Corporate Public Responsibility in the Coca Cola Company


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Corporate Public Responsibility in the Coca Cola Company

Corporate sociable responsibility (CSR) helps bring about a eye-sight for the accountability of businesses in a wide range of stakeholders beyond shareholders and investors. The main regions of interest of CSR are to protect the surroundings and welfare of staff, community and culture at large, both today and tomorrow.

The concept of CSR is dependant on the idea that companies can't become isolated economic entities operating remote control from society. The traditional views on the competitiveness, success and success of businesses no longer exist.

The Coca Cola Company has completely carried out all the variables of CSR. While it is not a company that can be applied dishonest practices (such as Mc Donald's), it could said that it looks for the maximization of income but also is convinced in CSR and the contribution of the business to the prosperity of culture, but there's a difference. It has gone much further and has developed a code of moral business do. This business carry out is communicated to all interested gatherings.

Terms of Reference

Corporate Community Responsibility


Business Ethics

Procedure (Technique)

The present newspaper is based on discussing corporate interpersonal responsibility theory and how the Coca Cola Company implements it.

The research is dependant on CSR literature and the Coca Cola Corporate Public Responsibility Article as well as on some casual interviews with executives of Coca Cola Hellas.

Some of the reasons that make companies adopt CSR concepts are:

1. The shrinking role of federal government.

The decrease of government funds, in conjunction with the growing distrust of their state regulations has resulted in the execution of voluntary and non-regulatory initiatives.

2. Demands for greater corporate disclosure.

There is a growing demand for corporate disclosure by the stakeholders involved, including customers, suppliers, employees, areas, traders, and activist organizations.

3. The increasing interest of customers.

There is information that the ethical behavior of companies has an increasing impact on customers' purchasing decisions.

4. Growing investor pressure.

A study by International Environics (Frazer 2005), discovered that more than one 1 / 4 of the stocks People in the usa own, was purchased by taking into consideration the ethical worth of the companies.

5. The competitive labour markets

Employees seek more than only a salary and reward, they want employers whose philosophies and working practices suit to their own worth. To be able to recruit and preserve trained employees, companies are compelled to boost working conditions.

6. Relationships with suppliers.

Due to the fact that interested people are increasingly worried about business concerns, many companies take steps to ensure that their associates react in a socially in charge manner.

Some of the positive results that may appear when companies choose corporate sociable responsibility are the following:

Benefits for the business:

-Improved financial performance.

-Lower working costs.

-Enhanced brand image and reputation.

-Increased sales and customer commitment.

-Increased productivity and quality.

-Increased potential to draw in and maintain employees.

-Reduced regulatory oversight.

-Gain access to to capital.

-Workforce diversity.

-Safe products.

Benefits for the city and the general public:

-Charitable efforts.

-Staff volunteer programs.

-Corporate engagement in community programs in education, job and programs for the homeless.

-Product security and quality (Arlow and Cannon 1982).

The idea of corporate sociable responsibility is now tightly rooted in the global business agenda. But to move from theory to concrete action many hurdles have to be overcome.

A key problem for the modern enterprise is the necessity to get more detailed reliable progress indicators in corporate cultural responsibility, along with the dissemination of CSR strategies. Transparency and dialogue can help to make a company more reliable, and at exactly the same time to reach the benchmarks of other businesses (Dierkes 1990).

Critics of CSR, question the partnership of CSR to the type of the business enterprise and assume that its bonuses are insincere and hypocritical. They assume that it is better to impose governmental and international laws to ensure that companies behave in a socially sensible manner

With regard to the partnership of CSR to the type of the business, critics argue that the purpose of the business enterprise is creation and earnings maximization to shareholders. Theorists such as Milton Friedman as well as others go a step further and argue that the goal of companies is to increase results to shareholders, and this only people can have public responsibility, companies are just in charge of their shareholders rather than for society all together. While acknowledging that companies should value the regulations of the united states in which they work, they haven't any further responsibility to the world. Some people feel that corporate social responsibility is incompatible with the type and purpose of the business enterprise, but also that it is an obstacle to free trade. Those who claim that CSR is incompatible with capitalism and in favour of neoliberalism dispute that advancements in health, durability and / or child mortality have been created by economical development of the free business activities.

In the theory and criticism to the CSR, the separation of firms relating to their behavior in relation to earnings / ethics is roofed. Under this parting, the behaviour of businesses is thought as follows:

1. The Amorals who seek and then maximize earnings and return profits to shareholders.

2. The Loyalists who assume that their only obligation is never to derogate the law.

3. The Sympathizers who realize the need to listen to the information of contemporary society.

4. The Suspicious, in other words the firms that understand the need to combine earnings with morality and make corporate and business values.

5. Finally, the Believers which will be the firms that have developed and follow a code of ethics which have been notified to all or any interested functions.

Most businesses (the Coca Cola company is included in this) are between your two poles (i. e. on the main one hand they want to achieve profits and also have satisfied shareholders and on the other they want to conform to communal imperatives) and the current trend is the fact that CSR can significantly improve long-term commercial profitability because it reduces the risks and weaknesses and will be offering a range of potential benefits such as improved upon brand image and the participation of employees.

Other critics of CSR dispute that some companies like the British isles American Tobacco, etc. use CSR to distract general public attention from moral issues increased regarding their central operations. They claim that some companies start CSR programs for the commercial benefits enjoyed by nurturing their reputation in the public or the federal government. They dispute that companies are present only to maximize profits plus they do not promote the hobbies of the population as a whole.

