Download Buyer Beware: The Ethics of Marketing Alcopops

Buyer Beware: The Ethics of Marketing Alcopops
Can you think of any
other perspectives?
Perspective: Liquor Corporations
and their Shareholders
• What belief is held by this
group
• What resolution would they
opt for?
• Who would benefit?
•
•
•
Perspective: Consumers
What belief is held by this group?
What resolution would they opt for?
Who would benefit?
BUYER BEWARE: THE ETHICS OF MARKETING ALCOPOPS
A number of resources have been provided for you in this package.
Use any/ all of the material to complete your analysis.
Your Task:
Perspective: Parents and
Schools
• What belief is held by
this group?
• What resolution would
they opt for?
• Who would benefit?
1.
2.
3.
4.
5.
6.
Select an issue from the list provided.
Describe the issue (150 words)
Explain why this is an issue of justice or the common good (150 words).
Identify the people or groups who have a stake in the issue and analyse
their perspectives on it. Why would some stakeholders not want the
situation to change? (750 words)
Analyse the issue in terms of the principles that have been studied that
promote human flourishing. Which perspective would most effectively
promote the common good? (750 words)
In light of your analysis, and after considering the ethical questions
provided, discuss how you would respond to this issue. (200 words).
Perspective: Governments
and Legislators
• What belief is held by
this group?
• What resolution would
they opt for?
• Who would benefit?
•
•
•
•
•
•
Perspective: Social Services
Who might belong to this group?
What belief is held by this group?
What resolution would they opt for?
Who would benefit?
Perspective: A Christian Perspective
• What belief is espoused in Christian
teaching?
• What resolution is presented in this
perspective?
• Who would benefit?
Copyright ©Australian Catholic University 2012
•
•
Perspective: Health Care
Professionals
Who might belong to this
group?
What belief is held by
this group?
What resolution would
they opt for?
Who would benefit?
Introduction:
Marketing is an evolving and dynamic area of business, and although it is major part of the world in which we live, many people do not really understand it. Marketing, at its
most basic level, is about delivering value to everyone who is affected by a transaction. Students of marketing learn early on that marketing is about value creation. The
American Marketing Association (AMA) defines marketing as:
the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and
society at large. 1
For example, Apple’s highly successful products, including the iPod, iPhone, and iPad, can all be seen as products that offer value to consumers. 2 Indeed, Apple has been so
successful in promoting its brand that dedicated customers will camp for days outside the Apple store when a new product is released.
It is commonly assumed that marketing carries with it a series of ethical norms and values that support and enhance human flourishing. The preamble on the American
Marketing Association’s website states:
The American Marketing Association commits itself to promoting the highest standard of professional ethical norms and values for its members (practitioners,
academics and students). Norms are established standards of conduct that are expected and maintained by society and/or professional organizations. Values
represent the collective conception of what communities find desirable, important and morally proper. Values also serve as the criteria for evaluating our own
personal actions and the actions of others. As marketers, we recognize that we not only serve our organizations but also act as stewards of society in creating,
facilitating and executing the transactions that are part of the greater economy. In this role, marketers are expected to embrace the highest professional ethical
norms and the ethical values implied by our responsibility toward multiple stakeholders (e.g., customers, employees, investors, peers, channel members, regulators
and the host community). 3
The AMA says that they are bound by three ethical norms – do no harm, foster trust in the marketing system, and embrace ethical values – and six key values – honesty,
responsibility, fairness, respect, transparency and citizenship. For more information on these ethical norms and their underpinning values, see the “Statement of Ethics” on
the AMA website. Browse various other tabs in the website for more information about the code of conduct expected of marketing companies and their subsidiaries.
Here is the Australian Marketing Institute’s “Code of Professional Conduct.” What are the values that underpin this code? What similarities does the Australian Marketing
Institute’s code of conduct have with its American counterpart? What differences can you see? What does this suggest about the standards of advertising in Australia?
1
“Definition of Marketing,” American Marketing Association, 2007, http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx.
J. Littman, “Shorting Apple,” Huffington Post, May 22, 2012, http://www.huffingtonpost.com/jonathan-littman/shorting-apple_b_1531651.html.
3
“Statement of Ethics,” Marketing Power, American Marketing Association, http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx.
