This paper discusses the extent to which the Coca Cola Company has incorporated corporate governance principles and social responsibility practices into its operations. Corporate governance refers to laws, processes and guidelines that a business is controlled, regulated, and operated in. …
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This began in the 1980s when the company put in place structures to check the sources of its funds and how the funds are spent in a transparent and accountable manner. This paper will discuss the extent to which the Coca Cola Company has incorporated corporate governance principles and social responsibility practices into its operations and how effective these strategies have been in fostering the growth of the company in the highly competitive soft drinks industry. Introduction Corporate governance refers to laws, processes and guidelines that a business is controlled, regulated, and operated in. The directors of Coca Cola have laid out factors that have led to improved corporate governance. The Coca Cola Company has been committed that guide corporations in dealing with that govern corporate governance. Corporate governance has been enforced by the shifting attention to high and risky profiles that have shifted the debate on corporate governance. In many cases the coca cola company has been faced with lawsuits from both the customers and employees over their operation errors. Rubach and Picou (2004, p.24), the role of corporate governance has been linked to the economic and social elements arising from the company activities. The Coca Cola Company has adopted the balance theory that sates that the company must find a balance between its internal activities and the activities of external shareholders. The relevant stakeholders that the coca cola company takes in consideration include shareholders, employees, competitors, suppliers and customers. The most relevant stakeholders that determine corporate governance include the shareholders. The institutional theory states that it is that role of the directors to maximize...
The objective of this research is to acquire a better insight of corporate governance principles and social responsibility practices using the Coca Cola Company as an example. The Coca Cola Company has adopted the balance theory that sates that the company must find a balance between its internal activities and the activities of external shareholders. The relevant stakeholders that the coca cola company takes in consideration include shareholders, employees, competitors, suppliers and customers. The most relevant stakeholders that determine corporate governance include the shareholders. The institutional theory states that it is that role of the directors to maximize shareholders value because they are the owners the corporation. Davis asserts that the most important corporate governance policies seek to put an institution on more non financial perspective as opposed to the traditional institutional governance. Traditionally, governance of corporations was based on the sole objectives of profit maximization and cost minimization. Since its foundation, Coca cola has practiced traditional governance in its management but the directors in the 1980s came to realize that an organization of Coca Cola’s caliber could not operate on finances alone but the ways in which the finances are generated and used. The main areas that the directors of the Coca cola company have a focused on include endorsement of corporate governance in the company, parties to corporate governance , Corporate governance guidelines and ownership and structure in order to ensure good corporate governance.
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(Corporate Governance and Social Responsibilities Essay)
“Corporate Governance and Social Responsibilities Essay”, n.d. https://studentshare.org/business/1392058-corporate-governance-social-responsiblity.
Companies in recent years started giving greater emphasis on effective governance with a view to ensure competitive position, attract sufficient capital, guarantee sustainability, and combat corruptions. Corporate governance practices are associated with the development of financial markets, because higher level of governance in most countries are related to larger securities markets and lower costs of external finance (Tang and Wang, 2011, 47).
Various business and production companies deal in products that are of use to the public in one way or the other. The companies also employ different individuals to carry out their operations. It is desirable that the organizations should show some concern for the well-being of the individuals that are closely affected by its products and activities.
The author of this paper assuming that in addition of adapting the corporate governance principles, it is important for International Extractive Industry to engage in various corporate social responsibility initiatives. If the set principles of governance are not adhered to, unethical activities may arise.
In an enabling environment however, compliance to any system is not mandatory and firms may either to choose to comply or not. No legal notice bind firms in an enabling environment to comply with certain regulations. The United States applies mandatory corporate governance as its mode of regulation, especially with the enactment of the Sarbanes-Oxley act.
The introduction section gives general principles and concepts about corporate governance. The main body of the paper carries out a comparison of the UK and the US corporate governance models. It is divided into
Corporate governance can be understood through various frameworks of the firm. Agency theory is one of those frameworks, and entails the separation of ownership and control of an organisation. In this case,
More importantly, the chapter dwells on the procedures and methodologies that will be involved in working on the paper. 21
Corporate governance in general has become the new crucible in which corporations are tested and declared worthy of the trust of
In this regard, businesses also operate as social institutions that are responsible to internal and external stakeholders. Due to the societal expectations, CSR is necessary in terms of ensuring that organisations embrace sustainable development.
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