Sustainability Challenges Faced by Coca-Cola: A Critical Analysis
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Added on 2023/06/14
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This article critically analyzes the sustainability challenges faced by Coca-Cola, including their efforts towards human rights, plastic packaging, and recycled content. The government's role in corrective actions is also discussed.
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Sustainable Operations ManagementP a g e|1 Karnani (2014) stated that Coca-Cola is one of the most reputed brand all over the world which serves cola with many variants included. The company was established in 1886, headquartered in United States. There are several approaches that were proactive in nature in order to respect human rights that exist at every workplace of the company i.e. either in their bottling system or in their supply chain management along with the places where the company actually operates. In contrast to this, the company uses due diligence as a source in order to identify and avoid human rights challenges and risks towards people in their business and value chain. The company have already identified opposing human rights impacts which has resulted caused by their business operations and activities. The company is dedicated to deliver for or cooperate in their rational and reasonable remediation (Kumar, Teichman and Timpernagel, 2012). According to the article published in the year 2017, Edelman announced that the Coca-Cola brand and a company has a long-lasting commitment towards reporting their journey related to sustainability. They ensure to issue sustainability updates per year which comprehends together the company’s and the wider Coca-Cola system’s global actions as well. The company has already focused on large number of programs and progress related to suitability goals. The company announced a plastic packaging which created a lot of public relation bubbles in the market and among its competitors as well. But when the matter of sustainability is measured in detail, there is a flat issues regarding to it (Sauven, 2017). In opposed to this, there was a current news about the Coca-Cola company is that the company is planning to upturn the quantity of reprocessed plastic materials in its bottles which is equal to 50%. It indicate a surprising absence ofdetermination from the soft drinks massive to manage one of the huge environmental encounters faced i.e. the pollution that is created from the plastic which has choked huge number of oceans. There is no preventive measures for the plastic which is dropped in the ocean and the solution for where does it ends up (Hasan, 2013). Lambooy (2011) argues that the unique bottles used by Coca-Cola that has been turned up on seashores has contributed to the tosh van of plastic that arrives inside the ocean in every second minute which has hashed the image of the company. It was disclosed by Greenpeace that the company is fully answerable for peddling more than 100bn single use plastic bottles crosswise
Sustainable Operations ManagementP a g e|2 the world each year which is additional than 3000 every second. The well reputed soft drink Coca-Cola Company has come under the massive outbreak for its insufficient recycled content and the disaster to changefrom one distinct use packing which is overwhelming aquaticlifecycle (Kent and Ignatius, 2011). In support of this, Jain and Kedia (2011) evaluated that the new plan has been announced by the company is no long an inclined changer plan. Restricted to operations in the UK, the company has planned to boost the target set for the recycled content which is mere 10%. The company has propelled public awareness programs and campaigns in order to be more focused towards dumpers and trailing. The campaigns tend to be more than a promotional outline in order to buy more bottles of Coca-Cola. In the view of Eccles and Serafeim (2014), the company has already planned some scheme related to money off vouchers who will reward their potential customers who will return small Coca-Cola bottles to the shops. This will be a low-cost tactic to attempt and transfer the level on from Coca-Cola’s key U-turn on deposit return outlines after Greenpeace exposed the company had been urgingbeside these in Holy rood, Westminster and Brussels. If all those vouchers will be transformed however additional plastic Coca-Cola bottles, that would merely enhance the previously overwhelming global plastic bottle transactions of a million a minute (Dumitrescu and Vinerean, 2010).On the other hand, it can be value directing out that Coca-Cola’s slightly advancedaim line to cradle 50% recycled content must