(Doc) Assignment: Corporate Social Responsibility

Running head: CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY 1
Contents
Introduction................................................................................................................................2
Literature Review.......................................................................................................................3
Case Study..................................................................................................................................5
Conclusion and Recommendation..............................................................................................8
References................................................................................................................................10

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Introduction
Corporate Social Responsibility (CSR) is known by different names such as corporate
sustainability, sustainable business, and corporate citizenship. It refers to the act of
companies in order to be socially accountable. It means that the company is operating in a
way that is beneficial for the society and enhances the environment, thereby reducing
negative impact.
The company, which follows CSR activities, gains trust in the eyes of its various stakeholders
like customers, employees, government, suppliers etc. By CSR, a company achieves a
balance of social, economic and environmental imperatives. According to Corporations Act
2001 (Cth) it is now mandatory for the companies to contribute minimum percentage of their
net profit towards CSR.
In the below case study the Corporate Social Responsibility challenge faced by Coca Cola is
described. The company is facing a CSR issue of dealing with packaging waste of bottled
cans. The company has to focus on recycling in order to make a litter free tomorrow. Since
the early 2000’s Coca Cola has been facing criticism over health effects, environmental
issues and employee issues. The company managed to get over these with time but the
biggest challenge still prevails of packaging waste. The packaging used in Coca cola results
in a significant environmental impact. The company did not adopt any methods to resolve the
issues such as introducing containers, bottle-recycling deposits. Many reports were generated
against Coca Cola of doing vague promises and false solutions (Holme and Watts, 2009).
It can be said that the challenge faced affects the whole society. The litter happens to affect
the environment in a huge manner and it affects the health of the public. The stakeholders
have been chosen is the public who has been affected from the activities of companies. The
organisations must carry out business with ethical measures and moral standards. In this
report, the literature review and the various implications of corporate social responsibility
will be discussed. The recommendations are also been provided to the company as what steps
should been taken to solve the issues that has risen.

CORPORATE SOCIAL RESPONSIBILITY 3
Literature Review
CSR has now become an imperative. According to the Douglas and Emily (2014), the
business environment is now changing and to survive in this scenario, businesses have to
adapt various strategies into their business model and most important of them is CSR.
According to Bendell, (2018) CSR is all about how an organisation responds to its internal
and external environment along with achieving its business goals. Moreover, corporate social
responsibility also contributes to increasing profits. It helps in earning customer loyalty,
earning respect in the marketplace and attracting higher sales.
According to Campbell and Updike, (2015) if a company is engaged in CSR it is seen as the
company, which cares for the needs of its employees, customers. It helps the organisation to
improve the customer database. It helps to create loyal customers that will help the
organisation to grow. The company is engaged in earning the trust of their stakeholders that
includes customers, shareholders, partners, employees and the public.
It initiates an ethical culture in the organisation. According to Preston, (2009), it has been
said that the company must focussed on the responsible and ethical supply chain
relationships, food and water supply security, water and waste management.
As per Robbins (2013) the firms, which follow CSR, attract personnel that are more qualified
and in turn increase the efficiency performance of the company.
The internal factors are an important part of any organisation and these factors must be
incorporated in the well-established manner (Tai and Chuang, 2014). The companies must
use a holistic approach for managing the corporate social responsibility in the company.
Corporate Social Responsibility for the companies is an important factor that generates
profits for the company with the corporate social responsibility. The companies are required
to do social works to make goodwill in the market. Many companies are involved in the
corporate social responsibilities and trying to motivate the moral values in the company
(Ghobadian and Hopkins, 2011). The companies have the responsibility to deliver something
good for the societies such as establishing schools for the children, hospitals, protection of the
environment and many other activities that can help the society to develop. Coca Cola must
also make policies and follow practices in order to be environment friendly.

