Corporate Social Responsibility - Essay Example

Corporate social responsibility Option B Corporately Socially Responsible Reporting Entity: Amongst an entire list of multinational corporations, a number of companies are fulfilling their corporate social responsibility. Coca cola international is one of such companies. If a company is regarding social issues as significant while thinking of its corporate agenda, it aims at and practically involved in fulfilling its Corporate Social Responsibility (Hay, Stavins, & Vietor, 2005). The organizations are expected under laws and regulatory rules to work in accordance with patters, such that environment, commitment to value health, strong pledge for the safety of consumers and employees, and investing for the betterment of communities in which they are operating is visible in their efforts (Hay, et. al, 2005). Activities of Corporately Socially Responsible (CSR) Firms: Coca cola international claims itself as a socially responsible multinational firm. It is currently operating in dozens of countries while honoring its commitment of being CSR efficient. As a sure sign of success not only has it been able to capture and sustain a remarkable 49% of market share in beverage market around the world , rather the increasing revenues have consistently shown a better picture throughout (Cokecsr, 2011). Following are the activities claimed by coca cola as their Corporate Social Responsibilities. Energy Efficiency and Climate Concerns: The Company claims at reducing the carbon emissions throughout the value chain and making their processes more energy efficient (cokecsr, 2011). Emissions of harmful materials are carefully managed. Water Stewardship: Water consumption for running the operations is strictly need based; there is no excessive usage or wastage of drinking water. Water sustainability is ensured during operations at coke plants; what is consumed is returned to the environment (cokecsr, 2011). Packaging and Recycling concerns: Packaging is ensured as a future resource; producing sustainable packaging reduces overall cost and allows for efficient and effective environmental protection measures (cokecsr, 2011). Product and portfolio: Ingredient and nutritional labeling, sustained quality products, customer driven portfolios and managed marketing policies allow to compete in a dynamic and consumer friendly environment while being environment friendly (cokecsr, 2011). Community, Health and Employee Safety: The corporate makes significant investments to ensure a protected community, improved health and employee welfare; enabling the company to sustain its remarkable position as a world leader in beverage market (cokecsr, 2011). Factors to Enhance CSR Image: Companies employ different tactics to improve their CSR image in the eyes of their consumers, it is because they are highly concerned with the social needs of their consumers. The augmented exposure of customers to environment and social issues and crisis is a huge potential threat for large companies. To resolve these supposed threats from customers, large companies take specific initiatives. The basic purpose is to create a higher degree of customer satisfaction. If the society is growing, the environment is protected and people are healthy then it is quite certain that the customers will be satisfied. Media marketing or advertisements are the main aid to generalize the community about corporate social responsibilities. The investments which a company makes in a community are the ones that really reap the benefits for the company in the longer run. It may include educational investments, health care initiatives and eliminating social evils from the society (Armstrong, 1977). Every company, that employs a CSR policy, publishes an annual report which covers the yearly operations, initiatives and achievements of the company (ckecsr, 2011). This coverage provides a complete picture of how the firm’s projects have turned out. For instance, if investments have been made in long term projects which are beneficial for the firm’s associations; this will create responsiveness about fulfilled CSRs. Print and electronic media can reap the real rewards for the organizations. When firms and organizations are indulging in huge community and social investments which are not a part of their corporate structure, coverage by media can enable a corporation to generate a positive image in the minds of people. It is not necessary that media should directly cover the work done by the MNCs, indirect coverage can also be beneficial for promoting a CSR image (cokecsr, 2011). Being environmentally friendly is a huge responsibility in the current age. It is because mostly firms through their manufacturing processes directly impact the environment with emissions and hazardous wastes. Overall, it should be taken care that global warming impact is to be reduced or not to be increased through manufacturing activities. For this purpose, the environment standards are sought to be strictly followed by firms in order to create an image of environment friendliness and to ensure that the environment does not suffer at the hands of their profitability. Evaluation: While people like Friedman and Levitt (1958 as cited in Murphy & Schlegelmilch, 2012) support the argument that companies are business tools and their only responsibility resides with concentrating on increased shareholder value and profit maximization; Scholars like Carroll (1974) and Marrewijk (2003) who propagate CSR, believe that there is more to a company than just obliging its share holders with monitory gains (Murphy & Schlegelmilch, 2012). Being a socially responsible corporate obliges the organization to indulge in environment and socially friendly activities. Although coca cola has been in the lime light for donating and investing ample of its hard earned finances towards the attainment of the better society; it has also been criticized for its approach towards doing business. Coca Cola has been appreciated for; its efforts for the HIV program; in aiding the countries that were hit by the tsunami and showing dedication towards conducting business with principles when it comes to human rights, high standards at workplace, anti-corruption and conducting practices that