Corporate Social Responsibility (CSR) and Sustainability for Coca Cola

This report discusses the concept of Corporate Social Responsibility (CSR) and its importance for organizations. It focuses on Coca Cola, a leading beverage company, and explores their CSR activities, sustainability efforts, and financial performance. The report highlights the company's commitment to social and environmental welfare, including initiatives for education, women empowerment, and environmental sustainability. It also analyzes Coca Cola's financial performance and market position.

CSR

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Sustainability for Coca cola ............................................................................................................4
CSR activities of Coca cola.............................................................................................................4
Financial performance.....................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Corporate social responsibility (CSR) is the self regulating business model which help the
company to be socially accountable to itself, its stakeholders and to the public. By indulging in
the corporate social responsibility which is also called corporate citizenship help the organization
to sustain longer in the market (Venkatesh and et., al., 2020). To engage in the CSR activities
means, the ordinary course of business and the way to operate which enhance the society and the
environment. The present report is based upon Coca cola which is American beverage company.
This was invented in early 19th century by John stith Pemberton. The company is third worlds
most valuable brand after google and Apple. Further this report covers the organization
suitability and the CSR activities along with the financial performance. This is crucial for the
organization to make effective decision and participate in the CSR activities as help in creating
brand image in the market.
Main body
Corporate social responsibility is the broad concept which help in making different kinds
of reforms depending on the company as well as different organization. With the help of CSR
activities the firm can improve its suitability for the longer time period. The CSR includes
different activities such as philanthropy, and volunteer efforts, businesses can benefit society
while boosting their brands. This kind of activities help Coca cola to forge a stronger bond
between the employees and corporations and also help to connect to the outer world.
Sustainability for Coca cola
For the organization like Coca cola has developed a sustainable business model by
creating the value for the communities and serving the nation effectively. Sustainability is
consider as heart of the business and it is the prime way to create the business present in the
market. This is consider as the global strategy which encompasses every DNA of the company
and which is executed in all the market. Coca cola is constantly putting the effort to grow and
expand the entire business (Saridakis and et., al., 2020) . As the company believes this work
must be done internally and mission of the organization is to refresh the world by the drinks.
Coca cola have operation more than 200 countries and there sustainability depends upon
the demand from the consumer and strong partnership with the supplier, distribution and
retailers. They have created a strong brand image in the minds of customers. Another main

reason behind the sustainability is the branding as they spend millions on the marketing and
promotional campaign . The Coca cola have unique system which is committed to the inline with
the goal of replenishing and balancing the water and the beverages. They are using recycle
bottles which help in improving the suitability business model for the company. Further the
company is promoting wellness and healthy living which help in improving the financial
positions of the company. Coca cola is delivering the promise as they are constantly promoting
the benefits of the daily exercise. For the longer sustainability the Coca cola is giving the option
and the choices including the sugar free drinks and also focusing on the packages which help in
attract more and more customer in the well define manner. Along with this organization is trying
to reduce the carbon emissions which help them to make more sustainable business model for the
people.
Coca cola is profit organization and have many stakeholder and in the year 1994 the
company done the commitment of water usage. The company have trained the community and
the staff to maintain the water system as it is natural resources which is limited. For the longer
sustainability the company have to make proper use of water or to find out the alternatives
present in the market. However the company have tie up with the government and local people to
measure the safety of the water system.
CSR activities of Coca cola
Coca cola has created CSR programmes and the initiatives engaged by the company. The
main motive of the organization is to give 1% of the annual income for the charitable causes
annually. The company have formed different categories in the CSR activities such as in the year
2013 the organization founded education and empowering the workers to live the better life. The
corporate social responsibility in the core business of the company and mainly focuses on the
welfare of the society. In the year 2014, the company have given back 126 million as the part of
CSR activities (Carroll and et., al., 2020). The company spend lots of money on the active and
healthy living, stewardship programmes, educations. Other activities such as women
empowerment and and the relief programmes are the few of there CSR activities.
In the middle east Coca cola have launched different kinds of campaign as the part of the
CSR where the organization is supporting the university student who are hoping to become
entrepreneur through providing funds. Along with this firm have helped economically empower
more than 865000 women and the aim to achieve the economic empowerment of the 5 million

women by the year 2020. Coca cola has supported more than 290 physical activities programmes
nearly in every organization. Apart from this, company have working on the technology to
develop the plastic bottles which are made from the plants. As per the social responsibility the
company do not sell the product below 12 years. According to the company point of view the
company does not buy advertising which is directly targets the audience which are above the age
of 12. The triple bottom line help the organization to develop the sustainable business model as
this focus on the social, environmental and financial aspect of the organization(Matten, 2020).
In the case of social aspect the organization like Coca cola is serving the poor people and
empowering the women to have equal rights and pay. For the environment the firm is trying to
use green energy to make product and the organization have the plan to reduce the carbon
footprint in coming years. The financial aspect is good as the company is earning profit and have
seen vast growth in the recent years.
Financial performance
Coca cola have been able to maintain the impressive gross profit margin (GPM) in the
year 2009 to 2018. There has been immense growth which is more than its competition rival
Pepsi co. This kind of report is made by the help of accounted by following all the rules and
guidelines given by the board.
Net revenue
Mainly the cost structure of Coca cola and its overall position in the market is better than
there competitors. Although the Pepsi co have more than Coca cola but the vast operations and
market share bring the company at the top position. This company holds the most of the market
and have the wider reach to more than 200 countries (Preuss, 2020). Coca cola is the largest
global company in the beverage sector and have more capitalization of 102 billion which is
higher than the its biggest rival Pepsi co. The organization have the global presences and wide
range of distribution channel and strong capital.
The global beverage industry is highly regulated and have seen major changes in the
recent years. The stock price of Coca cola is higher than Pepsi co which shows the company
have the higher value than other organization. This implies that Coca Cola has powerful
bargaining power than Pepsi Co, thus basically gives firm a free interest loan. Notably, the
fundamental difference in asset management policies between Coca Cola and Pepsi Co is Equity
method investments by company which historically is among the key components of its asset

