Coca Cola Corporate Social Responsibility

The increasing challenges in both global and local economies have over the years prompted businesses to devise alternative methods of giving back to the community. Many corporates have in the recent past launched programs that are not only aimed at increasing awareness of  their role in the society but also how it may initiate change that may improve the state of the population. Notably, with the continued increase in human population and overstretched natural resources, enterprises are forced to do more not only for their customers but also to ensure their own sustainability in the competitive markets. Although the concept of corporate social responsibility is not compulsory, many global institutions including the Coca-Cola Company have constantly introduced initiative aimed at giving back to the public. The implementation of such approaches to developing a long-term relationship with both the customers and the environment. As such, this research will exhaustively discuss CSR in Coca-Cola through examining specific aspects including its position, compliance and violations, ranking, and sustainability performance.

Coca-Cola Corporate Social Responsibility (CSR) Position

 The Coca-Cola Company has for many years initiated different projects that are aimed at improving the welfare of both local and international communities. The enterprise’s perspective of CSR is not only to adhere to the laws and regulations developed by the respective governments in the states it operates but also considering other aspects such as women empowerment and nurturing talents. Some of these include environmental concerns, community involvement, and truthfulness, delivering of safety products, charity donations, and behavior of its employees, making responsible social decisions and providing a safe working environment

 As a beverage company, the Coca-Cola is keen on maintaining the wellbeing of its customers by providing high quality and healthy products. The institution believes that every calorie in the human body counts and have developed brands such as diet coke that may help in reducing the rate of obesity. For instance, in 2014, the firm made a commitment to reduce the amount of calories per litre across all its portfolio of beverages. The strategy later resulted in the introduction of unique drinks including Fanta lemon, Coca Cola Life, and Dr. Pepper. Moreover, the institution is committed to providing true and transparent information about its production process and medical benefits of their products. It adopted nutritional labeling approach and joined organizations such as UNESDA to initiate the reference intake (RI) scheme.

 Coca-Cola has also actively involved itself in promoting recreational activities that not only brings different communities together but also acts as a fitness and healthy living initiative. The firm has over the years created different partnerships with other organizations to promote sporting events across the globe. For instance, the company and the Dutch Olympic committee launched Olympic moves; a program that helped in encouraging teenagers between 13-18 years to discover their talents and enjoy sports (Coca-Cola Company, 2016). The program has since grown and now involves over 300 schools and 117,000 competitors across Netherlands. Other similar moves initiated by the enterprise include sports Vkaaderan and adepts in Belgium, the le sport ca me dit in France and street games in Britain (Coca-Cola Company, 2016). Moreover, it continues its partnership with professional bodies such as the Red Cross and Sweden swimming federation to ensure every society benefits from such activities to help maintain healthy living.

 Equally, the company has been key in promoting environmental protection initiatives across the globe. Climate change poses a high level of risk to many businesses including Coca-Cola and is considered one of the most complex and serious problems facing the modern world. Scientist have over the decades recorded an increasing amount of pollution and toxic gases such as carbon dioxide in the atmosphere. These emissions have greatly contributed to the rising temperatures and extreme weather patterns that have resulted in water scarcity and low agricultural productivity. These occurrences have also led to the development of global commitments including the Paris climate change global agreement that showed the need to mitigate the impacts of these problems. To match these initiatives, Coca-Cola Company reduced its carbon operations footprints and launched the recycling of its plastic bottles to create a vision of a sustainable future for all. Other CSR initiatives launched by the company include the use of renewable energy, increased investment in innovation and technology, developing innovative transport and distribution methods and adopting suitable packaging strategies.

