Coca-Cola's Corporate Social Responsibility: Practices and Critiques

This essay provides a detailed analysis of The Coca-Cola Company's Corporate Social Responsibility (CSR) initiatives, examining both the company's claims of ethical behavior and criticisms of its practices. It begins by outlining Coca-Cola's involvement in the UN Global Compact, its community support programs, sustainability efforts, and innovation initiatives. However, it also explores allegations of land pollution, crimes against humanity, child labor, and water depletion associated with the company's operations. The essay discusses the disconnect between the company's stated policies and its actual practices, the challenges faced by multinational organizations in maintaining ethical standards across global operations, and the potential harm caused by misrepresentation of products. It concludes by highlighting the importance of corporate responsibility, anti-corruption measures, sustainability, and bringing happiness to the lives of people, suggesting that integrity is paramount for long-term success and customer trust. Desklib provides access to similar essays and study tools for students.

Running head: CORPORATE SOCIAL RESPONSIBILITY 1
Corporate Social Responsibility
Student’s Name
Institution Affiliation

CORPORATE SOCIAL RESPONSIBILITY 2
Corporate Social Responsibility
Contents
Introduction................................................................................................................................................3
Task 1A........................................................................................................................................................3
Global Compact.......................................................................................................................................4
Community Support................................................................................................................................4
Sustainability..........................................................................................................................................5
Innovation...............................................................................................................................................5
Remove Social Barrier.............................................................................................................................5
Task 1B........................................................................................................................................................6
Land Pollution.........................................................................................................................................6
Crimes against Humanity........................................................................................................................6
Child Labour............................................................................................................................................7
Depleting Water Level............................................................................................................................7
Court Cases.............................................................................................................................................7
Task 2..........................................................................................................................................................7
The Disconnect........................................................................................................................................7
Challenges of multinational organizations.............................................................................................8
Misrepresentation of a product Kills......................................................................................................8
Task 3..........................................................................................................................................................9
Corporate Responsibility........................................................................................................................9
Anti-Corruption.....................................................................................................................................10
Sustainability........................................................................................................................................10
Bring happiness to Lives of People.......................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

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Introduction
The Coca-Cola Company is a global brand with its business tentacles reaching most
corners of the habitable earth. The monstrosity of the company’s operation raises concern that
to make a healthy profit, it has to be exploitative in some of its operations, and in fact, there
have various complaints about its operations in some developing countries. However, according
to the company’s Corporate Social Responsibility (CSR) Reports that it releases every year, it is
as white as snow and makes the allegations look like witch-hunt sponsored by jealous
competitors. Furthermore, the funds many CRS programs across the globe to the tune of
billions of dollars, which on the face of it looks quite impressive. The amount of the money the
company spends on CSR dwarfs some nations GDP. However, compared to the profits that
Coca-Cola Company rakes in within a financial year, it can do more.
Task 1A
On visiting the Coca-Cola Company website, one is left with the distinct impression that
this is a company that truly cares for the world. Its CSR-funded activities range from those
supporting the people to earn a livelihood to those activities that enhance environmental
sustainability. Most of the organisation’s activities are rooted in the developing countries where
the people need all the support they can get. To their credit, the company has used the CSR
activities to promote and positive brand image in the eye the eyes of the consumer (Pelberg,
2014).

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Global Compact
Coca-Cola is one of the companies that have signed up and endeavour to support the
UN Global Compact (The Coca-Cola Company, 2012). The UN Global Compact is a commitment
that encourages businesses to ensure the realisation of human rights in their business
operations. In the labour principles of the UN agreement, organisations commit to abolishing
child labor and forced labour and eliminate any discrimination. Under the principles dealing
with the environment, the companies under the UN Global Compact deal are expected ensure
that sustainable operations which included using environmentally friendly technology and
operations and funding environment conservation efforts. The final requirement in the
agreement is that a business eliminates corruption from all its operations wherever it operates
across the globe.
According to the company’s CSR reports, it adheres to the principles outlined in the UN
Global Compact agreement. First, the company has spent over $850 million in its CSR activities.
The CSR activities include providing clean drinking water to communities hard-hit by drought
and also supports the education of the youth and women empowerment economic activities in
countries across the globe (The Coca-Cola Company, 2018).
Community Support
Coke funds and participates in community activities in areas where it operates. In as
much as these activities are primarily for public relations and advertisement, they do support
the community. The company spends about 1% of its annual income in such community
empowerment programs.

