Corporate Social Responsibility of the Coca Cola Company

Document Type:Thesis

Subject Area:Business

Document 1

Christensen, Mackey, and Whetten (2014, 174) point out that the traditional opinions concerning profitability, survival and competitiveness are being removed away. In this paper, the main concern CSR of the Coca-Cola Company. The corporate case denotes to the essential rationales or arguments backing why the business society need to advance and accept the CSR ‘cause’. The case of the company is focused on the evaluation of the role of corporate social responsibility in the framework of profit as the business key objective. The case also discusses the company strategies applied in enhancing ethics and social responsibilities. That likewise entails how they benefit substantially from involving in CSR practices, activities and policies. According to Panda (2014, 25), the business situation states to the base economic and other motives for corporations pursuing CSR policies and strategies. In coming up with this Coca-Cola case, the work offers depth understanding of how various companies view CSR. Similarly, the paper gives a brief argument of the progressing understandings of corporate social responsibility and certain long-established, scholars ideas which have been put both against and for the notion of organizations assuming the responsibility to the community outside maximizing its monetary well-being and profit-seeking. Consequently, the article assesses the Coca-Cola case and put into consideration the failure/success of the implementations of corporate social responsibility at the operating step given the desire to achieve the needs of stakeholders. The aim is to summarize and describe what the corporate case means from the view of CSR and to review certain practices, study and concepts that have come to portray this advance notion.

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Roles of Corporate social responsibility CSR plays a key role in easing operation of businesses. These includes: Social Responsibility as well as Customer relation One of the key components of corporate social responsibility is that it makes businesses to reason think elementary ethics to put into consideration the benefits of active participation in societies. According to Panda (2014, p26), the contemporary organizations have to prove themselves to consumers to create long-term, believing relationships. The Coca-Cola as well often get engaged in the society’s activities to give back. For example, in some instances, the company in the case sponsor football clubs in various nations. This society relationship endears Coca-Cola business to the home-grown markets where they operate. Motivating Employees Workers are the corporation’s most treasured asset. It is the principle of a business’s obligation to this fundamental stakeholder set regarding corporate social responsibility compliance.

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This implies providing fair working conditions and treating workforces with respect (Saeidi 2015, 345). Coca-Cola Company which need to defend its brand comprehends that social media is the integral section of public insight. If a company practices social accountability in the means of setting up worker providing programs or fundraising, utilizing mass media to encourage these actions aids to make the favorable branding environment (Rao and Tilt 2016, 330). Also, it is a great means to involve the audience in the more profound rate that goes above business services or products. Public Relations Benefits Public links area is an effective instrument for shaping customers believe and creating a corporation’s image. Companies that actively encourage their social obligation actions frequently make efforts to publicize these steps via the media (Chernev and Blair 2015, 1416). The main concern of assuming social responsibility need, consequently, be of the national administration but not for the business enterprises.

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Quantification of social benefits is another reason against CSR (Carroll 2015, 2168). What measures CSR and to what level should a company be involved in it, what sum of capital need to be dedicated to the social values? Whose concern must hold importance over others (suppliers should be chosen over shareholders or the reverse) and many other inquiries are open to subjective concerns that make social responsibility a problematic duty to be assumed. According to Flammer (2015, 1473), every social-benefit programme in which early costs surpass the benefits might never be taken up by initiatives even in a short-run. Lack of competence and skill professionally capable managers cannot have the ability to solve the social difficulties. Customers currently are the kingpin about whom every marketing actions revolve. A customer does not purchase what is presented to them.

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They purchase whatever they need (Wu et al. Companies that fail to fulfill buyer desires can close down anytime. Purchaser sovereignty has, therefore, forced companies to assume social responsiveness in the community. Non-conformance to social standards might entice legislative constraints. Government directly impacts the businesses via regulations that order what they need do and that not (Hopkins 2016, np). Different agencies observe business actions. For instance, issues associated with environmental pollution are taken care of by Central Pollution Control Board, Exchange and Securities Board considers cases linked to investor protection and many others (Schäfer 2016, 449). Businesses that interfere with these policies are levied penalties and fines. Strategies for Promoting Ethics and Social Responsibility The CSR is not merely the suitable public relations tool; it is a crucial element for succeeding in the contemporary business world.

