Ethics and Corporate Social Responsibility - Coca Cola Amatil

This paper discusses the CSR activities, ethics and corporate governance of Coca Cola Amatil, one of the biggest players in the non-alcoholic beverage industry. It also highlights the company's response to stakeholder expectations and its efforts to gain competitive advantages in the global market.

Running head: Ethics and corporate social responsibility.
Ethics and corporate social responsibility

Ethics and corporate social responsibility.
Executive summary
The main motive of this task is discuses and outlines the CSR activities, ethics and corporate
governance. Here is the discussion about Coca Cola Amatil is one of the biggest and leadinf
players in the global market. The paper also discusses that how the company is able to gain
competitive benefits in the international market. CSR also plays a foremost role in Coca Cola
Amatil Company that helps the company to stay in the competitive market. Apart from this,
stakeholder engagement practices are also used by the organization that can affect the outputs
and revenue. Carroll Pyramid and Wartick and Cochran’s model also have been explained in the
task.
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Ethics and corporate social responsibility.
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
CSR activities and corporate governance....................................................................................................4
Carroll’s Pyramid........................................................................................................................................6
Wartick and Cochran’s model.....................................................................................................................7
Coca Cola Amatil’s response to stakeholder’s expectations........................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................10
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Ethics and corporate social responsibility.
Introduction
CSR is one of the unique and effective practices that is used by the company. Coca Cola Amatil
has been taken in the task. Coca Cola Amatil is the biggest and unique bottlers company of non-
alcoholic and beverages in the Asia Pacific region and it is one of the five major Bottlers in the
marketplace. The paper outlines and discusses the ethics, CSR activities and corporate
governance of Coca Cola Amatil. It also explains that how the firm is engaged with its
stakeholders in the global market. More detail of the task has been detailed below.
Coca Cola Amatil is incorporated in 1904 having headquartered is located in North Sydney,
Australia. Coca Cola Amatil is worked as a team to render best products and services for the
customers, communities and partners. The organization has employed approx 14,000 workers
who manage and handle the activities and operations in New Zealand, Indonesia, Australia,
Samoa, Fiji and Papua new Guinea (CCAmatil, 2018). The corporation offers ample of products
such as spring water, energy drinks, iced tea, coffee, tea, cider, spirits, soft drinks and vegetables
(Shenkar, Luo and Chi, 2014).
CSR activities and corporate governance
CSR Activities: Corporate social responsibility is interconnected with the specific operations
and activities of the organization that ensures company’s responsibility to stakeholders. The CSR
of Coca Cola Amatil in accordance with the ethical, economic and discretionary are stated as
follows (Klettner, Clarke and Boersma, 2014).
The company provides high quality of products and services to its customers including food and
beverages. The core and effective policy of the firm is to attain the regulatory guidelines in terms
of foods and beverages effectively and efficiently as possible. In terms of manufacturing, the
company depends on the supper efficient and excellent management system and technologies
along with this trained personnel. This makes ensure that the products such as food and beverage
produced by the firm overshoots all the firm standards and attain all the legal needs also. A
stringent monitor on the process control by producing the online process control method and
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Ethics and corporate social responsibility.
“Coke Best Fresh” programme were the unique strategy of the firm to render its customers with
the best and unique quality products. In addition, the company is engaging with its stakeholders
group in various ways through ample of formal and informal settings. Along with this, the firm
protects the rights and interests of the stakeholders by providing them appropriate profits. The
engagement of Coca Cola Amatil with its stakeholders increases results and outputs that are
favorable for the firm and environment as well. Apart from this, the firm is protecting the water
and local resources in the international market (Cuganesan, Guthrie and Ward, 2010).
In terms of sustainable agriculture, the firm aimed at engaging and maintaining all the suppliers
of the key factors in 2014 with the help of new supplier engagement programme. This
programme renders a structure of seven stage of improvement to attain the sustainable
agriculture principles. The organization also focuses on the health and environmental issues,
sustainable business, social progress and environmental stewardship (Boulouta and Pitelis,
2014).
Corporate governance: Coca Cola Amatil is listed on the Australian securities exchange. The
board of the company is committed to attain the highest standards in the areas of corporate
governance and business conduct. The firm reviews the corporate governance business practices
properly to ensure the best practices and activities. The board represents and serves the interests
of shareholders and has the ample of responsibility for managing and handling Amatil’s business
activities and operations and affairs to the excellent standards of corporate governance. The
board strives to protect and utilize the company’s performance and productivity and develop
sustainable value for the shareholders. The board charter establishes the board’s responsibilities
and purpose and the delegation of its duties and powers to committees and management through
the group managing director (Chatterji, Levine and Toffel, 2009). Along with this, Coca Cola
Amatil is committed to good and unique corporate governance that promotes and encourages the
long term interests of the shareowners, strengthens board and management accountability and it
also helps in building and developing public trust in the organization. The board is selected by
the shareowners to oversee their interest in the long term health and progress of the business and
its financial strength. Beside this, the board serves as the ultimate decision making body of the
firm. In this way, unique and effective corporate governance is used by the company while
conducting business activities and operations globally(Crane and Matten, 2016).