be reserved with a squeeze of salt given the company’s past of worsening to save its assurances and potentials. The company got less than half mode to meet its worldwidegoal which was set in 2015 in order to source 25% of its plastic material bottles from the reprocessed and renewable materials. For an example the company has targeted to use plant based plastics. And the company extended a derisible 7% reused material only (Dauvergne and Lister, 2012). Drake and Spinler (2013) argues that placing all these doubts apart, the main question is whether the company is getting 50% recycled content majorly in three years’ timeimportant or not. And the fact is far beyond it. The major fact is that 100% reprocessed bottles are more likely and they have been moved out for numeral of soft drinks goods above the previous decade. For an instance, in the year 2007, Suntory’s Ribena turn out to be the first main UK soft drink brand who use 100% reprocessed plastic. Coca-Cola, despite of being the world’s prime soft drinks
Sustainable Operations ManagementP a g e|3 company, is sheathing far behind. It is also found that half of the more than 35million of plastic bottles which are brought in the UK on daily basis are not properly reprocessed (Aldaya et al., 2012). In opposed to this, Morin, (2011) stated that the government must step forwards to take corrective actions that will help the world from being more polluted. Deposit return schemes have a confirmed path record globally for growing collection charges of drinks vessels. After concerted campaigning, the company has now quite cleared that political method in indication for governments in Holy rood and Westminster in order to reflectpresenting wellplanned deposit returns schemes which will shelter all containers of the drinks (Albert, Werhane and Rolph, 2014). In support of this, Lubin and Esty, (2010) examined that in order to succeed; the company must get involved fully in the processes and deal with all the major problems at higher scale. The Coca-Cola Company had earlier claimed that “We are interested in innovations that deliver genuine, measurable long-term advancements toward sustainability and not just eye-grabbing marketing slogans that will earn us public relations points in the near term.” The innovative strategy of packaging is far from honorably innovative and the company must focus on it.
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Sustainable Operations ManagementP a g e|4 References Albert, P.J., Werhane, P. and Rolph, T.(2014).Introduction. In Global Poverty Alleviation: A Case Book(pp. 1-11). Springer, Dordrecht. Aldaya, M.M., Chapagain, A.K., Hoekstra, A.Y. and Mekonnen, M.M. (2012).The water footprint assessment manual: Setting the global standard. Routledge. Dauvergne,P.andLister,J.(2012).Bigbrandsustainability:Governanceprospectsand environmental limits. Global Environmental Change, 22(1), pp.36-45. Drake, D.F. and Spinler, S.(2013).OM Forum—Sustainable Operations Management: An Enduring Stream or a Passing Fancy. Manufacturing & Service Operations Management, 15(4), pp.689-700. Dumitrescu, L. and Vinerean, S. (2010).The global strategy of global brands. Studies in Business and Economics, 5(3), pp.147-155. Eccles, R.G. and Serafeim, G. (2014).Corporate and integrated reporting: A functional perspective. Hasan,M.(2013).Sustainablesupplychainmanagementpracticesandoperational performance.American Journal of Industrial and Business Management, 3(1), p.42. Jain, S.C. and Kedia, B.L. eds. (2011). Enhancing global competitiveness through sustainable environmental stewardship. Edward Elgar publishing. Karnani, A.(2014).Corporate social responsibility does not avert the tragedy of the commons. Case study: Coca-Cola India. Economics, Management and Financial Markets, 9(3), p.11. Kent, C.C.C.M. and Ignatius, A. (2011).Shaking things up at Coca-Cola. Harvard Business Review, 89(10), pp.94-99.
Sustainable Operations ManagementP a g e|5 Kumar, S., Teichman, S. and Timpernagel, T. (2012).A green supply chain is a requirement for profitability. International Journal of Production Research, 50(5), pp.1278-1296. Lambooy, T. (2011).Corporate social responsibility: sustainable water use. Journal of Cleaner Production, 19(8), pp.852-866. Lubin, D.A. and Esty, D.C.(2010). The sustainability imperative. Harvard business review, 88(5), pp.42-50. Morin, C.(2011).Neuromarketing: the new science of consumer behavior. Society, 48(2), pp.131-135. Sauven, J. (2017).If you care so much, Coke, why your bottles aren’t 100% recycled(Online). Available at:https://www.theguardian.com/sustainable-business/2017/jul/13/coca-cola-plastics- pollution-oceans-bottles-packaging-recycling-pr-fizz-greenpeace-john-sauven