“The brand that refreshes the world, inspires moments of optimism, creates value, and makes a difference” –Coca-Cola Company.
Overview
Businesses operate within the community, which includes the people they employ, the consumers, and the policy formulators. It is important for businesses to market the idea of being a good citizen by exhibiting community-minded behavior. This makes the concept of corporate citizenship an important consideration for many businesses. Corporations are considered paper citizen and in that view, every citizen has a responsibility to fellow citizens. Corporate citizenship is an important managerial and strategic factor that crafts an instrumental view of the relationship between business and society (Carroll & Shabana, 2010). Big corporates in the world today are becoming more influential because of the brand position and influence and thus the need to participate to some degree in social and community affairs.
Businesses are expected to mind the people they serve and Coco Cola has been a brand at the forefront in paying attention to corporate citizenship. On top of being a global leader, the Coca-Cola Company runs subsidiaries in various parts of the world in the soft-drinks industry. In its mission statement, the company seeks to refresh the world, inspire moments of optimism, and create value while making a difference. Coca-Cola has participated in social and community affairs primarily through civic and cultural contributions in terms of time and money. In addition, the company has focused on adhering to environmental standards, providing stable employment opportunities, and providing healthy options for consumers. This course seeks to study and discuss the importance of corporate citizenship with a particular focus on its importance to the stakeholders and how it can be authentically implemented. It is important to consider several aspects such as the company’s employment aspects, support for community projects, ethical operations, and how they relate to company growth and reputation. Listed are some useful materials that highlight the importance of corporate citizenship to the stakeholders and how best to implement it.
Annotated Bibliography
Arli, D., & Tjiptono, F. (2014). Does corporate social responsibility matter to consumers in Indonesia? Social Responsibility Journal, 10(3), 537-549.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.
Chan, L. Y. (2014). Corporate Social Responsibility of Multinational Corporations. Global Honors Theses. Paper 18. Retrieved from http://digitalcommons.tacoma.uw.edu/cgi/viewcontent.cgi?article=1018&context=gh_theses
This article presents a comprehensive and simplified introduction to corporate citizenship. The introduction discusses how besides profit making in business, caring about the society, environment, and human rights are a significant part of corporate social responsibility. Of particular emphasis in the introduction is the expectation that companies must consider the impact their business activities have to the society. The author highlights the concern of stakeholders that goes beyond profit making to include matters of ethics, governance, human rights, and the environment. In defining corporate social responsibility, the author highlights the relationship between higher reputation and company image as a result of being socially responsible and higher returns on investment and competitive advantages. Good reputation has much to do with the way a company relates to the community with special emphasis on how the company operations observe the regulations of the country, respects the community, takes part in community development, and how it seeks to protect the environment while still serving the people. Despite the community being the major consumer, besides providing them with the products and services, it is important that companies observe their social norms and values and take them into consideration.
Cheers, Z. (2011). The Corporate Social Responsibility Debate. Honors Program of Liberty University.
This article discusses the importance of companies implementing corporate responsibility as the basis of profitability. The author highlights that corporate responsibility creates a competitive advantage for businesses, increases market share, and differentiates a company from competitors because it engenders goodwill on relation to employees and consumers’ perceptions. Reading the discussion presented helps in demystifying the belief that by being philanthropic or actively involved in community projects companies remain unprofitable. The author also discusses how corporate citizenship is associated with businesses making decisions based on objective ethical codes and in compliance with the laws set forward. The basic assumption made in the discussion is that by businesses adhering to the society’s laws and fulfilling their needs in the economic and social realms, it basically becomes more profitable because shareholder value will be maximized and their corporate reputation will attract more stakeholders to conduct businesses. Going through this article will help in learning why positive stakeholder reputations fostered by corporate citizenship will rescue businesses from suffering the adversities of lost sales, dissatisfied workforce, and negative publicity.
