Corporate Social Responsibility in the Coca-Cola Company - Research Proposal Example

Corporate Social Responsibility in the Coca-Cola Company Name Course Name and Code Instructor’s Name Date sIntroduction Social and environmental accounting, also referred to as social accounting is a procedure of communicating the environmental and social impacts of companies’ economic actions to specific interests groups to the society (Bebbington, and Thomson, 2007). Most organizations including government agencies, charities and NGO’s usually participate in social accounting. The concept is mostly used in the setting of corporate social responsibility, or business (Gray, 2001). Social accounting usually stresses on the aspect of corporate accountability, and it is employed as an umbrella term to depict a broad field of practice and research (Gray, 2000). The aim of this research paper is to investigate the benefits of corporate social responsibility in the Coca-Cola Company. Corporate social responsibility is aimed at embracing responsibility for the organizations acts and at the same time encouraging positive effects through the companies’ actions on the environment, communities, employees, consumers and stakeholders (Banerjee, 2008). Research has indicated that CSR-focused companies usually advance public interest by promoting community development and growth, and willingly doing away with practices which harm the environment (Banerjee, 2008). The Coca-Cola Company persists to report on its corporate responsibility programs and strategies, and quantifiable metrics which associate with the company’s economic effect and social performance. Brief overview of the Company The Coca-Cola Company, headquartered in Atlanta, Georgia is a market leader in retailing, manufacturing and marketing of non- alcoholic beverage syrups and concentrates (Giebelhaus, 2008). The company is known for its major product Coca-cola that was invented by John Stith Pemberton, a pharmacist, in 1886. In 1889, Asa Candler first bought the Coca cola brand and formula and later incorporated the company in 1892. Currently, the coca-cola company offers over 500 brands in more than 200 territories or countries and supplies 1.6 billion servings every day (Giebelhaus, 2008). The company runs a franchised system of distribution dating since 1889. It only produces syrup concentrates which it then sells to different bottlers internationally. The Coca-Cola Company owns its anchor bottler Coca-Cola Refreshments in North America. Literature review It is evident that most business organizations endeavor to survive by making an efficient use of the factors of production as well as other facilities of the society (McWilliams and Siegel, 2001). This is a process that puts the organization in an independent relation with the government, the environment and the community at large. According to studies this kind of independence leads to a series of more responsibilities to the society in general. Social responsibilities are usually both external and internal to the company or organization (McWilliams and Siegel, 2001). In the contemporary world, there is an increase in the concern of the social corporate responsibilities of organizations. This is reflected in part by the extent of government action and legislation on such matters as, for instance, employment protection, equal opportunities, company’s acts, consumer law, product liability and safeguarding the environment (Orlitzky et al, 2011; Burritt and Saka, 2006). It is evident that as a result of this social responsibility has become a legal requirement for organizations. Scholars argue that business companies and organizations ought to act in a manner that is socially responsible for two major self-evident reasons. The reasons include pragmatic and philosophic (Dyllick and Hockerts, 2002). Based on philosophical models, organizations are required to act along with their families and social institutions for instance schools or religious institutions. On the other hand, pragmatically the companies are supposed to take into account the values of the society or otherwise they would have to be isolated and consequently their long term sustainability will be challenged (Dyllick and Hockerts, 2002). It is against this backdrop that companies have to put their overall stakeholders into consideration. These stakeholders include the customer. This is the most immediate, targeted and influential stakeholder to an organization. A controversy exists between the choices the consumer makes on the goods he purchases. It is argued that the customer is the king of his own decisions on the goods he or she wishes to buy. It is apparent that the responsibilities of a consumer are more than natural good business outcome. However, a number of social business responsibilities exist. They include; the durability and safety of the product, after sale service, adequate unambiguous information regarding the products to potential customers, fair standards of trading and advertising and providing good value for money. Employees are also among the stakeholders of an organization. The social responsibilities of the employees of an organization go beyond the conditions and terms of their contract (Dyllick and Hockerts, 2002). Justice in treatment; democratic functioning of the organization; training in new skills and technologies; effective