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In the viewpoint of Werhane, Freeman, and Dmytriyev (2017, np), a corporation’s capability to exercise social responsibility might be the difference between the prospect customers choosing its products or selecting the competitor, and current consumers are more focused in to whether or not a company is an accountable co-citizen in the society. Furthermore, efficient corporate social responsibility may advance the business operations, enhance the morale of its persons, and even assist in cutting costs and remain competitive in the market. From sustainability to society support the following are the strategies that are used by Coca-Cola Company to boost company’s ethical and social responsibility practices. Practicing Transparency "The Information era" is greater than the academic moniker, it is a precise evaluation of the situation of the current world. Coca-Coca Company similarly play a More Active Role in the society The managers of Coca-Cola are aware that improving corporate social responsibility implies embracing a dual mindset besides making choices that have a community impact, it as well focuses on its immediate environment and actively pursue to be involved in the local community.

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Singh and Sandhu (2016, 125) mention that a company need always to seek for chances to take part in social activities, both to "do business part" and to ensure the society sees the organization's name at essential local activities, enabling the company to capitalize on public relations benefits and the "soft marketing" of becoming the responsible corporate resident. For the Coca-Coca's positive outcome, it does not leave local commitment as an occasional thought or side-show. Rather, it directly assigns some members of the company's team to design a few weeks of social service in each quarter and as it ensures that its team comprehends its responsibility to enforce those efforts as well as participate in every event. Apart from contributing to community activities and some engagements, Coca-Cola directly supports the local society's business individuals.

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In conclusion, the implementation of CSR has made the Coca-Cola Company succeed in meeting the key demand of stakeholders. Panda (2014, p26) writes that empirical analyses and contemporary theoretical reveal that businesses can strategically involve in socially responsible actions to improve private profits which is the key demand for stakeholders. Provided that the company’s stakeholders might value the business’s social efforts, the corporate can gain extra benefits by succeeding from these actions, comprising: improving the business’s reputation as well as or the capability to extract the premium for its products, the capability to make profits by differentiating its goods, the capability to entice more qualified workforces. To begin with, CSR is significant to a Coca-Cola since it shows to both the media and consumers that the business takes concern in wider social aspects, which have no direct effect on profit margins.

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These aspects might be global, national or local, though the interest for wellness and the health of others which does not entails sales can be observed as commendable. Cheng, B. Ioannou, I. and Serafeim, G. Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), pp. Di Giuli, A. and Kostovetsky, L. Are red or blue companies more likely to go green? Politics and corporate social responsibility. Journal of Financial Economics, 111(1), pp. Epstein, M. I. Measuring Corporate Social Responsibility for competitive success at a regional level. Journal of Cleaner Production, 72, pp. Glavas, A. and Kelley, K. and Serafeim, G. The impact of corporate social responsibility on investment recommendations: Analysts' perceptions and shifting institutional logics. Strategic Management Journal, 36(7), pp. Jamali, D. and Karam, C. D. Corporate social responsibility, customer orientation, and the job performance of frontline employees.

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Journal of Marketing, 78(3), pp. Korschun, D. Bhattacharya, C. Damron, T. and Vernon, J. A Marketing Strategy from Corporate Social Responsibility: Lessons from Unilever and Coca-Cola Enterprises (pp. Panda, S. R. Journal of Business Ethics, 130(3), pp. Rao, K. and Tilt, C. Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making. Journal of Business Ethics, 138(2), pp. Schäfer, H. Corporate Social Responsibility Rating. A Handbook of Corporate Governance and Social Responsibility, p. Schmitz, J. and Schrader, J. International Journal of Engineering and Management Research (IJEMR), 6(3), pp. Uhrich, S. Koenigstorfer, J. and Groeppel-Klein, A. Leveraging sponsorship with corporate social responsibility. Z. Kwan, H. K. Yim, F. H.

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