Review of Documentary Tipping The Scales on Australia's Obesity Issue

This report reviews the documentary called “Tipping the Scales” which highlights the issue of obesity in Australia. It analyzes the stakeholder management theory to identify key stakeholders, their stakes, and opportunities and challenges they present. It also discusses the concept of creating shared value and recommends the introduction of a sugar tax to combat the issue.

ORG20002: Business and Society
ASSIGNMENT 2: Team review
of documentary
Tipping The Scales
Created By:
Kong Weng Fai - 102232669
Ross Laverty - 101740763
Emily Moore - 101964220
Eve Bransgrove - 6038743
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1. EXECUTIVE SUMMARY
This report has been elaborated on reviewing the documentary called
“Tipping the Scales”. This documentary is based on the global concern of
obesity, particularly, among the Australians who make lead very poor
lifestyle and possess unhealthy food habits. All through the entire
documentary it is evident that the organizations or industries in Australia are
not at all concerned about the nutritional intake and guidelines. They happily
ignore their social responsibilities for making money and profits as well as
increasing their market share. However, while analyzing the responsibilities
of the stakeholders, there was a wide range of problems that have been
addressed in regard to their contribution in making some really productive
and positive social transformation. Along with this, this paper shed light on
various different perspectives of different stakeholders in regard to the
problem of obesity among the Australians. It has been recommended that
introduction of sugar tax would be very helpful in this regard. With the same,
the collaboration of government along with the food industry and the other
stakeholders would be one of the significant steps towards fitter and
healthier lifestyle of the Australians. It has also been highlighted that the
general public should also take some responsibilities for adapting and
making changes in regard to improvement of their own lifestyles.
Furthermore, by following the business concept of creation of a social value,
the companies in Australia should attain their financial objectives and create
the shared values at the same time. Creation of the shared value should also
benefit the interests to the external and internal shareholders and at the
same time, would also place some increased focus on the vitality of the
nutritional guidelines of Australia that is enforced by the Australian
government. Moreover, this report has also shed light on the various
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opportunities that the Australian food industry would get by following the
CSV guidelines and has provided strategies to overcome this issue.
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY 2
2. INTRODUCTION 4
3. STAKEHOLDER MANAGEMENT ANALYSIS 5
4. CREATING SHARED VALUE DISCUSSION 11
5. CONCLUSION 13
6. REFERENCE LIST 15
7. APPENDIX 19
2. INTRODUCTION
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This report will focus on the issue of Australia’s Obesity with the help of a
documentary named ‘Tipping the Scales’, where the idea of degrading
lifestyle in Australia has been highlighted (ABC 2018). In this documentary,
the speakers have mentioned Australia as the unhealthiest country with a
rate of obesity and type 2 diabetes higher than any other European country.
Evidence has shown that, where diabetes was previously considered a
disease affecting adults, numbers of child sufferers is on the rise (ABC,
2018). Food processing companies, restaurant chains and retailers are
ignoring their moral responsibility towards the health of society, and are
focused on generating their own profits. The documentary identifies some
shocking statistics, such as 60% of Australians are overweight with this set
to increase (ABC 2018).
The food industry are not maintaining their social sustainability guidelines
and seem to be ignoring the increase in consumption of processed food and
associated issues. Governing bodies have taken serious steps with a plan to
launch a sugar tax in an attempt to reduce the consumption of unhealthy,
sweetened and high calorie food products. This documentary (ABC 2018),
includes some alarming information and raises the issue of what future
generations will encounter in terms of obesity if current lifestyles are
maintained. The degrading rate of health is frightening and the future looks
bleak if actions are not taken quickly.
This report uses the stakeholder management theory to analyse the
stakeholders involved in Australia’s growing obesity issues. Using the Five
Key Questions of Stakeholder Management, this report will discuss the key
stakeholders, their stakes and the opportunities and challenges they present.
