CASE STUDY 2

Babak Ebrahimi

Professor Natalie Chinsam

301174017
Diageo & Molson Coors Sustainability Initiatives
The alcoholic beverage industry has some well-known brands that are well-known to society.
There is no doubt that these products are propelling the global alcoholic beverage sector forward
due to various reasons. They include taste, fun, and the fact that most of their target
demographics are aging, which are factors contributing to their appeal. Diageo is one of the
biggest companies, with well-known brands like Smirnoff, the world's most popular vodka, and
Johnnie Walker, the best-selling blended Scotch, Bailey's, the best-selling liqueur, and even
Guinness isn't a spirit, but it adds some strength to the whole portfolio. The company Molson
Coors, another major in the sector, is doing its part to help the environment, similar to Diageo
and other companies. As well as Diageo, Molson Coors is one of Canada's largest breweries and
is well known for its Coors Banquet, Coors Light, Molson Canadian and Miller Lite.
As part of Diageo long-term sustainability strategy, the company intends to promote diversity
and inclusion at work, increase customer satisfaction with alcohol consumption, and develop
environmentally friendly products as part of its long-term sustainability strategy. In order to
preserve our planet and to set an example for others to follow, Diageo is striving to lead the way
in terms of corporate sustainability. Businesses are taking action to achieve environmental,
economic, and social goals in a sustainable manner. As a result of its mission to promote social
justice, environmental protection, and health concerns, Diageo has chosen to bring these issues
into the conversation. They intend to raise awareness about the dangers and consequences of
binge drinking. Aside from reducing their carbon footprint, they plan to increase the number of
underrepresented people that are employed. [1]
Molson Coors is making improvements as part of its environmental improvement efforts. In the
alcoholic beverage industry, Molson Coors, Canada's largest brewer, also plays a significant role.
Their commitment to sustainable brewing includes beer production with less water as part of
their sustainability action plan. Due to their commitment to sustainable brewing, they use 4.75
percent less water to produce a barrel of beer. Despite having breweries all over the world, the
company may face challenges with drought, flooding, excess water, or even simply a lack of clean
water, according to Kim Marotta, the company's enterprise risk management officer. In 2017,
Molson Coors announced a three-pronged sustainability plan that aims to remove 1.7 million
pounds of plastic waste from the environment each year, including approximately 400,000
pounds from Coors Light. The marketer also plans to use plastic packaging with at least 30%
recycled content by 2025 to provide 100% recyclable, compostable, or reusable materials for its
beverages. [2][3]
Are Beer, Wine and Spirits Producers’ Good Corporate Citizens?
The concept of corporate citizenship refers to the commitment a company makes to its
shareholders and the public as a whole to uphold its moral and legal duties. When a firm is looking
to achieve and maintain long-term sustained profitability, significant internal and external
reforms are needed. Business citizenship is simply doing the right thing for the company.
It is important for us to understand how corporations carry out their societal responsibilities,
ethical standards, and other legal and economic obligations under corporate citizenship. It is
common for alcohol producers to inform their customers about the negative effects of the
beverage whenever they sell it to them. Although they manufacture this deadly substance
exclusively, they still encourage consumption of it. In the sense that they manufacture alcohol,
which is considered the foundation of all evil problems, they are seen as corporate citizens since
they manufacture alcohol. Aside from preventing underage drinking, strengthening and
expanding marketing norms, educating consumers, helping consumers innovate responsibly,
limiting the consumption of alcohol while driving, and supporting their stores' efforts to eradicate
hazardous drinks, we also want to prevent underage drinking. Additionally, they are a part of the
Global Strategy for Reducing Harmful Alcohol Use led by the World Health Organization, and they
support this strategy as well. Additionally, it is not uncommon for breweries, vintners, and
distillers to be among the most socially responsible companies in the world. Besides looking after
the welfare of their company, their commitment to eradicating the problem of dangerous
drinking is also expressed in their commitment to adhering to WHO recommendations. This is
part of their commitment to eradicating the problem of dangerous drinking through their
compliance with WHO recommendations. [6]
Although these tactics have been used in the past to reduce alcohol-related accidents and issues,
there is still a growing belief that more needs to be done in order to combat these problems.
Although they are trying to reduce alcohol consumption, they are still manufacturing
environmentally hazardous chemicals. The opposite effect of CSR activities on alcohol
consumption is often the opposite effect, even when they aim to promote moderation of alcohol
consumption. [6]