2
Copyright ©Australian Catholic University 2012
It is clear that not all companies and organisations hold themselves to these ideals. Despite their claims of value creation, organisations are often held responsible for
engaging in unethical marketing strategies. We are surrounded by advertising that shocks us, offends us, or even plays on our insecurities in seeking to convince us to buy
various products we think we need. Indeed, marketing also harbours a dark side that is worth exploring.
The marketing of alcopops to young people, 4 the promotion of bottled water as a better alternative to tap water, 5 and the promotion of infant formula in developing
countries, with little access to clean, fresh water, 6 all present an array of ethical issues for discussion and analysis.
For the purposes of this “hot topic” we will discuss “alcopops,” a product which calls into question the claims made by marketers about utility, needs, and value creation.
There are various stakeholders in this issue, and questions can be asked, from both a business perspective and a consumer perspective, about the justification for marketing
such products.
As you work through the resources in this package, keep in mind the 4Ps: Product, Placement, Promotion and Pricing. This marketing mix is at the heart of effective
marketing, and can provide some insight into the way in which alcopop advertising is designed. View the hyperlink to find out more about the 4Ps.
Alcopops
The Alcohol Beverages Advertising Code states:
Australian Associated Brewers Inc, the Distilled Spirits Industry Council of Australia Inc, the Winemakers Federation of Australia and the Liquor Merchants
Association of Australia Ltd are committed to the goal of all advertisements for alcohol beverages, other than point of sale material, produced for publication or
broadcast in Australia, complying with the spirit and intent of this Code.
The Code is designed to ensure that alcohol advertising will be conducted in a manner which neither conflicts with nor detracts from the need for responsibility and
moderation in liquor merchandising and consumption, and which does not encourage consumption by underage persons.
Alcohol is a legal recreational drug and restrictions to its consumption apply. It is illegal for anyone under the age of 18 to buy or sell alcohol in most states. Alcohol
consumption in moderation is a big part of our laid back Australian culture. However, over indulgence can have a detrimental effect on our physical and mental health.
Binge drinking among all age groups and drinking to intoxication appears to have become thoroughly normalized in our culture. Over indulgence increases the risk of
alcohol related harms such as violence, risky sexual behaviour, road accidents and falls.
4
A. Corderoy, “Ads are Targeting Alcopops Drinkers on Trainer Wheels, Says Expert,” Sydney Morning Herald, January 28, 2012, http://www.smh.com.au/national/health/ads-are-targetingalcopops-drinkers-on-trainer-wheels-says-expert-20120127-1qlkt.html
5
P. Gleick, “’Bottled and Sold’: Selling Bottled Water, The Modern Medicine Show,” The Huffington Post, May 25, 2010, http://www.huffingtonpost.com/peter-h-gleick/bottled-and-soldselling_b_587882.html.
6
D. Rakestraw, “Nestlé Targets Developing Nations for Bottled Water, Infant Formula Sales,” Common Dreams: Building Progressive Community, April 25, 2012,
https://www.commondreams.org/view/2012/04/25-3.
Copyright ©Australian Catholic University 2012
Alcopops are ready-to-drink, sugary sweet alcoholic beverages, but they do not taste like alcohol. They are often carbonated and/or fruit-flavoured, and sold in singleserving bottles or cans. In both their liquid form and packaging, alcopops resemble soda and other soft drinks. They can contain the same amount of alcohol as beer (about
5%), although some are as high as 8%-12% alcohol by volume. 7 Examples in the market include Bacardi Breezer, Subzero and Smirnoff Ice. Contrary to the advertising code
mentioned above, these are marketed to young people, particularly young girls, and are seen as ‘bridging’ or ‘gateway beverages’ for less experienced drinkers who are not
yet used to the taste of alcohol. Indeed, alcopops have been described as "fizzy drinks which allow alcohol to be introduced into the bloodstream while bypassing the taste
buds." 8
Before we move on to the ethics of marketing such products, it is important for us to explore the problem of underage drinking and its associated risks. The following
resources give us an insight into this problem in Australia:
“The Risks of Underage Drinking,” Bupa, July 30, 2011, http://www.bupa.com.au/health-and-wellness/health-information/the-risks-of-underage-drinking
“Underaged Drinking Among 14-17 Year Olds and Related Harms in Australia,” National Alcohol Indicators, Bulletin No. 7,
http://ndri.curtin.edu.au/local/docs/pdf/naip/naip007.pdf.
