If found, discuss whether the chosen MNE (below) has sought to inflict any harm on one or more of its stakeholders for profit seeking.
The production of soft drinks and beverages by Coca-Cola leads to various harmful effects on the lives of the people in pursuit of profits. The manufacture of soft drinks by this Coca-Cola results in adverse effects on the environment. These environmental consequences have adverse effects on the global society. The manufacturing process of soft drinks by Coca-Cola leads to the release of aerated water that contain toxins like pesticides. The pesticides further contribute to the breakdown of the immune system and cancers in human beings. The presence of toxins in the soft drinks leads to harmful health effects on the patients. The pesticide contamination affects the health of the consumers of the soft drinks produced by Coca-Cola Company.
Coca-Cola Company has adverse effects on water use. The manufacturing processes of Coca-Cola Company contributed immensely to the decline in the water available to the local villagers and farmers. The manufacturing activities affected both the quantity and quality of water available to the domestic users especially at the locations of the production plants. Coca-Cola Company contributed the drying of wells during the summers due its high consumption of water for the manufacture of the soft drinks. The company uses large quantities of water as raw material in the production process. The manufacture of soft drinks led to the release of effluents causing contamination of the surface water thereby a decline in the quality of water available to the domestic users. Water pollution is, therefore, a matter of concern with respect to the operations of Coca-Cola Company in the society.
The materials used by Coca-Cola Company to package its products has major environmental effects. The package materials used by the company are non-biodegradable posing potential threats to the environment. Packaging materials includes glass and plastic where both are non-biodegradable. The packaging materials used by Coca-Cola Company contributes immensely to the accumulation of solid waste on the environment.The non-biodegradable materials used takes a very long to decompose. The combustion of the plastic packaging materials leads to the release of carbon dioxide resulting in the contamination of the atmosphere as well as causing greenhouse effects and global warming in the long-run. The packaging material is, therefore, a potential hazard to the environment.
Demonstrate the Corporate Social Responsibility (CSR) initiatives by your chosen MNE, and explain the main motives for your MNE to adopt these CSR initiatives.
Coca-Cola invested in closed loop recycling plants. This initiative aimed at reducing the water use ratio making the water available to the villagers and farmers. The initiative mitigates the water shortages resulting from the inefficiencies of the production process. The initiative minimizes the water shortages in the future. It aimed at ensuring adequate quantity of water available for domestic purposes.
Coca-Cola also engaged in the treatment of the wastewater in order to reduce the contamination of sea and ocean waters. The treatment of wastewater helped in ensuring safety and quality of the water for consumption. The initiative aimed at boosting the quality of the water thereby mitigating the harmful health effects associated with effluents from wastewater. The initiative secures the health of villagers and farmers.
Coca-Cola partnered with other organizations like the United Nations Foundation in order to facilitate the construction of water harvesting projects and facilities in around forty countries. This initiative aimed at providing safe drinking water, hygiene and sanitation in the developing nations. The initiative therefore aimed at improving the quality of water in relation to safety and health of the population. The partnerships also aimed at promoting improvement in health status of the developing nations.
Coca-Cola Company focused on recycling and re-using the packaging materials. The initiative aimed at reducing the disposal of non-biodegradable waste on the environment.The initiative aimed at reducing the deposition of glass, plastic and aluminum material in the soil thereby boosting solid waste management practices. Recycling the materials targeted a reduction in the environmental pollution resulting from the accumulation of solid wastes (packaging materials).
The Coca-Cola Company also invested in the closed-loop recycling plants. The initiative aimed at reducing the accumulation of plastic materials in the soil. The initiative targeted recycling of the plastic packaging materials so as to reduce the amount of non-biodegrade waste deposited in the environment.The recycling plants aimed at reducing environmental pollution and the greenhouse effects recycling from the combustion of plastic materials.
The company invested in the commercially viable HFC-free technologies for refrigeration. The company also addressed the issues concerning consumption of energy by the refrigeration equipment. The initiative aimed at reducing the release of greenhouse gases into the atmosphere. It targeted a reduction in the greenhouse effects and global warming. The overall goal of the initiative is to mitigate the causes and effects of climate change.
Evaluate (with evidences) the outcomes of the CSR initiatives on stakeholders, and how these initiatives influenced the corporate image and reputation for the MNE.
In the context of Global Water Stewardship, the company achieved an improvement of around 16 percent in the water use ratio between the years 2004 and 2012.The Company also indicates that 96 percent of its water facilities are in compliance with the treatment of wastewater procedures and requirements. The partnerships enabled the company to replenish around 54.8 billion liters of water to nature and communities between the years 2004 and 2012.The achievements in the water usage improvement boosted the image of Coca-Cola in various parts of the world like India leading to an increase in the consumption of its products.
Sustainable packaging enabled the company to deliver 2.5 billion plant bottles to its nine key markets. The company managed to recover around 36 percent of the cans and bottles released into the market through the Coca- Cola system. The company successfully escaped the use of around 85000 metric tons of the main packaging materials saving costs of approximately $100 million. The results boosted the corporate image of Coca –Cola Company through improved profits and performance resulting from the cost savings.
In the context of healthy living, the company sponsored around 150 nutrition and physical education programs in approximately 100 nations. The company managed to display the calorie information on the most packages before the end of 2011.The Company made an announcement and implementation of the Global School Beverage Guidelines.
What would you recommend to improve the CSR initiatives in your chosen MNE?
Coca-Cola Company should provide transparent and accurate information in order to allow the involved stakeholders to gain proper insight relating to its corporate image. The provision of accurate and transparent information concerning its achievements will help Coca-Cola achieve successful corporate social responsibility initiatives.
The Coca-Cola Company should improve its employee relations. It should abide by the regulations and avoid discrimination of employees. Listening to the employees, as well as provision of immediate feedback, will boost the employee relations in Coca-Cola Company. The company should use random rewards in order to motivate its employees leading to the improvement in the CSR initiatives.
The involvement of the Coca-Cola in community development promotes a positive rapport with the community. Partnering with various charity organization will help in facilitating community development that helps in developing successful CSR initiatives.
References
Cecconi, L. (2011). Corporate Social Responsibility (CSR) is the New Driver for an Ethical Public Relations Function.
Crifo, P., & Forget, V. (2012). The Economics of Corporate Social Responsibility: A Survey.
Moses, C. T., & Vest, D. (2010). Coca-Cola and PepsiCo in South Africa: A Landmark Case in Corporate Social Responsibility, Ethical Dilemmas, and the Challenges of International Business. Journal of African Business. doi:10.1080/15228916.2010.509166
Raman, K. R. (2007). Community?Coca-Cola Interface: Political-Anthropological Concerns on Corporate Social Responsibility. Social Analysis. doi:10.3167/sa.2007.510305
Woodward, D. G. (2007). Review essay: Corporate social responsibility at a crossroads: Futures for CSR in the UK to 2015. Journal of African Business. doi:10.1080/0969160X.2007.9651782
Zhang, F. (0). Corporate Social Responsibility in Emerging Markets: The Role of Multinational Corporations An Initial Paper for the Launch of the Foreign Policy Centre Project on "Corporate Responsibility in Emerging Markets" (2008) in association with Coca-Cola Great Britain.
