25 Jul DISCUSS THE IMPLICATIONS OF DDS ACTIVITIES ON ITS ETHICAL STANCE AND CSR POSITION.
The DD drinks company was founded over one hundred years ago by a deeply religious family and has be Show more The DD drinks company was founded over one hundred years ago by a deeply religious family and has been recognised as being a good employer ever since. The company has a long history of supporting sporting events as part of its stated commitment to help promote healthy lifestyles. DD has a corporate social responsibility (CSR) commitment to behave ethically while helpingimprove the quality of life of society generally. A percentage of DDs profits are also allocated to a number of local charitable causes every year. Using secret natural ingredients DD has grown to become the worlds leading manufacturer and distributor of non-alcoholic drinks. The company has an extremely strong brand and its drinks are sometimes sold alongside own brand alternatives which it manufactures and packages on behalf of a few large supermarket chains. Own brand drinks sell more cheaply than DD branded products are less costly to produce (they avoid expensive labelling and promotion) but sales remain low. DD spends heavily on displaying some of its ever-expanding product lines on television normally before and after popular programmes aimed at children and teenagers. For the first time this year DD is also spending an equal amount on online advertising. Following the pattern of its major rivals DD has recently sought celebrity endorsements for its products. Focus group research indicated that the endorsement by a controversial rapper Mr TT would appeal to its target market segment. When this was announced there was criticism from religious and political groups because of the musics association with exploitation of females violence and bad language. One newspaper editorial accused DD of endorsing immorality. In response DDdecided not to use Mr TT in its campaigns and admitted that it had made an error of judgement in a press statement. Now a further problem has arisen. An international health watchdog body has reported that DDs products contain high levels of sugar and if drunk excessively by children they can lead to long term gum and tooth decay. DD has yet to respond to the report. Discuss the implications of DDs activities on its ethical stance and CSR position. Show less
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