We will examine key responsibilities of stakeholders and identify potential
strategies to help address the obesity epidemic. The report will also examine
the concept of creating shared value, and will highlight how this approach
would benefit the stakeholders involved.
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3. STAKEHOLDER MANAGEMENT ANALYSIS
The stakeholder theory explores the relationship between organisations and
the people that have invested interest in its operations, while encouraging
businesses to consider the shared value and relationships they can create
(Freeman, Wicks & Parmar 2004, p.364). In this documentary, numerous
stakeholders highlight the two-way interaction with organisations, with each
affected by the actions, decisions and policies surrounding Australia’s obesity
epidemic (Carroll & Buchholtz 2015, p.66). Key stakeholders in the
documentary are local communities, including Australian residents, local
schools, universities, workplaces and the general public. Suppliers and
associated businesses including sugar farmers, fast-food chains and soft-
drink companies are also primary stakeholders. The local, state and federal
governments are secondary social stakeholders and regulators, such as
councils, health professionals and public health advocates are also important
(ABC 2018). Other stakeholders with lesser influence include industry
employees and customers, media and academic commentators, future
generations and retailers such as supermarkets.
Each of these stakeholders views Australia’s obesity issue from a different
perspective, with contrasting opinions, concerns and expectations.
Understanding their individual stakes will help determine who holds the most
importance and requires central attention (Carroll & Buchholtz 2015, p.69).
The stakeholder theory identifies three key stakes as legitimacy, power and
urgency.
Legitimacy refers to the perceived validity of a stakeholders claim, including
the assumption that their actions are desirable within social values (Mitchell,
Agle & Wood 1997, p.866). In this documentary, the government and
regulators demonstrate legitimacy, while this stake is not as obvious for local
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communities and the industries. The government is at the forefront of the
issue, with other stakeholders trying to persuade them for or against the
introduction of a sugar tax. Health professionals and public health advocates
have legitimate claims stemming from their expertise and focus on:
bettering Australia's health, preventing further rise in obesity, related
diseases and strain on the health system (Santana 2011, p.257). In contrast,
claims made by the industries, including soft-drink companies, have little
legitimacy due to their biases. The food industry has a desire to make profit,
but no imperative to create a healthy, active Australia (ABC 2018).
Power assesses the level of influence stakeholders have and how they can
increase authority (Carroll & Buchholtz 2015, p.70). Again, the superior
position of the government sees them with excessive power, while suppliers
and industries also hold considerable power. Although they may only be
delaying the inevitable, with 28 countries already imposing the sugar tax,
the industries can put much more into the debate than public health and
consumer voices (ABC 2018). Stakeholders invest considerable time and
money trying to influence the debate and although actions are not always
moral, they are effectively able to pay for increased ‘power’. For example,
Coca-Cola gave money to 94 separate health agencies to argue physical
activity as the cause of obesity (ABC 2018). In contrast, health advocates
and individuals hold little influence due to their insignificant size and
although working together will increase power, it is unrealistic to achieve
anything on a large enough scale (Mitchell, Agle & Wood 1997, pp.865-866).
For example, a consumer boycott where no-one buys Coke would make a
statement, but is not viable.
Urgency identifies the degree to which immediate action is required based
on stakeholder claims or actions (Carroll & Buchholtz 2015, p.70). Health
professionals draw on alarming statistics and extraordinary cases to
persuade the debate. For example, Dr Gary Fettke’s discussion of foot and
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leg amputations (ABC 2018) intensifies the burdens of obesity and reinforces
the urgency of finding a solution (McDermott 2016). Lobby groups and
industry companies also create urgency through strikes or protesting, while
local communities are too insignificant to force immediate attention (Han
2017). These stakes work as an interrelated unit and when assessed
together, identify stakeholders true impact. For example, a stakeholder may
have a legitimate claim, but without power or urgency, nothing is likely to
happen (Carroll & Buchholtz 2015, p.78).