In a Sydney Morning Herald article, “Revealed, How Alcopops Lure the Young,” Mat Baxter, a partner in a media planning agency, was quoted as saying: “There was no
overt marketing that encouraged anything other than responsible drinking. The industry was simply responding to consumer demand.” Notice, here, the use of the phrase
“no overt marketing.” What does this mean in relation to the targeting of young people by the production of sugary alcoholic drinks? What role do the 4Ps play in the
marketing strategies of liquor companies?
Let us now take a closer look at this marketing that is not “overt”.
Sarah M. Mart, “Alcohol Marketing in the 21st Century: New Methods, Old Problems,” Substance Use & Misuse 46, no.7 (2011): 889-892.
George A. Hacker, Director, Alcohol Policies Project for the Center for Science in the Public Interest, delivered a statement in May, 2001 on the “Marketing of
Alcopops to Teens”.
Hacker also prepared an informative PowerPoint presentation in March, 2003, that discusses the issue of Alcopop marketing: “Alcopops: An Alcohol Delivery
System for the Pepsi Generation” (You will need to allow the download of the PPT in order to view it).
Another useful resource from the Alcohol Policies Project is the Summary of Findings: What Teens and Adults are Saying about "Alcopops."
…And the following article: “OVEREXPOSED: Youth a Target of Alcohol Advertising in Magazines,” School of Public Health, John Hopkins University, 2010,
http://www.camy.org/research/OverExposed_Youth_a_Target_of_Alcohol_Advertising_in_Magazines/index.html.
7
8
S.M. Mart, “Alcohol Marketing in the 21st Century: New Methods, Old Problems,” Substance Use & Misuse 46, no.7 (2011): 889-892.
“Alcopops,” CHOICE Australia, February 26, 2008, http://www.choice.com.au/reviews-and-tests/food-and-health/food-and-drink/alcohol/alcopops.aspx.
Copyright ©Australian Catholic University 2012
When the Federal Government introduced a tax on alcopops in Australia in 2008, consumption decreased noticeably. 9 From a business perspective, the tax represented a
barrier to the Australian market, and was dreaded by multinational liquor corporations like the Japanese Asahi Group. 10 The tax did not, however, stop corporations from
actively targeting their advertising of alcopops to teenagers, 11 such as in the online teenage magazine girl.com.au. 12
In relation to alcopops, does the American Marketing Association’s definition of marketing hold? Are the ethical standards and values espoused by the AMA reflected in the
practices of companies who market alcopops? With whom does the responsibility for underage drinking rest? Do alcohol companies carry the burden of responsibility?
Likewise, is it the responsibility of large liquor corporations, or their smaller counterparts as well? Or does the responsibility rest with health care professionals, parents, or
schools to provide adequate education on the dangers of excessive alcohol consumption and underage drinking?
Perspectives:
There are various groups (“stakeholders”) that are involved in this issue in some way. In this section, please reflect on the information from the previous section and from
the following resources. In reviewing the information from these sources, identify the perspectives and interests of each stakeholder group. Consider the questions
provided on the cover sheet of this task in order to guide your reading.
Perspective 1:
Liquor Corporations and their
Shareholders
Schweppes, Australia, is a subsidiary of Asahi Group Holdings Ltd., a large liquor corporation in Japan, who manufactures a
variety of RTD (ready-to-drink) beverages (i.e. alcopops). Asahi’s aims are outlined on the Asahi page of the Schweppes website.
Asahi, “aims to satisfy its customers with the highest levels of quality and integrity, while contributing to the promotion of
healthy living and the enrichment of society worldwide.” Their key business activities include: alcoholic beverages, soft drinks,
food and pharmaceuticals.
Anheuser Busch, one of the world’s largest breweries, makes the following statement in relation to responsible drinking:
Anheuser-Busch is the industry leader in promoting alcohol responsibility. In the last three decades, AnheuserBusch and our wholesalers have committed more than $930 million in national advertising campaigns and
9
A. Corderoy, “Drinking Drops as Alcopop Tax Bites,” Sydney Morning Herald, May 28, 2010, http://www.smh.com.au/national/drinking-drops-as-alcopop-tax-bites-20100527-whun.html.
