Running head: BUSINESS PLAN: ETHICS AND SOCIAL RESPONSIBILITY PLAN 1
BUSINESS PLAN: ETHICS AND SOCIAL RESPONSIBILITY PLAN
Commitment to being a Good Corporate Citizen
Businesses have an obligation to act in a manner that will maximize benefits and minimize harm, even as they pursue their financial objectives. Fruitfit will act as a good corporate citizen by aligning its financial objectives with those of major stakeholder. This way, the business will be encompassing stakeholder theory, which requires businesses to consider the interests of all stakeholders when setting strategies and going about their operations (Crane, 2016). Fruitfit will ensure that its activities are aligned with the community’s interests. The business will take a proactive approach in ensuring its alignment with community interests by ensuring that its goals and objectives reflect the community’s values. By considering community interests at the strategy-setting stage, the business will ensure that its activities are always mirror community interests.
Part of being a good corporate citizen is ensuring that business activities have a positive impact on the surrounding community (Andriof & McIntosh, 2017). The business will play a role in being a good corporate citizen by employing people from the local community, which will subsequently improve their financial and economic statuses. Fruitfit will employ professionals from the local community by enforcing equal opportunity employment practices that provide each individual with a fair chance of getting employed. All employees will be treated fairly as the business will implement a multicultural and inclusive workplace. It will also provide training for support job positions so that people from the local community can qualify for the job positions. In addition, the business will source raw materials locally, a factor that will boost economic activity in the region as farmers will get a ready supply for their produce. The business is not structured as a social venture as its aim is to maximize value to investors. Nonetheless, it will still play a substantial role in the community by improving the society’s welfare through ensuring that they get access to healthy beverages.
How Business Activities will Impact the Environment
Inevitably, Fruitfit’s activities will impact the environment in various stages of the supply chain. First, raw materials will need to be transported from suppliers to the manufacturing facility, which will lead to the release of carbon emissions to the environment. Secondly, the beverage manufacturing process results in the release of fumes (Kregiel, 2015). Also, the environment may be negatively impacted due the disposal of the packaging materials used by customers. Plastic bottles will be used for packaging the beverages, which will create environmental concerns associated with their disposal. The production of the beverages will also consume a lot of water, which may lead to the depletion of the natural resources.
It would be impossible to implement all the organizational activities without causing firm to the environment or surrounding communities. However, the negative impact of a business can be lessened by implementing measures that will reduce the environment’s and the community’s exposure to harm (Kregiel, 2015). With regards to lowering the negative environmental impact associated with transportation, the business will be located in an area that is near retailers and distributors so as to prevent the finished products from being transported over long distances. Also, the business can plan its inventory in such a manner that supplies are bundled together in large volumes so as to prevent unnecessary trips from suppliers. In matters concerning environmental damage due to fumes emitted during the manufacturing process, the manufacturing process can be designed in a way that will reduce environmental damage. Also, the consumption of water will be minimized by implementing effective water recycling methods. In future, Fruitfit may consider utilizing alternative packaging materials and doing away with plastic packaging. However, non-plastic packaging is expensive, and they will substantially alter both the cost of doing business as well as the product price. For now, the company can include recycling instructions on product packaging to inform customers to dump the bottles in recycling bins.
Health Issues Related to the Product
Fruitfit is developing a healthy product that will be comprised of natural fruits and vegetables. Consumers should expect to benefit from better health after their consumption. The products will not have any sugar or artificial colorings or preservatives. This way, they will appeal to the health-conscious consumer market that is drawn towards healthy foods. The elimination of sugar as an additive helps to lower the risk of diabetes, obesity, and high blood pressure. The elimination of chemicals helps to reduce the risk of cancer as artificial colorings and flavors usually contain carcinogens (Ramesh & Muthuraman, 2018).
The organization will have strict scrutiny over the production process to ensure that all beverages are free from chemical contaminants. Also, Fruitfit will employ the highest food standards to prevent contaminations. In addition, it will adhere to any legal or regulatory food and quality standards that are enforced by the Thailand government. To ensure conformity with current laws and standards, the management will employ a quality control expert who will head the safety and quality department. In order to mitigate against instances where the beverages provide by the company are harmful to people’s health, the packaging will include all the components that have been used in their manufacture. This way, consumers can make informed choices on whether or not to purchase the beverages. Some customers may be allergic to the fruits and vegetables used in the manufacture of the beverages. In addition, consumers need to be informed about the nutritional content of the foods, especially if they need to be aware of their calorie intake.
Fruitfit’s Plan to Target Appropriate Business Segments
Fruitfit’s target market has been identified as ranging between the ages of 24 and 70. The determination of the age group was based on the assumption that they are capable of making sound decisions regarding food and beverage selection. Andrews and Shimp (2017) recommend that the target market can be aimed at by employing advertising measures that will appeal to them. Similarly, Fruitfit’s target market will be reached through the social media, online websites, and flyers and brochures that will be handed to people in social gatherings. The advertising medium has to be frequented by the target market. For instance, in order to ensure that only people aged between 24 and 70 are targeted by social media campaigns, the company will purchase consumer lists from marketing firms that only includes the aforementioned age bracket. Marketing firms sell contact information to interested buyers such as firms, where customer demographics are specified. Also, the content will be created in a way that will appeal to customers within the age bracket.
Marketing to children is unethical as they are easily influenced. Children may not have the decision-making capacity needed to differentiate between armful and beneficial products (Kelly, Vandevijvere, Freeman, & Jenkin, 2015). For this reason, the marketing and public relations campaigns will only be created to attract the mature market. Although the beverages produced by Fruitfit are not harmful to their health, the organization needs to be cognizant of the ethics involved in targeting such a market. Another method that will be used to attract individuals within the target age bracket is product packaging. The product will use designs and shapes that appeal to a more mature market. Thus, it will only draw in customers from the intended target market.
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated marketing communications. Nelson Education.
Andriof, J., & McIntosh, M. (2017). Global corporate citizenship in a dot. com world: The role of organisational identity. In Perspectives on Corporate Citizenship (pp. 66-82). Routledge.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Kelly, B., Vandevijvere, S., Freeman, B., & Jenkin, G. (2015). New media but same old tricks: food marketing to children in the digital age. Current obesity reports, 4(1), 37-45.
Kregiel, D. (2015). Health safety of soft drinks: contents, containers, and microorganisms. BioMed research international, 2015.
Ramesh, M., & Muthuraman, A. (2018). Flavoring and Coloring Agents: Health Risks and Potential Problems. In Natural and Artificial Flavoring Agents and Food Dyes (pp. 1-28).