personnel and employment relations policies and practices; and provision of social and leisure facilitates also portrays social responsibilities. Other stakeholders include the local community, governments, suppliers, intermediaries and financial communities. The firm’s social responsibility is to reassure the stakeholders that the organization is aimed at achieving the set objectives (Dyllick and Hockerts, 2002). It is evident that as the business puts into consideration its stakeholders, it is required to also take into consideration the social welfare in the context of external costs and benefits of the actions performed by the firm (Kolk, and Winn, 2010). Both the positive and the negative externalities of an organization are considered. According to studies a diversity of opinion on the subject of corporate social responsibility generally exists. The purpose of social responsibility in an organization is to generate much profit for its shareholders within the terms of a fair competition (Sen et al., 2006). According to a theory deduced by scholars, it should be clearly understood that the organization’s manager are just but agents working on behalf of the firm’s owners. In the recent past the theory was defined to include two common decency tests and distributive justice. It is argued that a firm is ethical when it meets the three tests of long term wealth growth of its owners, common decency and distributive justice (Kolk, and Winn, 2010). However, it is evident that at the end, there exists a broader set of social responsibilities which are emphasized by stakeholder theory. According to studies, Ecology and the increasing destruction of ecosystems and natural resources have warranted a widespread concern from the public, the governments and inter-governmental agencies (Burritt and Saka, 2006). The ecological dimension of a firm has been evidenced by the Shell’s Brent Spar saga. Besides, across the world, business organizations are legally necessitated to perform an Environmental Impact Assessment for new business operations or the expansion of the existing ones (Burritt and Saka, 2006). The Environmental Impact Assessment is conducted so as to determine the likely environmental consequences that could arise as a result of the new development (Sen et al., 2006). This will help the firm decide on the potential strategies that will help minimize the effects. Moreover, business ethics is part of the corporate social responsibility (Orlitzky et al., 2003). The behaviour of a firm to its stakeholders reflects the culture of the organization in terms of the ethics that are either neglected or adopted. As a result of this there developed an argument between scholars as to whether ethics should be pursued by firms as their own initiative or as a duty that must be fulfilled. Some scholars consider ethics as a duty despite the consequences. On the other hand, others opt for a consequentialist view that goodness or badness of an action is only evident in the consequences of that action. In conclusion, organizations should embrace a code of conduct that avoids disappointment for its shareholders. Following the recent financial crisis, firms are required to comply with the required code of corporate governance (Orlitzky et al., 2003). Design and Methodology A research design is the structure of any scientific work, which offers the direction and systematizes the research. A design chosen for a particular project usually depends on the research question. Research has revealed that, research designs generally deals with the following: questions to be studied, relevant data, type of data to be collected, and methods of analyzing such data. Depending with our research question, we will employ the qualitative/flexible research design in this research. This is based on the fact that perception differs with the person and what we know changes with time. This research will employ both primary and secondary methods of data collection. Secondary data collection sources will include the use of press releases, newspaper articles, company’s annual reports, peer reviewed journals, academic sources and other publications concerning the nature of corporate social responsibility in Coca-Cola Company. The use of secondary data collection methods is deemed efficient as compared to primary data collection methods, as the former offers credible information. This is due to the fact that, the researcher can compare various publications combining similar thoughts which will assist him in making a conclusion. Primary data collection methods will involve the use of personal interviews and questionnaires. This will be accomplished by visiting various departments in the company and performing a personal interview especially to the senior managers. These are believed to offer credible information as they have the data concerning CSR for different periods of time. Questionnaires on the other hand will be issued to persons chosen randomly from the whole population being studied. The participants will be company employees and managers as they are more acquitted with matters of CSR. The approach method will entail introduction and thorough explanation of the basis and aim of the research. These participants are expected to offer credible information regarding corporate social responsibility. It is apparent that the combination