Corporate Social Responsibility Challenges for Coca Cola

incarnate sociable Responsibility Ch all in allenges for coca plant the skinnyCorporate societal responsibility (CSR) promotes a vision for the accountability of agate linees in a simple range of stakeholders beyond sh beholders and investors. The main areas of interest of CSR are the protection of the environment and welfare of conk outers, community and auberge at large, twain today and tomorrow.The concept of CSR is base on the idea that companies are no merely independent, scarce they are closely connected to the society. The traditional views on the competitiveness, survival and goodability of traffices no grandish exist.The Coca weed Company has fully implemented all the variables of CSR. While it is non a beau monde that applies dish one(a)st practices ( such as Mc Donalds), it could be said that it seeks the maximization of profit but also believes in CSR and the contribution of the business to the prosperity of society. However, there is a difference. It h as gone much further and has wear outed a code of ethical business conduct. This business conduct is communicated to all implicated parties.Terms of referenceCorporate Social ResponsibilityStakeholdersBusiness EthicsMultinational CompaniesProcedure (Methodology)The present paper is based on discussing corporate complaisant responsibility theory and how the Coca genus the skinny Company implements it.The research is based on CSR literature and the Coca Cola Corporate Social Responsibility written report as well as on some informal interviews with executives of Coca Cola Hellas.Some of the reasons that make companies adopt CSR principles are1. The shrinking role of government.The decrease of government funds, coupled with the growing distrust of the state regulations has led to the implementation of spontaneous and non-regulatory initiatives.2. The existing demands for greater corporate disclosure.There is an increasing demand for corporate disclosure on behalf of the stakehol ders involved, such as customers, suppliers, employees, etc.3. The increasing interest of customers.There is evidence that the ethical behaviour of companies has an increasing beguile on customers purchasing decisions.4. Growing investor pressure.A survey by International Environics (Frazer 2005), revealed that more than one behind of the shares Americans own, was purchased by taking into account the ethical values of the companies.5. The competitive labour markets.Employees seek more than vindicatory a salary and bonus. They want employers whose philosophies and operating practices suit to their own values. To be able to recruit and clutches qualified employees, companies are obliged to improve working environment.6. Relations with suppliers.Since interested parties are increasingly implicated about business matters, some(prenominal) companies take steps to ensure that their partners behave in a socially responsible manner (Alexander and Buchholz 1978).Some of the positive re sults that can occur when companies adopt corporate social responsibility are the followingBenefits for the bon tonImproved economic performance.Lower operational costs.Improved brand mankinds figure and play along reputation.Better sales performance and customer loyalty.Increased proceedsivity and quality.Increased ability to hang in qualified employees.Access to funds for capital purposes.Diversified employees/workforce.Safe products.Benefits for the community and the publicCharitable contributions.Employee pop the question programs.Corporate pursuit in community programs in education, employment and programs for the homeless.Product off the hook(predicate)ty and quality (Arlow and stem 1982).The concept of corporate social responsibility is now established in the global business agenda. However, many hindrances need to be overcome.An important challenge for the modern enterprise is the need for more veritable encourage indicators in corporate social responsibility, a long with the implementation of CSR strategies. The issues of dialogue and transparency can help the business be more reliable, and at the like time to reach the standards of other firms (Dierkes 1990).Critics of CSR, question the relationship of CSR to the constitution of the business and believe that its incentives are insincere and hypocritical. They believe that it is more efficient to impose governmental and external regulations to make sure that companies act in a manner that is socially responsible.With regard to the relationship of CSR to the temper of the business, critics argue that the aim of the business is production and profit maximization for shareholders. Theorists such as Milton Friedman and others go a step further and argue that the goal of companies is to maximize returns to shareholders, and that wholly people can have the social responsibility, companies are only responsible for their shareholders and not for the society as a whole. While acknowledging that companies should respect the laws of the awkward in which they work, they have no further obligation to the society. Some people think that corporate social responsibility is conflicting with the nature and purpose of the business, but also that it is an obstacle to free trade. Those who argue that CSR is incompatible with capitalism and in favour of neoliberalism suggest that improvements in health, human life and infant mortality are due to the economic growth ca accustomd by the free business activities.In the theory and criticism to the CSR, the insularism of firms according to their behaviour in relation to profit / morals is included. Under this separation, the behaviour of enterprises is defined as follows1. The Amorals who seek only to maximize profit and return profits to shareholders.2. The Loyalists who believe that their only obligation is not to derogate the law.3. The Sympathizers who recognise the need to listen to the messages of society.4. The Suspicious, in ot her words, the businesses that understand the need to combine profit with morality and make corporate values.5. Finally, the Believers who are the firms that have developed and follow a code of ethics which has been notified to all interested parties (Caroll 1991).Most businesses (the Coca Cola gild is among them) are between the two poles i.e., on the one hand, they want to achieve profits and have satisfied shareholders and on the other they want to accommodate to the social imperatives) and the current trend is that CSR can improve to a large extent long-term business profitability because it minimizes the risks and weaknesses and offers a range of potential benefits such as improved brand image and the involvement of employees.Other critics of CSR argue that some companies like the British American Tobacco, etc. use CSR to distract public attention from ethical issues raised regarding their core operations. They argue that some companies start CSR programs for the commercial b enefits enjoyed by ski lift their reputation in the public or the government. They argue that companies exist only to maximize profits, and they do not promote social interests (Frazer 2005).Another problem is when companies promote CSR, they are also committed to sustainable development, but in reality, they engage in harmful business practices. For example, Mc Donalds while it promotes CSR, the salaries of its employees are very low. They work in unhealthy environments, and its products are a health risk because of their high fat content.Despite these problems and the use of CSR by certain companies to cover up bad business practices it could not be supported