Identifying the opportunities stakeholders present will foster better
relationships and encourage stakeholders to work together. Assessing
potential threats is also important as these detract from success and
shareholder value (Hillman & Keim 2001, p.125). A partnership between
health advocates and local communities provides key opportunity to educate
the public and prevent obesity rising to 80% as is currently expected by
2025 (ABC 2018). Community-based prevention programs offer potential to
target a large population across multiple locations, including schools,
universities and community centres (Middleton, Henderson & Evans 2013,
p.202). The collaboration of stakeholders, engagement with local people and
consideration of factors that promote unhealthy behaviours are key to the
success of these programs (Middleton, Henderson & Evans 2013, p.202). By
drawing on expertise of health professionals, funding by local government
and communities to bring people together, the likelihood of effective
intervention increases.
An apparent threat is the immoral behaviours by industries actively working
to persuade against the sugar tax. Advertising issues like persuading human
emotion and targeting children are common ethical issues that soft-drink
companies ignore in the interest of generating sales (Carroll & Buchholtz
2015, p.383). The use of money and status to increase power is also
immoral, with Coca-Cola a primary offender. For example, Coke paid
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scientists to conduct research and shift blame for obesity to lack of exercise,
while their headquarters hosted the Dieticians Association seminar (ABC
2018). Although complex interventions can be difficult to design, deliver and
manage (Middleton, Henderson & Evans 2013, p.208), it is clear that
stakeholder collaboration is a central opportunity, while managing key
threats will help eliminate delays in improving Australia’s health.
When considering the responsibilities of these stakeholders, the idea that
obesity is caused by individuals and not the result of corporate decisions or
behaviours leads the way in the argument against government action
(Brownell, K, Kersh, R, Ludwig, D, Post, R, Puhl, R, Schwartz, M & Willett, W
2010). However, the food and sugar industries have responsibilities toward
their stakeholders. The food industry must take some responsibility for the
increased availability of processed foods at low costs (Swinburn et al. 2011,
p. 804-814). An Australian burden on disease study found that seven percent
of the overall health burden can be attributed to issues with individuals being
overweight or obese (Australian Institute of Health and Welfare 2017).
Much research has been undertaken and results show that obesity is not just
a personal choice (Irvine, J 2018).. “The failure of the unregulated market to
deliver societally optimal outcomes call for government intervention through
regulation, taxes and subsidies, to create environments that make the
healthy choice the easy choice” (Veerman, L 2019). The problem of obesity
cannot be left up to individuals to solve without society as a whole
introducing strategies to make it easier for people to make healthier food
choices and engage in physical activity. Economic responsibilities encompass
the allocation of society’s resources in a way that maximises the health and
wellbeing of its people, promoting healthier food choices and prompting
increased physical activity (Irvine, J 2018).
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The food industry continually rebut the argument that they are in part
responsible for the obesity epidemic, this opposition due to the impact it may
have on their profits and commitments to shareholders. If interventions are
not put in place involving the food industry’s cooperation, Price Waterhouse
Coopers predict, “there will be 50% more obese people by 2025, and the
cumulative marginal economic costs to Australia will reach $87.7 billion, not
including the impact on the quality of life of the obese, their families and
carers.”(Public Health Australia, 2018). Government intervention has been
involved in many of the positive behaviour changes within Australian public
health, such as immunisation and smoking rates. Interventions need to be
considered in an effort to combat the obesity epidemic. Interventions could
include taxes on unhealthy food and sugar, improvements to food labels and
restriction on food advertising to children (Bobba, S 2014).
Inactivity has specifically been identified as having an impact on the rising
obesity crisis. In a report in 2018 from the Prime Ministers Sporting Oration it
was recommended that rather than investing funds to manage obesity and
its associated health issues, “ believe community and philanthropic funding
for sport as targeted by the Sport 2030 Report, can help alleviate taxpayers’
annual obesity bill” (Gillard, J 2018).