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Ethics and corporate social responsibility.
Carroll’s Pyramid
Carroll’s Pyramid is a simple and effective tool or method that helps to argue whether how and
why the company should attain their social responsibilities. The model was propounded by the
Carroll in 1991. This model is easy to understand and it emphasizes on the profitability and
outcomes. There are four responsibilities displayed on the Carroll model that has been explained
below. The four responsibilities include economical, legal, philanthropic and ethical.
Economical is one of the significant responsibilities of Carroll Pyramid model. This model
emphasizes responsibilities on the business activities and operations to be profitability and
outputs because it is only an effective and significant path to render long term advantages to the
community. Coca Cola Amatil is committed to make a positive and distinct contribution to the
world where people live. The company’s outputs reflect the strong and unique earnings
performance in Alcohol, Fiji, New Zealand and Papua New Guinea. The net revenue of the
company is A$5.12 billion (2014) and operating income of Coca Cola Amatil is A$502.8 million
(2014).
Legal responsibility of Carroll Pyramid stated that the firm should follow the rules, legislations,
norms and policies while carrying out the business operations and activities worldwide. The
corporate governance strategies and policies of Coca Cola Amatil are formulated in such a
manner that it ensures all the rules and compliance with all effective and unique legal needs and
requirements (Henriques, 2013).
Ethical responsibility also plays a significant and effective role in the company to attain the
desired goals and objectives. This aspect imposed responsibility on Coca Cola Amatil to conduct
business functions and activities ethically and morally. The main and primary objective of this
aspect is to fulfill the needs and requirements of the law. Apart from this, Coca Cola Amatil also
ensures morals, norms and ethics in its strategy and policy. Effective and dynamic code of
conducts is used by the firm while implementing the business globally.
Philanthropic responsibility argued that Coca Cola Amatil should give back to the society in the
global market. The responsibility is discretionary but it is significant and effective. It has been
found that Coca Cola Amatil conducts and initiates the ample of activities, sessions and
programs through which the company provide support to the society. Along with this, the
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Ethics and corporate social responsibility.
organization conducts programs for the welfare of human and animals. This layer also focuses on
the ample of luxurious things including the local communities, quality of life of workers and
ultimate community in large extent. In this way, Carroll model plays a vital role to fulfill the
needs, desires and requirements of the employees, customers and shareholders (Kraak and Story,
2015).
(Source: https://research-methodology.net/carrolls-csr-pyramid-and-its-applications-to-small-
and-medium-sized-businesses/)
Wartick and Cochran’s model
It is also one of the effective and unique models for corporate social responsibilities. According
to Watrick and Cochran model, the CSR responsibilities are categorized into three segments that
are detailed below.
Principle: It may be defined as the corporate social responsibilities that are categorized into four
segments including ethical, legal, economical and philanthropy. This segment focuses on the
business activities and moral agent as well. In this regard, Coca Cola Amatil attains all the
responsibilities and rules to meet the long term objectives and goals. All these responsibilities are
explained in the Carroll Pyramid model (Chen, 2013).
Process: A process may be explained as the corporate social responsiveness that divides its
responsibilities into four parts such as defensive, accommodative, reactive and proactive. This
layer also explains the capability of the business to revert the changes that are occurred in the
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Ethics and corporate social responsibility.
community. Along with this, it also focuses on the effective strategy of the managers and leaders.
Let’s talk about Coca Cola Amatil, there responsive approach is positive and effective in nature
because there is a biggest gap in their approaches and strategies to accomplish the desired
mission and vision (Bhaduri and Selarka, 2016).
Apart from this, policies may be defined the social issues management and this layer is divided
its responsibilities into the three groups such as issues identification, issues analysis and
responsive development and expansion. This layer minimizes the issues and challenges while
implementing the business operations and activities effectively and efficiently. This layer also
helps in determining and analyzing the policies and strategies related to CSR in a hassle free
manner. It has been found that Coca Cola Amatil focuses on the identification of the issues,
issues analysis and then effective measures are taken successfully and effectively (Alejandra
Gonzalez-Perez, 2013).
Coca Cola Amatil’s response to stakeholder’s expectations
Engaging with stakeholders in long term dialogue renders significant inputs that inform decision
making and helps the people to improve and enhance progress towards 2020 sustainability goals
and objectives. The company is committed effectively and significantly to ongoing stakeholder
engagement as a core element of the company’s sustainability and business strategies,
company’s annual reporting process and other activities across the world. In addition, the
organization engages with ample of stakeholder groups in a variety of informal and formal
setting and strategies around Coca Cola Amatil system. The company’s engagements range from
meetings with regional, national and local groups to ongoing dialogue with company’s suppliers,
consumers and bottlers (Richards et al, 2015). In the international market, the company is
directly involved in multi stakeholders actions such as the world economic forum and United
Nations global compact. The organization is also working with external stakeholder partners and
along with this, the company is able to identify and analyze the issues and challenges by bringing
together the expertise, passion and knowledge of many individuals and companies as well. This
strategy also helps the firm to attain greater and unique favorable impact on the social,
environmental and other issues and challenges than by working alone. The company engages
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Ethics and corporate social responsibility.
with variety of stakeholders in the international market. The stakeholders and ways in which
Coca Cola Amatil engage with them are discussed below.