Excessive Consumption of Alcohol, Stakeholders and The Issues

The consumption of excessive amounts of alcohol is a serious problem that is associated with
violence, poverty, social abuse, addiction, and many other issues, which makes it a huge problem
in society as a whole. Besides the fact that alcohol consumption can result in a wide range of
social and economic problems, it can also lead to a range of alcohol abuse problems. In our
culture, the exaggerated consumption of alcohol has a significant impact on consumers, since it
can affect anyone in any way. [4]
Stakeholders involved in the process include governments, employees, and, perhaps most
importantly, alcohol manufacturers. In order to make our society more aware of the dangers
associated with excessive alcohol consumption, we need to know that the effects of excessive
alcohol consumption can be detrimental to all of us. Furthermore, alcohol abuse can have a
negative impact not only on the individual, on his or her immediate surroundings as well as on
society as a whole, but it can also have a negative effect on the environment as well. There are a
number of effects associated with this type of behavior. Some of them include violence and road
accidents. [4]
It costs the U.S. $249 billion to overconsume alcohol annually. Women consume more than four
alcoholic beverages per occasion, while men consume more than five drinks per occasion due to
binge drinking. The prevalence of alcohol-related illness, injury, and death is estimated to be
underestimated due to incomplete or non-reported reports. [5]
Similarly, to the financial costs associated with alcohol abuse, alcohol abuse's social impacts also
begin at home, extend into the community, and even can have an effect on society as a whole.
Intimate partner violence, financial problems, impaired decision-making skills, neglecting and
abusing children are some of the negative impacts that alcohol abuse and addiction has on
families. It has been shown that alcohol abuse and addiction affect household finances, intimate
partner violence, financial difficulties, and decision-making skills based on research. The
development of alcohol use disorders is a greater risk for children who grow up in families with
an alcoholic parent; they may also be affected by alcohol addiction. If a child lives in a household
with at least one alcoholic parent, then there is a higher probability of that child developing
psychological and emotional problems. [5]

Are the CSR Initiatives of Diageo and Molson Coors Motivated

Only By Economic Self-Interest?
"Alcohol in Society" is the first of Diageo's Sustainability & Responsibility Strategy's six principal
focuses. As part of its mission, the firm hopes to assist the World Health Organization in reducing
the harm caused by alcohol. To accomplish this, effective programs and regulations will be used
to communicate responsibly about alcohol and combat its misuse. Providing accurate consumer
information and initiating alcohol abuse prevention initiatives will be part of the organization's
commitment to collaborating with the industry. [1][6]
As stated by Molson Coors Brewing Company, one measure of their success is how their products
are consumed. The corporation is concerned about excessive consumption, especially underage
drinking. Some of the programs they offer to address alcohol misuse include Binge Drinking,
Drinking and Driving, Underage Drinking, Drinking and Risky Activities, Drinking and Health,
Drinking and Pregnancy, and Responsible Consumption. [2][6]
It would appear that Diageo and Molson Coors are not just concerned with their own interests.
This is just a way of educating people about responsible consumption of alcohol and keeping our
society safe. It is their goal to contribute to a more inclusive and sustainable world through their
efforts. Underage drinking, excessive drinking, and driving under the influence are among the
areas in which they are expanding their strategies. Through various education platforms, they
aim to educate people about the harms associated with alcohol. Furthermore, they cannot
publicly promote excessive drinking for their own profit since it negatively affects their brand. [6]

What else could the industry do about this social issue?

As a means of addressing this problem, it may be beneficial for the alcohol industry to impose
stricter measures against alcohol consumption. A major part of harmful alcohol use is driving
under the influence of alcohol, and people who are intoxicated behind the wheel can do a great
deal of harm to innocents. If stricter policies are put into place, such as increasing the number of
sobriety checkpoints, then those who decide to drive while intoxicated may be discouraged from
doing so. There is a possibility that this will reduce the chance of a negative outcome. [7]

It is very important for the liquor industry to achieve that as it moves forward it will raise the
price of its products so that consumers will be able to consume a smaller amount of liquor, as
they will be able to access them at a lower rate, thereby resulting in less consumption of liquor,
as their availability will be reduced, leading to less consumption. This will result in fewer
substance abuse cases. Additionally, this will discourage potential abusers from acquiring too
much product at a given time, thereby preventing abuse of the substance. Taking this approach
will also result in a decrease in the amount of underage drinking, which in turn will affect the
harm that can be caused by this practice as well. [7]
References

[1] Diageo (n.d.). Society 2030: Spirit of Progress Plan. DIAGEO.

https://www.diageo.com/en/esg/society-2030-spirit-of-progress-plan

[2] Molson Coors (n.d.). Sustainability Reporting. MOLSON COORS.

https://www.molsoncoors.com/sustainability/sustainability-reporting

[3] (2022, March 1). Coors Light opens sustainable Future Mart to promote removal of plastic rings.
Marketing Dive. https://www.marketingdive.com/news/coors-light-opens-sustainable-future-mart-to-
promote-removal-of-plastic-rin/619585/

[4] (2019, August 12). “Everyone Has the Right to Drink Beer”: A Stakeholder Analysis of Challenges to
Youth Alcohol Harm-Reduction Policies. National Library of Medicine.
https://www.marketingdive.com/news/coors-light-opens-sustainable-future-mart-to-promote-removal-
of-plastic-rin/619585/

[5] (2020, August 7). The Impact of Alcoholism on Society. VeryWellMind.

https://www.verywellmind.com/impact-on-society-63268

[6] Sexty, R. (2020). Canadian business and society: Ethics, responsibilities and sustainability (5th edition,
pp. 154-155). McGraw-Hill Ryerson Limited Canada Publishers

[7] (n.d.). Alcohol industry corporate social responsibility initiatives and harmful drinking: A systematic
review. Oxford Academic. https://academic.oup.com/eurpub/article/28/4/664/4985717