This report examines the strategic management and corporate responsibility of Innocent Drinks, a company in the fruit drinks industry. The analysis begins with an overview of the company and its commitment to sustainability, highlighting its current practices like using FSC-certified cartons and recycled materials. It then delves into the key tensions and dilemmas faced by ethical companies, particularly the conflict between controlling input costs and maintaining ethical standards, exacerbated by climate change and rising transportation costs. The report applies production theory and ethical leadership theory to assess two proposals from Innocent Drinks' parent company: reducing fruit content and sourcing from non-sustainable sources. Both proposals are evaluated in light of their potential impact on profitability, customer perception, and ethical considerations. The report also proposes an alternative strategy for the company to navigate these challenges. The report concludes with a discussion on the importance of balancing financial goals with ethical and sustainable practices in the context of the fruit drink industry.
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