are responsible (Veeravalli, 2008). Where the practices by Coca Cola are being appreciated, it is also under controversy for its neglect towards the consumers and the environment. In 2012 Coca Cola issued a report in which they have sought to adopt the idea of CSR in ‘every aspect’ of its processes and operations only to aid themselves in doubling their revenues by 2020 (Warc, 2012). Coca Cola are adopting every possible means of CSR just to double their revenues and not out of the will for corporate responsibility. The giant has claimed that they now have a huge variety of over 800 products (almost 25% of all its available range of products) that have zero or low calorie levels (Warc, 2012). On the other hand the chemical that is used by Coke for reducing the calorie count is aspartame or ‘amino sweet’; which has recently been linked with health disease and cancers, also the caffeine, sugar and aspartame make these products addicting especially for children (Killercoke, 2013). The hazards of such chemicals should be made public and the public should know what they are consuming. Coca Cola Company has been under criticism for using 40% of its revenues in the marketing and promotion of its products which is beyond the normal curve for such MNCs (Veeravalli, 2008). In countries like the United States of America public pressure has resulted in the coca cola company avoiding to target children aggressively for their marketing campaigns (Killercoke, 2013). But, in countries who are not aware and there is not pressure the company still very aggressively targets young children in its advertisements and product campaigns (Killercoke, 2013). Mostly the complaints associated with the company can be seen originating from countries in Asia or Africa (Veeravalli, 2008). In the May of 2008 in China a list of 593 products was issued which were deemed unsafe, and coke was one of those products (Veeravalli, 2008). In India in the Saranathan region campaigns for boycott were launched; the government of Kerala also shut down one of the coke plants to protect the local community and its interests from the coke company (Veeravalli, 2008). Annual reports of corporate social responsibility fulfillment are thought to be fact based and people strongly believe in such publications, taking for granted that all truth has been told. However, most of the companies do not put proper attention over the integrity of facts and figures illustrated in the annual reports. Many scandals of money laundering and window dressing may be observed through studying records. Recently, four executives from the coca cola company in Tashkent were implicated for money laundering and were under investigation; but according to the company spokesperson the executives are still working at the company (Lillis, 2013). Armstrong argues that it is more important not to act socially irresponsibly rather than acting socially responsibly; he thinks it crucial to take decisions that will be considered superior to other alternatives when its consequences on all considered parties are weighed (1977). Annual reports from the Coca Cola Company reveal that they invest substantially in community projects, health centers and in education projects (cokecsr, 2011). It also highlights that coke does not only invest in developed countries but does the same in less developed central Asian countries like Pakistan, Bangladesh and Sri Lanka etc. precautions are taken to protect the environment from harmful emissions and wastage due the CSR efficient manufacturing processes (cokecsr, 2011). According to a recent report issued from coca cola company, it has been efficient enough to distribute 10 billion plant bottles since 2009 which are fully recyclable; thus cutting down on the need of 200,000 barrels of oil (Warc, 2012). The company claims that all its employees are provided full time workplace safety to retain the key employees as well sustaining long term and profitable relationships with them; and also that all employees are treated same. Yet recently the beverage company has been seen involved in a racial discrimination scandal. The company was accused of treating its employees with discriminatory and racist behavior in a plant in the city of New York (Killercoke, 2013; SCD, 2013). The more a company is committed to its promises, the more it will get high profit yield, customer satisfaction and loyalty, high market share and highly responsible image. It is a great deal to compete on the basis of social responsibilities. Almost all international and multinational firms are fulfilling their social duties efficiently. Social responsibilities and value for stakeholders is much more important than sales, profits and revenue figures. Reference Armstrong, S. J. (1977). Social Irresponsibility in Management. Journal of Business Research, 5, 185-213. Coke CSR. (2011). Coke Corporate Responsibility. Retrieved March 11, 2013, from http://www.cokecorporateresponsibility.co.uk/ Hay, B. L., Robert, N. Stavins, Richard H. K. Vietor (editors). (2005). Environmental Protection and the Social Responsibility of Firms: “Perspectives from Law, Economics, and Business. WN: RFF Press. Killercoke. (2013). Dare to Speak up about Racial Discrimination? Coca – Cola; You’re Fired! Retrieved March 11, 2013, from http://killercoke.org/breaking_news.php Killercoke. (2013). Coca – Cola Beverages = Colossal Health Hazards. Retrieved March 11, 2013, from http://killercoke.org/health_issues.php Lillis, J. (2013). Uzbekistan’s Coca – Cola Problem: Is It the Real Thing? Retrieved March 11, 2013, from http://www.eurasianet.org/node/66608 Murphy, P. E. & Schlegelmilch, B. B. (2012). Corporate Social Responsibility and Irresponsibility. Retrieved March 11, 2013, from http://www.wu.ac.at/imm/news/cfp SCD. (2013). Coca – Cola: Cesspool of Racial Discrimination. Stop Coke Discrimination. Retrieved March 11, 2013, from http://stopcokediscrimination.org/ Veeravalli, D. S. (2008). A Paradox on Corporate Social Responsibility – Case Study on Coca Cola. Saranathan College of Engineering. Retrieved March 11, 2013, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1314783 WARC. (2012). CSR key for Coca – Cola. Retrieved March 11, 2013, from http://www.warc.com/LatestNews/News/EmailNews.news?ID=30611 Read More