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Case 8.1
Case 8.1: Responsible Alcohol Consumption

1. Do you think that beer, wine, and spirit producers are good corporate citizens? Why or

why not.

I believe that beer, wine and spirit producers are good corporate citizens. Corporate

citizenship involves corporations/businesses’ responsibility towards society. This includes

concerns such as environmental, social and cultural. 12 producers of beer, wine and spirits have

an industry association, named Producers’ Commitments. The purpose of the association is to

bring awareness to harmful alcohol consumption and reduce it. Furthermore, the producers

support the World Health Organization’s (WHO) Global Strategy to Reduce Harmful Use of

Alcohol. In the view of partaking in activities to spread awareness of harmful alcohol

consumption, they are good corporate citizens. However, one could make an argument that these

producers are the ones that are producing the alcohol thus contributing to the issues that exist in

society today relating to excessive consumption of alcohol, which will be explained in question

2. Is excessive consumption of alcohol a serious societal problem? Include evidence from

recent studies (make sure to document your sources). Who are the stakeholders (include at

least four), and what are the issues involved?

I believe that excessive consumption of alcohol is a serious societal problem. There are

many consequences of excessive alcohol consumption which can negatively impact an

individual’s short-term and long-term health. I found information relating to alcohol

consumption and its related health effects on CDC. CDC is a national public health agency under

federal jurisdiction, located in the United States. According to CDC (2021), the risks associated

with excessive consumption of alcohol could result in violence, alcohol poisoning, cancer,

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mental health problems, and much more. The main stakeholders involved include the businesses

that produce the alcohol, the consumers that purchase the alcohol, the government that regulates

alcohol and the employees that sell the alcohol.

3. What do you think motivates the CSR initiatives of companies such as Diageo and

Molson Coors? Is it purely economic self-interest? Explain.

I think that companies such as Diageo and Molson Coors are engaged in CSR initiatives

that are motivated by economic self-interest. These for-profit corporations exist to maximize

shareholder wealth. If they didn’t act in self-interest for personal gain, they would not be

maximizing shareholder wealth as a for-profit company. That being said, I do not believe that

these companies are acting solely on economic self-interest. These companies participate in

associations that are dedicated to spreading awareness of harmful drinking and support the World

Health Organization’s (WHO) global strategy to reduce the harmful use of alcohol. These

activities that the corporations participate in suggest that they are not acting purely in economic

self-interest. It is important to spread awareness of the potential dangers of alcohol consumption

and promote responsible drinking.

4. Do you think the initiatives of the industry association take into account its complete

impact on society considering all of the harms caused by its products?

I do believe that the Alcohol and Gaming Commission of Ontario (AGCO) that

monitors alcohol is following key guidelines. It is stated that they have regulatory objectives in

the relation to the sale and service of alcohol; “ Ensure the alcohol sector is operated with

honesty and integrity and in the broader public interest, Ensure that alcohol is sold and served

responsibly, Ensure that residents are provided an opportunity to have their views considered

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during the licensing process, Permit Ontarians and visitors opportunities to responsibly enjoy

beverage alcohol within an economically viable hospitality and tourism sector.” With this said,

however, I do not believe that the association takes into account its complete impact on society

considering all the harms. Alcohol consumption is a difficult product to eliminate harms other

than getting rid of it together. Even banning alcohol consumption was proven to not work during

the Prohibition in the United States from 1920-1933. Through this time, there was a large black

market for alcohol and the law did not budge individuals from consuming, which led to the

demolishing of the particular law. So, given the historical evidence we have, it is prevalent that

we must have proper regulations concerning the product instead of restricting it.

The associations regulating the products have restricted access to what they can help such as

alcohol abuse. This for example would be a difficult aspect to regulate other than organizing

programs for individuals to participate to provide help. Having more programs available could be

a great implementation to decrease the negative impact alcohol has on society.

5. What else could the industry do about this social issue? Discuss at least two more

initiatives.

One of the objectives the industry can have to improve is to increase pricing. This will cause less

substance abuse by consumers as their access to alcohol will be limited. This objective could

discourage potential abusers from obtaining too much product given a point in time. This can

also reduce the harm of underage drinking. This can be executed by establishing a price

minimum for products and adjusting based on inflation and income. This can keep a constant

price increase to ultimately decrease the harm of the product. Another initiative the industry

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could do about this issue could be stricter consumption policies. One element of harmful alcohol

use is driving. Many innocent lives get harmed by people impaired behind the wheel. Stricter

policies such as increased sobriety checkpoints could help prevent harm from happening. This

could discourage more people from deciding to drive while intoxicated.

References

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Centers for Disease Control and Prevention. (2021, May 11). Drinking too much alcohol can
harm your health. learn the facts. Centers for Disease Control and Prevention. Retrieved
November 20, 2021, from https://www.cdc.gov/alcohol/fact-sheets/alcohol-use.htm.

General information: Alcohol. Alcohol and Gaming Commission of Ontario. (n.d.). Retrieved
November 21, 2021, from https://www.agco.ca/alcohol/general-information-alcohol.

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