A Case Study on Coca-Cola

Read this case study on Coca-Cola to learn about its corporate social responsibility, legal issues, and business environment. The study covers the brand's CSR initiatives, legal issues, and business environment factors. The document type is a case study, and the type of assignment is not mentioned. The subject, course code, course name, and college/university are not mentioned either.

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A Case Study on Coca-Cola
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Case Study on Coca-Cola 1
Table of Contents
Introduction...........................................................................................................................................1
Coca-Cola-The Brand............................................................................................................................2
Environmental Perspective................................................................................................................2
Applicable Theory.............................................................................................................................3
Legal Perspective...............................................................................................................................3
Applicable Theory.............................................................................................................................4
Coca-Cola Business Environment.....................................................................................................5
Conclusion.............................................................................................................................................5
Bibliography..........................................................................................................................................7

Case Study on Coca-Cola 2
Introduction
Corporate social responsibility is dynamic concept that envelops the majority of an
organization's financial, legal, ethical and generous duties. Corporate social responsibility
arrangements and their compliance decide the ethics and estimations of an association, and
run connected at the hip with its maintainability, consequently turning into an inevitable piece
of an organization's core philosophy. They are gone for guaranteeing better social, monetary
and ecological environment bringing about holding clients, maintaining a strategic distance
from by and large business dangers, support from network and neighbourhood bodies and
eventually gaining higher benefits for the business with an upgraded brand picture. In spite of
the fact that these are the advantages, the principle point of CSR ought to be - societal welfare
through making a good and moral esteem framework, which benefits everybody (what is
CSR?). The principle territories of enthusiasm of CSR are the security of the earth and
welfare of experts, system and society all over the place, both today and tomorrow. The
possibility of CSR relies upon the likelihood that companies are not self-ruling, yet they are
linked with overall population. (Corporate Social responsibility, 2019)
Coca-Cola-The Brand
Coca-Cola is the world’s beverage drink organization established in the year 1886 at
Atlanta, USA. Today it has activities in every nation in the globe with more than 500 brands
for generation and conveyance in the shopper markets (Coca cola history). According to
Interbrand, Coca Cola has been named best brand for eleven consecutive years (The
Telegraph, 2010). In 2013, Integrated Report was published and it was in top three beverage
companies and US customers rated it among top 10 best-reputed companies. In 2014, Coca
Cola was in apex position in top 100 Corebrand power ranking. Coca cola was also acquired
third position by The Centre for Brand Analysis (ranking rhe brand, 2018). The company’s
global success has pushed the brand to be recognised globally. Today, customers consume
approximately 1.9 billion of beverages globally. (Coca-Cola Beverages and Products)
Environmental Perspective
Coca-Cola publishes its annual report every year in which they show the CSR
programme and steps taken for betterment of society and environment. Coca-Cola targets to
give one per cent of its annual income for charitable causes like education, environment,
community, humanitarian and others (2017 sustainability report, 2017). In 2017-2018 report
they have mentioned various initiatives taken by them globally, they are-

Case Study on Coca-Cola 3
1. Water safety and water preservation
2. Monetary help to poor women
3. Waste recycling
4. Support farmers and sourcing to farmers.
6. Energy efficiency and carbon reduction to help to protect the environment (2017
Sustainability Report , 2017)
Applicable Theory
CSR is separated into two classifications: narrow and broad (Corporate Social
Responsibility The Narrow And Broad Views Of CSR). Narrow considers the sole goal for
business elements to comprise of benefit augmentation. According to broad view, profit
maximisation is not only goal for the companies and rather they should give something
productive to the environment where they are working. The Coca cola company could have
easily opt for narrow view and could have solely deal in maximisation of profits but it opted
out for broader approach because the core management of the company thinks that their duty
is not only towards maximisation of profit but towards stakeholders, customers, suppliers,
employees and mostly towards environment. In the Annual report of 2017-2018, the
company have done a lot towards the environment like collecting and recycling of waste
bottles, access of safe drinking water to the people where the company has its operations,
helping farmers in sourcing and financing in agriculture, they are reducing carbon emissions
as well. Coca-Cola and WWF came together with the core objective to increase
understanding on watersheds and water cycles. It helped Coca-Cola in improved water usage,
taking help from residents worldwide, and coming up with common parameters to preserve
water sources (Torres, Garcia-French, Hordijk, Nguyen, & Olup)
Legal Perspective
In 2000, a case was documented against Coca-Cola blaming it for forcing bottlers in
locales of the US into the buying several million dollars’ worth surplus refreshment amasses
in an offer to apparently influence deals to appear to be more than was valid. It gave financial
specialists a bogus comprehension of the association's prosperity. Joined States Security and
Exchange Commission cited to have said that the organisation has misdirected financial
specialists by placing assets into the firm utilizing misrepresented data to bait speculators.
Coca-Cola’s board of trustees started to examine and concentrating on consistence with

