The concept of Corporate Social Responsibility (CSR) has been the subject of different researches in terms of aiming to arrive at a universal and conclusive definition; as well as in determining its overall impact to the organization that allegedly supports and embodies the framework and to the society. From among the different definitions of CSR, the meaning provided by Kotler and Lee is most appropriate: “a commitment to improve community well-being through discretionary business practices and contributions of corporate resources” (Kotler and Lee; cited in Carroll and Shabana 90). In the United States, the organizations who openly support CSR and have been noted to have significantly improved the well-being of others are being acknowledged through the accolades given through the PR News CSR Awards. The organizations with more than 10,000 employees which are recipients of the CSR award are Coca-Cola Enterprises and IBM Corporation. The current discourse aims to compare one company practicing CSR with another organization that does not support CSR. To comply with this objective, the companies being compared are Coca-Cola Enterprises and Kashi Company.
Coca-Cola Enterprises (CCE) has been known as a globally recognized brand since its inception in 1899 , 114 years ago. A quick look at its official website would confirm the organization’s commitment towards corporate responsibility and sustainability. CCE has confirmed that it is actively involved in endeavors that are consistent with CSR principles including addressing energy and climate change; sustainable packaging and recycling efforts; water stewardship; giving back to the community; promoting active healthy living; and innovation ; among others. As a result, CCE has consistently exhibited significant net profits that reached $667 million for the year ended 2012 .
In contrast, Kashi Company was reportedly founded in 1984 in La Jolla, California and currently operates as a subsidiary of Kellogg Company . A view from their official website would not reveal any information on its support for CSR since the only information accessible are: recipes, products, and wellness articles . It was recently reported as one of the corporations that do not practice corporate social responsibility and could actually take a toll on their performance. It was likewise disclosed that Kashi’s affiliation to Kellogg poses a problem in terms of being stigmatized for including a preservative, BHT, in one of the products of Kellogg, which reverberated negatively to Kashi . To date, its financial highlights revealed that “Kashi's operating profit declined by 2.7 percent to $595 million in fiscal 2012” , and that the organization is reportedly shifting its operations from its original founding site in La Jolla to Michigan. Apparently, it received negative publicity when it was disclosed that “Kashi products -- marketed as natural -- took an additional publicity hit last year when a website reported that some of them contain genetically modified ingredients” . It could therefore be deduced that since the company is not promoting CSR, the local community apparently did not patronize its products which significantly contributed to decline in profits.
Overall, the comparative analysis evidently proved that organizations supporting CSR
become more productive and financially successful due to the support and patronage accorded
proofs of long-term commitment towards the welfare and well-being of the general public.
Works Cited
"About Us." 2013. Kashi Company. 12 April 2013
"Annual Income Statement." 2013. Coca-Cola Enterprises. 12 April 2013
Baker, Mallen. "Corporate social responsibility - What does it mean?" 8 June 2004. mallenbaker.net. 12 April 2013
Carroll, A.B. and K.M. Shabana. "The Business Case for Corporate Social Responsibility:A Review of Concepts, Research and Practice." International Journal of Management Reviews (2010): 85-105.
"Company Overview of Kashi Company." 2013. Bloomberg Businessweek. 12 April 2013
"Corporate Responsibility and Sustainability." 2013. Coca-Cola Enterprises. 12 April 2013
Horn, Jonathan. "Kashi leaving La Jolla for Michigan." 11 March 2013. U-T San Diego. 12 April 2013
Kotler, P. and N. Lee. Corporate Social Responsibility: Doing the Most Good forYour Company and Your Cause. Hoboken, NJ: Wiley, 2005.
"Our Story." 2013. Coca-Cola Enterprises. 12 April 2013
"PR News CSR Awards 2012." 2013. prnewsonline.com. 12 April 2013
Schwartz, Ariel. "Corporations That Don’t Practice Social Responsibility Can’t Hide Anymore." n.d. Fast Company. 12 April 2013