The introduction of a sugar tax was widely discussed in The Tipping the
Scales documentary and with Australia in the midst of an obesity epidemic,
the push for a national obesity strategy should be stronger. The food
industry is having a direct effect on its stakeholders and with obesity being
the number one public health problem (ABC 2018) the responsibilities of the
food and sugar industries are now greater than ever (Australian Medical
Association, 2018). The Tipping the Scales documentary detailed the
argument for government intervention and the introduction of a sugar tax.
This would be a good start as research has shown positive results in 28 other
countries that have implemented the tax (ABC, 2018). However, this is only
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one of many strategies to overcome and ultimately prevent the problem of
obesity.
The obesity epidemic cannot be overcome by the food industry alone. A joint
effort is required to produce a national nutrition strategy based on the
Australian Dietary Guidelines, and such an effort would involve,
“governments, nutrition scientists, industry and civil society working
together across the food system – from food production through to retail”
(Baker P & Lawrence M, 2018). The food industry must work with consumers
and implement strategies that increase the likelihood of people making
healthy choices. Strategies need to directly affect individual behaviours with
the main objective to increase the inclination to make good choices. These
could include health education, health promotion programs and social media
or marketing campaigns. The food industry needs to be particularly involved
at the implementation stage of any new initiatives or actions to ensure
success.
The consumption of added sugar by Australians is well above the World
Health Organisation’s recommendation of no more than 25g per day (WHO,
2015). Recommended actions to initiate improvements in the diet of
Australians include improving the availability of healthy food options in
public areas and making improvements to the overall food supply (Seal, J
2004). The food industry need to work with key stakeholders to ensure
identified strategies are implemented, including better food labelling,
reformulations of food products and the introduction of a tax on sugary
drinks (Bobba, S 2014).
Ultimately, if the food industry wants to retain its status of self-regulation,
build relationships with the public and initiate worthwhile public and private
partnerships, new strategies are required. “An excellent beginning would be
to suppress automatic opposition to public health recommendations over the
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last decade and embrace recommended changes” (Jeffrey P, Koplan M, Kelly
D, Brownell, P, 2010). If the food industry takes necessary actions and
adopts suggested strategies, they will in turn address the concerns and
issues faced by the stakeholders.
4. CREATING SHARED VALUE DISCUSSION
The documentary “Tipping the Scales” has identified a number of societal
and health issues affecting stakeholders of the sugar industry, including
obesity and related health issues. One concept that the sugar industry could
adopt to help improve their profitability, society and overall business is
creating shared value. Creating Shared Value (CSV) is a business concept
where policies and procedures are designed to enhance the competitiveness
of a company, while also advancing the economic and social value of the
community they operate within (Wojcik 2016, p. 33). By redefining social
issues in terms of value, CSV shows that businesses need to focus on
identifying and expanding societal and economic progress (Porter & Kramer
2011, p. 66). If the sugar industry were to adopt a CSV concept compared to
a corporate social responsibility (CSR) concept, they would embrace a
longer-term, more environmentally friendly socially inclusive strategy (Orr &
Sarni 2015, p. 19). This will help the sugar industry with many of the social
issues it is facing such as obesity and government regulation.
CSR is a business concept that is similar to CSV and it is important to
distinguish between the two to analyse what concept the sugar industry is
currently using. Under the CSR concept, the sole purpose of a business is to
maximise short-term profit and any social issues are seen as peripheral to
management challenges (Wojcik 2016, p. 34). As a result of this view, it is
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considered that CSR strategies only return a portion of the company’s profits
to society (Nam & Hwang 2018, p. 2). CSV differs from CSR by taking the
view that social concerns are not disconnected problems but instead
opportunities directly linked to business strategy (Wojcik 2016, p. 38). For
example, the sugar industry are currently using CSR strategies and
allocating a portion of their profits to helping societies health problem but
arguing that they are not directly linked to their product. If the sugar
industry were to adopt a CSV mentality, they would view the health problems
as opportunities to help society and change the way they operate to more
efficient and profitable business models.