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Sustainability
Sustainability is a concept that deals with the idea that all of an organisation’s processes
from extraction to the consumption of a product or service are serves the current generation
and does not compromise the ability of the next generations to do the same. The Coca-Cola
Company has made steps in the right direction on sustainability which includes the use of
agricultural products as ingredients in their products and makes packaging materials from pulp
fibre. The company partners with stakeholders such as farmers to produce environmentally
healthy products for their operations and at the same time empowering them by paying
premium prices for the products (The Coca-Cola Company, 2017).
Innovation
Coke endeavors to produce the best products at with the latest technology. Canada is
one of the company’s renovation arenas and they have been experimenting with production of
unique packaging such that no two coke bottles resemble each other. Also, the company,
together with other partners such as HP is embarking on using the latest technology in digital
printing (Whitehead, 2016).
Remove Social Barrier
In its efforts to remove the social barriers between able bodied people and those living
with disabilities, the company funded a Coke Studio event in Pakistan. The event was aimed at
allowing people who could not hear experience music through other senses. During the event,
there was a specialized chair and that vibrated and LED lights in tune with the music allowing
people with impaired hearing experience music (Staff, 2016).

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Task 1B
Contrary to the rosy picture the Coca-Cola Company paints of their exemplary CSR
policies and practice, information from third-party actors seems to suggest that it is all public
relations. Research reports by recognised organisations indicate that the company breaks most
of its stated policies and signed treaties and in fact engage in activities that destroy the
environment and directly endanger human life.
Land Pollution
The Coca-Cola Company has been accused of spreading the waste sludge from its
factories in Uttar Pradesh by passing it off as fertilisers to the neighbouring farmers. Chemical
analysis of the sludge indicated high percentage contents of harmful chemicals such as
Cadmium, Lead, and Chromium (Lype, 2003). The land pollution and poisoning of agricultural
land with the same chemicals led to the closure of the company’s factory at Plachimada, Kerala
(Srivastava, 2006).
Crimes against Humanity
The Coca-Cola Company stands accused of abetting torture, murder and rape of Union
Leaders and or members of their families. In Guatemala, for instance, the company was taken
to court for being accomplices in the torture, rape, murder, and disappearance of either union
members or their families. The crime the victims to attract the wrath of the company was to
organise and call for improved working conditional and wages (Killer Coke, 2003). According to
Organic Consumers (2010) Association, the company routinely commits crimes against the
union’s members and their families taking advantage of a weak judicial system that allows turns
a blind eye to the suffering of the people.

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Child Labour
In most sugarcane plantations, children as young as eight years work as labourers. These
are the plantations that provide sugar for the Coca-Cola Company, which means that the
company indirectly uses child labour in its productions (Human Rights Watch, 2004). In El
Salvador, the children are labelled as helpers to avoid scrutiny from the authorities and
humanitarian organisations. Furthermore, in these plantations, if the children get injured in the
course of duty, they have to take care of their medical bills (Lobe, 2009).
Depleting Water Level
Coke is facing accusations in India that it is using too much underground water. Coke
industries are water intensive, and the fact that there are over 50 plants in India means that it is
consuming a lot of the underground water. The accusations that it is depleting the underground
water resources may have some merit.
Court Cases
The company brags of its ethics in running its business operations, but from time to time
it finds itself in court answering to various charges of misconduct. The most Recent was a case
in which it the plaintiffs accused the company of misleading the consumers in its
advertisements. Also, Scientists and health professionals have accused the company of funding
some non-profit organisations that propagate ideas favourable to its products (Anahad, 2016).
Task 2
The Disconnect
In its website and other press releases, Coke comes out as one of the most ethical
companies to ever conduct business on planet earth, but a closer look at its operations across

CORPORATE SOCIAL RESPONSIBILITY 8
the world seems a little different and leaves a lot to be desired. On the one hand, the company
states that it does not condone some actions such as child labour yet it works with plantations
that have a proven past of employing the same. Another instance of disconnect between policy
and practice is its support for the apartheid regime in South Africa, yet it states that it does not
support discrimination. These are just examples to indicate that the company talks more and
does less.
Challenges of multinational organizations
Multinational organizations face the challenges of expansion. It is possible to maintain a
tight leash on a small organization but as it expands and management becomes more
decentralized, the top management no longer has the ability to control each and every aspect
of the dispersed units. The managers on the ground take over the daily running of their
departments and some are bound to make mistakes. It is understandable that because of its
global reach some of its local employees in those countries might conduct business operations
in ways centrally to the norm in the company. However, the company owes the affected people
a duty of care by at the very least investigating the allegations and stopping it. Also, it may like
to consider compensating the people and the communities affected.
Misrepresentation of a product Kills
The sins of misrepresenting facts to hide some truth or telling outright lies to the
consumers are not just immoral; it is harmful. The company exploits the weaknesses in its
consumers such that they love the coke products so much that they are waiting for an excuse to
consume the products. Some people are so addicted to the coke products that even when they
have ailments like diabetes, they are willing to risk it all for a bottle of their favourite drink.

