Introduction
Sustainability has fast become an integral part of the strategy of most modern businesses. Sustainable actions involve such actions that extend the socially useful life of organizations, enhance the biosphere of the planet, enhance the mankind’s welfare and personal freedom and reduces its problems, for the present and future times .
UN Global Compact and GRI 4
Regarding assurance of sustainability as part of the corporate social responsibility, it can be stated that the notion is no longer an option for companies, but rather, a mandatory business activity . The United Nations (UN) Global Compact can be considered the largest sustainability initiative of the world. It strives to encourage and enable companies to align their operations and strategies to protect and support human rights, reduced corruptions and better labor environment . The initiative places a high emphasis on collaborating with companies and coming up with innovative methods to collaborate with companies to protect the environment and benefits humanity. Similarly, the purpose of the Global Reporting Initiative (GRI) or G4 Guidelines is to ensure that all organizations report their sustainability initiatives and their impacts in reliable and standardized format. The positive and negative impacts of the organization regarding the environment, society, and economy, can be observed in reports that have been designed by the G4 Guidelines . Via reporting in such a standardized format, effective key decisions regarding risks and opportunities can be taken.
Coca-Cola and Novo Nordisk Sustainability Reports
McElroy & Engelen (2012) have classified the GRI as a means for measuring and reporting organizational sustainability .
Clarity and reliability are also integral components of the G4 complaint sustainability report.
Companies such as Coca-Cola and Novo Nordisk would not engage in sustainability unless it is beneficial to them .
The Coca-Cola Company Group is a world renown and well-reputed beverage company. Also, to enjoying great success, the company has made immense contributions towards the sustainability of the environment and society. According to the 2013-2014 sustainability report, the company identifies stakeholders like employees, consumers, customers, bottlers, distributors, shareowners, nongovernmental organizations (NGOs) and Non-Profit Partners . The company, while remaining compliant with the GRI guidelines, has specified various economic, environmental and social aspects such as water and energy sustainability, on which the company will focus regarding its Corporate Social Responsibility activities .
Novo Nordisk is a Danish company, which deals in the health care industry. The company currently operates in 75 countries and distributes its products and services to more than 180 countries worldwide. Novo Nordisk specializes in diabetes care other chronic conditions such as obesity, Haemophilia, etc. . Since the sustainability report of the company is more focused on the UN Global Compact, therefore it has been composed and organized in much the same way. For instance, it focuses on four key areas while divulging information about its sustainable practices, that is human rights, labor, environment, and anti-corruption . With regard to ensuring that the company followed GRI 4 standard in reporting their corporate sustainability, the company has abandoned the procedure. The vice president has declared the company’s belief that the public now finds other sources of information to understand an organization’s role in corporate sustainability, such as the social media, thus rendering the report publication process redundant .
Decision of Material Issues for the Report
The United Nations Global Compact comprises of more than 9000 businesses in over 130 countries . It can be observed that while Coca-Cola publishes its information as Sustainability report in which they strive to remain compliant with the G4 Guidelines, Novo Nordisk published a Global Compact Report with the sole purpose of following the United Nations’ plan for ensuring sustainability. With regard to the decision of material issues, Coca-cola has suggested that it utilized the relations with its stakeholders to identify global issues and inform their policies, reporting and disclosure . In addition to understanding what the stakeholder desire from the company in terms of social responsibility, the company also plans on relying on their consistent input heavily in order to set the sustainability, vision, commitments, and targets . Coca-Cola has strived to ensure that it is compliant with the GRI 4 in addition to the United Nations Global Compact. In other words, it has strived to outline as well as incorporate nearly ten major principles regarding the four main areas, which have been defined by the UN, that is regarding Human Rights, Labor, Environment, and Anti-Corruption .
On the other hand, Novo Nordisk has stated that it strives to ensure freedom of association and maintain diversity in employment and occupation . The company has in terms of deciding material issues, declared adherence to the universal declaration of Human Rights. In addition to paying respect to the society, the company strives to contribute to world sustainability by providing innovative solutions as well as convenient access around the globe, to its health care solutions .
The Global Compact that has been introduced by the United Nations will benefit not only humanity but also the businesses in general . In this respect, it is beneficial for short-term and long-term profits and success for the participating businesses.
Conclusion
Conclusively, it can be observed that both Coca-Cola and Novo Nordisk strive to adhere and publish timely and accurate sustainability reports to give a clear and concise picture of their contributions to the society. While the Danish health care company has abandoned the GRI 4 report publishing, it has continued to publish a United Nations Global Compact report, unlike Coca Cola, which strives to adhere to both guidelines regarding practicing and publishing Corporate Social Responsibility. Both the companies continue to take material decisions by either feedback from various stakeholders or the United Nations.
List of References
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