Corporate Social Responsibility and Unethical Products - Essay Example

Corporate Social Responsibility and Unethical Products Briefly explain why this industry has been selected This area has been chosen because of the broad range of its impact on society, or an individual or groups of individuals; if this product is not used safely and responsibly, it can have a short term as well as life long affects for the unsafe or irresponsible user, as well as affecting countless unsuspecting victims. The cost, impact, and affect which can result from irresponsible use of this product in on a personal level, can have a direct affect on an individuals family, on employment status, community statue, and their overall well-being. Of course it can have life threatening consequences, considering the deleterious affects it might have on the body, and for the unsuspecting individuals who may encounter the abuser, while they are so engaged. When one considers the scope and magnitude of the many worst case scenarios which could present themselves due to the irresponsible or reckless use of alcohol; one’s minds eye immediately conjures up the horrific tale of the hit and run driver, who caused a multiple car pile up. The vehicle of the perpetrator still being operative, flees the scene, which left several persons dead, and numerous persons injured, and thousands of dollars in property damage. When the driver was finally cornered by the police, it was then discovered that the driver was operating a motor vehicle, while under the influence of alcohol. To be sure, had this person’s judgment not been impaired by the amount of alcohol previously consumed, it is reasonable to assume that his motor skills would not have been 2 impaired, and he surely would not have exercised such bad judgment as to leave the scene of an accident, which he was responsible for. Additionally, people need to be made aware of the laws, and be appraised that the consequences for irresponsible and reckless behavior, while under the influence of alcohol, bears strong penalties. That being under the influence when committing an irresponsible or reckless act is not an excuse. Consequently, it is felt that, it is imperative for the producers of alcohol to take seriously, their corporate social responsibility, and be a committed stakeholder with government, other corporate entities within the community, as well as with community based organizations, in educating all members of the consuming and non-consuming public on the diversified adversities which accompany alcohol consumption. (1) Explain the meaning of the term ‘Corporate Social Responsibility’ The areas impacted by corporate social responsibility are diverse and growing each time a company confronts a new challenge or crisis. The intervening variables include, human rights, labor conditions, supplier relations, corruption, and community development. Corporate Social Responsibility is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. The concept obviously involves broad issues which encompass corporate activities which are beyond profit making. “CSR involves a broad commitment by companies to social welfare and the common good, and to the policies that support them. It involves not just the products a 3 company manufactures, but also being a good corporate citizen in terms of its employees that it hires and they way it looks after them. It is about protecting the environment, and getting involved in the local community, and the wider culture in which the company does business”(icap) Bjorn Stigson, President of the World Business Council for Sustainablke Development (WCBSD), acknowledges the reality of the above-mentioned condition, and given the volatility which varying industry variables may have on what is actually perceived and/or practiced as CSR, Stigson has prepared what he describes as a 12-point navigator to guide companies through their social responsibility challenges. He describes the navigator as both a tool and a conceptual approach, and the application of each or any of the twelve points are in accordance with each company’s assessment of how applicable the point applies to satisfying the public good, while also allowing it to operate with a reasonable return on their investment. The CSR 12 point navigators ate as follows: Determine your ‘magnetic north’ Build-in the strategic business case Focus on individuals Determine your legacy Put employees first Know your neighbor, community culture Debate and dialogue Pursue smart partnerships 4 Reputation matters Be a good guest Measure and account for what you do Handle with care information, knowledge, and technology. “The beverage alcohol industry acknowledges that, although their products can offer considerable personal pleasure and social benefit, they can also cause serious personal and social harm if consumed irresponsibly. They also acknowledge that preventing misuse of their products is in their long-term strategic interest and is therefore consistent with their economic objectives, while turning a blind eye in misuse is ultimately bad for business. They recognize that such long-term growth is best built on an ethical and responsible foundation. Their social concern is also founded on the realization that the misuse of alcohol can affect their business adversely. Appropriately, the industry has initiated many programs to minimize the risks, to encourage moderate consumption patterns, and to educate consumers about alcohol use. Many of these actions have been developed by the industry in partnership with others”(CSR) (2) What statements does the firm make regarding its corporate Social responsibility? “Business ethics can be normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia descriptive approaches are also taken. The range and quality of business ethical issues reflects the degree to which business is perceived at odds with non-economic social values. 