Corporate Responsibility and Ethics of Coca Cola Amatil

The report analyzes the corporate governance and ethics of Coca Cola Amatil, an Australian beverage company. The report includes the company's sustainability programs, ethical standards, and social responsibilities according to Caroll's CSR pyramid. It also critically analyzes the company's performance and policies towards its stakeholders.

Running head: CORPORATE RESPONSIBILITY AND ETHICS
Corporate Responsibility and Ethics
Name of the Student
Name of the University
Author Note

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CORPORATE RESPONSIBILITY AND ETHICS
Executive Summary
The discussion deals with the corporate governance of the Australian company Coca Cola
Amatil. The corporate governance includes corporate ethics within the company and the social
responsibilities. The various programs related to the sustainability have been reported according
to the Caroll’s CSR pyramid has been represented in this report. The performance has been
critically analyzed and the various policies that Amatil gives back to its consumers and
stakeholders has been shown in detail.

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Table of Contents
Introduction......................................................................................................................................5
Objectives........................................................................................................................................5
Methodologies.................................................................................................................................6
Discussion........................................................................................................................................6
Company Background.................................................................................................................6
Aims of Coca Cola Amatil’s Corporate Responsibility..............................................................7
Ethical resolution of Coca Cola Amatil.......................................................................................7
Purpose of the Corporate Responsibility for Coca Cola Amatil..................................................7
Information analysis........................................................................................................................8
Findings...........................................................................................................................................9
A brief review of Coca Cola amatils Corporate Governance according to Wartick and
Cochrane’s Typology...................................................................................................................9
Business Conduct Code...........................................................................................................9
Communications with Shareholders:.......................................................................................9
Continuous Disclosure...........................................................................................................10
The Corporate Social Responsibility Activities of coca cola Amatil........................................10
Responsibility towards its employees (economic)................................................................10
Responsibility towards well being (legal).............................................................................11
Responsibility towards Community (Philanthropic).............................................................11

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Responsibility towards Consumers (ethical).........................................................................12
Contribution to the Environment -2017 commitments.................................................14
Opportunities and resolution......................................................................................................14
Recommendations..........................................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Appendices....................................................................................................................................17

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Introduction
Corporate social responsibility or corporate conscience is a mechanism that is self
voluntarily taken by a company to establish a social ecological ethical and legal standard. The
main motive of the companies is to contribute to a better society through social investments and
business activities. The trend of this awareness started around the late 1990s by a German
company named Betapharm, who used this method as a part of corporate strategy. The corporate
organizations, specially manufacturing companies can have enormous effects on the
environment. Sustainability is one of the main issue in the society nowadays, thus in order to
maintain a sound goodwill and contribute to a better environment CSR is taken in consideration
by the corporations. The corporate governance takes care is a strategy that takes care about
corporate ethics and CSR. Corporate ethics is process of evaluating the ethical and moral
principles of the organization and make necessary standards for a better business environment. It
is a set of norms values and ethical practices in a business.CSR deals with external aspect of the
business whereas corporate ethics takes care about the internal part. The discussion deals with
the corporate governance and ethics of a company marked under ASX top 100. The discussion
deals with company governance of an Australian beverage company Coca Cola Amatil.
Objectives
The objective of the report is to focus on the following points:
 The basic objective is to analyze the standards for corporate responsibility of the chosen
company of Coca Cola Amatil.
 To study the overall moral and ethical norms of the company.

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 To align the interest of individuals, corporations and society.
 To build a sound relationship between the corporate social responsibility and corporate
ethics as a part of corporate governance.
 To point out I details about the various ethical standards taken by the company of Coca
Cola Amatil.
 To include the Carols Pyramid and Wartick and Cochranes typology to analyze the
company’s governance structure.
 To critically analyze the response of the company to meet needs of its stakeholders in
terms of CSR.
 To highlight the performance of CSR of Coca Cola Amatil.
Methodologies
The methodology refers to techniques used to analyze the various informations. In the following
discussion, secondary data are collected from various books, journals and published researches.
The secondary data will be qualitatively analyses, as there is no mathematical or statistical
analysis in the entire assignment.
Discussion
Company Background
The Australian company Coca Cola Amatil is one of the five majorbottlers of the Coca-
Cola Company. Australia, New Zealand, Indonesia, Papua New Guinea, Fiji and Samoa are the
countries in which it operates. It is one of the largest dealers of non-alcoholic beverage. The

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company was commenced in the year 1904 as a tobacco company and in the year 1972, it was
listed on the Australian stock exchange (Wilson 2017).
Aims of Coca Cola Amatil’s Corporate Responsibility
 To provide ultimate customer satisfaction with exeptional brands within the reach of the
customers.
 To generate growth and provide better share value to its stakeholders.
 To contribute a positive distinctive contribution to the community by providing lean cost
structures.
 To set up a common goal for its members and make strategies for the implementations of
the same.
 To make continuous improvisation of its productivity and profitability.
 Deliver attractive sustainable returns for its shareholders.
 To take in consideration the quality of product keeping in mind the health and well-being
of the consumers.
Ethical resolution of Coca Cola Amatil
 To be open and straightforward.
 To own the outcomes and take enough initiatives
 To put focus on the present and the future.
Purpose of the Corporate Responsibility for Coca Cola Amatil
 The vision and values gives a specific identity to the organization and sets up a unique
methodology of action.
 The common vision sets up a unity and inspires the origination.

