Answered: What is more, the manufacturer of Ethos…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Ethos water is a brand of bottled water that makes a specific claim of how it fulfills CSR. According to its website, “Ethos water is a brand with a social mission—helping children around the world get clean water and raising awareness of the World Water Crisis” (http://www.ethoswater.com/). To accomplish this goal, the company donates 5 cents for every bottle sold to fund water programs in developing countries. As many critics have pointed out, however, all is not what it appears to be. While Ethos donates five cents per bottle sold, the average price of a bottle is $1.80, forty-five cents more than the national average price of a bottle of water (Source: http://online.wsj.com/article/SB125167502443470973.html). What is more, the manufacturer of Ethos water, PepsiCo, does not make use of recycled plastic, in contrast to its other products. How would you characterize Ethos’ approach to CSR? In your view, has it struck an ideal balance between earning profits and acting responsibly? Does either its marketing campaign or its donation policy need to change?

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