Analysis of Coca-Cola's Governance, CSR Policy, and Epsilon Case Study

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Homework Assignment
AI Summary
This assignment analyzes Coca-Cola's governance and management structure, presenting it through governance charts that illustrate power distribution across different divisions and geographical regions, emphasizing a top-down approach. It then develops a CSR policy statement for Coca-Cola, aligning with triple bottom line principles, focusing on local area welfare, ecological balance, and infrastructure development, with a commitment to water conservation and enhancement of human life quality. The assignment also addresses the Epsilon case study, where a marketing services company faced a data breach. It assesses Epsilon's fault, highlighting criminal negligence in data security and third-party misuse, and recommends damage control measures, including investigation, compensation claims, and leveraging the situation to demonstrate the company's strength. References to academic literature support the analysis.
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Part A Question 1
Governence and Management strucutre Charts for Coca Cola
Governance Chart
The governance chart of Coca Cola gives us an idea about t four divisions working separately to
handle different attributes of the work. Further it shows the geographical divisions of the
company. The Command-line drawn in this chart clearly depicts a top-bottom approach. The first
five squares of the chart denote the policy-making area ladders below show the bodies that are
supervising the actions and their resultants.
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The above mentioned chart shows the bifurcation of one of the divisions of Coca-cola. This chart
clearly indicates that Group president is directly in touch with the subdivisions and units working
under it.
Distribution of the power
The analysis of both charts gives us the idea that the flow of power is traveling with the help of a
top-bottom order. Coca-cola has a strong R&D and during last nine decades they came up with
some path-breaking products and management practices. This chart explains some of their
previous success stories and the role of R&D based power as the key component that supported
other facilities by creating a USP for the product.
Question 2
CSR Policy Statement for Coca Cola
Coca Cola Company is committed to the recommendations made by the triple bottom line. Our
CSR policy clearly believes that every CSR activity is an investment in the direction of the
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welfare of the local area, it's development and the restoration of the natural resource to ensure
proper ecological balance. We have a clear intention of distributing the fruits of the profit with
local areas by involving them as an active stakeholder in the methods and operations adopted by
us. This CSR policy also declares its intentions to develop adequate infrastructure for certain soft
trade activities like tourism and recreation. In order to achieve this target we will establish few
norms of partnership with the local players. The current policy statement of Coca Cola is in
synchronization with the existing attempts made by us in the same direction (Obisi,2013). The
present policy statement also consolidates our undivided commitment towards five core areas of
“healthy and quality life,’ Water conservation, water resource management, Sustainable
packaging and enhancement in human life quality (Lewis, 2003).
Section B
Part 1
Company Epsilon is at fault here, the general formats of the outsourcing contracts make it
mandatory for the companies to install industry-best security solutions and update them on a
regular basis. The role of Epsilon can be brought under the suspicion because they never
regulated an inquiry to make sure that how their data was stolen, it is criminal negligence at their
part. They are also liable for the third party misuse of the sensitive data given under the “right to
privacy “good faith”.
This mishap also brings other players under the scanner; however, this conviction is dependent
on the contract related to the third-party data use. Since it is easier to trace digital crimes with
the help of digital footprints, if investigators can figure out a willful distribution of the sensitive
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data against the wishes or the terms of the third party use then rest of the companies can also be
booked under the acts related to the misuse and mishandling of the data.
Part 2
Epsilon should immediately go for a “damage control drive.” In order to facilitate this damage
control, they should first try to investigate the case of the theft, after figuring out the guilty party
they should try to move ahead and demand compensation from the guilty parties or the insurance
companies. If it is a security breach then, in this case, they can sue the company (Dossick et al,
2008).
Epsilon can also call for third party insurance claims if they are in place. They can covert this
problem into an opportunity. Frauds and cyber thefts are common, however, the ability of a
company to repay them is tremendous, and this is the area where Epsilon can show their real
strength (Lewis et al, 2004).
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References
Dossick, C. S., and Graemer, D. (2008). "In Support of BIM as a Loosely Coupled Networks of
Models." University of Washington, Seattle, Wash.
Lewis, D. (2003) “Theorizing the organization and management of non-governmental
development organizations towards a composite approach”, Public Management Review, Vol. 5
Issue 3, pp. 325–344.
Lewis, D. & Madon, S. (2004) “Information systems and nongovernmental development
organizations: advocacy, organizational learning, and accountability”, The Information Society,
20: 117–126
Obisi, C. (2013), “Organizational Behavior Concepts and Applications”. Malthance Press Ltd, Lagos
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