Ican 2025 Corporate Strategic Management And Ethics Question 2

Purity Life Beverages, a bottled water company, prides itself in promoting health and wellness. The company’s tagline, “Pure water, pure life,” reflects its commitment to sustainability and social responsibility. Purity Life sources water from a spring located in a rural community. The company has always maintained that its operations support the community by providing jobs and contributing to local development projects. However, a recent investigation by an independent watchdog revealed that Purity Life Beverages’ water extraction practices have significantly lowered the water level in the area, leaving local farmers struggling to irrigate their crops. This has led to food shortages and economic hardship for many families in the community. Purity Life Beverages’ CEO, James Bennett, faces a tough decision. The board is divided on this matter: Some members argue that reducing water extraction would align with the company’s ethical stance and commitment to CSR but could lead to higher production costs and reduced profitability. Others believe maintaining current practices is necessary to protect shareholder’s value and remain competitive in the bottled water market. The company must decide how to address these challenges while balancing its ethical values, social responsibility, and financial obligations.