that all companies operate in the same way.FindingsAccording to the Coca Cola Corporate Social Responsibility Report (2010) the CSR programme of the company is the followingThe main bearing of the CSR programme is Sustainability. This is expressed through the accomplishs of the company in the following areas consumer healt h, packaging and cycle, water stewardship, employee development, involvement of suppliers and energy and climate.Regarding of Consumer Health, the company wants to meet the modern life trends of consumers. For this reason, it has broadened the product portfolio with products that are not fattening, and it has reduced the amount of calories in its drinks by 88% according to school beverage guidelines. It has also supported Michelle Obamas campaign (Lets Move) with the initiative Clear on Calories.With respect to the axis of Packaging Recycling, the company introduced PlantBottle, which is a fully recyclable PET bottle made from a blend of petroleum based materials and up to 30 per cent of plant-based materials (Coca Cola CSR 2010). Coca Cola has also managed to achieve high recycling rates of its bottles (99 per cent in Europe and 92 per cent in North America).Regarding Water Stewardship, the company strives to improve the efficiency of water use. It has improved the use of water by 3.5 per cent from 2008. It current clean water use ration to make one litre of its products is 1.67 litres.The development of employees is a further objective of the CSR of the company. The company believes that employees are the foundation for success. In its previous CSR programs, Coca Cola has created special programs to attract, retain and develop the skills and abilities of employees. These programs enable employees to properly exploit their potential while developing leadership skills and talents needed by the company in all sectors and in all countries. Its current CSR programme promotes employees equality regarding diverse cultures. According to the early Employee Engagement Survey, Coca Cola has improved the levels of its employee engagement, whereas on the Corporate Equality Index of the Human Rights electioneering it has received a 100 per cent score.Finally, with regard to energy and climate, the company co-signed the Copenhagen Communique. It was a supportive acti on to the global agreement on climate change. For the second year in the row, it has reduced company degree Celsius footprint.RecommendationsCoca Cola was based on the 6 pillars of business ethics i.e. contribution to economic growth, public and preservation of jobs, contribution to training, protection of the natural environment, contribution to the development of the region and finally contribution to the contradict against social rejection (Lantos 2001).To achieve these goals, Coca Cola involved all stakeholders i.e. employees, shareholders, consumers and their movements, and local governmental bodies and NGOs.If the pillars are examined one by one the following can be seenFor the employees, Coca Cola has created a healthy and safe working environment, it is against discrimination (in terms of gender, race, nationality), the remuneration offered to employees is satis incidentory (Coca Cola supports that the wages offered are above the come level of wages, and that it implemen ts benchmarking regarding remuneration).Regarding consumers, Coca Cola is famous for its marketing abilities. Given its global nature, it pays special attention to the contrastive cultures of people. Furthermore, it targets both to the moral and sustainable consumption through the production of environment-friendly (regarding the chemical composition, packaging, etc.) products. It has also set up recycling programs for their products and consumer training programs to recycle its products.Coca Cola has followed all the basic rules of the CSR theory, and its programs are successful. Its programs are long term and include many activities. Its schema includes environment care, dialogue with all stakeholders and is in line with both its history and activities.Coca Cola provides job positions and is taxed. For example, Coca Cola Hellas specifically paid 100 meg euros in income taxes. 1,084.1 million euros in salaries and benefits and 2,441.8 million euros to suppliers for materials req uired e.g. packaging and services.Coca Cola is also interested in philanthropy. In 2007 it gave more than 10 million euros to charity programs.The aim of all these programs is the achievement of sustainable development and where this is not achieved to the desired level, Coca Cola has established the necessary controls to achieve it by ever-changing the rules and models.In this context, Coca Cola uses and social invoice, which is the disclosure of data (other than financial) on the activities of the company in social, ethical and environmental issues. This disclosure is not required by law. Coca Cola publishes an annual Corporate Social Responsibility Sustainability Report, which is included in the material provided to stock exchange markets for investor information.In order for social accounting to present factual and reliable data, Coca Cola implements annual audits and inspections by external partners. At the same time, it has created management systems (including all operation al functions) to achieve this aim. Communication with all stakeholders is a key element of its strategy because this is the only way it can achieve continuous improvement in every activity.Consequently, the CSR programs of Coca Cola are considered as highly successful and worthy of emulation by other companies. Coca Cola appears to have long term CSR programs because every year it communicates its actions and its faith in it. The author suggests to continue do so because the global conditions (economic, social) impose CSR programs and on the other hand, it is a way to give value and hence achieve a sustainable competitive advantage.The value includes all stakeholders. The suppliers feel that they cooperate with a reliable company that respects its agreements and society and is a partner who will help them grow. Employees acquire a moxie of identity and identification with the company because it respects human rights and recognizes their contribution. look upon for the customers b ecause they see that the company produces products that respect human health and the environment in which they live. Value for partners (banks, etc.) who perceive that the company is trying to develop and understand the messages of the market. Value for shareholders because the company remains a leader, understands the needs of consumers, acts accordingly, and as a result it is profitable. Value to society by offering programs that governments cannot provide and aimed at improving the quality of life of people suffering.All these lead at long last to profit maximization and the market value rises and as a result the company is not only profitable but also consumers have a positive opinion about it.ConclusionsCoca Cola is a multinational company. As such it has to implement management practices worldwide. Therefore, it establishes standards in all its operations and victimization of employees, and environmental destruction are out of the question. On the contrary, it implements CSR programs for environmental protection as well as charity programs.It has also never been involved in corruption issues or in issues involving child labour.However, it recognizes the fact that there is always place for further improvements in employee and environmental issues. Therefore, each annual Coca Cola CSR report includes additional practices in these areas.