Another problem is when companies promote CSR, also, they are committed to ecological development, but in reality they engage in harmful business methods. For example, Mc Donald's while it helps bring about CSR, the incomes of its employees are extremely low, they work in harmful environments and its own products are a health risk for their high fat content.

Despite these problems and the use of CSR by certain companies to hide bad business techniques it could not be supported that all companies operate in the same way.


According to the Coca Cola Corporate Public Responsibility Statement (2010) the CSR program of the business is the following:

The main aim of the CSR program is Sustainability. This is indicated through the activities of the company in the next areas: consumer health, presentation and recycling, water stewardship, employee development, involvement of suppliers and energy and weather.

Regarding of Consumer Health, the company wants to meet the modern life fads of consumers. Because of this they have broadened the merchandise profile with products that aren't fattening and they have reduced the quantity of calories in its drinks by 88% according to university beverage guidelines. It has additionally backed Michelle Obama's marketing campaign ("Let's Move") with the effort Clear on Calorie consumption.

With respect to the axis of Packaging Recycling, the business introduced PlantBottle which is a "fully recyclable Dog or cat bottle made from a blend of petroleum - structured materials and up to 30 % of plant-based materials (Coca Cola CSR 2010). Coca Cola has also were able to achieve high recycling rates of its bottles (99 % in European countries and 92 % in THE UNITED STATES).

Regarding Normal water Stewardship, the company strives to improve the efficiency of normal water use. It includes improved the utilization of drinking water by 3. 5 % from 2008. It current average drinking water use ration to make one litre of its products is 1. 67 litres.

The development of employees is an additional objective of the CSR of the company. The company is convinced that employees will be the base for success. In its earlier CSR programs, Coca Cola has created special programs to attract, retain and develop the abilities and capabilities of employees. These programs enable employees to properly exploit their potential while producing leadership skills and skills needed by the company in all industries and in all countries. Its current CSR program promotes employees equality regarding diverse civilizations. Based on the first Employee Engagement Review, Coca Cola has advanced the degrees of its employee proposal whereas on the Corporate Equality Index of the Human being Rights Campaign it offers received a 100 % score.

Finally, with regard to energy and weather, the company co-signed the Copenhagen Communique. It had been a supportive action to the global arrangement on weather change. For the next time in the row, it has reduced company carbon footprint.


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Coca Cola was predicated on the 6 pillars of business ethics i. e. contribution to financial development, creation and preservation of careers, contribution to training, coverage of the environment, contribution to the introduction of the region and lastly contribution to the fight against interpersonal rejection.

To achieve these goals, Coca Cola involved all stakeholders i. e. employees, shareholders, consumers and their moves, and local governmental bodies and NGOs.

If the pillars are reviewed one by one the following will be observed:

For the employees, Coca Cola has created a healthy and safe working environment, it is against discrimination (in terms of gender, contest, nationality), the remuneration wanted to employees is reasonable (Coca Cola supports that the salary offered are above the common level of salary and this it implements benchmarking regarding remuneration).

Regarding consumers, Coca Cola is famous for its marketing capabilities. Given its global dynamics, it will pay special focus on the different cultures of individuals. Furthermore, it focuses on both to the moral and ecological use through the production of environment-friendly (in connection with chemical composition, product packaging, etc. ) products. It has also setup recycling programs for their products and consumer training programs to recycle its products.

Coca Cola has used all the essential guidelines of the CSR theory and its own programs are successful. Its programs are permanent you need to include many activities. Its strategy includes environment attention, dialogue with all stakeholders which is consistent with both its history and activities.

Coca Cola provides job positions and it is taxed. For instance, Coca Cola Hellas specifically paid 100 million euros in taxes, 1, 084. 1 million euros in earnings and benefits and 2, 441. 8 million euros to suppliers for materials required e. g. product packaging and services.

Coca Cola is also thinking about philanthropy. In 2007 it provided more than 10 million euros to charity programs.

The goal of all these programs is the achievements of sustainable development and where this is not achieved to the required level, Coca Cola has established the necessary settings to attain it by changing the guidelines and models.

In this context, Coca Cola uses and sociable accounting which is the disclosure of data (other than financial) on the actions of the company' in public, ethical and environmental issues. This disclosure is not needed for legal reasons. Coca Cola publishes an twelve-monthly Corporate Sociable Responsibility & Sustainability Report which is included in the material provided to stock exchange markets for entrepreneur information.

In order for sociable accounting to present factual and reliable data, Coca Cola implements annual audits and inspections by exterior partners. At exactly the same time, it has generated management systems (including all operational functions) to do this target. 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 is considered as highly successful and worthy of emulation by other companies. Coca Cola seems to have permanent CSR programs because yearly it communicates its actions and its faith in it. The author suggests to keep do so because the global conditions (financial, sociable) impose CSR programs and on the other hands, it is a way to give value and thus achieve a lasting competitive benefit.

The value includes all stakeholders. The suppliers believe that they cooperate with a reliable company that respects its contracts and society and is a partner that will help them develop. Employees get a sense of personality and identification with the business because it respects human privileges and recognizes their contribution. Value for the clients because they notice that the company produces products that respect human health insurance and the environment where they live. Value for partners (banks, etc. ) who perceive that the company is trying to develop and understand the communications of the marketplace. Value for shareholders because the business remains a leader, is aware of the needs of consumers, serves accordingly and therefore it is profitable. Value to population by offering programs that governments cannot provide and targeted at improving the grade of life of people suffering.

All these business lead eventually to benefit maximization and the market value increases and therefore the company is not only profitable but also consumers have an optimistic opinion about it.


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Originally published Nov 24, 2018, updated Feb 18, 2021

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