Read the case study below and answer the questions that follow:

SOUTH AFRICAN BREWERIES

South African Breweries Limited (informally SAB) is a major brewing and bottling company headquartered in Johannesburg, South Africa and was a wholly owned subsidiary of SABMiller. However, SABMiller sold all its interests to Anheuser-Busch InBev on 10 October 2016. Since SABMiller no longer exists as an entity (except as a business division of Anheuser-Busch InBev), South African Breweries is a direct subsidiary of Anheuser-Busch InBev SA/NV.

SAB is committed to a responsible consumption programme, which advocates moderate and responsible drinking.

The following six core principles on alcohol use set the standard for SABs personal and commercial conduct, and guide its commitment to reducing alcohol abuse in South Africa:

• Our beer adds to the enjoyment of life for the overwhelming majority of our consumers.

• We care about the harmful effects of irresponsible alcohol consumption.

• We engage stakeholders and work collectively with them to address irresponsible

  consumption.

• Alcohol consumption is for adults and is a matter of individual judgment and

  accountability.

• Information provided to consumers about alcohol consumption should be accurate and

  balanced.

• We expect our employees to aspire to high levels of conduct in relation to alcohol

  consumption.

  Underpinned by bold new action plans, SAB is determined to combat alcohol abuse with a multi-faceted approach that has a real impact on society and goes beyond just communication and education. The three key dimensions to SABs strategy to counteract the negative effects of alcohol abuse are:

i. Lead by example

This starts with SABs employees. The focus is primarily on a comprehensive understanding of alcohol issues and SABs stance when it comes to these issues, a

zero-tolerance approach to driving under the influence of alcohol, and ensuring responsible marketing at all times.

2. Champion co-regulation

   SAB is boosting resources to build partnerships with government and the industry, as ultimately its success in driving real impact in the fight against alcohol abuse relies on a coordinated effort involving all key role-players.

3. Invest in real impact programmes

   SABs investment in real impact programmes aimed at changing behaviours and attitudes prioritises drunk driving, Foetal Alcohol Syndrome (FAS), responsible trading and underage drinking.

Source: Smit, P. J., Botha, T. & Vrba, M. J. 2018. Management principles. A contemporary edition for Africa. 6th edition. Cape Town: Juta

1.1 Discuss the three fundamental ethical approaches that managers can use in decision making. (9)

1.2 Distinguish the approach that SAB followed with its responsible consumption programme. Substantiate your answer. (4)

1.3 Discuss the actions that SAB took to ensure ethical behaviour in the organisation. (6)