This assignment provides an in-depth analysis of Coca-Cola's corporate social responsibility (CSR) practices, including its research funding, transparency, and community engagement. It also examines the company's efforts to address social issues and promote sustainability through its advertising and business strategies.
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Table of Contents INTRODUCTION...........................................................................................................................3 Task 1.....................................................................................................................................3 1.1 Nature and background...................................................................................................3 1.2 Select any three and discuss the impact..........................................................................4 Task 2...............................................................................................................................................9 a.) Code of ethic of Auckland transport.................................................................................9 b.) Rational code of ethics: -.................................................................................................10 REFERENCES..............................................................................................................................13 2
INTRODUCTION A multinational corporation has facilities and other assets in at least one country other than its home country(Smarandescu and Shimp, 2015). For growth and opportunities many companies expand their business in different countries which help them in gaining competitive advantage. The present research is based on Coca cola which is operating its business in all over the world. This report will lay emphasis on various business issuers and measures of their effective resolution. Also various impacts on the business firm will be discussed in the report. Task 1 1.1 Nature and background At present time Coca cola is known as one of the most well known company in all over the world. The company has earned maximum growth, capitalising on the rapidly expanding beverage industry in the world(Coca-Cola. 2018). With its push for global market shares, Coca cola now started operating in more than 200 countries with more than 85000 suppliers. For the cited organisation to be successful is not always easy. There are many countriessuch as Cuba, North Korea and Iraq. But the use of effective global marketing strategies it accomplish success regularly. Coca cola Company founded in 1886 by pharmacist John Stith Pemberton in Atlanta Georgia. In 1960 company acquired minute maid. Company introduce vary products range diet coke, caffeine free, zero sugar and cherry(Allen, 2015). Coca cola was the globally third most valuable brand in 2015.In 1885, Pemberton registered the French wine coca nerve tonic. Coca cola initially sold for five cents as a patent medicine. In initial stage of coca cola cured many diseases like morphine addiction, nerve disorder, and headache. Coca cola is the most best-selling and huge selling cold drinks in history. Coca cola was Patented in 1887. In 1893 it was being sold in every states and territory in United States. Coca cola have introduced various product for instance sprite, Fanta, diet coke, minute maid and powerade. The global nature of coca cola system have the highest standard and processes and ensuring consistent (The Coca-Cola company. 2018). Production safety and quality assurance is the main theme of the company. 3
1.2 Select any three and discuss the impact Impact of globalisation The globalisation plays a very crucial and effective role in the execution of the business operations of the Coca Cola.The globalisation will help the Coca Cola to have the better handling of the different business operation that will be taken in carrying out business in an effective manner(Taylor, 2014). It assist the company to capture the data about the taste preference of user on worldwide level and develop the innovative products or services to keep them attached with the brand. It aids the company to gains a productivity and profitability and meet the expectation level of its stakeholders in an effective way.While entering in emerging market to enhanced competition from domestic player with global competitors such as Pepsi company. 1.)Product differentiation: Product differentiation is one of the key factor that supported Coca cola globalisation. The organisation can easily meet the needs of customers of individual markets. For instance, the firm has tailor all its product line through offering powerade and flavoured coke products to younger customers(Boyjoo, et al., 2017).. Furthermore, Coca cola has a wide range of juice brands and water which help company in gaining competitive advantages. But it is essential for the firm to be innovative with new health and wellness angles with its brands(Dawson, 2017). 2.)Technology Technologyadvancedhelpedcompanytoglobalisefasterin20thcentury.The transportation of product was become more cost effective with the development of bigger and faster semi-truck and trains. Therefore, company can easily manufacture and ship the products quicker and farther to market.With the use of new technology, it become easy for the firm to advertise its product in all over the world. It has make visible appearance on Facebook, Twitter and other social networking sites(Sharp, 2016). Along with this it also introduced greener bottles and packaging for producing their product with the use of less petroleum. Competition: Thereischangeineconomicfactorwhichisresultofglobalisation.Duetothe globalisation the future development of the world is shaped. Through increase in competition it 4