base. The current ratio of the companies are maintained by 1:1 which is constant over the decade
and the quick ratio is also similar. The company have enjoyed the limited vulnerability to power
as they maintain the solid position in the market.
Ratio analysis- It is defined as type of technique which is helpful in order to make proper
financial evaluation of a business entity. Herein, below in the aspect of Coca cola company ratio
analysis is done in order to make effective financial analysis:
Profitability ratio:
 Gross profit ratio = Gross profit/ net sales*100
Year 2016 2017 2018
Gross profit 25398 22154 20086
Sales 41863 35410 31856
Gross profit ratio 60.66% 62.6% 63.1%
Analysis- On the basis of above calculated gross profit ratio of this company, it can be find out
that company’s performance is increasing in a significant manner. Such as in year 2016, it was of
60.66 % which raised in further years and became of 63.1% in year 2018.
 Net profit ratio= Net profit/ net sales*100
Year 2016 2017 2018
Net profit 6527 1248 6434
Sales 41863 35410 31856
Net profit ratio 15.59% 3.52% 20.20%
Analysis- As per the calculated net profit margin of this company, it can be find out that their
performance is fluctuating year by year. Such as in year 2016, it was of 15.59% which reduced in
next year. While in year 2018, it increased in a significant manner.
 Return on capital employed= EBIT/ Capital employed
Year 2016 2017 2018
EBIT 8626 9427 9781

Capital employed 60738 60702 53993
ROCE 14.20% 15.52% 18.11%
Analysis- On the basis of above calculated ROCE ratio of this company, it can be find out that
company’s performance is increasing in a significant manner. Such as in year 2016, return on
capital was of 14.20 % which raised in further years and became of 18.11% in year 2018.
Liquidity ratio-
 Current ratio:
Year 2016 2017 2018
Current assets 34010 36545 30634
Current liabilities 26532 27194 29223
Current ratio 1.28 times 1.34 times 1.05 times
Analysis- as per the above calculated current ratio of this company, it can be find out that their
liquidity position is not so good because they are unable to meet ideal current ratio of 2:1. Higher
current ratio was in year 2017 of 1.34 times.
 Quick ratio= Quick assets/ current liabilities
Year 2016 2017 2018
Quick ratio 0.98 times 0.90 times 0.66 times
Analysis- as per the above calculated current ratio of this company; it can be find out that
their liquidity position is not so good because they are unable to meet ideal current ratio
of 1.5:1. Higher current ratio was in year 2016 of 0.98 times. After that their ratio has
been decreased.
Overall analysis- As per the above financial analysis this can be find out that Coca cola
company’s liquidity position is not so good. Except it, their profitability ratios are showing better
result in all three years.

CONCLUSION
As per the above mention report it has been analysed that CSR is essential for
organization to sustain longer in the business. Further this also help in creating brand image in
the minds of customer. The company holds strong market with the help of innovation and using
effectively channel of distribution. Along with this company have risk management policies
which aid the organization to remain stable and have better performance and financial assets.
The corporate governances plays an major role which help them to improve in decision making
process. Overall financial position of the firm is sound and it will be sustain for the longer time
period in the well define manner.

REFERENCES
Books and Journals
Carroll and et., al., 2020. From managerial responsibility to CSR and back to responsible
management. The Research Handbook of Responsible Management. Cheltenham:
Edward Elgar.
Chandler, D.M.C., 2020. Achieving Sustainable Drug Development Through CSR: Possibility or
Utopia. In Bioeconomy for Sustainable Development (pp. 303-319). Springer,
Singapore.
Matten, D. and Moon, J., 2020. Reflections on the 2018 Decade Award: The Meaning and
Dynamics of Corporate Social Responsibility. Academy of Management Journal, 45(1).
Preuss, L., 2020. Tracing the Global Diffusion of Corporate Social Responsibility: The Example
of Business in the Community’s CSR Framework. In Non-market Strategies in
International Business (pp. 131-149). Palgrave Macmillan, Cham.
Ralegaonkar, R.V. and Ram, S., 2020. Sustainability (CSR): An Approach for Controlling
Environmental Implications Due to Industrial Processes. In Sustainable Waste
Management: Policies and Case Studies (pp. 675-682). Springer, Singapore.
Rhou, Y. and Singal, M., 2020. A review of the business case for CSR in the hospitality
industry. International Journal of Hospitality Management, 84, p.102330.
Saridakis and et., al., 2020. What type of CSR engagement suits my firm best? Evidence from an
abductively-derived typology. Journal of Business Research, 108, pp.174-187.
Sung and et., al., 2020. Restaurant chain’s corporate social responsibility messages on social
networking sites: The role of social distance. International Journal of Hospitality
Management, 85, p.102429.
Venkatesh and et., al., 2020. Corporate Social Responsibility as an Antecedent of Brand
Valuation. In Mandated Corporate Social Responsibility (pp. 175-198). Springer,
Cham.