Corporate Social Responsibility at Coca-Cola

Corporate Social Responsibility at Coca-Cola
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Corporate Social Responsibility at Coca-Cola
Introduction
Due to the growing competition in the global market, multinational companies have resorted to expanding their operations in foreign countries to ensure their continued existence. The lure of adequate skilled labor, availability of resources and favorable regulations also contributes to the move. These firms, therefore, consider corporate social responsibility in their business operations to ensure an overall positive image in the society (Cavusgil, 2016). As for the society, people expect that companies should better their standards of living by providing good infrastructure, job opportunities, health services, education and other factors that are of much necessity to man. Companies should, therefore, consider the quality of their operations and how they affect the general public. Coca-Cola Company is one of such firms. It started out as a small private enterprise managed by Dr. John Pemberton in 1886 (Pendergrast, 2013). The company produces and distributes non-alcoholic soft drinks to the global consumers. Besides, they also sell merchandise to their customers using other brands. Today, the corporation owns approximately five hundred brands that they sell to consumers that are situated in over 200 countries. Notably, the company also serves a population of 1.6 billion people on an average day (Pendergrast, 2013). This paper will, therefore, endeavor to explain unsustainable behavior in multinational corporations, sustainable activities adopted by the Coca-Cola Company and the undertakings of the Company in improving lives in developing countries.