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become easier to capture large number of market. For example, a bottling plat which is built by the firm. It uses mechanic which are automated robotic as it is introduced by Coca cola. Sustainability: Environmental(related to environment or our planet):- As a part of the packaging the main goal of Coca-Cola company is to remove the loss of raw material, energy and water at the time of manufacturing process(Albert, et al., 2014). Further as a part of concern for the environment the firm has taken step to recycles material which is uses to produce bottles of coke and another beverage. For example, coca cola company focused on water program in order to support healthy watersheds and sustainable program. Economic (financial, profit, money related):Coca cola company is operating in different countries and because of its local natureit is at unique position in order to contribute the economic vitality. Its global business has provided many job opportunities(Faria, et al., 2017). Along with this, it contributed to economy success of each community through hiring local people, paying for raw materials to supplier etc. Social (related to society or people):Sustainability has not only positively impacted the profit of the firm but also put effect on its corporation image. Coca cola provided at least 1% of its annual income for charitable causes every year(Powell and Gard, 2015).The figure provided below shows the patter of distribution of this fund in 2013. 5
Figure1Coca cola social responsibility (Sources:Dudovskiy, 2017) From the above provided figure is clearly shows that there are different types of CRS program which are initiated by Coca cola company. educating and empowering workers, labour and human rights, health and safety issues, water consumption, other health initiatives. There are many sustainability issues which is faced by Coca cola company such as environmental friendly products, water saving, sustainable recycling and packaging(Serôdio, et al., 2018). The cited beverage firm will look further the reducing its carbon footprints and permission of the green house gases that will help in meeting the operational capacity of the business organisation. Third world development: Please explain it with an example and reference 1.)Economies of scale: One of the positive impact of third world development on Coca cola company. In developing nations India, china etc. population is limited and in 6
third world countries Unites states there is high number of populations. Hence it makes easier to accomplish success in developed countries because of high number of production it become difficult to accomplish in others(Farshid, et al., 2015). Figure2: Soft drink market share (Source: Bailey., 2014) 2.)Laws and Legislation: One of another advantage is related to relaxed in HR laws which are strict in Europe Due to new policies and strategies multination company provided relaxation human resources laws(Dekhil, et al., 2017).For example, due to relaxationinlawsitbecomeeasyforcompanytoeasilyterminateandhire employees. It made easier to hire employees who charges low cost for working in their firm 3.)Enhance revenue for potential customers: In third world development middle class people are spending much as compare to higher class people (Bryman and Bell, 2013). Therefore, Cocacola can earn lots of from middle class people as because they purchase product. Coca cola net income fell to $1.37 billion and in the second quarter is was $3.45 billion. 7
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The major issue that is been faced by the third world is the water crisis that is to be taken in the effective thought process by the organisation. The Coca cola has to look after its effective measures to make its business processes more cost effective and ecological that will help the firm to meet the operational demands of the organisation(Gertner and Rifkin, 2018). As water is the integral part of the manufacturing process of the business of Coca cola, the business firm will look after the better measures to preserve the scarce resource. It will not only help in gaining the firm a better cost efficiency by cost cutting the transportation of water but also help in maintain the environmental concern of the organisation in a effective manner. Apart from this, the brand or the company will look after the better establishment of the CSR in the third worlds countries(Vos, et al., 2018). The cited beverage firm will see through the reduction in its environmental emission of green house gases, water pollution and extraction, and other form of pollution. Besides this, Coca cola will also look after the better handling of the different operations which will help in generation of jobs in this country(Iwamuro, et al., 2014). The third world countries have the maximumnumberofpopulationwhichmakestheproperopportunityforthe company to have the work force which will ultimately improve the economic condition of the country. This will increase in the economy of the nation and revenue generation of the firm(Sharp, 2016). Besides this it gives the better growth and development of the firm. This will help in effective rise in the operational capacity of firm and have a competitive advantage in the market over its rivals. Besides this, it will help the firm to build a better relationshipwith the local customers and employee's. 8
Task 2 a.) Code of ethic of Auckland transport Safety and security: Safety of employees as well as customers is important or Auckland transport. The firm ensure that within the firm that employees become familiar of culture of safety with continuous improvements. In the organisation when safe and healthy environment is created then it will become easy for employees to work with dedication and fulfil their responsibility(Bakan, 2016). Along with this Auckland transport ensure that that all the services are carried out with the standard of the from safety management system it help in improving work safety performance. Dataprotection:Aucklandtransportensurethatalltheinformationprovidedby customers are kept confidential. Policy is implemented within the organisation related to keeping all the information safe and secure of the employees as well as customers. Along with this personal information and firm information such as different strategies and actions must be lawful and only for business purpose(Faria, et al., 2017). Due to contract and per company policy all the employees need to kept information of Auckland transport confidential and cannot be disclose in front of external people. 3.) Complete and appropriate information: For the successful business accuracy and reliability are essential elements. It is because they help in keeping record of all the information. Auckland transport keep complete and appropriate information regarding business revenue and expenses which help in protecting credibility and reputation of the firm with fulfilling all the legal obligations(Sacks, et al., 2018). In the organisation it is completely prohibited to keep record of false information for firm benefits. It has systematic cycle of records which is periodically recorded and used all the information for legal use. Diversity and inclusion: Auckland transport always focus on managing diverse workforce which helps in providing innovative ideas for accomplishing success. Along with this, healthy working environment of the firm help in enhancing productivity and profitability of the firm. Auckland company has implemented policy to promote equality at the workplace and respect for all the employees whether they belong to different religious, nations, race etc(Austin and Gaither, 2016). All these policies are implemented in all activities such as training, recruiting, promotion, appraisal etc. Along with this firm also celebrate diversity at the work place and 9