of data obtained from both the secondary and primary sources of data collection will assist the researcher in obtaining consistent and valid data which will help him make reliable conclusions. Contribution of the research in theory and practice Studies have proven that there is a linkage between the financial performance of an organization and social and environmental performance (Orlitzky et al., 2003). This means that adopting CSR s very significant for organizations although businesses embracing CSR strategy should focus on long-term financial returns (Orlitzky et al., 2003). In organizations, corporate social responsibility can be based within the business development, human resources, and public relations department. This research is of great benefits to organizations and businesses as it will help them understand the benefits of embracing corporate social responsibility. For instance, in human resources, CSR programme assist in retention and recruitment (Bhattacharya, et al., 2008). Furthermore, corporate social responsibility can assist in improving the perception of an organization amongst its employees, particularly when the personnel can become involved through fundraising activities, payroll giving, or community volunteering. Moreover, adaptation of CSR by organizations will assist in risk management. It is true that risk management is a vital part of most corporate strategies. Incidents such as environmental accidents and corruption scandals can greatly ruin the reputation of organizations (Montiel, 2008). In addition to these, CSR can assist organizations in building brand differentiation and in obtaining operation licenses. This is evidenced by the fact that CSR assist organizations in building customer loyalty and in addition, such organizations are able to build their image in the eyes of the government and the wider community through their environmental sustainability functions (Orlitzky et al. 2011). The anticipated outcomes of this research will advance the researchers understanding in the area of corporate social responsibility. Furthermore, the research will offer the researcher a greater knowledge of the contributions of corporate social responsibility in organizations. Conclusion In conclusion, corporate social responsibility has played a significant role in organizations. Research have indicated that Corporate social responsibility is aimed at embracing responsibility for the organizations acts and at the same time encouraging positive effects through the companies’ actions on the environment, communities, employees, consumers and stakeholders. Studies have proven that there is a linkage between the performance of an organization and social and environmental performance. This means that, organizations adapting CSR perform better in the long run, both financially, in recruitment and retention of employees and in building their brand name. References Banerjee, S.B., 2008, Corporate Social Responsibility: The Good, the Bad and the Ugly. Crit Sociol, 34, 51 - 79. Bebbington J, and Thomson I, 2007, Social and environmental accounting, auditing, and reporting: a potential source of organisational risk governance? Environment and Planning C: Government and Policy 25(1), 38 – 55. Bhattacharya, C.B., Sankar S. and Korschun, D., 2008, Using Corporate Social Responsibility to Win the War for Talent, MIT Sloan Management Review, 49 (2), 37-44. Burritt, R., & Saka, C., 2006, Environmental management accounting applications and eco-efficiency: case studies from Japan. Journal of Cleaner Production. 14: 1262-1275 Dyllick, T., and Hockerts, K., 2002, Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11: 130-141 n, 14: 1262-1275 Eisingerich, A.B.; Ghardwaj, G. 2011, Corporate Social Responsibility: Does Social Responsibility Help Protect a Company's Reputation?. MIT Sloan Management Review 52, 18–18. Giebelhaus, A.W., 2008, Coca-Cola Company. The New Georgia Encyclopedia. Georgia Humanities Council. http://www.georgiaencyclopedia.org/nge/Article.jsp?id=h-1854. Gray, R.H., 2000, Current Developments and Trends in Social and Environmental Auditing, Reporting and Attestation' , International Journal of Auditing 4(3), 247-268; Crowther, Social and Environmental Accounting. Gray, R.H., 2001, Thirty Years of Social Accounting, Reporting and Auditing: what (if anything) have we learnt?, Business Ethics: A European View 10(1),14. Kolk, A., H. and Winn, M., A, 2010, New Future for Business? Rethinking Management Theory and Business Strategy. Business Society; 49: 385 - 401. Mcwilliams, A. and Siegel, D., 2001, Corporate Social Responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), pp117-127 Montiel, I., 2008, Corporate Social Responsibility and Corporate Sustainability: Separate Pasts, Common Futures. Organization Environment, 21: 245 - 269. Orlitzky, M., Schmidt, F., L. and Rynes, S., 2003, Corporate Social and Financial Performance: A Meta-Analysis. Organization Studies, 24: 403 - 441 Orlitzky, M., Siegel, D., S., and Waldman, D., S., 2011, Strategic Corporate Social Responsibility and Environmental Sustainability, Business Society, 50: 6 - 27. Sen, S., C., Bhattacharya, B., and Korschun, B., 2006, The Role of Corporate Social Responsibility in Strengthening Multiple Stakeholder Relationships: A Field Experiment. Journal of the Academy of Marketing Science, 34 (2), 158-66. Read More