The sugar industry is having a direct effect on the health of their external
stakeholders and is an area where adopting the CSV concept is an
opportunity to improve the situation for everyone involved. As described in
the documentary, there has been a sharp increase in the prevalence of
obesity which coincides with the temporal increase in the consumption of
added sugar (Brand-Miller & Barclay 2017, p. 854). Viewing this obesity issue
in terms of valve, as CSV does, would thereby highlight this as an area where
social value can be improved since corporate success and societal prosperity
are closely connected and interdependent (Nam & Hwang 2018, p. 2).
Therefore, this is an area where the sugar industry could be redistributing
their resources in order to address the obesity problem, in turn driving
innovation and improving social and economic well-being.
The documentary also discusses government legislation and the introduction
of a “sugar tax” to help with the obesity dilemma, before coming to the
conclusion that there is no clear solution. However, Porter and Kramer (2011,
p. 74) discuss how the right kind of government legislation can encourage
companies to pursue shared value and stimulate innovation. Government
legislation should be designed around societal objectives which will
encourage companies to invest in shared value rather than maximising short
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term profit (Porter & Kramer 2011, p. 74). The legislation would then create
shared value between the society’s obesity problems and the sugar industry,
thereby encouraging sugar producers and food companies to develop new
products and methods that are economical and support the obesity problem.
Tipping the Scales identified a number of social concerns linked to the sugar
industry and showed that the sugar industry is currently using CSR strategies
to meet their social requirements. For example, Coca-Cola is donating a set
amount of their profit to the Diabetes Association of Australia (ABC 2018).
Under this strategy, the sugar industry is mainly concerned with short term
profits and does not view the societal issues as linked to their business
strategy. However, with the right type of legislation, it may be possible for
the government to guide the sugar industry down the path of CSV. If the
sugar industry adopt a CSV outlook, they will accept that any and all societal
issues directly affect their business strategies and understand that they need
to address both society and business areas in terms of value. This would
then result in the sugar industry innovating to find better ways of business
and healthier product which not only increases the value of their business
but the value of society as a whole.
5. CONCLUSION
The ‘Tipping the Scales’ documentary has outlined problematic areas
relating to food habits of the Australian public and has detailed the
reluctance the food industry has to making changes, with their primary
concern focused on short term profit. An analysis of key questions from the
stakeholder management theory has identified main stakeholders in the
issue, including their stakes, opportunities and challenges. The
responsibilities of these stakeholders have also been identified, with
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potential strategies suggested to combat the obesity epidemic. The report
identifies that joint initiatives must be set in motion by the food and
beverage industry in conjunction with the Government, while strategies
should be based on Australian nutritional guidelines and in line with statistics
from the World Health Organisation. It also argues that consumers must
become more focussed on healthy eating habits and increased physical
activity, as this will foster reduced obesity statistics and better allocation of
monies spent on healthcare issues. In turn, it can be said that the current
lifestyle of consumers is leading the food industry more than any other
factors to gain profit from producing highly sweetened or high calorie food
products.
The Tipping the Scales documentary aims to change the mentality of
consumers and prompt the sugar industry to reshape the CSR policies in an
attempt to overcome such a serious social concern. The development of
shared value is a proven method for increasing the market value of business
in economic terms as social issues are also being addressed. It has been
recommended that the government builds strong relationships with the
Australian public and food industry to help increase awareness, for example
through community programs and social media. Better labelling and
promotion of Australian nutritional guidelines will also assist the public to
choose healthy alternatives to their favourite foods, and this coupled with an
emphasis on increasing physical exercise, will help target obesity.
Through an analysis of this documentary, stakeholder theory and the
importance of creating shared value, it is clear that a range of stakeholders
must work together to effectively target Australia’s increasing obesity
epidemic. Their mutual cooperation and focus on social responsibility should
see reduced obesity rates and improved health of the public.
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Mitchell, R, Agle, B & Wood, D 1997, "Toward a Theory of Stakeholder
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