A. Ferguson, “Private Equity on the Nose as Deals Go South,” Sydney Morning Herald, May 21, 2012, http://m.smh.com.au/business/private-equity-on-the-nose-as-deals-go-south20120520-1yyx1.html
11
A. Corderoy, “Ads are Targeting Alcopops Drinkers on Trainer Wheels, Says Expert,” Sydney Morning Herald, January 28, 2012, http://www.smh.com.au/national/health/ads-are-targetingalcopops-drinkers-on-trainer-wheels-says-expert-20120127-1qlkt.html
12
“Advertising: The Hard Sell – CHOICE Reviews”, Choice, February 26, 2008, http://www.choice.com.au/reviews-and-tests/food-and-health/food-anddrink/alcohol/alcopops/page/advertising%20-%20the%20hard%20sell.aspx.
10
Copyright ©Australian Catholic University 2012
community-based programs.
The beer industry should play a role in promoting alcohol responsibility because no company benefits from the
misuse of its products. We believe this collaborative approach, in close partnership with retailers, educators,
parents, law enforcement officials, professional sports teams and many other organizations, helps create
impactful responsible drinking programs. Our wholesalers also play an important role in our success.
They invested more than $15.2 million in 2010 toward executing programs to reach audiences in their local
communities.
This is our world, and these are our roads and our families, and it’s through our collective responsibility that we
all help to keep them safe.
In addition, Anheuser Busch makes this statement in relation to underage drinking prevention:
Anheuser-Busch is opposed to underage drinking and supports prevention by providing resources to parents,
retailers and educators. Underage drinking is a serious issue – but tremendous progress has been made through
sound educational programs and rigorous enforcement of the law.
We’ve developed and supported community-based programs that help parents talk with their children about
drinking; help retailers educate their employees on how to properly check I.D.s and prevent sales to minors;
remind adults not to provide alcohol to minors; assist schools in building self-esteem among teens; and support
law enforcement officials in enforcing the law.
Anheuser Busch do, however, produce “Ready To Drink” beverages such as Margaritaville – Spiked Lemonade and Spiked Tea,
Watermelon and Tropical Punch flavoured Tilt, and Strawberry flavoured Bacardi Breezer. Take a look at the links to view the
packaging of these beverages.
The following article from the Sydney Morning Herald provides further insight into the perspective of alcohol companies:
“Alcohol Empire Strikes Back,” Sydney Morning Herald, March 15, 2008, http://www.smh.com.au/news/national/alcoholempire-strikes-back/2008/03/14/1205472088601.html.
With the rise of social media, such as Facebook and Twitter, liquor corporations have shifted their advertising focus.
Traditionally using websites and television marketing, the interactive capabilities of social media has opened up a whole new
area for advertisers. James Nicholls states, “Whereas ‘dotcom’ sites allow some interactivity, they remain primarily
Copyright ©Australian Catholic University 2012
unidirectional; social media marketing, by contrast, hinges on the promotion of interaction and conversation among potential
consumers.” 13 Consumers can “Like” a brand on Facebook and add their comments, and in return, they receive further
interactive experiences on the brand’s Facebook page.
View the following resource for an in-depth discussion on the way social media is used for alcohol advertising: James Nicholls,
“Everyday, Everywhere: Alcohol Marketing and Social Media – Current Trends,” Alcohol and Alcoholism, 0/0, (2012): 1-8.
Ethical Questions for Reflection
What questions can be raised about the claims of Asahi in their stated aims, vs. the products they manufacture and market to
consumers?
What contradictions do you notice when comparing the statements of Anheuser Busch with their product range? How would
they justify this?
Promotion of alcopops is undertaken through advertising, public relations and new and traditional media coverage. The alcohol
producers argue that the purpose of advertising is to produce a competitive advantage, and not to promote alcohol per se. They
just want to do a better job than the competition in satisfying the customer and organization. Advertising is about trying to
catch the attention and imagination of the consumer, to persuade, and to change thinking and beliefs.
What do you think about the target audience of alcopops? Is it significant that the taste of alcohol is disguised and the
packaging is highly appealing to teenagers?
Packaging is a key factor in the advertising and promotion of alcoholic beverages. The following video warns of the effect of
larger packaging on the young consumer: “Warning over Smirnoff alcopops casks: Alcohol abuse experts warn school leavers of
a new temptation as alcopops move from small bottles to two litre casks,” (video/audio only), Seven Nightly News, November 9,
2010.
What ethical issues are associated with such packaging? What do you think is the intention of the liquor company when
marketing such a product? What responsibility do liquor corporations hold in relation to the unsafe consumption of their
products?