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To implement the corporate social responsibility in the company it is required that the
companies must engage in the activities that are ethical. The companies shall use products
that do not be the effect the environment. Companies shall ensure that certain activities shall
been aligned too achieve the Greening Retail objectives that is under their sustainable
program (Rigoberto, 2009). The companies must ensure that the wastage of water shall be
reduced. The companies must use clean methods for the productions. The Coca Cola is a
mission to make the world litter free by 2030. The company is focussed to provide a safe
environment for the employees of the company and good policies for the risk management.
It has been said that the companies who implement corporate social responsibility into the
company must leverage more benefits than the other companies. The companies will have
higher growth rates and have more engaged employees and better stock values. Corporate
social responsibility aid organisation's mission and will guide the corporate social
responsibility of the company (Reilly and Peter, 2010). It is the thinking of companies that
profit is not met when the companies follow corporate social responsibility.
Corporate Social Responsibility has also become the reason for the competition among the
companies as every company is trying to ahead of the other company. Companies therefore
used to launch the new products and service in the market but experts say that new type of
gold rush is unfolding in which there is a brand race each other to claim an environmental or
social cause. The action of Coca Cola towards CSR will help other companies too to join in
the mission in order to be socially responsible companies.
Companies are required to grow in the market than they must take care of the stakeholders.
The stakeholders are an important part of their organisation such as shareholder, employees,
customers, clients etc. The companies will only grow if their stakeholders will grow and it is
necessary that they must take care of their stakeholders. It is required by the companies like
Coca Cola that they must guide their employees that how to deal with these customers. The
organisation must restructure its internal factors to ensure that it will comply with regulation
and authority. The internal factors are an important part of any organisation and these factors
must be incorporated in the well-established manner (Tai and Chuang, 2014). The companies
must use a holistic approach for managing the corporate social responsibility in the company.
According to Tran (2018), the companies must issue the guidance that states the
responsibility of directors. In this guidance, it has been stated that how to deal with their
stakeholders. It has also been stated that how ethical culture is maintained in the organisation.

CORPORATE SOCIAL RESPONSIBILITY 5
The company has the aim to generate profits with also taking care of corporate social
responsibility. The carbon emission standards shall be set by the company according to the
carbon blueprints. Coca Cola is also required to provide a guideline to their board of
directors. They must follow those guidelines so that ethical culture can be maintained in the
Coca Cola.
The companies are also focused to provide a good culture to their employee and for that
various training programs have been implemented by the company for the employees. There
are certain training programs that help the company to establish the ethical culture in the
company. The company is focussed to decrease cultural differences and has a motive to
provide a good culture globally.
The transportation used by the companies is required to be upgraded time to time. The
companies used transportation systems shall be the major factor for the company for their
timely delivery of goods and that can help in the proper supply of goods on time. The
companies must implement the policies that are necessary for sustainable growth (Saeidi, et.
al., 2010).
According to Mainwaring (2016), brands are required to position themselves as a positive
force for change in relation to a particular social cause.
Case Study
Coca Cola, an American corporation is a manufacturer, retailer and marketer of non-alcoholic
beverages. The company is popular because of its product” Coca Cola” invented in 1886 in
Atlanta, Georgia. The Coca Cola apart from its most popular Coca Cola, offers more than 350
brands in 200 countries. It also produces number of soft drinks such as Fanta, Sprite. Among
all of them Coca Cola is the best-selling brand and a top beverage company (Coca Cola,
2018).
Coca Cola has been based on 6 pillars of business for example contribution in the growth of
economy, creation and preservation of jobs, in protecting the natural environment, contributes
for the development of region and fights against the social rejection. In achieving these goals
Coca Cola is required the involvement of all the stakeholders (Ahern, Byrne and Leavy,
2016).

CORPORATE SOCIAL RESPONSIBILITY 6
The Coca Cola is working with various local communities and customers to address with this
problem. It is to give better environment to their stakeholders. It helps the company to
diversify its business all around the nation (Cowen, Ferreri and Parker, 2007). It has also
helped to improve the profit ratio of the company. The company wants to be a leader and
want others to join the journey as well. The company is investing in packaging, bringing new
better bottles of different material may be with more recycled content or by reduced plastic.
The goal of the company is to set up a new global standard for beverage packaging. The
company also achieved its water replenishment goals where 115% of the water was used in
the final drink. The goal was achieved above expectation. In this way, the Coca Cola
Company is trying to be a total beverage company that will grow the right way (Coca Cola,
2018).
Coca Cola also saw a decline in sales in Jan 2017, not only this company was also accused of
air act violations (Coca Cola, 2018).
The company after that devised strategies to bring about positive and sustainable change.
The company focussed on environmental conservation and fresh water replenishment. The
company announced a global vision to help create a world without waste. The company
wants to reshape its approach towards packaging and to focus on 100% recycling. The
company calls this initiative as the ‘World Without Waste’. The company is investing in
planet and packaging to solve this problem of packaged bottled cans (Coca Cola, 2018).
According to Suliman and Thomas (2016) the company believe in all over development from
the salesperson to the top management. The company believes that cooperation is required
between the management and its stakeholders. It can be learned from the literature reviews
that the company for earning profits at a good rate is required to maintain their corporate
social responsibility. It is also required that the companies must establish their ethical culture
in the organisation. The success can only been come if companies must understand their
corporate social responsibility and implementation of that in the company.
The Coca Cola must do their packaging to biodegradable materials for the reduction of
carbon in the environmental form. The company has ensured that usage of water resources
that encourage safety and efficiency. Company has sensitized farmed who helps the
company to improve the water management measures while production. Coca Cola is
providing a safe environment for their employee by improving their internal factors. The
company is engaged that their suppliers shall been appraised for their product quality and the

