their products. It has been argued that many soft drink companies have made the health risks known of consuming soft drinks, and work closely with many different health organisations to campaign for healthy living practises and promote healthy lifestyles. Yet consumption of soft drinks still seem to be on the rise, and this raises questions as to whether or not soft drink companies are doing enough; can they say they truly have the health interests of the their consumers at heart, or are they simply green washing and looking out for different types of strategies to market their products.

The following paper will firstly look to discuss the topic of CSR and its contested meaning through the scope of different, competing theories. Secondly, the issue of the marketing of soft drinks and how it relates to the topical issue of CSR will also be discussed; specifically what large soft drink companies are currently doing in response to the current health epidemic. Additionally, some major soft drink manufacturers, such as Coca-Cola and Pepsi will be looked at to help address this issue. Finally, this paper will offer some recommendations as to what and how large soft drink manufacturers should be aiming to do in the future to market their products in a socially responsible way.

 

 

2. Literature Review

2.1. Defining CSR: Making It Relevant

There is no standard definition when it comes to CSR. The reason for this is the vast amount of literature that exists and differing views and perspectives from each body of work. However in a general sense, CSR can be defined as the responsibility of any business for its decisions and activities that impact on society and the environment it operates in, whilst taking into account the needs of different stakeholders and remaining complaint with the law (Hohnen, 2007). For the purposes and focus of this paper, two main theories will be looked at specifically and defined in regards to the topic of CSR, reflective of the context in which CSR is here being discussed (the marketing of soft drinks to consumers). The first is the business case for CSR, which focuses on CSR strategies that bring about a greater good to society, going beyond just pure profit maximisation, so famously proposed by Friedman (1970), but also yields some sort of benefit to the company. The other is the normative case for CSR which focuses on what companies should/ought to do.

 

2.2. Conceptual Framework: A Strategic Approach to Corporate

Involvement in Society: As has already been discussed, it is imperative for organisations to move beyond a business case for CSR. This is especially relevant for soft drink manufacturers and sellers due to the increasing obesity levels. It is clear that these companies need to be doing more, and perhaps move to a citizenship approach proposed by Galbreath (2006). A possible framework that may be of use here is that proposed by Porter and Kramer (2006). They argue that companies need to focus on their value chain and the social impact companies have on the environment in which they operate in. The value chain is also part of the business model framework proposed by Roman, De Jesus and Chua (2001), which also includes government/multilateral/global relations, community relations and societal demands/civil society domains as part of their model. Porter and Kramer (2006) argue that using a framework that addresses the value chain allows a company to be affirmative in their corporate social agenda; they posit that a company who reinforces their corporate strategy through social progress will benefit more than a company who merely tries to limit the damage they cause (in the case of soft drink companies, this would involve campaigning for exercise or fitness after marketing sugary soft drinks that are known to perpetuate obesity levels). Essentially this framework ‘maps out’ the social impact of the value chain, acknowledging the social contract that exists between business and stakeholders proposed by Smith (2003) and allows a business to ‘embed’ itself in society and move beyond a mere business case for CSR, which so far, has done nothing to reduce obesity levels around the world.

2.3 Applying CSR: An Empirical Analysis

2.3.1 Obesity epidemic and Sugar-sweetened drinks

Information collected from Monash Health Sciences Faculty have shown that Australia today is ranked as one of the fattest nations in the developed world with obesity than doubling in the past 20 years. Australian National Health and Medical Research Councils has published research showing that with the current level of weight gain, by 2025 close to 80% of all Australian adults and 33% of children will be overweight or obese. Woodward-Lopez, Kao & Ritchie (2010) estimated that during the 30-year period from 1977 to 2007, sugar-sweetened beverages accounted for at least 20% of the weight gained. In addition, Malik, Pan, Willet and Hu (2013) also concluded that body weight and obesity in both adults and children are positively correlated with a high intake of sugary drinks. Therefore, it is undeniable that large corporations producing sweetened drinks hold an important position in this health issue.