Bottling partners: The Company is engaged with bottling partners in the global market. The
day to day interaction as business partners, functional group on strategic issues, joint projects,
joint business planning, top to top senior management forum and global environment council.
Customers: The customers include dedicated account teams, proper visits, joint business
planning, customer care centers, joint value creation and social media engagement. The customer
relationship management plays a significant and vital role to collaborate and communicate with
marketing, sales, new product development, technical services and planning and supply chain
management (Lambert and Schwieterman, 2012).
Consumers: The consumers include local websites, plant tours, surveys, social channels, local
websites and focus groups.
Communities: The communities include plant visits, lectures at universities, society meetings,
sponsorships and partnerships on common issues (Cooke, 2010).
Employee: It includes employee communication, senior executive business updates, health and
safety communication programs and ethics hotline.
Government and regulatory authorities: It includes foreign investment advisory councils,
chambers of commerce, and recycling and recovery initiatives.
It has been analyzed that the company applies golden triangle partnership strategy or approach to
stakeholder engagement, private and civil society sectors and spanning the public. The Golden
triangle partnership strategy is a core and primary part of the business strategy and it can foster
sustainable and effective business growth, and social progress (Chioatto, 2015). Aside this, the
company’s efforts to protect water sources can be effective and unique if they include
collaboration and cooperation with local stakeholders, such as community members,
governments and water agencies. It is noted that there is no gap in Coca Cola Amatil’s efficiency
and stakeholders requirements. The organization also uses ample of programs and sessions to
gain competitive advantages in the competitive market (Coca Cola Amatil, 2017).
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Ethics and corporate social responsibility.
Conclusion
After analyzing the above facts, it is concluded that corporate social responsibility is one of the
significant and foremost part of the each and every company. The CSR and sustainability help
the firm protect the rights of the stakeholders and to serve the community effectively. The above
analysis shows that how the company is using ample of models to determine and analyze the
significance of CSR and sustainability. The organization should give back to the community
through this structure or framework.
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Ethics and corporate social responsibility.
References
Alejandra Gonzalez-Perez, M., 2013. Corporate social responsibility and international business:
A conceptual overview. In International business, sustainability and corporate social
responsibility (pp. 1-35). Emerald Group Publishing Limited.
Bhaduri, S.N. and Selarka, E., 2016. Corporate Social Responsibility Around the World—An
Overview of Theoretical Framework, and Evolution. In Corporate Governance and Corporate
Social Responsibility of Indian Companies (pp. 11-32). Springer, Singapore.
Boulouta, I. and Pitelis, C.N., 2014. Who needs CSR? The impact of corporate social
responsibility on national competitiveness. Journal of business ethics, 119(3), pp.349-364.
CCAmatil.2018. Our history [Online], Available from https://www.ccamatil.com/en/our-
company/our-history, [Accessed as on 25th June 2018].
Chatterji, A.K., Levine, D.I. and Toffel, M.W., 2009. How well do social ratings actually
measure corporate social responsibility?. Journal of Economics & Management Strategy, 18(1),
pp.125-169.
Chen, S., 2013. On the development and implementation of a sustainable CSR strategy: a
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Chioatto, U., 2015. A studied approach to board assessments and skills matrices. Governance
Directions, 67(7), p.415.
Coca Cola Amatil. 2017. Annual report [Online], Available from
https://www.ccamatil.com/-/media/Cca/Corporate/Files/Annual-Reports/2018/Annual-Report-
2017.ashx, [Accessed as on 25th June 2018].
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Ethics and corporate social responsibility.
Cooke, D., 2010. Building social capital through corporate social investment. Asia-Pacific
Journal of Business Administration, 2(1), pp.71-87.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
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Henriques, A., 2013. Corporate truth: The limits to transparency. Routledge.
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Empirical insights into the development, leadership and implementation of responsible business
strategy. Journal of Business Ethics, 122(1), pp.145-165.
Kraak, V.I. and Story, M., 2015. Influence of food companies' brand mascots and entertainment
companies' cartoon media characters on children's diet and health: a systematic review and
research needs. obesity reviews, 16(2), pp.107-126.
Lambert, D.M. and Schwieterman, M.A., 2012. Supplier relationship management as a macro
business process. Supply Chain Management: An International Journal, 17(3), pp.337-352.
Richards, Z., Thomas, S.L., Randle, M. and Pettigrew, S., 2015. Corporate Social Responsibility
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New Zealand journal of public health, 39(6), pp.550-556.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
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