Corporate Social Responsibility in the Coca Cola Company

Company social accountability (CSR) promotes a imaginative and prescient for the accountability of companies in a variety of stakeholders past shareholders and traders. The principle areas of curiosity of CSR are to guard the atmosphere and welfare of staff, neighborhood and society at massive, each right now and tomorrow.

The idea of CSR relies on the concept that firms can not act as remoted financial entities working distant from society. The standard views on the competitiveness, survival and profitability of companies not exist.

The Coca Cola Firm has absolutely applied all of the variables of CSR. Whereas it isn't an organization that applies dishonest practices (akin to Mc Donald’s), it might stated that it seeks the maximization of revenue but additionally believes in CSR and the contribution of the enterprise to the prosperity of society, however there's a distinction. It has gone a lot additional and has developed a code of moral enterprise conduct. This enterprise conduct is communicated to all events.

Contents Web page

Phrases of reference

Company Social Accountability


Enterprise Ethics

Process (Methodology)

The current paper relies on discussing company social accountability concept and the way the Coca Cola Firm implements it.

The analysis relies on CSR literature and the Coca Cola Company Social Accountability Report in addition to on some casual interviews with executives of Coca Cola Hellas.

Among the causes that make firms undertake CSR ideas are:

1. The shrinking function of presidency.

The lower of presidency funds, coupled with the rising mistrust of the state laws has led to the implementation of voluntary and non-regulatory initiatives.

2. Calls for for higher company disclosure.

There's a rising demand for company disclosure by the stakeholders concerned, together with clients, suppliers, staff, communities, traders, and activist organizations.

three. The growing curiosity of shoppers.

There's proof that the moral behaviour of firms has an growing affect on clients’ buying selections.

four. Rising investor stress.

A survey by Worldwide Environics (Frazer 2005), revealed that a couple of quarter of the shares Individuals personal, was bought by taking into consideration the moral values of the businesses.

5. The aggressive labour markets

Workers search greater than only a wage and bonus, they need employers whose philosophies and working practices swimsuit to their very own values. To have the ability to recruit and retain certified staff, firms are pressured to enhance working situations.

6. Relations with suppliers.

As a consequence of the truth that events are more and more involved about enterprise issues, many firms take steps to make sure that their companions behave in a socially accountable method.

Among the optimistic outcomes that may happen when firms undertake company social accountability are the next:

Advantages for the corporate:

â-ºImproved financial efficiency.

â-ºLower working prices.

â-ºEnhanced model picture and fame.

â-ºIncreased gross sales and buyer loyalty.

â-ºIncreased productiveness and high quality.

â-ºIncreased skill to draw and retain staff.

â-ºReduced regulatory oversight.

â-ºAccess to capital.

â-ºWorkforce range.

â-ºSafe merchandise.


Advantages for the neighborhood and the general public:

â-Charitable contributions.

â-Worker volunteer applications.

â-Company involvement in neighborhood applications in schooling, employment and applications for the homeless.

â-Product security and high quality (Arlow and Cannon 1982).

The idea of company social accountability is now firmly rooted within the international enterprise agenda. However to maneuver from concept to concrete motion many obstacles must be overcome.

A key problem for the fashionable enterprise is the necessity for extra dependable progress indicators in company social accountability, together with the dissemination of CSR methods. Transparency and dialogue can assist to make a enterprise extra dependable, and on the identical time to succeed in the requirements of different companies (Dierkes 1990).

Critics of CSR, query the connection of CSR to the character of the enterprise and imagine that its incentives are insincere and hypocritical. They imagine that it's extra environment friendly to impose governmental and worldwide laws to make sure that firms behave in a socially accountable method

With regard to the connection of CSR to the character of the enterprise, critics argue that the goal of the enterprise is manufacturing and revenue maximization to shareholders. Theorists akin to Milton Friedman and others go a step additional and argue that the objective of firms is to maximise returns to shareholders, and that solely folks can have social accountability, firms are solely chargeable for their shareholders and never for society as an entire. Whereas acknowledging that firms ought to respect the legal guidelines of the nation by which they work, they don't have any additional obligation to the society. Some folks suppose that company social accountability is incompatible with the character and objective of the enterprise, but additionally that it's an impediment to free commerce. Those that argue that CSR is incompatible with capitalism and in favour of neoliberalism argue that enhancements in well being, longevity and / or toddler mortality have been created by financial progress of the free enterprise actions.