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 To connect with society emotionally with their actions.
 Regulates the company’s ethical standards and thus making a better future.
 To build up a sustainable organization and set up positive expectations for the whole
community.
 The vision binds the members of the company together and provides guidelines for its
future actions.
 To set up a competition among the fellow companies in terms of performance based on
CSR.
Information analysis
The information gathered shall be analyzed according to the framework of Caroll’s CSR pyramid
that declares the four responsibilities that a company must take in consideration (Ehie 2016).
The key features of carols pyramid are:
 Priority to profit
 Ensure that laws and regulations are followed
 A business must meet the ethical duties.
The carols pyramid has four responsibilities, which are:
Economical responsibilities
 To make the business enough profitable.
 To benefit the society in a long-term basis.
Legal responsibilities

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 To obey the laws and regulations.
 To follow the standards set by the boards
Ethical responsibilities
 To conduct the business with high morality and ethics.
 To go beyond the narrow requirements of the law.
Philanthropic responsibilities
 To conduct enough social work.
 To make sure about the environmental benefit.
Findings
A brief review of Coca Cola amatils Corporate Governance according to Wartick and
Cochrane’s Typology.
Business Conduct Code: The Board of the company identifies the need to establish the highest
standard of business conduct and corporate practice. There is a regular review of the code of
conduct of the business to ensure the standard set. The code reflects the amatils values and
acknowledges the responsibilities towards its stakeholders. The amatil puts stress on the high
ethical standards on its activities towards its employees and management. There are committees
like committee of risk and audit and the committee of sustainability who are in charge of
ensuring they are effectively implemented or not. Coca cola amatil focuses on building up a good
conduct with directors, employees and its contractors.

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Communications with Shareholders: The coca cola amatils constitution states the various
rights of the shareholders, which include the right to elect the members of the boards and vote on
certain on various other company matters. To allow the stakeholders exercise the power the
board ensures that the relevant information is well communicated to them. The information is
available electronically in the share registry and link market. The information includes the
strategies and development techniques. Announcements, publications and general meetings are
conducted for the shareholders exclusively(Ashley 2017). The annual general meeting sets up the
platform that allows the shareholders to raise questions and participate in the internal matters
about the company.
Continuous Disclosure: One of the moral conducts of the Amatil is to disclose the policy and
principles. The rules that govern the company’s and the requirements of the Australian stock
exchange listing rules. Amatil’s disclosure committee takes care about the disclosure issues
operates the communication policy. Primarily, the Group Company Secretary and Corporate
Counsel are the people who are given the responsibility to communicate with the ASX. In the
absence of the Group Company Secretary and Corporate Counsel, the General Counsel Group,
the financial officer and the head of the investor relation are the contacts. On behalf of Amatil,
only authorized representatives can communicate with the shareholders, the media or the
investment community.
The Corporate Social Responsibility Activities of coca cola Amatil
The information have been represented according to the Caroll’s CSR pyramid.

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Responsibility towards its employees (economic)
The Coca Cola Amatil takes full responsibility of its workers health safety and well
being. Starting from training and educating them to conducting awareness programs, amatil has
never failed to motivate their employees. The workers are showered with skills, capabilities and
confidence at work. The company makes sure that the working environment is unharmed with
zero workplace injury or illness (Hiscock 2015).. The company also diversifies the team by
bringing together individuals irrespective of their background, origin, color, gender and. The
main aim is to build a strong bond among them to get strong results.
CSR contributions:
Cold Drink Equipment Delivery, Indonesia
In Indonesia, the Amatil embedded the culture of “safety first” program which includes
employee training and inspections like “Fit-for-purpose Vehicles” and “Fit-to-Work and
Competent People.”
Rainbow Tick and Pride Parade. New Zealand
In New Zealand the Coca Cola Amatil organized the Rainbow Tick, recognizing the
commitment to support the LGBTIQ community. They also participated in
Auckland’s Pride Parade.
Responsibility towards well being (legal)
The Coca Cola guarantees Zero harm. They conduct safe business and this is consistent
in all counties of operation. It provides opportunities for their workers heath and well being by
organizing various volunteer and non volunteer programs. The goal is to achieve more that 50%

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workers taking part in the activities by the year 2020. Routine internal and external auditing
programs critically analyses the business environment. The one of the major component of the
company is that the announcements of the audit enforced strictly by all their business partners
including the coca cola company.
Responsibility towards Community (Philanthropic)
The community contribution of Coca Cola Amatil includes:
 Product Donations
 Voluntary services for the community
 Proper employee matched workplace’
 Charity partnerships
 Disaster reliefs
 Community events sponsorships
Examples:
Coca Cola Australia Foundation
The Australian Coca-Cola Foundation is a joint philanthropic initiative of Coca-Cola
Amatil and Coca-Cola South Pacific. It helps create millions of moments of happiness for young
Australians, by distributing $1.1 million a year to charities and youth activities. Since 2002 the
Foundation has provided more than $13 million for those in need, including through recent
flagship partners The Song Room, the Raise Foundation and the Carer's Foundation (Gertner and
Rifkin 2017).

