Alcohol Summary

2180 Words Mar 13th, 2011 9 Pages
* 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.


There is growing public pressure for alcoholic beverage companies to
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From society’s perspective, any activities conducted by the alcohol beverage companies to remove alcohol related problems like violence, decreased morality and intoxication related problems like drinking driving are seldom advertised and marketed. In this sense, society is only seeing advertisements related to increased consumption leading to increased profits. Accordingly alcohol industries fail to fulfill their ethical duty to be informative and truthful in their advertising efforts.

At present, alcohol beverage companies create a brand image by sponsoring sports and cultural activities that attract drinkers, first starting as a social drinker and then becoming regular drinkers (Munro & De Wever, 2008). The current alcohol advertising regulatory system in Australia should aim to minimize exposure and appeal to children (VAADA, 2010).

In Australia, advertising activities are regulated by legislation and a code of practice such as the Advertiser Code of Ethics and Alcoholic Beverages Advertising Code (ABAC). This code is based on a voluntary system of self-regulation which is funded and administered by the alcohol beverage companies. Currently there are no penalties for non-compliance (Jones, Hall & Munro 2008). Additionally, the organisation is partly funded by alcoholic beverage companies. This presents a conflict of interest as in most instances, their fiduciary duties are act in the best interests of
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