 

3. The Case

3.1 An Overview of Coca-Cola Company

Coca-Cola is one of the world’s largest companies and has the highest ranking in terms of value in the beverages industry (Forbes, 2015). Coca-Cola Company offers variety of beverages with over 100 brands and sub-brands under their licenses and trademarks across the regions. Their beverages are offered in over 200 countries and possess brand revenue and company advertising of 23.1 and 3.5 billion dollars respectively (Coca-Cola, 2014). Furthermore, Coca-Cola also applies the CSR practices into their business as an initiative for sustainability development into company visions and missions.

3.2 Coca-Cola and CSR

3.2.1 Coca-Cola’s Objectives of CSR

Coca-Cola has been focusing in many areas of CSR activities all around the world. Coca-Cola has categorized their CSR objectives into three main aspects as “Me”, “We”, and “World” based on the smallest to the largest scale (Coca-Cola, 2014). The first aspect “Me” focuses on consumer health and well-being by providing the nutrition and average drink per serve on the packaging of the products. They also offer low calorie drinks to the consumers. Besides, CSR activities that related to health and obesity also being applied to support consumer physical activities and reduce the obesity issues. The second aspect “We” looks at social communities such as CSR in workplace, human rights and diversity. The last aspect “World” focuses on environmental issues such as the eco-environment, packaging, and pollution.

3.2.2 Coca-Cola’s CSR Practice in Australia

Health and obesity is one of the primary CSR concerns that Coca-Cola focuses upon in Australia. The company’s efforts to help Australian people to reduce the problem of obesity and improve health conditions include providing nutrition labels on the packaging, the appropriate serving suggestions or recommended daily consumption labels to assist consumers in soft drink consumption behaviours. Coca-Cola also launched the new product called “Coca-Cola Life” which contains less sugar and fewer calories by using Stevia as a natural sweetener substitute instead of sugar. Moreover, Coca-Cola also concerns about the way of advertising to the consumers too therefore they have committed to not perform any direct marketing or advertisement to children age under the age of 12 as a marketing responsibility (Coca-Cola, 2014). They have also educated consumers in terms of energy consumption and exercise order to balance the weight to be appropriate with the individual body mass index.

3.2.3 Coca-Cola’s CSR Practice in Global Context

In a global context, Coca-Cola has undertaken various CSR practices across the countries in which it operates in. However, most of the CSR that they have implemented were focused on the broader perspectives of CSR such as the environment, sustainability and human rights which lack consideration for the individual consumers. Most of the CSR campaigns of Coca-Cola were brought about after issues had emerged in a particular area; the company usually reacts to issues rather than taking a proactive approach in CSR. The attempts to solve problems through incorporating CSR practices are their main solution towards protecting themselves from affected stakeholders. For example, an issue regarding extreme amounts of water used by Coca-Cola in the production of soft drinks in India had sparked public outrage due to the country’s already diminishing supply of drinkable water. Although this compelled Coca-Cola to acts and attempt to rectify the issue (The Guardian, 2014), only after substantial evidence was found did Coca-Cola begin to administer CSR campaigns and practices.

3.3 Key Issues and Problems Identification

Coca-Cola faces a number of ethical issues in regards to the advertisement of their products. The consumption of soft drinks may lead to a variety of health issues such as dental erosion (May & Waterhouse, 2003), vascular disorders (Dental Abstracts, 2013) and obesity (Cerini, Mameli & Zuccotti, 2013). While these health related problems are gradually recognised by most individual’s as they age, research has shown that children are mostly unaware of the health implications in soft drink consumption until they reach the 13-14 year old age bracket (May & Waterhouse, 2003). To demonstrate consumer ethical responsibility in their soft drink products, Coca-Cola should consider changing their advertising and packaging practices in respect to three key issues. The first issue is related to the rising obesity rates in Australia, in which evidence has shown that there is a correlation between soft drink consumption and obesity. Secondly, Coca-Cola should question whether or not young consumers such as children aged 12 and under are aware of the health risks posed by excessive soft drink consumption and how they can contribute to the regulation of soft drink consumption. Lastly, Coca-Cola should also consider implementing further information of the harmful effects of excessive soft drink consumption on packaging and labels.