Some advertisements for alcopops were found on web sites alongside promos for teen movies. Is this kind of promotion
13
James Nicholls, “Everyday, Everywhere: Alcohol Marketing and Social Media – Current Trends,” Alcohol and Alcoholism, 0/0 (2012): 1-8.
Copyright ©Australian Catholic University 2012
unethical (unfair, exploitative and oppressive)? What does it seem to say about the moral intention behind the promotion?
In addition to interactive sites on social media, liquor corporations profit from word-of-mouth advertising in Facebook, Twitter
and other forms of social media. Indeed, it is here that product promotion moves to a new level. User-generated content (by
way of photos, videos, blogs, etc) provides free advertising for companies wishing to promote their product. How much
responsibility rests with liquor companies, if young people are exposed to their product through user-generated content in
social media?
Perspective 2:
Governments and Legislators
Much information about the perspective of Governments and legislators in relation to this issue can be found throughout the
resources in this package. The following articles provide further insight.
The article referenced in the previous perspective also contains information on the perspective of governments and
legislators:
“Alcohol Empire Strikes Back,” Sydney Morning Herald, March 15, 2008,
http://www.smh.com.au/news/national/alcohol-empire-strikes-back/2008/03/14/1205472088601.html.
The following article discusses the effects of the introduction of taxes on alcopops, and calls for wider liquor reforms:
“Tax helps push sales of alcopops down but nation still thirsty, whatever the flavour,” Sydney Morning Herald, July 18,
2011, http://www.smh.com.au/national/tax-helps-push-sales-of-alcopops-down-but-nation-still-thirsty-whatever-theflavour-20110717-1hk3k.html
Ethical Questions for Reflection
What role do governments and legislators have in promoting the responsible consumption of alcohol? Do you think
governments and legislators are doing enough to ensure that alcopops are not marketed to underage drinkers? How much
responsibility rests with them?
The Federal Government’s intention behind raising the price of alcopops was to reduce their consumption. What impact does
the increase of alcohol pricing have on consumption?
Prior to the alcopop tax, many alcopops were cheaper to buy than energy drinks. To what extent do you think this was a
marketing strategy to hook young people? How ethical is this pricing strategy? Why? Why not? Is it likely to encourage
individuals to take up drinking alcohol at an earlier age?
Copyright ©Australian Catholic University 2012
Perspective 3:
Social Services
Each year, excessive alcohol use puts a tremendous strain on social services (such as youth services, alcohol rehabilitation
services, family crisis centres, and health and emergency services). The following resources provide an insight into the social
cost of excessive alcohol use in general, and the effects of alcohol abuse in young people.
Collins, D., and H. Lapsley. The Avoidable Cost of Alcohol Abuse in Australia and the Potential Benefits of Effective
Policies to Reduce the Social Costs of Alcohol. Monograph Series. Department of Health and Ageing, Australian
Government, 2008.
Collins and Hapsley state that alcohol abuse is a serious problem, with estimated social costs in 2004/5 of over $15
billion (see pp.5-6 for further information). They raise the important question about whether or not a blanket ban on
the advertising of alcohol would reduce these social costs (p. 37).
The Centre for Alcohol Marketing and Youth (CAMY) has developed a brochure that provides statistics on alcohol
related harms and on alcohol advertising aimed at young people: “Alcohol Marketing and Youth: An Overview”.
The Alcohol Policy Coalition (made up of the Australian Drug Foundation, the Cancer Council of Victoria, the Heart Foundation,
Turning Point – Alcohol and Drug Centre, and VicHealth) has called for tighter regulations on the Marketing and Promotion of
Alcohol. In the linked resource, they provide some background information on the effect of alcohol marketing on young people.
The Coalition states that “the existing Australian regulatory scheme for alcohol advertising is weak and ineffective. To reduce
the harm from alcohol consumption, the framework within which alcohol advertisers operate requires substantive change.” 14
They assert that greater restrictions on “alcohol advertising would be less expensive and more effective than current alcohol
harm reduction practices.” 15 They also discuss the flow-on effect of marketing strategies used by liquor corporations, stating
that while alcohol marketing may not directly cause young people to drink alcohol, advertising “was still considered to reinforce
other influences such as peer and social pressures.” 16
Further to this, the ADF Position Statement on Alcohol Marketing states:
“The Foundation views measures that regulate alcohol advertising as an important component part of a comprehensive
strategy to minimise alcohol-related harm.”
