SodaStream Case Study: CSR, Ethics, and Brand Development

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Case Study
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This case study examines SodaStream's approach to ethics and corporate social responsibility (CSR) and how these values have contributed to its brand development. The paper explores how SodaStream has leveraged CSR and ethical practices, such as environmental sustainability and consumer health, to differentiate itself from competitors like Coca-Cola and Pepsi. The analysis covers the company's strategies, including its focus on consumer convenience, reduced environmental impact through reusable bottles, and health-conscious product offerings. The study also investigates how SodaStream's public profile and history influence its engagement in social activism, particularly in relation to its stance on environmental issues and its involvement in social and political matters. The conclusion provides recommendations for SodaStream's CEO, suggesting a balanced approach to social activism, emphasizing the importance of ethical business practices while navigating potential challenges.
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Ethics and Corporate Social Responsibility: Case Study of SodaStream
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ETHICS AND CORPORATE SOCIAL RESPONSIBILITY: CASE STUDY OF
SODASTREAM
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Ethics and Corporate Social Responsibility: Case Study of SodaStream
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ETHICS AND CORPORATE SOCIAL RESPONSIBILITY: CASE STUDY OF
SODASTREAM
Introduction
SodaStream as an organization has been in the business since 1903 and strives to beat big
companies in the industry like Coca Cola and Pepsi. The company is known for its strategy,
which is based on ethics and sustainability. However, the organization has also been using
various other tactics, ensuring that they achieve maximum sales and their projection of $1 billion
in sales annually. In as a much as the aim of an organization is to make a profit, the company
utilizes a unique approach which is focused on consumers and sustainability. The content of this
paper, therefore, evaluates the case of SodaStream and provides answers on how the organization
haves used CSR and ethics to build and develop itself as a brand. The paper further concludes
with recommendations to the company, CEO Birnbaum.
Question One
The Role of CSR and Ethical Values in the Development of SodaStream Brand
CSR and ethical values performed a severe role in the definition and development of
SodaStream as a brand. To begin with, the company under the management adopted a
mechanism which is based on corporate social responsibility and ethics. Instead of going for
prize or cost reduction mechanism, the organization decided to position itself as an organization
which cares for consumers health, values the environment and develop products through the use
of a sustainable means as well as observed fairness and friendly (Sodhi 2015). The organization,
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Ethics and Corporate Social Responsibility: Case Study of SodaStream
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therefore in the attempt to use a sustainable mechanism opted to the use of machines that would
allow their customers to make their carbonated sodas at their convenience and taste.
This mechanism helped the organization to t gain more sales over the years as this was
environmentally friendly and would allow consumers to make what they deem healthy.
Moreover, through this strategy, the organization was able to avoid excess production of none
renewable bottles into the environment, thus eliminating lugging heavy soda bottles by
consumers. In the same sustainable way, the organization came up with a mechanism whereby
customers would send back used bottle back to the company for reuse (Ronen 2015). The
organization also used various retail outlets such as Walmart to stick its products and to offer
exchange services to multiple customers with depleted carbon dioxide cartridges.
In relation to consumer ethics, the company came up with a health observation
mechanism where their flavored sodas have limited sugar and others even sugar-free. This
strategy was linked directly to sustainability and corporate social responsibility. With this type
of care, the organization focused their marketing slogans and ads towards being a sustainable
company thus climbing to the top of the ladder, and by 2013 the company had reached $563
sales annually (Marshall 2016). The organization also employed people from various social
backgrounds as a way of elevating peace within the operating countries, which is also part of
CSR. The adverts were focused on the good doings of the company, which help so much in
building the brand.
Question Two
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How SodaStream’s Public Profile and History Influence Social Activist Engagement
Going Forward
The term social activism refers to the working towards the creation of enhanced social
wellbeing or basically to bring change into the community or to the society. SodaStream as an
organization has over the past been an activist in various countries of its involvement. The
company over the past based on its approach of corporate social responsibility has over the past
been fighting for change and going forward the company will have to maintain on this course of
action (Sodhi and Tang 2017).
To begin with, the company has a history of conserving the environment and has over the
past been criticizing other firms such as Pepsi and Coca Cola for using bottles which and not
environmental friendly. Moreover, the organization utilize PR and condemn publically what they
deem to be affecting society. In as much as the organization faced various challenges in
creating a value that focused on the betterment of society, this history is essential and has a more
significant influence on the organization's progress.
Based on the strong opposition faced by the organization in the year 2014/15 in their
attempt to offer peace between the Jews and Arabs, I believe that the organization is likely to
engage in social activism with a lot of caution. SodaStream, through its robust social activism,
lost a lot in terms of sales to a level where it had to enter into an agreement with Pepsi (Fan
2015). Even though the company was able to rise back to the ladders again. I believe that based
on this experience and history of harshness and success, the organization cannot abandon its
social activism role in the society but will undertake it with limits.
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Critically examining the case of SodaStream, the company’s success is based on values,
ethics, and corporate social responsibility. To this manner, the company must continue meeting
the societal needs just as it did in the West Bank. I believe that the level of participation and
social activism should be controlled (Khoury, 2015). Thus, going forward, I think that, the
company will participate with the limit in bringing change to society. Further, it is evident that
the organization standing up on its feet again is due to social activism and in as much as the
organization will change how it applies the strategy, it will not abandon it.
Conclusion and Recommendations to SodaStream CEO Birnbaum
In conclusion, value observation as well as an ethical observation as revealed in the case
of SodaStream is a working strategy that an organization should adopt to increase sales. Brand
building based on ethics and corporate social responsibility are one of the most appropriate ways
to go about the business. However, in as much as an organization has to make a positive change
to society, such changes should be taken with caution. For this reason, I would recommend that
SodaStream CEO, Birnbaum should take actions with the limit. The CEO in year 2014/15 was
not able to separate his personal feelings from the business. I would advise that from today
going forward, the organization CEO should come up with a mechanism through which the
company can fight for change through values but not through public condemnations and
unethical adverts.
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References
Fan, Y., 2015. Ethical branding and corporate reputation. Corporate communications: An
international journal, 10(4), pp.341-350.
Khoury, A.H., 2015. International Trade and Commerce: A Bridge for the Israeli-Palestinian
Peace. Cardozo J. Int'l & Comp. L., 7, p.11.
Marshall, P.D., 2016. When the private becomes public: Commodity activism, endorsement, and
making meaning in a privatised world. In Contemporary Publics (pp. 229-245). Palgrave
Macmillan, London.
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Ronen, Y., 2015. Responsibility of Businesses Involved in the Israeli Settlements in the West
Bank. Available at SSRN 2594851.
Sodhi, M.S. and Tang, C.S., 2017. Social responsibility in supply chains. In Sustainable Supply
Chains (pp. 465-483). Springer, Cham.
Sodhi, M.S., 2015. Conceptualizing social responsibility in operations via stakeholder resource‐
based view. Production and Operations Management, 24(9), pp.1375-1389.
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