Corporate Social Responsibility in the Coca-Cola Company

Corporate Social Responsibility 1
CORPORATE SOCIAL RESPONSIBILITY IN THE COCA COLA COMPANY
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Corporate Social Responsibility 2
Table of Contents
Introduction......................................................................................................................................3
Overview of Coca-Cola Company...................................................................................................4
Analysis of the CSR of Coca-Cola company..................................................................................5
Evaluation of the CSR of Coca-Cola company...............................................................................7
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

Corporate Social Responsibility 3
Corporate Social Responsibility in the Coca-Cola Company
Introduction
Today Corporate Social Responsibility (CSR) has become a very popular topic in the
global market. With the increase of demand for corporate citizenship and transparency, CSR has
been majorly required to embrace ethical, economic, social, and also environmental
considerations. Through the current globalization changes and approaches, companies are
expected to not only be of commercial value but also good corporate citizens of the world. In
other words, CSR main priorities are to make a close relationship with international community
development and sustainability (Carroll, 2008). Often, most multinational companies such as
coca cola face very significant pressure from most regions which mostly consist of unethical
behavior from emerging markets. Most of concern is mainly directed to the improvement of
standard quality and organization roles in how they to handle or react to some of the challenges
or situations affecting the society.
Also, with the increase of globalization effect, public image and/or reputation is one
greatest concerns in most multinational companies. The reputation of a company in one country
is considered very important as it can cause a significant loss in other markets. Some of the main
public concerns include social impacts and environmental issues which have continuously
become sensitives topics in today’s business world (Flammer, 2013). In the event where
companies have failed to fulfill the social and environmental responsibility, the public has been
empowered with the ability to boycott products and goods of the respective companies. On the
other hand, CSR is also considered as a voluntary initiative but with increasing demand in
standards and competition, the approach of social-economic by multinational companies has

Corporate Social Responsibility 4
proved to be one of the competitive advantages that every multination organization must attain in
order to compete effectively (Hopkins, 2012).
Overview of Coca-Cola Company
Coca-cola company is regarded as one of the largest non-alcoholic beverage companies
in the world having its operation in almost every country in the world. The net revenue of coca
cola as per 2017 financial report was estimated to be approximately 35.41 billion dollars. Over
the past decade, the company has reported an increase of its market share which has greatly
contributed by the approach in diversifying its brand portfolio and focusing on making healthier
beverages due to the growing concern of consumer health. The company is one of the few many
that have been able to successfully implement CSR variables. Unlike most companies, coca cola
company has been able to create a “code of ethical business conduct” which is able to align all
shareholders interest and developments. With this, the company has also received a number of
awards such as Golden Peacock Awards for environmental sustenance in India (Suliman, Al-
Khatib, and Thomas, 2016).
Some of the main reasons the company has continued to embrace CSR includes the
competitive labor markets, increasing interest of customers, growing investor pressure, relations
with suppliers, corporate transparency demand, and the shrinking role of government. Some of
the issues such as the relationship with suppliers and customer interests have been contributed by
increasing the change in the supply chain and logistics where the standards of quality have also
continued to increase with the emphasis on effective communication approaches between all the
shareholders (Singh and Kaur, 2016). Also, like most of the multinational companies, coca cola
has impacted the society both positively and negatively in its daily operational activities. Some
of the main issues that the company has faced over the years is the issue of water problems in