Ethical Questions for Reflection
From your examination of the issue so far, what role do you think marketing has on the consumption of alcohol beverages such
as alcopops? What impact does advertising have on peer and social pressure? What role can social services play in reducing
14
Alcohol Policy Coalition (APC), Position Statement: Marketing and Promotion of Alcohol, (Victoria: Alcohol Policy Coalition, 2011), 11.
APC, Position Statement, 11.
16
APC, Position Statement, 11.
15
Copyright ©Australian Catholic University 2012
alcohol-related harms?
Perspective 4:
Consumers
In 2008, CHOICE Australia conducted blind taste tests with young people, to determine whether they could taste the difference
between soft drinks, cordial and alcopops. The results were very interesting. The following resource outlines the results, and
provides an insight into why young people drink alcopops (read the introduction, then click on the video at the bottom):
“Alcopops,” video, 3:03, CHOICE Australia, 2008, http://www.choice.com.au/reviews-and-tests/food-and-health/food-anddrink/alcohol/alcopops.aspx.
In a report commissioned by The Victorian Drug and Alcohol Prevention Council, for the Victorian Department of Health,
“Schoolies” nominated taste and price as the most influential factors in their choice of alcoholic beverages (88% of females
surveyed nominated taste as the most influential). 17 The following podcast from ABC News confirms this: “We’ll Keep Drinking
‘Alcopop’: Young Women,” video and transcript, 2:45, ABC News, April 28, 2008, http://www.abc.net.au/news/2008-0428/well-keep-drinking-alcopop-young-women/2417890.
The Centre for Alcohol Marketing and Youth states that in addition to the influence of parents and peers on youth decisions to
drink, “alcohol advertising and marketing also have a significant effect by influencing youth and adult expectations and
attitudes, and helping to create an environment that promotes underage drinking.” View their fact sheet for more information:
Alcohol Advertising and Youth, The Centre on Alcohol Marketing and Youth, 2007.
As discussed earlier, liquor corporations are now engaging with young people through social media. Dr. David Jernigan, director
of the Center on Alcohol Marketing and Youth (CAMY), introduces us to the issue of alcohol marketing in digital media, and the
effect it has on young consumers:
“Digital Alcohol Marketing (Part 1): Alcohol Marketing in the Digital Age.” YouTube video, 2:09. Johns Hopkins
University. December 15, 2011. http://www.youtube.com/watch?v=De-9sKjMuHU&feature=youtube_gdata_player
(video only)
“Digital Alcohol Marketing (Part 2): Social Media Tour.” YouTube video, 2:53. Johns Hopkins University. December 15,
2011. http://www.youtube.com/watch?v=ApcSfKegjhI&feature=youtube_gdata_player (video only).
“Digital Alcohol Marketing (Part 3): Rules of the Road.” YouTube video, 2:53. Johns Hopkins University. December 15,
2011. http://www.youtube.com/watch?v=Eq7YyF39Rpc&feature=youtube_gdata_player (video only).
17
C. Salom, J. George, K. Roach & S. Kinner, Final Report of Schoolies Celebrations in Victoria, 2009: Analysis, Conclusions and Recommendations, [Centre for Addiction Research & Education
(CARE) Drug Arm, Australasia and Centre for Population Health, Burnet Institute, 2010], 34-35.
Copyright ©Australian Catholic University 2012
“Digital Alcohol Marketing (Part 4): A Path Forward.” YouTube video, 4:26. Johns Hopkins University. December 15,
2011. http://www.youtube.com/watch?v=VvLb3ZjeT4w&feature=youtube_gdata_player (video only).
Ethical Questions for Reflection
What personal responsibility do underage drinkers have in relation to the consumption of alcopops? Can they be held
accountable for their choices?