Compliance with CSR Principles

 Complying with CSR principles primarily entail implementing relevant strategies that promote the well-being of both the community and sustainability of the business. Over the years, coca cola has developed and complied with different policies including formulation of the code of ethics in its operations. These specifics concentrate on aspects such as ant bribery, conduct among its non-employee directors and suppliers, corporate governance, anti-corruption efforts, and diversity (Coca-Cola Company, 2018). Considerably, these measures entail internal measures of ensuring that the firm portrays a good image for different stakeholders including investors, employees, and customers (Jordon, 2015). For instance, the global anti-bribery code of conduct of the institution stipulates that proper channels should be adhered to in conducting any transaction with the organization to enable achievement of utmost transparency levels.

 Additionally, the company has implemented different CSR procedures and initiatives developed by international bodies such as united nations global compact (UNGC) and those developed during the Paris Global Environmental Protection Agreement (Clémençon, 2016). These aspects enable the institution to limit any gap that might disorient their operations and to protect their international reputation. However, the company has over the years also faced different levels of critics by the public on some of its operations in countries such as India (Pontefract, 2016). For instance, many people have pointed the company to be using misleading marketing methods especially on its new product named Coca-Cola life (Singh & Kaur, 2016). The brand is considered to have a high percentage of calories and sugar than that advertised by the company.

In India, the institution violated its code of environmental protection by continuing its operation and using underground water resulting in the drying of the residents’ shallow wells. Thereafter, it lost its a social license to operate and was forced to close down. Other noted CSR violations include violent labor laws in Colombia, selling of products with a high level of pesticides in India and the violation of anti-monopolistic laws in Mexico (Pontefract, 2016). However, the entity has over the years regained the confidence of the public through sealing the existing loopholes that may limit their ability to company with CSR regulations in various states. Generally, it has complied with these regulations and enhanced trust with both the local and international community.

Coca-Cola CSR Ranking

 Total compliance with CSR laws can be a hard task for any company as it may adversely interfere with its normal operations and results in increased expenses. However, Coca-Cola has established mechanisms that would ensure it complies with a significant number of the regulations. As such, the institution has attained various awards for their commitment to improving the role of business to the community. For instance, the firm in 2014 had several prizes including the United Nations women’s empowerment principles leadership, corporate excellence (secretary of state) and the reward for the best global initiative for women economic empowerment. These medals depict coca cola’s pledge to invest in the welfare of its customers and enabled them to reach their full potential

 Equally, the institution has achieved different rankings over the years on their role in corporate social responsibility. For instance, core brand, a U.S based institution ranked Coca-Cola first in America’s most respected brands while fortune depicted it as the world best multinational workplaces (Coca-Cola Company, 2015). In 2018, reputation institute listed the entity as 97th

among the global Reptrak 100 while Forbes portrayed it as 53rd among the world’s most innovative institutions (Coca-Cola Company, 2016). On environmental sustenance, Newsweek listed coca cola as the 147th institution in the United States and 229th in the world in the green rankings list.

 Other recognizable rankings on Coca-Cola has done over the years by different companies include worlds 4th most valuable brand, 9th

among Americas most reputable entities and 74th among global Reptrak 100 (Coca-Cola Company, 2016). These ranking done by independent bodies show that the companies have developed elaborate plans that not only concentrate on empowering the public but also ensure that the institution gains competitive advantage both in domestic and international markets.

Coca-Cola CSR and Sustainability Performance

 Coca-Cola’s commitment to maintaining positive CSR strategies has had significant influences on the operations of the company. The entity has recorded both positive and negative outcomes to the business that have enabled it to identify some of its strengths and weaknesses. To effectively identify some of the threats an opportunities propelled by Coca-Cola’s CSR and its sustainability performance, it is important to apply the SWOT analysis model.

Strengths. The company has one of the highest brand equity in the world. It has a vast international presence, unique identity and wide portfolio that allows its customers to choose from the existing alternatives. Some of the products offered by the entity include minute maid, Delvalle, Fanta, sprite, diet coke and Georgia coffee. Availability of these different brands is aimed at ensuring the business meets the varying tastes and preferences of its customers. Additionally, Coca-Cola has a high valuation of about $79.2 billion meaning that it has enough capital to initiate and support several CSR projects. The firm also has a vast global presence across the world that enables it to not only market its commodities but also understands the needs of the societies and assesses global trends.