Unsustainable practices in food and beverage companies
According to Cavusgil (2016), corporate social responsibility is the manner in which multinational enterprises make commitments to operate their businesses in an ethical manner and also bear full responsibility for the consequences of their operations, to improve the society. However, it can be argued that most companies in the food and beverage industry have failed to accomplish their social responsibilities. There are allegations leveled against firms for constraining natural resources, disposing toxic materials into the environment and marketing unhealthy products to their consumers. From the nature of their operations, it is evidently clear that some food and beverage firms might be enticed to undertake some unethical behavior that exploits the vulnerability of their locations.
First, some corporations might engage in marketing and selling of unhealthy products to their clients. In 2014, the Asian media group had reported that the Coca-Cola Company had recorded one of the lowest consumer satisfaction records. That was a result of the declarations made by the company’s regulators that the firm has been using chlorinated water in processing their drinks. Such incidences majorly occurred in countries with low water per capita such as China and India (Sahay, 2010). According to Archer, Hand, & Blair (2013), this posed health risks to the consumers as most of these bottling plants are obliged to use fresh water in their manufacturing process. Also, recent studies have pointed out that recurrent drinking of a soda can lead to dental health problems. The acids induced by the chlorinated water corrode the tooth enamel and consequently result in discoloration. In other cases, sugary contents that pose health risks can also be sold to people by these firms. Archer et al. (2015) contend that some sweetened soft drinks have significantly contributed to the rise of depression, obesity, and diabetic patients. In fact, a report released by Michael Bloomberg, the mayor of New York City pointed towards the same. In a presentation prepared by his office, more 5000 deaths together with medical costs amounting to $ 4 billion were attributed to sugary drinks.
Constraining natural resources is an obviously unsustainable undertaking that a food and beverage Company might participate in. Many of these food and beverage companies are very dependent on natural resources such as water, and scarcity of the resource would in many cases result into depletion. Despite being an industry leader, Coca-Cola Company has primarily faced the water challenge across the world. In fact, a Coca-Cola plant was even closed down in India following the local farmers’ claims that the bottling plant was unsparingly using water. The situation was also similar in a bottling facility in Kerala. The community settled in this area argued that the operations of the company had lead to the heightened water shortages, which affected the quality and amount of water. According to Mullerat (2010), the incidents also raised the debate of whether India was a convenient locality for its operations.
Apparently, a beverage company might also indiscriminately dispose toxic materials into the environment. It can either be either indirectly or directly. In developing countries where some multinational enterprises tend to repudiate knowledge to local regulations, irresponsible disposal of production waste into the fields and water bodies is very rampant. In India, the Coca-Cola has also been on the spot for distributing production wastes to an Agricultural community in the form of fertilizer (Mullerat, 2010). Despite demonstrations against such moves, the company declined to acknowledge its fault and insisted that such actions were thoughts of the minority extremists. Also, the company’s bottling plant in Uttar Pradesh was closed down by the local authorities for disposing production wastes into the water bodies that supported the community’s livelihood. Since the corporation an industry leader, it is no doubt that other junior firms might undertake the same out of financial restrictions to deal with the latter.
Sustainability practices adopted by Coca-Cola Company
In the spirit of promoting long-term sustainability, Coca-Cola Company has in the past struggled to champion the implementation of sustainability practices that better the people’s welfare. From the Coca-Cola company 2015-2016 report, it can be deduced that the corporation has done a lot in regards to sustainability.
One, the company has taken part in remarkable commitments for climate and environment protection. For instance, in 2015, an outstanding number of leaders from all over the world gathered at the United Nations Climate Change Conference where they adopted a strategic agreement to tackle climate change on behalf of their countries. This conference presented the Coca-Cola Company an opportunity to take part in the deal. The Company’s CEO, Muhtar Kent also asserts that even before that, they had initially committed climate sustainability initiatives with other bodies. Muhtar also ascended to the Food and Beverage Leadership Statement on climate change. The statement brought together all the food and beverage industry players who promised continued activities towards climate sustainability. Besides, they also worked jointly with the United States government on the American Business Act on Climate Pledge. Those agreements clearly manifest the commitment of the company to making the world a better place for everyone (Coca-Cola, 2016).
Indeed, Coca-cola has made relentless efforts in achieving sustainable packaging in almost all of its bottling plants. Packaging is very critical to the safety of Coca-Cola products, and, therefore, the company has concentrated on sustainable packaging to better their profile on waste and emissions to the environment. That is owing to the contention that packaging is the greatest contributor to the company’s systems carbon trace. In the previous year, the company has effected many alterations including packaging design, use of packaging recycled materials and advocating for recycling programs. Currently, the company has millions of PlantBottle packages in their areas of operation, and that has seen the reduction of over 300,000 metric tons of carbon dioxide emitted to the environment (Coca-Cola, 2016). Additionally, the company has also achieved a major milestone in regards to packaging innovation and today; they are using fully eco-friendly PET plastic bottles that are manufactured using renewable plant materials.
From the company’s 2015-2016 report, they have also remained very keen on Agricultural sustainability. The company comprehends agricultural sustainability as the ability of their farm product suppliers to meet certain standards concerning human work, environmental protection and proper farming management (Coca-Cola, 2016). The company is, therefore, working with their bottling partners to collaborate with farmers and the community to bring about a sustainable agricultural supply management. It has specialized in assessing the environmental conditions on behalf of the farmers through their experts. Also, the company has carried out nation-based studies on forced labor and land rights to create awareness. Intensifying operations with small-scale farmers is also underway to encourage sustainable agriculture. A more apt illustration is the partnering with Jinjing Tea Company in China to introduce sustainable products.
Coca-Cola Company in developing economies
In developing countries, water and women empowerment have been the center of focus for Coca-Cola Company. Water is essential in supporting flora and fauna; and the company has therefore made significant strides through water efficiency programs to reduce their utility rate, recycle used water and distribute it to the communities where they operate. South Africa which is an anomaly developing country has significantly benefited from the Coca-Cola goal of replenishing water to its sources. It is working with every bottling partner in the region applying source water protection plans. Through the 5by20 initiative, the company has also managed to empower women in developing countries. The women are supported in overcoming market barriers, funding and training to help them support their families and the community as a whole (Sahay, 2010).
Conclusion
It is of an essence to conclude that corporate social responsibility forms an integral part of many organizational strategies. From the above discussions, Coca-Cola Company is depicted to have contributed both positively and negatively to the society. The company has been identified in environmental issues regarding water constraints, pollution and health risks in the community. Positively, it has also focused on climate change, sustainable agriculture and sustainable packaging in improving the society. Women empowerment and water efficiency have also been pointed out as the major contributions of the Coca-Cola to Africa. Multinational enterprises should, therefore, consider corporate social responsibility in selling their brands and improving the world.

References
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Coca-Cola Company. (2016). 2015-2016 sustainability report: For the year. Georgia.
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Pendergrast, M. (2013). For God, Country, and Coca-Cola: The Definitive History of the great
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Sahay, A. (January 01, 2010). Philanthropy, CSR, and Sustainability.