5 Historically, interest in business ethics accelerated dramatically during the 1980’s and 1990’s, both within major corporations and within academia. For example, today most major corporate web sites lay emphasis on commitment to promoting non-economic social values under a variety of headings ( eg. Ethics codes, social responsibility charters). In some instances, corporations have redefined their core values in the light of business ethical considerations”(Wikipedia). For example, lets us use Bean Global Spirits and Wine, Inc., a alcohol beverage producer, who has adopted a list of voluntary principles which it believes establishes a firm commitment towards exhibiting its corporate social responsibility. These principles as set forth by bean Global were effective as of January 1, 2008. The company recognizes that underage drinking is a long-standing problem, and that there are an array of negative situations which can accompany the practice among those who are below the legal age of consent to consume their product. In so being, Beam Global has put forth a commitment to implement a 75 per cent audience demographic standard. Beam Global Spirits and Wine, Inc. has taken the following position on all forms of print and electronic advertising and marketing materials which it shall place in broadcast, cable, radio, and print communications. It has maintained that the will only advertise and market where at least 75 percent of the audience is reasonably expected to be above the legal purchase age (21), (this is to be determined by using reliable, up-to date audience composition data)”(Beam Global). Taking this initiative a step further, beam Global is seeking assurances that its 6 campaign does not falter, beam Global commits to an annual review of electronic and print data where their ads have been placed. Whenever the company discovers any deviation from their projected market focus, they are poised to make the adjustments necessary to maintain continuity in their initiative. Their advertising and marketing principles are designed to cover a number of aspects, which fall within their purview of business operations. In so being, the company has made specific commitments, which they will adhere too, in keeping with a comprehensive social responsibility approach. Some of the other areas which the principles specifically mention are : Promotional events The company has committed not to advertise or market its products at special venues, unless a minimum of 75 percent of the targeted attendees are at of above the legal age of consent(21). Fixed advertising Beam products will only be placed in venues that are primarily adult oriented Events. College campuses The Beam Global company has committed not to use campus organs (print media), nor will it advertise its product at any college or university. Moreover, the company has committed, to not advertise directly to college or university students who are on spring break. Proximity to places of worship and public playgrounds 7 The company has initiated a 500 feet ban on outdoor stationary advertising locations, situated nest to a place of worship, public playground or an elementary or secondary school. Magazine special binding As of July 1, 2006, the company committed that advertising for Beam Global products, “will not appear in the school library/program copies of Newsweek, Time, US News & World Report, Sports Illustrated and People, intended for delivery to schools and libraries, by securing special bindings of these publications if and to the extent advertisements for Beam products appear in these magazines. Beam Global will refrain from advertising Beam products on the inside and back covers of these magazines ( premium advertising space) if their covers can not be segregated out for special bindings of school library/program copies”(Beam Global) Beam Global makes a number of social responsibility statements in the implementation of its ethical commitment to the community-at-large. It is clear that the principles which it has chosen to promote will affect the company’s ability to totally saturate any given market area. They have elected to carefully select the mediums which their product will be viewed. In so doing, they have cast off a phase of business acumen which stipulates that effective and cost efficient marketing is geared towards the maximum audience, and in reaching the maximum audience in the electronic media, then prime time exposure is a must. Beam Global takes the position that prime time electronic media, while it may consist of a large, or even substantial number of potential adult consumers, during these hours, the audience at prime time, also contains a substantial 8 number of individuals who are outside of their 75 percent target market. Beam Global is neither about the business of grooming underage patrons, nor are they interested in attracting those outside of their 75 percent target into the fold. Also, with the print media, the company makes the emphatic point, that they are concerned about the plight of underage persons. The company personifies the adage, that business is not totally about profit. They recognize that their product can be extremely harmful if used recklessly or irresponsibly, so they endeavor to suppress the exposure of their product among those not yet of age, who are more prone to cast precautions to the wind, and not be in complete touch with the consequences of their actions. Not only does Beam Global provide a set of principles, but through their principles, the company provides guidance. Other companies in the alcohol industry have also established restrictions on marketing to print, television, and radio outlets. However,, the standard established by others in the industry is only 70 percent of the legal purchase age audience. Beam Global has raised the bar to 75 per cent of the legal purchase age audience. The company projects that, “on an aggregate annual basis their advertising in the U.S. will reach an audience that is made up of at least 85 percent legal purchase age consumers”(Swonger 2008). The company is steadfast in its belief that it is a good corporate neighbor. Tom Flocco, President and CEO of Beam Global Spirits and Wine states: “We