Alcohol Summary
* Executive Summary
In 2001 spirit makers ended a long standing volunteer policy against aggressive alcohol advertising (Steiner and Steiner, 2009). Since that time, there has been an unprecedented shift toward increased alcoholic advertisements in an effort to increase market share and raise profits. This shift brings into light the challenge alcoholic companies face in balancing their fiduciary duties to their shareholders and their corporate and social responsibility to society.
This report focuses on the issues surrounding Anheuser Busch’s Spykes beverage and the corporate and social issues similarly faced by other alcoholic beverage companies.
Introduction
There is growing public pressure for alcoholic beverage companies to meet their social and ethical duties to balance efforts to increase profits to their shareholders whilst protecting society from the harmful effects of excessive alcohol consumption.
Anheuser Busch (AB) is one of the largest alcoholic beverage companies in the world. In 2005 AB manufactured an alcoholic beverage called Spykes It is a spirit based beverage that was intended to target their 21-30 year old legal age drinkers. Following a successful soft launch, AB was hopeful that Spykes would help increase market share and profits. Unfortunately, growing public pressure forced AB to stop selling Spykes (Steiner and Steiner, 2009).
This report looks at specific issues surrounding Spykes and its potential harm to society, considers AB’s ethical duties to society, discusses the affect of alcoholic advertising in society and addresses potential reforms to help ensure alcoholic beverage companies fulfil their ethical duties to protect society of undue harm.
Is Spykes Bad?
Spykes could be considered bad in the sense that it was likely targeted at underage drinkers. It is well accepted that alcoholic beverages are no ordinary commodity (Babor et al, 2003) and Spykes could be classified as part of the Alcopops group of beverages
In 2001 spirit makers ended a long standing volunteer policy against aggressive alcohol advertising (Steiner and Steiner, 2009). Since that time, there has been an unprecedented shift toward increased alcoholic advertisements in an effort to increase market share and raise profits. This shift brings into light the challenge alcoholic companies face in balancing their fiduciary duties to their shareholders and their corporate and social responsibility to society.
This report focuses on the issues surrounding Anheuser Busch’s Spykes beverage and the corporate and social issues similarly faced by other alcoholic beverage companies.
Introduction
There is growing public pressure for alcoholic beverage companies to meet their social and ethical duties to balance efforts to increase profits to their shareholders whilst protecting society from the harmful effects of excessive alcohol consumption.
Anheuser Busch (AB) is one of the largest alcoholic beverage companies in the world. In 2005 AB manufactured an alcoholic beverage called Spykes It is a spirit based beverage that was intended to target their 21-30 year old legal age drinkers. Following a successful soft launch, AB was hopeful that Spykes would help increase market share and profits. Unfortunately, growing public pressure forced AB to stop selling Spykes (Steiner and Steiner, 2009).
This report looks at specific issues surrounding Spykes and its potential harm to society, considers AB’s ethical duties to society, discusses the affect of alcoholic advertising in society and addresses potential reforms to help ensure alcoholic beverage companies fulfil their ethical duties to protect society of undue harm.
Is Spykes Bad?
Spykes could be considered bad in the sense that it was likely targeted at underage drinkers. It is well accepted that alcoholic beverages are no ordinary commodity (Babor et al, 2003) and Spykes could be classified as part of the Alcopops group of beverages
References: Robertson, S and Kenyon, A, 2009, Ethics in the Alcohol Industry, Palgrave Macmillan, New York. World Health Organisation (WHO), (2002) The World Health Report 2002: Reducing risk, promoting healthy life, Geneva. Anderson, P. (2009) ‘Is it time to ban alcohol advertising?’, Clinical Medicine, 9, 2 April 2009: 121-124 Jones, S.C., Hall, D Munro, G. and De Wever, J. (2008) ‘Culture clash: alcohol marketing and public health aspirations’, Drug and Alcohol Review, 27(2): 204-211 Steiner, J.F, Steiner, G.A Post.J.E., Lawrence.A.T. and Weber.J., (2002) Business & Society: Corporate Strategy, Public Policy, Ethics, Tenth Edition, Irwin McGraw-Hill, Boston.