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Thursday, October 6, 2016

Strategic CSR - CSR Threshold

You know that an industry has passed through its CSR Threshold (Chapter 10, p222) when the government has to place a health warning on ads promoting its main product:
"San Francisco is set to become the first U.S. city to require health warnings on advertisements for soda and other sugar-added drinks after the beverage industry failed Tuesday to get a court order to stop it."
The law was implemented over the summer and it designed to shape ads on billboards or other public spaces, such as bus stops. The law stipulates the wording of the warning that should accompany these adds in future:
"WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes, and tooth decay. This is a message from the City and County of San Francisco."
All legal attempts by the American Beverage Association to block the law have failed on the radical idea that it is well within the rights of governments to pass laws that are designed to protect their citizens. Increasingly for the soda industry in the U.S., this is a position that is gaining ground:
"Philadelphia is weighing a tax of 3 cents per ounce on drinks with added sugars. The Food and Drug Administration has proposed listing the amount of added sugar on nutrition labels and recommended consumption levels. Lawmakers in states including California and New York also have proposed warning labels on beverage containers but have failed to gain traction."
Take care
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Soda Industry Fails to Stop San Francisco Law Targeting Sugar
By Mike Esterl
May 18, 2016
The Wall Street Journal