CORPORATE SOCIAL RESPONSIBILITY 7
methods of production. The company has also changed their energy methods from the
carbon-based to clean methods such as gas and electricity (Carroll, 2015).
The Coca Cola has provided safety and a good environment for their work. The company has
also engaged with a range of government departments, academic and media resources,
industry bodies. Coca Cola has also set an example that it is necessary to provide a good
environment all over the globe. The company has a separate department for the corporate
social responsibility who manages all the activities of CSR and report to the directors
(Cowen, Ferreri, and Parker, 2007).
The company operates around most of the countries and it can be analysed from the literature
review that the company must engaged in the community upliftment initiatives. The company
has been a listed company and due to its good social responsibility, it has helped the company
to earn shareholders all over the globe. The company has been found to be focussed to the
debt funders who provide funds and capital when required by the company (Moodie, 2018).
Coca Cola is pleased with their legacy and the part they play in all over the world. The
company is focussed to motivate for improving the lives of their stakeholders. The company
plays a dynamic part in the society for the welfare. The company has started many hospitals,
schools and many other social activities (Murray, 2018).
The management of the Coca Cola has ensured that the activities that have been carried out
by the organisation are ethical and it has been accepted by both internal and external
stakeholders. Coca Cola is in the business of retail sector and therefore they have the direct
interaction with the customers. The company sell goods at a very reasonable cost so that the
consumers shall not be exploited. The companies have made many policies for the employees
to ensure that they must pay well based on wages regulation standards (Ahern, Byrne and
Leavy, 2016).
Coca Cola has taken various CSR forms such as:
 Compliance with human rights standards,
 Improving climate change and environmental protection
 Sustainable management of natural resource
 Philanthropy
 Labour arrangements

CORPORATE SOCIAL RESPONSIBILITY 8
Conclusion and Recommendation
From the above case study, it has been said that Coca cola is facing various challenges and to
overcome these challenges the company is required to implement many CSR policies in the
company.
The company must firstly focus on their stakeholders to achieve the said target for that
various policies must been implemented for them such as employee safety policies, health
policies and other development programs.
The business cost and expenditure had increased over the years. There are certain activities
that are incorporated into the strategy for the potential source of incompetence for the
business since they have to focus on several objectives. However, to deal with these types of
problem Coca Cola is required to establish its separate department that will provide
assistance in the corporate social responsibility. Coca Cola is required to set a fixed
percentage of profit that has been generating from CSR projects that will help the company in
producing a constant amount to fund the intervention without the paralyzing of the factories.
The Coca Cola management has been considered to implement one strategy at a time to avoid
straining their budget and must concentrate on quality and sustainability of the programs. It
has been analysed that the corporate social responsibility is an important factor for
sustainability and integration of the program. It has also been analysed that the companies has
implemented many training programs for the employees to give guidance and to taught
ethics. The companies however faced many challenged in relation to the quality management
in few areas. It is required to deal with the areas the companies must focus on these areas and
must employ the trained employees to improve the quality. The organisations must carry out
business with ethical measures and moral standards. The management of the Coca Cola has
ensured that the activities that have been carried out by the organisation are ethical and it has
been accepted by both internal and external stakeholders. Coca Cola is in the business of
retail sector and therefore they have the direct interaction with the customers. The company
sell goods at a very reasonable cost so that the consumers shall not be exploited. The
companies have made many policies for the employees to ensure that they must pay well
based on wages regulation standards.
Coca Cola has been recommended that projects viability required guaranteeing the business
culture in the organisation. Coca Cola to establish its market for that it has been

CORPORATE SOCIAL RESPONSIBILITY 9
recommended that they must implement CSR strategies into their culture with the immediate
effect. It has been analysed that although the company has implemented many policies for the
corporate social but still many improvements are required. The company has no personnel
department for risk management that is an important factor of an organisation.
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