Traditionally, alcohol companies shouted caveat emptor (buyer beware) and know your limit when it comes to alcohol. The
assumption is that the consumer must bear all the risks if the product does not turn out to be what it claims. While caveat
emptor is a good rule of thumb, the principle, however, is inconsistent with much of the new consumer laws in Australia
developed to protect the consumer. 18
Here is a brief summary of the consumer rights represented in these laws:
• Consumer laws ensure consumers’ interests are safe, represented and just or right. Many laws which protect the
consumer assume the consumer is unable to manoeuvre round the complexity of the products on sale and that if it
were not for these legal and moral rights the corporation would simply exploit the consumer. 19
• Consumers have a right to receive accurate and truthful messages, information, and redress, about the goods and
services purchased (as opposed to false, misleading and deceptive selling practices). 20
• Consumer rights protect the consumer from inequality of transactions, the power of the system within which the
transaction is embedded, and they protect the vulnerability of the consumer. 21
• Consumer rights relate to our dignity, justice and the common good.
Further information about the rights of the consumer can be found on the Australian Competition and Consumer Commission’s
website.
Do you think the promotion and other representations of alcopops create misleading impressions in the minds of young people
18
Australian Competition and Consumer Commission, “Advertising and Selling,” ACCC, January 2007,
http://www.accc.gov.au/content/item.phtml?itemId=303213&nodeId=036ca4235ebf82478fa3d969c13d94dd&fn=Advertising%20and%20selling.pdf.
19
ACCC, “Advertising and Selling.”
20
“Your Rights, Shopping and Pricing,” Australian Competition and Consumer Commission, 2012, http://www.accc.gov.au/content/index.phtml/tag/ConsumerRightsAndShopping/
21
Elizabeth Shearer, “Consumer Protection Laws – Access to Justice for Vulnerable Consumers,” Managing Justice, Australia, December, 2010, http://managingjustice.com.au/wpcontent/uploads/2010/12/LawAsia-paper-Nov-2010.pdf.
Copyright ©Australian Catholic University 2012
regarding the kind of drinks they are consuming, and their effects? What do you understand by moral rights and how do
consumer rights fit into this understanding? Are alcohol companies ethically accountable to consumers and society for their
policies, and actions?
Does alcohol advertising have an impact on your choices? Is there an argument for raising the drinking age in Australia to 21
years of age?
Perspective 5:
The National Preventative Health Strategy of the Preventative Health Taskforce, Australia, provides information on the role of
parents and schools in relation to the responsible consumption of alcoholic beverages.
Parents and Schools
So what do many parents think about alcohol marketing? A poll conducted in June, 2003, for the Centre on Alcohol Marketing
and Youth, discusses a range of issues that parents of young people have in relation to alcohol marketing. See “What Parents
Want,” CAMY.org, 2003.
Ethical Questions for Reflection
What role do the key educators – parents and schools – have in the responsible choices of minors? Can they play a role in
curbing the marketing of liquor corporations? Can they play a role in persuading marketing companies to change their
behaviour?
While underage drinkers cannot legally purchase alcopops, based on the percentage of underage drinkers there are in Australia,
they are obviously able to obtain them. Some parents purchase the alcopops for their children, as they are often faced with a
dilemma – do they allow their children to drink under supervision, or do they ban drinking altogether? What role does alcohol
advertising have on the choices of parents? What should parents tolerate, approve and permit? How do they educate their
children in responsible alcohol consumption? How do they educate their children about the role of marketing in the choices
they make as consumers?
Perspective 6:
Health Care Professionals
The Australian Drug Foundation has a number of informative fact sheets about alcohol consumption. Their sheet, “5 Facts about
the Effects of Alcohol on Young People,” has particular relevance to the perspective of health care providers.
Many health care professionals have called for tighter controls on alcohol advertising, citing a direct link between such
advertising and underage drinking: Alcohol Advertising and Promotion, Excerpts from “Reducing Underage Drinking: A
Collective Responsibility,” School of Public Health, John Hopkins University, Bloomberg,
Copyright ©Australian Catholic University 2012
http://www.camy.org/factsheets/sheets/Alcohol_Advertising_and_Promotion_A_Collective_Responsibility.html
Ethical Questions for Reflection
How far do the effects of alcohol advertising go? While we have discussed its influence on young people, are parents affected
by it? Are health care professionals impacted by alcohol advertising? What role do health care professionals have in educating
young people about the effects of alcohol consumption? What role do they have in relation to alcohol advertising?
Perspective 7:
A Christian Perspective
While our discussion has centred on alcopops, many of the ethical issues associated with the marketing of alcoholic beverages
can be generalised to include many other products and services. The 4Ps marketing mix (Product, Placement, Promotion, and
Pricing), mentioned in the introduction, present a range of ethical issues for consumers, corporations, advertisers and society as
a whole.
