Read Resolving Business Challenges at the end of Chapter 12 (Business Ethics, and Ethical Decision Making). Are Smith's Sodas' marketing claims accurate and truthful? Discuss the justifications Louis uses to argue for truthfulness regarding the company's marketing claims. Assume there is a news story questioning the sustainability of Smith's Sodas packaging? How should Keisha respond? What are your overall thoughts on this (these) issue (s)?

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Part 4: Implementing Business Ethics in a Global Ey 340 RESOLVING ETHICAL BUSINESS CHALLENGES* Chapter 12: Sustainability Boy After graduating from Ohio State, Keisha got a job in After two days of phone calls, she finally contan the marketing and public relations department at a small someone who had been involved in the actual den ment of the plastic. soda company called Smith's Sodas. Smith's Sodas spe- "Yes, it's true the plastic only degrades under cena Check your EQ. or Bhalo cializes in high-quality fruit-flavored soft drinks with unique flavors such as pomegranate, raspberry, blue- conditions," he informed her. "But that's still better overall understanding d to a lot of other plastics." berry, and coconut. The company had great plans for Keisha approached her manager, Louis, to disc 1. Sustainability is the p environment, folks the future. In 10 years Smith's Sodas wanted to become the issue. Louis did not understand Keisha's concern interactions among a competitor to its larger rivals, Pepsi and Coca-Cola. don't see what the problem is, Keisha, other than the 2. The Environment The company sold sodas with lower calories than its rivals and offered them in a variety of flavors. However, that this reporter is trying to cause trouble. As long, and enforces en the plastic biodegrades under certain natural conditions 3. Ethanol, fracking the product was only half the battle. The rest was up to then we are fine." 4. Greenwashing is the marketing department to promote the sodas as being "Yes, but Louis, our claims made it seem the botle meaningful long superior to the competition. and enhancing Recently, Keisha was called into her supervisor's degrade fairly easily, when in reality people must com 5. Stakeholder office and assigned a new project. She would take the post them. Even then they only degrade under cenas conditions. Isn't this a type of greenwashing?" to environme lead in a marketing initiative that promoted a new fea- ture meant to appeal to the eco-conscious consumer: Louis frowned at the mention of greenwashing biodegradable packaging. One of the company's sup- "Keisha, the term biodegradable is vague. We hav mportant part of pliers came up with a soda bottle made with a new bio- a supplier, and it is not our responsibility to prove the customers while en marketing degradable plastic manufactured with plant materials. packaging is biodegradable. We are not being deceitful forces Keisha was told the supplier struggled to develop this and it is up to the consumer to know how to disposed pue 'sup plastic for years and Smith's Sodas was staking much of the package so it degrades properly. We can't control Ile Suipny its credibility on developing an image as an environment what happens to the product after the consumer bup it tally friendly organization. Many may simply toss it into the garbage." Keisha immediately began learning about the plas- What happens if the reporter publishes her find. tic and writing up press releases to send to local news ings?" Keisha asked. stations. She put in long hours working on a marketing Louis looked adamant. "We are not lying when we campaign touting the product's sustainability and how say the plastic is biodegradable. Besides, most compu much better it is for the environment. She stressed the nies have to rely on supplier claims. I don't see any rev fact that the plastic should be composted rather than son why we need to change our marketing claims." simply thrown in the trash to biodegrade properly. A few days ago Keisha received a call from a local reporter. "I've heard all of the hype concerning these QUESTIONS | EXERCISES biodegradable bottles your company is using. I wanted 1. Are Smith's Sodas' marketing claims accurate and to test just how biodegradable this plastic really is. I truthful? contacted scientists at the local university to test its 2. Discuss the justifications Louis uses to argue for the bio-degradability. They tested the bottle under 10 differ- truthfulness of the company's marketing claims. ent conditions with different types of soil. Only four out 3. Assume there is a news story questioning the sus of the ten tests resulted in the plastic degrading to any major extent." tainability of Smith's Sodas packaging. How should When Keisha hung up the phone, she decided to Keisha respond? investigate whether the reporter's claims were accurate. *This case is strictly hypothetical; any resemblance to real persons companies, or situations is coincidental