Corporate Social Responsibility -Kids and Soft Drinks

When Do the Lines Blur Between Corporate Social Responsibility and Cause Marketing – Highlighting what has Happened with Sugary Beverages

Obesity has been a rising issue in North America. Obesity is defined as a person who has a Body Mass Index (BMI) of greater or equal to 30. Obesity has lead to the growth of a number of medical conditions including diabetes, metabolic syndrome, and heart disease. A major cause of obesity especially for children has been linked to the major increase in the consumption of sugary drinks. Diabetes, heart disease and gout have also been linked to sugary drinks.

A 20-year study on 120,000 men and women found that people who increased their sugary drink consumption by one 12-ounce serving per day gained more weight over time—on average, an extra pound every 4 years—than people who did not change their intake (1). Other studies have found a significant link between sugary drink consumption and weight gain in children (2). One study found that for each additional 12-ounce soda children consumed each day, the odds of becoming obese increased by 60% during 1½ years of follow-up (3).

There has been large number of studies completed to determine whether child obesity and weight problems can be linked to sweetened drinks. Over 90 percent of these studies have shown strong connections between the two. Still children are drinking these sweetened drinks daily, and to make it worse companies are now offering it in larger quantities. Recently Michael Bloomberg, the Mayor of New York City worked very hard to ban the 20oz-oversized sodas offered at many restaurants, theatres and facilities. Bloomberg believed that with this ban implemented it could greatly help battle obesity, and other health problems in New York. He had a lot of critics who were against this ban. He tried to explain that people "tend to eat all of the food in the container. If it's bigger, you eat more, he said. If somebody put a smaller glass or plate or bowl in front of you, you would eat less" (4). Although his efforts, research, and facts should have been more than enough to show people why the ban should be implemented, the judge dismissed the ban.

Another argument states that parents are to blame. The soda companies are not the blame, the children's parents and their own eating and drinking habits are the main problem. What parents allow their children to eat at home is the real problem. Susan H. Babey a research scientist said "If parents are eating poorly, chances are their kids are too" (5). Research has found that if parents are eating their daily servings of fruits and vegetables each day then children will to. As well children whose parents eat fast food or drink soda are more likely to do the same. This means that good dietary habits start at home, and it's not the soda companies' vending machines, and oversized drinks reason for the obesity growth. Many people on this side of the argument have said that taking away the people's choice and freedom when it comes to what they want to drink is unacceptable.

The beverage industry did not sit back when this tarnishing information began to gain momentum in the mid-2000s about the impact of sugary drinks. In fact it elevated its activity to include technical research to disprove sugary drinks contribution to obesity and diabetes and it launched numerous campaigns (and sub-campaigns) targeted at youth and young adults plus efforts at making contributions back to communities. It would appear that CSR was being blended into a form of marketing called Cause Marketing:

Cause Marketing encompasses a wide variety of commercial activity that aligns a company or brand with a cause to generate business and societal benefits (6). [Similarly] A potentially profit-making initiative by a for-profit company or brand to raise awareness, money, and/or consumer engagement in a social or environmental issue (7).

The beverage industry, lead by two industry giants, Pepsi Cola (Pepsi) and Coca Cola (Coke), are mastering this blending of outreach programs. A review of corporate responsibility reporting, goals and objectives for both Pepsi (Exhibit 1)(8) and Coke (Exhibit 2)(9) combined with major marketing multi-dimension activities such as Pepsi's Refresh Project and Change4Life partnership and Coke's Live Positively and (Sprite's) Spark Your Park suggest a very strong blending of outreach projects is occurring.

The Pepsi Refresh Project (PRP) was a 2010 initiative by PepsiCo that awarded $20 million in grants to individuals, businesses and non-profits that promote a new idea that has a positive impact on their community, regional area or the nation. Coke launched the Live Positively Movement; Balanced Living, Community, Environment, Education, and Global Outreach. It highlighted that Coke had a history if bringing people together "Since the first Coke was shared in 1886, our company has believed good things happen when people come together. We've teamed up to help communities be more active and we've found ways to offer consumers more options and more information to meet individual needs. And that's why we look forward, together, to the good things ahead" (10).

Fascinating work was published by the Public Library of Science (PLoS), a nonprofit publisher and advocacy organization with a mission of leading transformation in scientific and medical research communication. In June 2012, the organization published a series of seven articles on "Big Food" in the PLoS Medicine Magazine. The goal was to examine the activities and influence of the food and beverage industry in the health arena. The researchers examined CSR initiatives by PepsiCo and Coca-Cola and found that:

• Because sugary beverages are implicated in the global obesity crisis, major soda manufacturers have recently employed elaborate, expensive, multinational corporate social responsibility (CSR) campaigns.

• These campaigns echo the tobacco industry's use of CSR as a means to focus responsibility on consumers rather than on the corporation, bolster the companies' and their products' popularity, and to prevent regulation.

• In response to health concerns about their products, soda companies appear to have launched comprehensive CSR initiatives sooner than did tobacco companies.

• Unlike tobacco CSR campaigns, soda company CSR campaigns explicitly aim to increase sales, including among young people.

• As they did with tobacco, public health advocates need to counter industry CSR with strong denormalization campaigns to educate the public and policymakers about the effects of soda CSR campaigns and the social ills caused by sugary beverages (11).

It is also interesting to note that both Coke and Pepsi are members of the The Academy of Nutrition and Dietetics (formerly the American Dietetic Association), the world's largest organization of food and nutrition professionals. The Academy lists its major commitment as "improving the nation's health and advancing the profession of dietetics through research, education and advocacy" (12). Clearly, a touch of irony. However, without the support of Coke and Pepsi, less research and education would be available. It seems that modern society is full of these ironic situations.

What is important to recognize is that there has been positive reaction from the beverage companies with respect to sugar in addition to all the other social contributions. For example, Pepsi's CSR commitment is to reduce the average amount of added sugar per serving in key global beverage brands, in key countries, by 25 percent by 2020 (Exhibit 1)(13). Coke now claims that it offers more than 800 low- or no-calorie options -- nearly 25 percent of our global portfolio. Since 2000, our average calories per serving have decreased by 9 percent globally (Exhibit 2)(14). Without the pressure, these reductions may not have occurred.

The reality is, people do have to take responsibility for their actions. No one is forcing you to drink a sugary beverage. Parents must take responsibility as they are the ones that have brought the children into the world. Blending CSR and Cause Marketing is likely to become more and more common. As long as companies remain transparent in their CSR reporting and there are enough watchdog groups including government, the blending is going to be a part of life, whether we accept it or not. Arguably embracing a trend and directing or influencing its focus can offset some of the negativity. Overall CSR, has added transparency and attention to the serious problem of obesity.

Exhibit 1

Extracts from PepsiCo Sustainability Reporting

Good for All Is Good for Business

At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a healthier future for people and our planet. As a global food and beverage company with brands that stand for quality and are respected household names—Pepsi-Cola, Lay's, Quaker Oats, Tropicana and Gatorade, to name but a few—we will continue to build a portfolio of enjoyable and healthier foods and beverages, find innovative ways to reduce the use of energy, water and packaging, and provide a great workplace for our associates.

Additionally, we respect, support and invest in the local communities where we operate, by hiring local people, creating products designed for local tastes, and partnering with local farmers,