avoid any kind of discrimination. In the organisation each and every employee is empowered in order to raise their issues. Thus, it can be stated that firm respect their employees and human rights. b.) Rational code of ethics: - 1.)Improve business relationship: The codes of ethics are important in order to make managerial decisions with the assist of preparing a structure at the executive level. Along with this, code of ethics also provides help in order to formulate the levels of interaction with the externalandinternalstakeholder(Farshid,etal.,2015).Thisassistindevelopingan understanding related to the boundaries in which company need to carry out day to day activities. Codes of ethics which are effectively followed help in preserving the reputation of the firm. However, breach of ethic is mostly conducted by employees. 2.)Hold management accountable:While carrying out business at international level it is important to conduct code of ethics. The ethical code of business has separate level among regions and nations. People who are involved in the business have knowledge related to business cultures which are significant in the market(Masulis, et al., 2017).It leads to support the growth of the firm. Director or upper level of management role and responsibility is to focus on code of conduct. Henceforth all the employees who are involved in business activities maintain all the ethical codes which are adopted by the firm as because it leads to create specific image in the mind of customers. 3.)Build image in market:In order to build reputation firm, need to put lots of efforts. Along with this to enhance market share with positive reputation help company in gaining competitive advantage. From the starting Auckland transport focus on creating a positive reputation in the market through satisfying customers(Powell and Gard, 2015). Along with this, firm also shows their ethical codes in their websites. It supports in making sure that all their activities are aligned with their codes and prepare positive image in the mind of customers and employees. It also helps in creating customer loyalty and creating effective image in market. 4.)Internal focus:in order to accomplish goals of the firm code of ethics play significant role. It becomes easy for the firm to meet the target of the firm when all employees and stakeholders follow ethics. Along with this it supports firm in encouraging social changes through the help of creating awareness by advertising and marketing. Auckland transport company emphasis on providing equal opportunities to employee(Berglund and Helander, 10
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2015). Along with this diverse culture people are provided training and development facility. Furthermore, it focusses on keeping quality of the product and try to enhance satisfaction level of customers. They also ensure that nor production or manufacturing process can harm the environment c.) Application of the code to common dilemmas: At the time when firm face any type of difficulty while selecting a solution between two or more choices and both the alternative are essential then it is called ethical dilemma (Ransbotham, 2015). In other words, for firm when it became tough to choose between alternatives and make decision between good and bad then such type of situation is known as ethical dilemmas. Green environment: In sustainability main points which can be discussed are such as dilemmas which are can be experienced by the firm. Among all of this one of it product development which can be accomplished with the help of innovation. They can focus on adopting changes which take place in current time for sustaining products manufactured by them. There are some external factors which can affect the it such as market share, inflation, competition etc. Auckland transport company is focusing on providing products and services which are eco-friendly and expensive(Dertwinkel-Kalt, 2016). Their products are different from competition and of high quality which can easily grab attention of customers. Along with this, in order to expand business profit, play significant role but social responsibility is also considered as one of the essential factor that help in expansion of the business. Therefore, it can be stated that Auckland transport company is delivering eco-friendly goods and services which help in reducing power consumption, recycled wastage and minimise carbon dioxide(Shivarajan, et al., 2015). Selection and recruitment process: At the time of selecting and recruiting candidates companycanfacedilemmas.Forinstance,hiringofskilledcandidates,recruitment, performance, health and safety etc which are implemented by Auckland transport human resources department(Flynn and Okuonzi, 2016). In order to maximise profit firm, focus on hiring skilled employees. The firm do not make any type of discrimination while carrying out selection process. Along with this, all the issues which can be faced by employees are effectively deal by human resources department within the firm 11
Personal friendship: -In a firm personal relationship also put an individual in ethical dilemma. All employees function into different position in the organization. Conflicts of interest is the close the home hobby of the employees is does not collaborate the company. In the organization to break the rules and regulation is create the problem and the organization is harmful. In the company knows the employee who is break the rules and regulation is create the problems the specific person(Berglund and Helander, 2015). In this situation the particular employees attentive the regarding senior management. The company impact the honesty of the person if they not aware to high level management. 12
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