The following paper provides insight into the Christian perspective on the ethics of marketing. Through an examination of
Catholic teaching, Klein and Laczniak discuss the problems associated with marketing and consumption:
Thomas A. Klein and Gene R. Laczniak, “Roman Catholic Perspectives On Socially Responsible Marketing And
Consumption: Precis,” (Paper presented at The 8th International Conference on Catholic Social Thought and
Management Education: Renewing Mission and Identity in Catholic Business Education, University of Dayton, Ohio,
2012), 151-155.
Ethical Questions:
There are numerous questions we need to ask, from an ethical point of view, in relation to marketing strategies and their effects. Many of these questions have been asked
through the examination of the various perspectives. A few more are listed here. Can you think of any others?
As discussed in the introduction to this package, product promotion is about utility, needs and value creation. In the case of “alcopops,” what needs are being
addressed for the consumer? What value is being created for the consumer? What impact do these questions have on whether you believe the marketing is ethical/
unethical? Can marketing of such products be justified and, if so, should there be limits to the way in which they are marketed?
The issue of corporate social responsibility is an important driver for any ethical discussion about marketing. In 2012, Brian T. Engelland presented a paper entitled
“Conflicting Views of Markets and Economic Justice: CST and the Development of CSR in the Marketing Discipline” at the 8th International Conference on Catholic
Social Thought and Management Education. In his paper, Engelland described the role of corporations in relation to profit generation, adherence to moral norms,
Copyright ©Australian Catholic University 2012
marketing, stakeholders and society in general. He stated that the way in which corporations adhere to these five models of responsibility has a direct impact on
the common good:
Corporate social responsibility (CSR) is the idea that because businesses exist to serve society, businesses are perceived to have obligations to society.
Whether CSR requires firms to do more than create profits for shareholders has been the subject of much debate over the years.
The business and economics literature describes at least five distinct models of CSR, including (1) profit maximization, (2) moral minimum, (3) marketing
concept, (4) stakeholder concept, and (5) societal concept. All of these models require that businesses, first and foremost, obey applicable laws. The profit
maximization model posits that businesses serve society best by making decisions and implementing actions that maximize the return on invested capital.
The moral minimum model posits that in addition to generating profits and obeying laws, businesses have the additional responsibility of cleaning up their
mistakes so that their operations have no negative impact on society. The marketing concept model posits that businesses have the responsibility of not only
generating profits, obeying laws and cleaning-up after themselves, but they also have an obligation to balance the needs of customers and of the organization
in creating maximum value for both. The stakeholder model posits that businesses exist to benefit customers as a first priority, and that in order to benefit
customers long term, businesses must return value to all entities that have a “stake” in their success. Finally, the societal concept model (also called the
corporate citizenship model) requires businesses to use their resources, capabilities and scale to improve life across all areas of society. Advocates of this
model presume that corporations have a great potential for contributing to the common good and have a moral responsibility to fulfil that potential well. 22
What links can you draw between the models of corporate social responsibility outlined by Engelland, and the principles of human flourishing? Based on your
reading throughout this “hot topic”, do you think that liquor corporations live up to the expectations associated with corporate social responsibility? What changes
would they need to make in order to fulfil their obligations towards the common good?
How can we most effectively promote the common good?
Consider all that you have read in this module. Think about the history and background to the issue, and the diversity of perspectives and interests among the various
stakeholders. Think about the ethical questions, and how the different positions dispose us to thinking differently about what the stakeholders should or should not do.
Now ask yourself what the best course of action would be for securing the common good. What should the Australian Government do to bring about the common good?
What should the alcohol companies do to bring about the common good? What could be done by schools, parents, social services and health professionals? How will the
common good be realized in this situation, and who must contribute?
And what about us? What should we do?
This package has provided you with more than enough resources to complete your task, but if you are hungry for more,
visit the ACU library guide: Buyer Beware: The Ethics of Marketing Alcopops.
22
th
Brian T. Engelland, “Conflicting Views of Markets and Economic Justice: CST and the Development of CSR in the Marketing Discipline,” (Paper presented at The 8 International Conference
on Catholic Social Thought and Management Education: Renewing Mission and Identity in Catholic Business Education, University of Dayton, Ohio, 2012), 156-157.
Copyright ©Australian Catholic University 2012
Copyright ©Australian Catholic University 2012