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Responsibility towards Consumers (ethical)
Amatil makes sure that the consumers are given enough choice and information they
need to make decision. They attract millions everyday from different locations with their wide
range of non alcoholic beverages. The company is concerned about the health of their consumers
thus agreeing with the fact that too much of sugar intake and excess of kilojoules can lead to
health problems. To manage the sugar consumptions of their customers, they provide enough
information and choice. The approach includes promoting clear facts increasing choice, and
awareness to reduce sugar consumptions. It also includes innovations to reduce sugar content in
the products.
Initiatives:
Mai Wiru Partnership, Australia
To serve the community better, Amatil works with communities to help the local
consumers. Along with the nonprofit organization Mai Wiru, Amatil initiated a healthy benefit
program to reduce the sugar intake of its consumers by supporting alternative ingredients in the
production. The collaboration strictly supports the health and well-being in communities
especially in South Australia, the Northern territory and western part of Australia.
Responsible Marketing Policy
Coca Cola Amatil responsibly markets and advertises its products. They do not promote
energy or sports drink beverages to children under the age 12. The guildines for sponsorship and
other marketing policies are covered in this. They strictly abide marketing requirements of the
Australian Competition and Consumer Commission (ACCC) and food standards Code, being a
member of Australian Beverage Council. Various other voluntary advertising guidelines set by

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the Australian Association of national advertisers and Australian code of practice on nutrient
claims are also supported by them.
The five pillars approach
To responsibly, manage the consumer choices the coca cola follows the five pillar approach
which are as follows:
 Promotion of choice
 Innovating the kilojoules
 Promote clear facts and information on the package
 Responsible marketing
 Collaborate with other industry to evaluate the firm’s policies.
Contribution to the Environment -2017 commitments
 Enhance sustainably use water across the value chain and return back to nature the
amount used for manufacturing the beverage.
 To aim in using less than 1.95litre of water in producing each 1 litre bottle of the product.
 Support local NGOs to improve biodiversity within the communities, through providing
volunteers, financial and non-financial assistance and contributing to flora and fauna
conservation efforts.
 To play active role in driving social, environmental and economic benefits within the
supply chain.
 Optimize the use of packaging across business to deliver the products of the highest
possible quality, increase the recycle content, and promote renewable materials in the
products.

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Opportunities and resolution
The Opportunities and resolutions can be summarized as follows:
 To develop a framework for Human Rights and align the same with the United Nations
Global principles.
 To diversify the operational roles, Amatil shall motivate and accelerate the leadership of
women in the organization and remove gender specific barriers.
 To focus on the employee feedback and engage in their safety and well-being.
Recommendations
The Coca Cola Amatil has given high priority in the contribution of CSR. Many efforts
have been made to stay up to the mark to meet the shareholders expectations and consumer
demands. The plans have been implemented remarkably; the time taken to execute the strategies
is too long. The progress of the sustainability plan cannot be evaluated that easily. Therefore, the
company needs to focus more on the short-term targets and thereby determining the position of
the company in the context of the corporate social responsibility.
Conclusion
The company has made many efforts in building up a strong CSR strategies and has
implemented the same efficiently throughout. Although the plans are long term in nature which
limits the speed of evaluating them, there are many achievements which the company possesses
and has been able to create a sound brand loyalty towards its customers and is stakeholders.

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References
Wilson, R.E., 2017. Coca-Cola Amatil: A Bottler Recharging Growth With Energy
Drinks. Kellogg School of Management Cases, pp.1-15.
Ehie, I.C., 2016. Examining the corporate social responsibility orientation in developing
countries: an empirical investigation of the Carroll's CSR pyramid. International Journal of
Business Governance and Ethics, 11(1), pp.1-20.
Ashley, R., 2017. Coca-Cola Amatil: Insights from the company monitor. Equity, 31(6), p.16.
Hiscock, M., 2015. Shepparton Preserving Company: The Tomato Processing Industry and the
National Interest. In Australia's Trade, Investment and Security in the Asian Century (pp. 83-94).
Gertner, D. and Rifkin, L., 2017. Coca‐Cola and the Fight against the Global Obesity
Epidemic. Thunderbird International Business Review.

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Appendices