Coca-Cola has also adopted the use of renewable containers and bottles that are more cost effective and easy to distribute across its various markets. This, in turn, promotes the firm’s vast distribution network by adopting the easiest and the most cost-efficient methods. The enterprise is also very innovative and uses its high creativity levels to not only launch high-quality products but also initiate productive CSR projects that can boost its relationship with the local community.

Weaknesses. Coca-cola lacks effective water management strategies that limit its ability to produce effectively. Considerably, water is the primary ingredient in the company’s production process. Since it is a limited resource, the firm has to ensure it does not consume high quantities to avoid depriving other users the privilege to use it including local residents. For instance, the firm had to close its India plant after complaints from local residents thus limiting its competitiveness in the region (Singh & Kaur, 2016). As an international company, the company also faces foreign currency fluctuation that limits their profitability levels. Moreover, the institution also faces increasing critics on lack of health beverages that reduces its competitiveness in the industry.

 Opportunities. Coca-Cola has over the last two decades increased their activities in developing countries and slowly increasing the production of healthy beverages. Increasing their relationship with these communities has enabled the company to understand their needs and thus to produce products that meets their taste and preferences. Moreover, these regions still experience high population growth that not only promises a rise in the demand but also the revenue of the firm. Additionally, the organization has increased the production of drinking water to not only promote healthy living but also enhance environmental protection campaign.

 Threats. The decrease of natural resources that the company uses in its production process including water poses increased threats in expanding its activities. In countries such as India, it had to close its plant to enable the residents to have enough water in their wells to survive the changing weather patterns. Furthermore, the firm faces increased indirect competition from other international institutions including PepsiCo. Health drinks like Tropicana and energy drinks like red bull have surfaced in the industry and are indirectly affecting the sales of Coca-Cola

Company’s Performance on Social Responsibility

Coca-Cola has been successful in implementing its CSR strategies that have in turn earned it various awards around the globe. Equally, the institution has gained desirable ratings from recognizable organization on its increased campaigns to improve its relationship with the community. Internally, Coca-Cola has also developed policies that ensure that it properly relates with its stakeholders and creates a proper working environment for its employees. To enhance environmental protection, the firm has adopted emerging trends such as introducing biogas heavy trucks to reduce the consumption of fossil fuel in the distribution of its products.

References

Clémençon, R. (2016). The two sides of the Paris climate agreement: Dismal failure or historic breakthrough?

Coca-Cola Company. (2015). Awards & Rankings. Retrieved from https://www.coca-colacompany.com/our-company/awards-rankings

Coca-Cola Company. (2016). The Coca-Cola company. Retrieved from https://www.rankingthebrands.com/Brand-detail.aspx?brandID=1696

Coca-Cola Company. (2016). Corporate Responsibility & Sustainability Report 2015/2016 (Rep.). Retrieved https://www.cokecce.com/system/file_resources/426/2015-2015_CRS_Report.pdf

Coca-Cola Company. (2018). Ethical Business Conduct. Retrieved from https://www.coca-colacompany.com/stories/ethical-business-conduct

Jordon, S. (2015). After water usage criticism, Coke chooses sustainability over costs. Retrieved from https://www.omaha.com/money/after-water-usage-criticism-coke-chooses-sustainability-over-costs/article_1fb395e1-9808-5f06-bfee-1da83fb3afe4.html

Pontefract, D. (2016). Faking Corporate Social Responsibility Does Not Fool Employees. Retrieved from https://www.forbes.com/sites/danpontefract/2016/09/24/faking-corporate-social-responsibility-does-not-fool-employees/#13e282cd7994

Singh, B. J. R., & Kaur, M. P. (2016). Corporate social responsibility in India. International Journal of Higher Education Research & Development, 1(1).