Reference no: EM132899108

The Fzle drinks company was founded over 100 years ago by a deeply religious family and has been recognized as a good employer ever since. The company has a long history of supporting sporting events as part of its stated commitment to help promote healthy lifestyles. Fzle has a corporate social responsibility commitment to behave ethically while helping to improve the quality of life for the public and society generally. A percentage of Fzle's profits are also allocated to a number of local charitable causes every year.

Using secret natural ingredients, Fzle has grown to become the world's leading manufacturer and distributor of non-alcoholic drinks. The company has an extremely strong brand and its drinks are sometimes sold alongside 'own brand' alternatives which it manufactures and packages on behalf of a few large supermarket chains. Own brand drinks sell more cheaply than Fzle branded products, are less costly to produce (they avoid expensive labelling and promotion) but sales remain low.

Fzle spends heavily on displaying some of its ever-expanding product lines on television, normally before and after popular TV programs aimed at children and teenagers. For the first time this year, Fzle now spends an equal amount on online advertising.

Following the pattern of its major rivals, Fzle has recently sought celebrity endorsements for its products. Focus group research indicated that the endorsement of a gangster rapper Mr. $Dope would appeal to its target market segment. When this was announced there was criticism from religious and political groups because of the music's association with exploitation of females, violence and bad language. One newspaper editorial accused Fzle of 'endorsing immorality'. In response, Fzle decided not to use Mr. $Dope in its campaigns and admitted that it had made an error of judgement in a press statement.

Now a further problem has arisen. An international health watchdog body has reported that Fzle's products contain high levels of sugar and, if drunk excessively by children, can lead to long term gum and tooth decay. Fzle has yet to respond to the report.

Discuss the social implications of Fzle's activities from its stakeholders' perspectives.