The Strategic management

SM0382 Strategic
Management &
Corporate Responsibility
4/13/2020

Strategic management 1
Contents
Introduction......................................................................................................................................2
Overview of the company................................................................................................................2
Current approach to corporate responsibility and sustainability.....................................................3
Key tensions or dilemmas involved in being an ‘ethical’ company................................................4
Theory of production...................................................................................................................5
Ethical leadership theory.............................................................................................................6
Analysis of two proposals................................................................................................................7
Proposal 1....................................................................................................................................7
Proposal 2....................................................................................................................................8
Further proposal to the company...................................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Strategic management 2
Introduction
In the present era, the businesses that are performing their business operations need to
perform corporate responsibility effectively. The company needs to ensure that they need to form
the strategies in such a manner that they can meet corporate social responsibility. Corporate
responsibility is linked to the sustainability of the company for a long period of time. The
activities of the company ensure that they lead to a positive impact on society as well as on the
environment.
The report is prepared on the fictitious scenario of the existing company to understand the
management of strategies and corporate responsibility. In the fruit drinks industry, keeping the
input costs under the control are considered as one of the vital drivers for the improved financial
returns. This has been found that from the last few years, the input costs of the products are
improving due to the climate emergency as well as the adverse weather patterns. The
improvement in the transportation cost has been witnessed due to the environmental factors.
Both factors lead to a direct impact on the profitability of the company. To consider the
profitability concerns, the board of directors of the Innocent Drinks are considering the two
major proposals from their parent company. The two proposals which are considered by them
include proposal 1 to reduce the fruit content of the product and proposal 2 include sourcing of a
proportion of the fruit majorly from the non-sustainable sources. The analysis of both the
proposal is conducted with the findings of the more options for the company.

Strategic management 3
Overview of the company
Innocent Drinks is a company that is offering juice and smoothies that are sold in the
supermarkets, coffee shops and also the different other outlets. The company is 90% owned by
the Coca-Cola Company which is considered as the parent organisation. The company came into
existence in the year 1999 once they started selling the smoothies in the music festival. At the
initial stage, the company put in big sin asking people that they should continue offering
smoothies or should not with the help of the bags saying “Yes” and “No”. Then, at the end of the
weekend, they found “Yes bag” full which made them offer Smoothies and juice to their
customers (Innocent Drinks, 2020b).
Current approach to corporate responsibility and
sustainability
The company sounds a bit airy-fairy but they want to continue their business activities in
the most enlightened way. The company wants to take full responsibility for the impacts that the
business have on the environment and also on the society in which they are performing their
business operations (Innocent Drinks, 2020a). The company has different practices through
which they are making the negative to positive impact. Some of the practices that shows the
sustainability of company include cartons that are made from 100% Forest Stewardship Council
(FSC) certified card as well as company has incorporated at least 25% of the recycled content in
the bottles since the year 2003. It has been found that the company commit to ensure that all the
bottles comprise of at least 30% of the recycled plastic and large smoothie bottles current make
use of the 50% of the recycled content (Edie, 2018). The below-given image shows the new