lobal Business Issues Module code:          LIPC1160

 
DMUIC
Module Title:            Global Business Issues
Module code:          LIPC1160
Owning Board:       Joint Academic Board (DMU/OIEG)
Faculty:                     University Wide Learning (DMU)
Term/semester:      Spring Term 1
Module Tutors:       Mille Dias, Epiphanie Verschuren, Chirag Dattani,
Email address:        mille.dias@dmu.ac.uk, epiphanie.verschuren@dmu.ac.uk  ,  chirag.dattani@dmu.ac.uk
 
Assignment 1:       Essay (Written Report)
Weighting –               30%
Word count:             1,500 words (guidance)
Submission date:     Friday 28^th February, 2020 by 9am via Turnitin
Learning Outcomes:
LO1 Demonstrate an increased knowledge and understanding of current economic issues in the way in which they occur as well as assessing their implications
 
LO2 Utilise fundamental theories and principles in order to measure and analyse key business issues
 
LO3 Show an understanding of the inter-relationship between economic variables and issues within both a domestic and an international context
 
TASK
Write an essay that compares and contrasts the differences in organisational culture towards the concept of Corporate Social Responsibility demonstrated by organisations in the UK Drinks sector (Beverage sector).  The essay must link discussions to clear evidence of research, using a variety of academic and factual sources of information such as recent publications (journals, books) and news, which should all be referenced.  Guidance – 1,500 words excluding references, and where possible examples from the UK Drinks sector should be used.
 
 
 

Brand Overview: Drinks Sector – UK – May 2018

Social Responsibility

 
Innocent top scores for ethicality
More than half of consumers who have heard of Innocent consider it to be an ethical brand. A number of factors tie into this, not least its commitment to sustainability and the formation of the Innocent Foundation. As part of this, Innocent has pledged to donate 10% of profits to charity, creating an obvious way for consumers to judge the brand’s ethicality.
 
FIGURE 1: Top ranking of brands in the drinks sector, by agreement with “Ethical”, January 2015-January 2018
 
Base: internet users aged 16/18+ who have heard of the brand
 

 
Source: Lightspeed/Mintel
 
 
 
 
 
Kenco and Fever-Tree initiatives drive ethical image
While Mintel’s The Ethical Brand – UK, August 2017 Report suggests that brands displaying ethical behaviour across all of their operations tend to fare best in terms of driving a socially responsible image, brands can help their cause through prominent causes and initiatives.
 
For example, Kenco’s work with Coffee v Gangs ensures it has a particularly ethical image compared to the average drinks brand. While many coffee brands are either Fairtrade-accredited or support work in the local community, the way that Kenco has pushed this in marketing material over a sustained period appears to have helped to effectively filter its message through to consumers.
 
Similarly, Fever-Tree has a longstanding partnership with Malaria No More, a charity designed to end malaria, because of its sourcing of quinine for tonic waters in affected areas. In 2017, the brand pledged to give 20p from each gin and tonic consumed around the world on World Malaria Day, and has continued its partnership in 2018, donating £5 for each picture posted on social media with the hashtag #MalariaMustDie.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIGURE 2: Fever-Tree #MalariaMustDie campaign, April 2018
 
Source: Fevertreemixers/Instagram/Mintel
 
Clipper focuses on the environment
Clipper has different ways that it highlights its care for the environment and the people who contribute towards the manufacturing of its products. Many of its products are certified Fairtrade or as organic by the Soil Association, which gives consumers an immediate indicator of its ethical proposition.
 
In addition, Clipper is the official tea of the National Trust, an organisation dedicated to the restoration and preservation of areas of natural beauty across the country. By teaming up with such an organisation, consumers are able to see a commitment to local environments as well as those where its tea is grown.
 
Mintel’s Brand Overview: Food – UK, March 2018 Report found that Dorset Cereals also benefited from a strong association with an environmental cause, through its link with the Woodland Trust.
 
FIGURE 3: Clipper tea as the official tea of the National Trust, March 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Source: Clipperteas/Instagram/Mintel
 
Plastic demonisation presents an opportunity
With the demonisation of plastic growing at pace, as discussed in Mintel’s 2018 Trend Sea Change, brands within the drinks category have an opportunity to further promote their ethicality.
 
Mintel’s Bottled Water – UK, March 2017 found that 29% of bottled water drinkers and buyers agree that drinking bottled water is bad for the environment. At the same time, 63% agreed that water in a bottle made from recycled plastic would appeal. Similarly, 48% say that a bottled water brand that guaranteed to offset its carbon footprint would encourage them to buy.
 
Evian has pledged to become carbon-neutral by 2020, and 100% circular by 2025, making all of its plastic bottles from 100% recycled plastic with zero plastic waste.
 
Glacéau Smartwater has already made moves towards making its bottles more environmentally friendly, with the launch of bottles carrying the Plant Bottle logo to identify that they are made with up to 30% plant materials. This type of bottle, created by Coca-Cola, has been described as the first ever fully recyclable PET (Polyethylene terephthalate) plastic bottle made partially from plants, creating a lighter carbon footprint.
 
 
 
 
 
 
 
 
 
 

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