CORPORATE SOCIAL RESPONSIBILITY 9
When the company comes up with advertisements saying that it is sugar-free or calorie-free,
the consumer with who has been diagnosing with diabetes will go right ahead and enjoy his
coke in the process endangering his/her life. In fact, there is a case of a fan of the coke products
who took too much of the same which ended her life (Seeker, 2013).
Task 3
The company has made strides in its ethics department to ensure that it can comply
with the various external and internal motivators. In a company or an organization, integrity is
paramount and any company which disregards this aspect of their organization suffer in the
long run as customers no longer trust them.
Corporate Responsibility
The Coca-Cola Company takes its Corporate Social Responsibility seriously. To this end,
the company established a Social Reputation Council comprising of managers drawn from
various department of the company. The council is charged with the responsibility of
conducting SWOT analysis in the company regarding CSR activities and recommending
appropriate action to solve the problem (The Coca-Cola Company, 2016).
So far the Social Reputation council has been instrumental in enabling the company to
increase its spending on CSR activities and projects from 1% of the annual income in 2014 to
the current 1.3%. The money is spread across the globe, especially in the developing countries
to support various programs such as health and sanitation, youth and women empowerment,
and environmental conservation. Examples of the programs that the organisation supports
include “Ripple of Happiness” and “The Price of water” in the Middle East and India
Respectively (The Coca-Cola Company 2017).

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Anti-Corruption
According to the information available on their website, the Coca-Cola Company
endeavours to prevent incidences of corruption in all its operations in the world. To this end,
the company has comprehensive anti-corruption police that binds all the employees to operate
in a corruption-free manner without giving or receiving bribes or unwarranted favours that may
compromise the integrity and reputation of the company. The organisation ensures that all its
employees conduct their activities with integrity in all the countries that the coca cola operates
in. The company employs the use of internal audit risk assessment reports to evaluate its risk of
corruption and act accordingly to solve the issues (The Coca-Cola Company 2017). There are
challenges in some countries, especially in the developing countries where the senior
government officials demand kickbacks before they company can be allowed to enter the
market. The management recognizes these challenges and tries to deal with them the best way
they can without hurting Cokes opportunities of establishing the business.
Sustainability
Sustainability is a concept that deals with the idea that all of an organization’s processes
from extraction to the consumption of a product or service are serves the current generation
and does not compromise the ability of the next generations to do the same. The Coca-Cola
Company has made steps in the right direction on sustainability which includes the use of
agricultural products as ingredients in their products and makes packaging materials from pulp
fibre. The company partners with stakeholders such as farmers to produce environmentally
healthy products such as sugar for their operations and at the same time empowering them by

CORPORATE SOCIAL RESPONSIBILITY 11
paying premium prices for the products (The Coca-Cola Company, 2017). The Coca-Cola
Company strives for sustainability in its operations which include the use of agricultural
products as ingredients in their products.
Bring happiness to Lives of People
Coke brands its products not as mere beverages to be consumed but as part of enjoying
life. The company encourages its consumers to share pictures having fun with the coke
products as the life of the party. The “spread happiness” message may look frivolous, but it
resonates well with the consumers because life is tough and people need to be encouraged to
enjoy life and get relief of the stress that build-up as we go through life. The slogans work by
encouraging people to trudge on and whenever they can spare the time they enjoy it to the
fullest.
Conclusion
Coke Company is one of the biggest beverage brands in the world with operations in
almost all habitable corners of the earth. For a company its size and the CSR activities it carries
out, it is plain that it is punching below its weight. Coke has a huge presence across the globe
which makes management a challenge resulting in some of its managers in far-flung corners of
the earth engaging in business practices that are contrary to conventions and even contrary to
its policies. The company is, however, working hard to rectify its shortcomings.

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References
Anahad, O. (2016, October 10). Retrieved from Coke and Pepsi Give Millions to Public Health,
Then Lobby against It: https://www.nytimes.com/2016/10/10/well/eat/coke-and-pepsi-
give-millions-to-public-health-then-lobby-against-it.html
FSRN. (2016, March 11). Retrieved from Coca-Cola shuts three bottling plants in India amid
severe water shortages: https://fsrn.org/2016/03/coca-cola-shuts-down-three-bottling-
plants-in-india-amid-severe-water-shortages/
Human Rights Watch. (2004, June 9). Retrieved from El Salvador: Child labour on sugar
plantations: http://www.eldis.org/document/A20107
Killer Coke. (2003, August 26).Tell Coca-Cola to stop the violence: Retrieved from tell Coca-Cola
to stop the violence: http://www.modamania.es/index2_IW_PC.php?
formato=500aye6b1314&a=1533254756mb15654607258
Lobe, J. (2009). Organic Consumers. Retrieved from Coca-Cola exploiting child labour in
Salvador rain Sugarcane Plantations:
https://www.coca-colasrbija.rs/content/dam/journey/rs/sr/private/pdfs/Human-Rights-
Report-2016-2017-TCCC.pdf
Lype, G. (2003, August 4). Redif India Abroad. Retrieved from Sludge at Coke factory is deadly:
http://www.rediff.com/money/2003/aug/05spec2.htm
Organic Consumer Association. (2010, March 1). Retrieved from Coca-Cola hit with new
charges: http://www.digitaljournal.com/business/business/op-ed-coca-cola-and-the-
power-of-brand-association/article/392411