3.3.1 Key Issue 1

One of the main issues Coca-Cola faces is the increasing prevalence of obesity that has permeated throughout the Australian population. Obesity is recognised as a precursor for a variety of health diseases such as heart failure, diabetes and a host of other organ failures (Naukkarinen, Rissanen, Kaprio & Pietlainen, 2011). To reduce the likelihood of entering obesity, an individual is encouraged to lead an active and healthy lifestyle whilst limiting intake of sugary food and drinks. However, despite the evidences brought forward regarding the increasing obesity rates, the figures continually raise which may suggest that there is a lack of awareness regarding the obesity epidemic amongst consumers. We believe that companies that are involved in the sugary foods and drinks industry such as Coca-Cola should take into account of these obesity trends and reduce the impact their product has upon their consumers.

3.3.2 Key Issue 2

The second issue which requires addressing are the young consumers that are aged 12 and under. As research shown by May & Waterhouse (2011) suggests, children that do not come from a higher socio-economic background and are aged 12 and under do not comprehend or lack awareness of the health implications of excessive soft drink consumption, it is necessary to provide regulation or improve awareness of the risks associated with extreme sugary and carbonated drink intake. Further research has shown that consumption behaviours from a young age may be difficult to correct as they progress to adolescence (Guyer, et al. 2009) and as such poses a significant health risks such as obesity in their future.

3.3.3 Key Issue 3

The last issue involves Coca-Cola developing pre-emptive CSR practices in their product packaging to minimize the likelihood of consumers taking excessive proportions of sugary and carbonated beverages. It has been observed that implementations of warning labels in the Australian tobacco industry have met with success (Gallapo-Morvan et al., 2013).

4. Method

Secondary research has been applied in order to obtain the information and data for this report. Textbooks, academic journals, online articles, the official Coca-Cola website and data from non-profit organizations have been used to conduct the research paper.

5. Discussion and Recommendations

5.1 Issue 1: Power and Influence of Advertising

5.1.1 Discussion:

Gray (2012) critiqued that though large organizations carry out multiple health campaigns, they are mostly to divert the responsibility to consumers and not to the companies.

5.1.2 Recommendation:

CSR strategies backed by genuine commitment to help consumers make informed choices and to enable access to healthy and affordable food (Jessica, 2012). This sort of commitment should also be made by soft drink companies; while organizing health campaigns, the company could also inform the consumers about the products and the pros and cons it could have if under and over consumed respectively. This could take place with the mutual agreement between the company and the government.

5.2 Issue 2: Health and Obesity

5.2.1 Discussion:

According to Coca Cola (2014), they make extensive measures not to advertise their products to kids under the age of 12; however there is no method to measure how much of an impact this is having on the children or whether such an initiate does contribute to lesser consumption sugary drinks by the kids.

5.2.2 Recommendation:

As per Woodward-Lopez, Kao & Ritchie (2010), there has been increase in obesity, our recommendation is to put up strict regulations to a certain limit of usage of soft drinks for the kids under the age of 12. Coca Cola is already marketing responsibly in this area, where there are no advertisements for kids under the age of 12. We suggest that the company and the respective government of the country could make an agreement and come to a certain limit of consumption for the kids and this could be advertised with the commercials, informed to the distributors and retailers, etc.

5.3 Issue 3: Social Responsibility in terms of Marketing

5.3.1 Discussion:

According to Gallapo-Morvan et al. (2013), the implementation of warning the consumers of the intake of tobacco has had an impact, suggesting that adoption of similar methods in emphasizing the health risks associated with excessive soft drink consumption may discourage excessive soft drink consumption behaviour in consumers.

5.3.2 Recommendation:

After comparing the prices of mini cans versus the standard size of the bottle (1.25L), it was observed that the price of mini cans (5.18/L) was more than double of the standard bottle (2.31/L) (Woolworths, 2015). We recommend that the price of both these products be at par so as to increase the consumption of the mini cans. This would lead to lesser intake while fulfilling the urge of drinking carbonated drinks. The companies can come up with more advertisements promoting mini sized cans and making the people aware about it. While distributing their products to the retailers, the company could encourage the distribution of

mini cans. Alternatively, Coca-Cola could emphasize the benefits of healthy diets or exercise on its product labels to mitigate potential obesity and diabetes risks from excessive consumption of their products. This strategy could be further administered in their promotional posters, billboards and other similar marketing channels.

6. Conclusion and Limitation of study

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