Within the concept and criticism to the CSR, the separation of companies based on their behaviour in relation to revenue / ethics is included. Below this separation, the behaviour of enterprises is outlined as follows:

1. The Amorals who search solely to maximise revenue and return income to shareholders.

2. The Loyalists who imagine that their solely obligation is to not derogate the legislation.

three. The Sympathizers who acknowledge the necessity to hearken to the messages of society.

four. The Suspicious, in different phrases the companies that perceive the necessity to mix revenue with morality and make company values.

5. Lastly, the Believers that are the companies which have developed and comply with a code of ethics which have been notified to all events.

Most companies (the Coca Cola firm is amongst them) are between the 2 poles (i.e. on the one hand they need to obtain income and have glad shareholders and on the opposite they need to conform to social imperatives) and the present pattern is that CSR can considerably enhance long-term company profitability as a result of it reduces the dangers and weaknesses and affords a variety of potential advantages akin to improved model picture and the involvement of staff.

Different critics of CSR argue that some firms just like the British American Tobacco, and so on. use CSR to distract public consideration from moral points raised concerning their core operations. They argue that some firms begin CSR applications for the industrial advantages loved by elevating their fame within the public or the federal government. They argue that firms exist solely to maximise income and they don't promote the pursuits of the society as an entire.

One other downside is when firms promote CSR, they're additionally dedicated to sustainable growth, however in actuality they interact in dangerous enterprise practices. For instance, Mc Donald’s whereas it promotes CSR, the salaries of its staff are very low, they work in unhealthy environments and its merchandise are a well being danger due to their excessive fats content material.


Regardless of these issues and using CSR by sure firms to cowl up dangerous enterprise practices it couldn't be supported that every one firms function in the identical manner.


In accordance with the Coca Cola Company Social Accountability Report (2010) the CSR program of the corporate is the next:

The principle goal of the CSR program is Sustainability. That is expressed by the actions of the corporate within the following areas: client well being, packaging and recycling, water stewardship, worker growth, involvement of suppliers and power and local weather.

Relating to of Shopper Well being, the corporate desires to satisfy the fashionable life developments of customers. Because of this it has broadened the product portfolio with merchandise that aren't fattening and it has decreased the quantity of energy in its drinks by 88% based on faculty beverage pointers. It has additionally supported Michelle Obama’s marketing campaign (“Let’s Transfer”) with the initiative Clear on Energy.

With respect to the axis of Packaging Recycling, the corporate launched PlantBottle which is a “absolutely recyclable PET bottle constituted of a mix of petroleum – primarily based supplies and as much as 30 per cent of plant-based supplies (Coca Cola CSR 2010). Coca Cola has additionally managed to attain excessive recycling charges of its bottles (99 per cent in Europe and 92 per cent in North America).

Relating to Water Stewardship, the corporate strives to enhance the effectivity of water use. It has improved using water by three.5 per cent from 2008. It present common water use ration to make one litre of its merchandise is 1.67 litres.

The event of staff is an additional goal of the CSR of the corporate. The corporate believes that staff are the inspiration for achievement. In its earlier CSR applications, Coca Cola has created particular applications to draw, retain and develop the abilities and talents of staff. These applications allow staff to correctly exploit their potential whereas growing management abilities and abilities wanted by the corporate in all sectors and in all international locations. Its present CSR program promotes staff equality concerning various cultures. In accordance with the primary Worker Engagement Survey, Coca Cola has improved the degrees of its worker engagement whereas on the Company Equality Index of the Human Rights Marketing campaign it has obtained a 100 per cent rating.

