The Coca-Cola Company Case Study
Is the corporate Annihilative to assess and take responsibility for the company’s effects on the environment and Impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Corporate social responsibility may also be referred to as “corporate excellently” and can Involve Incurring short-term costs that do not provide an Immediate financial benefit to the company, but Instead promote positive social and environmental change.
Companies eave a lot of power in the community and In the national economy.
They control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and programs. Some companies may engage in “greenmailing”, or feigning interest in corporate responsibility, but many large corporations are devoting real time and money to environmental sustainability programs, alternative energy/clearance, and various social welfare initiatives to benefit employees, customers, and the community at large.
II. The Company The Coca-Cola Company is the world’s leading beverage company and perhaps the cost recognized brand name in the world. The Coca-cola operates in 200 counties with a diverse product range consisting of 500 brands and 3,300+ beverages.
Coca- Cola has been in business 124 years and has returned increasing dividends to its stock holders for the past 48 years clearly demonstrating its longevity and its effectiveness as a profit-making company.
Coca-Cola’s mission is stated simply as At the Coca-Cola Company, we strive to refresh the world, inspire moments of optimism and happiness, create value and make a difference”. Coca-Cola is committed to sustainable business practices, as stated clearly in Its vision statement. Ill. Responsibility Since Coca-Cola is a beverage company, It should come as no surprise that It’s most Important ingredient and the most critical component of the Coca-Cola manufacturing process Is water. On average, It takes 2.
43 liters of water to produce lust 1 liter of beverage. SE of water on such a large scale may cause depletion of water supply and may also cause destruction to rural livelihood through low supply of water to crops. Runoff and other waste from manufacturing processes also causes extraction of the environment. Coca-cola has the responsibility In conserving water supply and maintaining water neutrality In areas where they are having their operations. They are responsible to follow the regulators of their business and cooperate with environmental protection groups.
Lastly, they must consider all the stakeholders AT ten company AT want It may De ten e company do? As a leading multinational company selling fast moving consumer products in a highly competitive globalize environment, Coca-Cola has developed a comprehensive corporate social responsibility (CAR) program, permeating every aspect of its business, and has a range of community-based projects covering education, health care, and the environment. In 2008, Coca-Cola Company provided over US $82 million to local communities for program activities and over 273,000 hours of volunteer service by its employees.
Due to the dangers to its brand image and the communities where it operates, Coca-Cola has responded to environmental concerns that is related to their activities by initiating water saving and water replenishment projects. They strive to attain and maintain their Replenish goal. Coca- Cola aims to return to communities the amount of water that they use in beverage production or in other words to become water neutral by 2020.
Coca-Cola’s water programming is based upon the 3 “R”s: Reduce, Recycle, Replenish: 1) Reduce: working to reduce the amount of water to produce a beverage – you must clean the container before adding the beverage.
Coca-Cola is working with bottlers to produce products more efficiently, with a goal of 2. 17 liters of water to produce 1 liter of product by 2012 – down from the current 2. 43 liters. 2) Recycle: Coca-Cola is working award ensuring 100% of its waste water is treated before returning it back to the environment.
3) Replenish: working with local stakeholders (communities, governments and Nags) to replenish water to nature and communities. V. Company Programs To implement its Replenish vision, Coca-Cola currently has 250 water projects in more than 70 countries.
Projects include watershed protection; expanding community drinking water and sanitation access; agricultural water use efficiency; and education and awareness programs. As such, Coca-Cola Vietnam began the Clean Water for Communities project in 2006.
The project focuses on access to water and sanitation, and consists of the construction of wells and latrines, as well as communication events for school children and communities to learn about clean drinking water and sanitation.
The project focuses on access to water and sanitation, and consists of the construction of wells and latrines, as well as communication events for school children and communities to learn about clean drinking water and sanitation. In order for a community project to be successful, companies must engage with their communities. Coca-Cola representatives’ travel to the communities hey serve, but typically the Nags running the program on behalf of Coca-Cola do most of the interaction with the communities.
Coca-Cola has strong relationships with the World Wildlife Fund and several other international Nags, as well as with a host of local Nags where they operate. It utilizes these connections to further succeed in their programs.
Coca-cola also seeks suggestions from these organizations to attain their Replenish vision. For example, in Vietnam, Coca-Cola thought it best to open up the project to competition for the next round of the project and requested four Nags to make proposals to Coca-Cola. VI. Developing Strategy In order to attain its vision a company must strategies.
In case of Corporate Social Responsibility related programs a company must make sure that the money that they are using will De uses properly regardless IT It Darlings pronto or not. In tons case, community investment and Community relations are important.
Coca-Cola must make sure that they engage in community activities in order to be capable of identifying problems. The company should address community issues related to the company activities. If a program is being implemented on the other hand, individuals ND institutions should have good communication. They should be timely and adequate dissemination of information.
Program reports must be audited.
There should adequate control. Monitoring and evaluation is important. All activities must be monitored from time to time by the management. Evaluation should be done every after the end of a program. Program outputs should be synonymous to company goals if not, it must be corrected. VI’.
Objectives of the company Protecting its brand image and reputation is a key priority for Coca-Cola management. Coca-Cola wants to achieve sustainable, quality growth through: . People: Be a great place to work where people are inspired to be the best they can be. B.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs.
C. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. D. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. E. Profit: Maximize long-term return to shareowner while being mindful of our overall responsibilities.
F. Productivity: Be a highly effective, Nan and fast-moving organization. VIII. Identify stakeholders Coca-cola stakeholders are: 1 .
Employees – are individuals who make their living from their company salary. 2.
Suppliers – businesses to where Coca-Cola got their materials and equipment for processing. 3. Shareholders – are individual and institutions who owns a share of stock in the company. They have interest to the company profits and shares losses too. 4.
Consumers – are individuals who demands for good quality and affordable products. 5. Communities – the area where company operates. Everyone around the immunity is indirectly affected by company operations. 6. Government – regulates company operations and expects tax revenues from company activities.
Environment – the source of Coca-Cola’s raw material. It is where waste materials of the production processes go. 8. Nags – includes environmental protection groups and social welfare organizations which expect the company to engage in CAR programs. 9.
Creditors – are institutions who expect return of the resources they lend to the company. ‘X. Conclusion Corporate Social Responsibility hold responsibility for a company’s actions and remotes a positive impact of its activities on the environment, consumers, employees, communities, stakeholders Ana all toner memoirs AT ten puddle sphere, beyond its financial and legal requirements.
Even though programs relate to CAR does not directly increases profit, it is worthwhile to invest in CAR because CAR has many benefits. Protecting its brand image and reputation is a key priority for Coca- Cola management. With growing criticisms and threats of consumer boycotts recognized dangers to its brand image, Coca-Cola has responded to these concerns wrought its CAR related programs.
On the long run, company’s engagement to community enhancement and environmental preservation programs not only preserved its brand image but even enhanced it.
This enhanced image on the other hand, assured consumer demand. Nonetheless, it improved its relationship with several non-government organizations and local institutions. The combination brought forth more benefits. I believe that the CAR related programs they have done improved its image to its investors and creditors. It also might have helped in employee recruitment and motivation.
It might help reduce oversight of regulatory agencies.
Companies who are known to engage in CAR are believed to go beyond what regulatory agencies and government requirement thus reducing inspection frequencies. Overall, Coca-Cola’s programs like any other Corporate Social Responsibility related activities have brought improvement to the community. Whatever the reasons are Coca-Cola should continue these programs and accomplish their vision. Since community involvement has proven a key to better program outputs, we should also do our best to cooperate with programs like these.