give back to communities in which we have a presence all over the world, and embrace the idea that we can ‘do good while doing well’, with our philanthropic platform, Angel’s share. We are also committed to continuous improvement of our 9 environmental, health and safety footprint at our distilleries, warehouses, bottling plants and offices”(Flocco) (3) To what extent do you consider that the organization is meeting its social responsibilities? Beam Global can be said to have a high responsive social responsibility rating. This assessment is based primarily on four critical variables. Proactive Anticipates and prevents problems Searches for socially responsible acts Takes public stand on issues In the area of being proactive, Beam Global firmly believes in the ‘power of partnership’. This principle has empowered the company to participate in a variety of activities, with an assortment of not-for-profit organizations, and like industry associations who share comparable beliefs in the area of corporate responsibility, as it relates to responsible consumption of alcohol and the need for collective action in addressing alcohol misuse. The company projects that over the years, its involvement with social responsibility have led them to invest millions of dollars in not-for-profit organizations to advance the important cause of alcohol misuse. On its own account, Beam Global has instituted a significant program which they have titled “drink smart”. The describe it as, “a platform from which they promote activities and efforts relating to responsible consumption. Drink smart raises awareness of important issues around alcohol policy, minimization of alcohol related-harm, and 10 responsible consumption”(BG) The company’s principles on consumption are: If you are under the legal age, don’t drink Never drive drunk If you are a legal purchase age consumer that chooses to drink – do so in Moderation If you can’t drink responsibly – don’t drink at all”(BG) Also, in keeping with its proactive social responsibility stance, the company has engaged in the underwriting of the National Center for SWI Courts. Which is a partnership with the not-for-profit National association of Drug Court Professionals. The program is designed to reduce the incidence of repeat offenders and hard core drunk drivers (drivers with a high blood alcohol concentration). These drunk drivers account for the vast majority of alcohol related traffic fatalities, and are the most dangerous individuals on our roads. As many of these offenders may have a problem with alcohol, DWI Courts provide offenders with long-term, on going rehabilitation by providing solution oriented assistance”(Drink Smart Initiatives). “Studies show that after one year, graduates of the DWI program are three times less likely to be repeat offenders than those who do not participate in the program. After two years, graduates of the program are four times less likely to receive a new DWI arrest”(Drink smart initiatives) The honourable Philip Howverton of the M.C.District 26 DWI treatment court acknowledges: 11 “Graduates of the SWI Court program are turning themselves around after they receive help. Making our roads safer for everyone”(Howverton). Robby Gordon is a ling-standing supporter of Beam Globals efforts to fight drunk driving. He states, “I am impressed with the results of SWI Courts. I would like to offer my appreciation to Beam Global for supporting the National Center for DWI Courts and for including me in their efforts to help raise awareness for this program”(Gordon) Additionally, Beam Global provides “funds and actively support social aspects organizations, industry associations, and advocacy groups around the world that promote responsible alcohol consumption and responsible marketing”(DSI). Collectively these initiatives include the following: Reduction of alcohol abuse Awareness raising to encourage responsible consumption and hosting Educational tools and seminars Parental guidelines designed to curtail underage youth access to alcohol Binge drinking and excessive consumption Drunk Driving Responsibility messaging on advertising”(DSI) Beam Global has initiated a partnership with the Century Council, a not-for-profit organization which is funded by distillers, and has tasked itself with the mission of fighting drunk driving and underage drinking. In 2007 The Century Council launched numerous educational programs throughout local communities. In acknowledgement of the Century Councils programs’, works and successes, 12 Chris Swonger, senior vice-president of corporate affairs for Beam Global stated, “we are committed to supporting the Century Council and their important mission to educate communities about the dangers and repercussions of drunk driving and underage drinking”. “Beam Global understands the importance of the Century Councils programs to our community, and we are honoured to work with them to help start the dialogue between parents and their kids regarding the dangers of drunk driving and underage drinking. We are hopeful that the Century Council will continue to reach even more communities throughout 2008”(Swonger) Bibliography Corporate citizenship and the alcohol beverage industry, On line [internet] Available at: www.icap.org [accessed 19 February 2008] Drinking smart initiative, Beam Global Spirits & Wine Inc. On line [internet] Available at: www.beamglobal.com [accessed 20 February 2008] Flocco, Tom, President CEO of Beam Global Spirits Wine Inc., On line [internet Available at: www.beanglobal.com [accessed 20 February 2008] Gordon, Robby, DWI Court On line [internet] Available at: www.robbygordon.com [accessed 20 February 2008] Howverton, Philip, DWI Treatment Court On line [internet] Available at www.dwitreatmentcourt.com [accessed 20 February 2008] Stigson, Bjorn, Corporate social responsibility: a new business paradigm On line [internet] Available at: www.wbcsd.org [accessed 20 February 2008] Wikipedia, Corporate social responsibility On line [internet] Available at: www.wikipedia.com [accessed 20 February 2008] Read More