Lastly, with regard to power and local weather, the corporate co-signed the Copenhagen Communique. It was a supportive motion to the worldwide settlement on local weather change. For the second 12 months within the row, it has decreased firm carbon footprint.

Pay attention

Learn phonetically

Dictionary – View detailed dictionary


Coca Cola was primarily based on the 6 pillars of enterprise ethics i.e. contribution to financial progress, creation and preservation of jobs, contribution to coaching, safety of the pure atmosphere, contribution to the event of the area and at last contribution to the combat towards social rejection.

To attain these targets, Coca Cola concerned all stakeholders i.e. staff, shareholders, customers and their actions, and native governmental our bodies and NGOs.

If the pillars are examined one after the other the next will likely be seen:

For the workers, Coca Cola has created a wholesome and protected working atmosphere, it's towards discrimination (by way of gender, race, nationality), the remuneration provided to staff is passable (Coca Cola helps that the wages provided are above the typical stage of wages and that it implements benchmarking concerning remuneration).

Relating to customers, Coca Cola is known for its advertising talents. Given its international nature, it pays particular consideration to the completely different cultures of individuals. Moreover, it targets each to the ethical and sustainable consumption by the manufacturing of environment-friendly (concerning the chemical composition, packaging, and so on.) merchandise. It has additionally arrange recycling applications for his or her merchandise and client coaching applications to recycle its merchandise.

Coca Cola has adopted all the essential guidelines of the CSR concept and its applications are profitable. Its applications are long run and embody many actions. Its technique consists of atmosphere care, dialogue with all stakeholders and is in step with each its historical past and actions.

Coca Cola gives job positions and is taxed. For instance, Coca Cola Hellas particularly paid 100 million euros in revenue taxes, 1,084.1 million euros in salaries and advantages and a pair of,441.eight million euros to suppliers for supplies required e.g. packaging and providers.

Coca Cola can be involved in philanthropy. In 2007 it gave greater than 10 million euros to charity applications.

The goal of all these applications is the achievement of sustainable growth and the place this isn't achieved to the specified stage, Coca Cola has established the mandatory controls to attain it by altering the principles and fashions.

On this context, Coca Cola makes use of and social accounting which is the disclosure of information (apart from monetary) on the actions of the corporate’ in social, moral and environmental points. This disclosure shouldn't be required by legislation. Coca Cola publishes an annual Company Social Accountability & Sustainability Report which is included within the materials offered to inventory change markets for investor data.

To ensure that social accounting to current factual and dependable information, Coca Cola implements annual audits and inspections by exterior companions. On the identical time, it has created administration techniques (together with all operational capabilities) to attain this goal. Communication with all stakeholders is a key component of its technique as a result of that is the one manner it will possibly obtain steady enchancment in each exercise.

Consequently, the CSR applications of Coca Cola is taken into account as extremely profitable and worthy of emulation by different firms. Coca Cola seems to have long run CSR applications as a result of yearly it communicates its actions and its religion in it. The writer suggests to proceed accomplish that as a result of the worldwide situations (financial, social) impose CSR applications and however, it's a technique to give worth and thus obtain a sustainable aggressive benefit.

The worth consists of all stakeholders. The suppliers really feel that they cooperate with a dependable firm that respects its agreements and society and is a companion that may assist them develop. Workers purchase a way of id and identification with the corporate as a result of it respects human rights and acknowledges their contribution. Worth for the shoppers as a result of they see that the corporate produces merchandise that respect human well being and the atmosphere by which they dwell. Worth for companions (banks, and so on.) who understand that the corporate is making an attempt to develop and perceive the messages of the market. Worth for shareholders as a result of the corporate stays a pacesetter, understands the wants of customers, acts accordingly and consequently it's worthwhile. Worth to society by providing applications that governments can not present and aimed toward enhancing the standard of life of individuals struggling.

All these lead finally to revenue maximization and the market worth rises and consequently the corporate shouldn't be solely worthwhile but additionally customers have a optimistic opinion about it.

Pay attention

Learn phonetically

Dictionary – View detailed dictionary