Social responsibility in finance decision making ( Coca Cola) - Essay Example

Social responsibility in Coca Cola finance decision making Affiliation: Table of Contents 1.1 Abstract………………………………………………………………………….3 1.2 Introduction…………………………………………………………………….4 1.3 Body……………………………………………………………………………..4 1.3.1 Harm to stakeholders…………………………………………………..4 1.3.2 Corporate Social Responsibility (CSR) initiatives…………………….5 1.3.

3 CSR outcomes on Coca Cola stakeholders……………………………5 1.3.4 Recommendation to improve the Coca Cola’s CSR…………………..6 1.4 Conclusion……………………………………………………………………….6 1.5 References……………………………………………………………………….7 Abstract Coca Cola is one of the most renowned soft drink MNEs globally. This is as a result of its excellent non-alcoholic drinks as well as its superb advertisements.

Little is however known about its active participation in Corporate Social Responsibility (CSR) initiatives not only in the US but all over the world particularly in Africa. It has participated in CSR initiatives mostly dealing with health projects as well as the environment particularly in water sustainability and reducing the carbon emission to the ozone layer. This has mostly been as a result of negative publicity in India and of contributing to the carbon emission. Introduction Coca Cola whose brand has been in existence since majority can remember has been doing great in terms of the profits and marketing of their products.

It has however been mum over the CSR activities it participates in majorly because of lack of media exposure that is sought by majority of its competitors in the business. Being on the limelight over the positives it contributes to the world may be a way to ease its negative publicity over the environment as well as depleting the water resources in India issues that still affect it to date. Harm to stakeholders Coca Cola opened up a company in India meant to produce 600 bottles of the soft drink per hour a project that saw them use an initial amount of $24 million simply to set up.

What followed after it initiation were the demonstrations by locals about the reduction of their water level from their wells and they blamed the company for this misfortune. They indicated that the company used up a lot of water for its production which reduced the overall water level in their wells and the residents were suffering (AFP, 2014). These individuals are the potential customers and hence they are the most important of the stakeholders for the company. Their demonstrations are an indication of the harm the company has caused them related to the most important resource on earth which is water.

There were numerous reports about the water levels in India which had been on the downward trend since 2002 which was way before the company had set up (Chaudhary, 2014). The government was also aware of this but still allowed the company to go ahead with its profit-seeking mission which in the end was only creating more harm than good to the locals so that a company can continue to make its millions of profit. Corporate Social Responsibility (CSR) initiatives The Coca Cola Company has participated in a whole load of CSR initiative and especially in Africa and around the world in general.

It contributed over $2.5 million to aid the typhoon victims in a form of relief aid. This is in addition to investing over $ 5 billion in Africa to aid in sustainable growth and facilitating a project known as “Project Last Mile” that aim to improve the availability of medicines in Africa that were considered life-saving. It has participated in CSR projects concerning water and environment for a long time bow. An example is installing millions of HFC-free coolers all over the world as a way to try and reduce the carbon production which harms the ozone layer.

It has also been investing in water campaigns all over the world that encourages school children to drink safe water to protect their health. The reason very few of its CSR initiatives are known is because they do things as silent partners or simply without the attention of the press similarly to what other MNEs do in advertising their CSR initiatives for market exposure. Coca Cola has done a lot especially for Africa and their efforts in CSR have mostly gone unnoticed and unappreciated (Houpt, 2011).

CSR outcomes on Coca Cola stakeholders The few CSR initiatives that have landed media attention have generated millions of positive comments all over the world with many people commending the multi-billion dollar company for its initiatives in making the world a better place. What this has done is create more exposure and support for the company by its stakeholders and especially its customers who have increased their purchase and consumption of the Coca Cola products from water to the soft carbonated drinks such as Fanta and Sprite.

More stakeholders have sought to increase their shares and investment to the company to ensure its expansion in different countries of the world. This would enable them make more profit in the long runs which is advantageous to them and the company in the long run. More partners have come forward to prolong their partnerships and business deals with the company as a result of the giving back to the society that makes it get positive labels and bring into the limelight the partners as well increasing their businesses as well.

The reputation of the organization which keeps on getting tarnished is also improved greatly by such actions towards aiding the community around them (Mullerat, 2010). Recommendation to improve the Coca Cola’s CSR The CSR initiatives for the company have not been recognized by many people. Many are unaware of what Coca Cola does apart from generating extremely creative advertisements and especially during the Christmas period. As discussed above, it has however accomplished a lot in its CSR initiatives but the problem is the visibility of these initiatives.

The public relations department of the MNE should seek more media exposure of these initiatives similarly to what other companies do. This is not in a bid to get recognition to gain more profits but rather as a way of exposing their good work towards the environment and other human beings in dire need (Brown, 2011). It is through its exposure that people with need and other environmental groups with excellent proposals can come forward and seek funding, endorsements or partnerships. Conclusion In this way, the Coca Cola Company has the opportunity to assist the community and the globe even much more than it already has done.

It will also gain the opportunity to assist in other diverse projects other than just health and environment making it an all rounded organization making a difference to the whole world and not just in provision of excellent and high quality non-alcoholic drinks. References AFP. (2014, June 18th). Indian officials order Coca-Cola plant to close for using too much water. The Guardian. Retrieved from http://www.theguardian.com/environment/2014/jun/18/indian-officals-coca-cola-plant- water-mehdiganj Brown, B. (2011). How to Use the Internet to Advertise, Promote, and Market Your Business Or Web Site: With Little Or No Money.

London: Atlantic Publishing Company. Chaudhary, A. (2014, October 8th). Farmers Fight Coca-Cola as India’s Groundwater Dries Up. Bloomberg. Retrieved from http://www.bloomberg.com/news/articles/2014-10- 08/farmers-fight-coca-cola-as-india-s-groundwater-dries-up Houpt, S. (2011, January 13th). Beyond the bottle: Coke trumpets its green initiatives. The Globe and Mail. Retrieved from http://www.theglobeandmail.com/report-on-business/industry- news/marketing/beyond-the-bottle-coke-trumpets-its-green-initiatives/article569182/ Mullerat, R. (2010). International Corporate Social Responsibility: The Role of Corporations in the Economic Order of the 21st Century.

New York: Kluwer Law International