Case Study on Coca-Cola 4
association's code. In 2008, Coca-Cola settled this case for near 135.5 million dollars.
Another legal issue came up against Coca-Cola was focusing on obesity and health. This case
is also known as “lawsuit for deceptive vitamin water marketing”. Centre for Science in
Public Interest (CSIP) and New York and California consumers’ body sued the company by
accusing the brand’s vitamin water for unethical marketing practice. Centre for Science in
Public Interest looked into Coca Cola’s support for their product claiming that is helpful in
reduction of eye infection and boosting of immune system. They concluded that the Coca
Cola’s claims on its product are ambiguous and not accurate. Furthermore, they accused the
company that it is just making profits on the risk of public health and safety by misleading
and deception of the public that the product is a healthy beverage as it contains vitamin water.
Attorneys of the company were swift to issue a statement revealing to the fact that consumers
are nowadays are aware of their rights and are intelligent enough to point out the whether the
product they are consuming is having vitamin water or not. In 2010, the legal team of Coca-
Cola successfully dismissed the lawsuit against them in the court. (Legal issues and coca
cola, 2016)
Applicable Theory
Stakeholder theory is the identical representation of corporate social obligation.
Stakeholder theory, on the other hand, states that an association owes an obligation to a
progressively broad get-together of accomplices, other than just financial specialists. An
accomplice is described as any individual which can impact by the exercises of a business. It
fuses specialists, customers, suppliers, advance managers and even broad system and
contenders (Shareholder & Stakeholder Theories Of Corporate Governance, 2013). Instead of
starting with a business and looking out into the world to see what moral duties are there,
accomplice theory starts on the planet. Accomplice speculation demands that those whose
lives are reached by a venture hold a benefit and duty to check out directing it. After this
incident, the company swiftly looked into the case and assured that this kind incident will
never happen in future. These kind of incidents decrease the goodwill of the company and the
leading company cannot afford to do that as they are answerable to the stakeholders and
shareholders of the company.

Case Study on Coca-Cola 5
Coca-Cola Business Environment
Coca-Cola has faced manifold changes in business environment. Consumers have become
more health conscious so company launched diet coke and coca cola zero. Over the past few
years, to satisfy the consumers company has change its strategy for various product according
to demand and preference of customers. Some of the strategy has backfired and some of them
became successful. Factors affecting Coca Cola’s business environment are-
1. Political factors- The Company has its presence all over the globe and every country
has different form of government having different and unique laws. Moreover, it have
to deal and adjust with different government’s ideology as government changes every
now and then in every country. Coca-Cola has become world’s best beverage brand
and adjusting with political factors of every country is vital factor for it.
2. Economic factors- Every country has its different economic status and it is variable so
the company have to set the prices of its product according to economic factors of the
company so the customers can afford the product.
3. Social factors- There are lot of change in the lifestyle of people and increase of
demand of non-alcoholic beverages. Consumers are more inclined towards nutrition
and concerned for increasing long life. Increase in demand of non-alcoholic product
lead to company to introduce diet coke, juices and sports drinks.
Conclusion
To conclude, we can say that the Coca Cola Company has worked on every factor of
CSR. While it is definitely not an association that applies deceitful practice, one may state
that it searches for the increase in advantage yet likewise takes confidence in CSR and the
responsibility of the business to the accomplishment of society. As per the approaches of
Corporate Social Responsibility, partnerships should give away a portion of the riches and
accomplishment to the public for supporting them. In a large portion of the creating nations
that have global associations that utilize destitute individuals in the processing plants. Since
the associations have part of social and budgetary impact they can make contacts with the
administrations and business houses to have any kind of effect to these lives. They can
contribute in work plans, instruction of their kids, advising sessions and furthermore help
them in gazing organizations. Coca-Cola accepted proper water utilization practice as its vital
component of its global corporate social responsibility policy and they will use water

Case Study on Coca-Cola 6
efficiently. Coca cola has adopted and engaged with morals and social and ecological
supportability notwithstanding making benefit should be commendable.
Bibliography

Case Study on Coca-Cola 7
(2010). Retrieved from The Telegraph:
https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8005303/Coca-Cola-
named-worlds-best-brand-for-11th-year-in-a-row.html
Shareholder & Stakeholder Theories Of Corporate Governance. (2013). Retrieved 2019,
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Theories-Of-Corporate-Governance
Legal issues and coca cola. (2016). Retrieved from
https://handmadewriting.com/blog/samples/legal-issues-coca-cola/
2017 sustainability report. (2017). Retrieved 2019, from coca cola journey:
https://www.coca-colacompany.com/stories/sustainability-map
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https://www.coca-colacompany.com/2017-sustainability-report
ranking rhe brand. (2018). Retrieved from ranking per brand :
https://www.rankingthebrands.com/Brand-detail.aspx?brandID=5
Corporate Social responsibility. (2019, feb). Retrieved 2019, from investopedia:
https://www.investopedia.com/terms/c/corp-social-responsibility.asp
Coca cola history. (n.d.). Retrieved 2019, from world of coca cola: https://www.worldofcoca-
cola.com/about-us/coca-cola-history/
Coca-Cola Beverages and Products. (n.d.). Retrieved 2019, from World of Coca Cola:
https://www.worldofcoca-cola.com/about-us/coca-cola-beverages-products/
Corporate Social Responsibility The Narrow And Broad Views Of CSR. (n.d.). Retrieved
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social-responsibility-the-narrow-and-broad-views-of-csr
Torres, C. A., Garcia-French, M., Hordijk, R., Nguyen, K., & Olup, L. (n.d.). Four Case
Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate
Social. Utrecht Law Review, 57-58.
what is CSR? (n.d.). Retrieved 2019, from UNIDO:
https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-
capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/
what-csr