Coca-Cola Deutschland. (2011). Sustainability Report 2011. Coca-Cola Enterprises. Retrieved from http://nachhaltigkeitsbericht.coca-cola.de/download/executive-summary-english.pdf
This paper helps in understanding corporate citizenship from a practical perspective as put forward by the Coco-Cola sustainability report. It highlights important practical goals set by the company that includes the provision of healthy alternatives to consumers and strict compliance with legal and social guidelines concerning product information and responsible marketing and sales activities. It also highlights the company’s focus on workplace health and safety management, women inclusion in leadership, employee benefits, trainee programs, and sustainable practices that seek to reduce production energy requirements. This article is helpful in providing the idea behind the practicability of corporate citizenship and how companies such as Coca-Cola are making it part of their management and strategic considerations. One can understand how companies are defining the aspects of social responsibility as direct and practical goals that not only relate to the way business practices are carried out but also the way the consumers and the community at large matter to the businesses. An example is the highlighted aspect of providing healthy alternatives to the consumers of Coke soda. The company considered the people with health problems among its wide population of consumers and came up with diet Coke for people with health problems. From this perspective, one can easily understand that besides the Coke soda selling, there were some individuals who could not consume the soda on health grounds. The company took the initiative to serve them with a healthier soda option. The initiatives indicated in the sustainability report all revolve around serving the community at every level of the company’s engagement with the community. The report depicts the community as being at the center of nearly every decision the Coca-Cola Company makes.
Corporateethics. (2011, July 12). Usefulness of Corporate Citizenship Concept - Jeremy Moon. YouTube.com. Retrieved from https://www.youtube.com/watch?v=FyuASCknXMk
This interview posted on YouTube features Jeremy Moon, a Professor of Corporate Social Responsibility at Nottingham University Business School. In the interview, Moon breaks down the simplified ideas behind corporate citizenship. He highlights that companies are viewed as fellow members of the society with human beings and also as governments because they exercise authority over members of the workforce. He also highlights companies as presenting an arena for human citizenship in regard to stakeholders such as consumers who want to pursue objectives such as better quality in terms of products, better pay in terms of workplace issues, and fair trade among others. In his view, it is paramount for companies to work with the other bodies in the society to address social issues by taking advantage of opportunity areas that the bodies present. This short interview presents relevant information that can help one understand corporate citizenship. The explanation presented highlights the stakeholders such as employees, investors, and consumers as being a critical part of the viability of businesses operating in the society. It also highlights the power that the society vests in corporate companies. For this reason, the community expects that it can act in their best interest by using the power vested in them. This explains why companies such as Coca-Cola have chosen to take part in community development initiatives in different countries despite the existence of functional governments.
Gond, J. P., El-Akremi, A., Igalens, J., & Swaen, V. (2010). Corporate Social Responsibility Influence on Employees. International Center for Corporate Social Responsibility Research Paper Series - ISSN 1479-5124. Nottingham University. Retrieved from http://www.nottingham.ac.uk/business/ICCSR/assets/ibyucpdrvypr.pdf
This article analyzes the influence of corporate citizenship on the employees of a corporate entity. It explains how the employees’ perception of corporate citizenship triggers behavior and attitudes in the workplace which have an impact on the organizational and social performance. The explanation is based on a theoretical foundation in which the social identity and social exchange theories have been highlighted. Employees are discussed as significant stakeholders who impact the corporate social responsibility policies. Study findings in the article present the assumption that corporate citizenship enhances social welfare and fosters healthy exchanges between employees and corporations. An important aspect of the paper is that corporate citizenship is explained from a psychological perspective. From this perspective, the article highlights the assumption that congruent personal and organizational values are linked to employees’ cognitive connections. This helps to explain how the employees or stakeholders who depend on social interactions are affected by the social understanding of corporate citizenship. With effective and objective social interactions, the social link between a company and the citizens or consumers, making business strides becomes easier. This is because the people trust that the business operated is for the benefit of the community and so people take the initiative to support the business. Just as it is in the practical world, businesses interact with the society based on a psychological perspective rather than simply in the physical sense. This article helps to view corporate citizenship in the practical sense and understand the social dynamics that influence the success of a business.
Hohnen, P., & Potts, J. (2007). Corporate Social Responsibility. An Implementation Guide for Business. Winnipeg, Manitoba: International Institute for Sustainable Development. Retrieved from http://www.iisd.org/pdf/2007/csr_guide.pdf
This article introduces the corporate citizenship implementation framework guide which reviews important issues that companies should consider in the implementation process. The foundational argument presented in the article is that the corporate citizenship implementation framework is essentially a dynamic learning process. The implementation process as presented in the article involves 6 steps. The first step is conducting a corporate social responsibility assessment in which stakeholders are identified and engaged and the corporate activities and internal capacity are reviewed. The second step is to develop a corporate social responsibility strategy in which the direction, approach, boundaries and focus areas are decided in addition to building support with the stakeholders. The third step is the development of social responsibility commitments in which discussions with stakeholders are held and a dedicated workgroup is created to develop the commitments. The fourth step is implanting the social responsibility commitments in which training, communication plans, mechanisms for addressing problematic areas, and making the commitments public are all set. The fifth step is reporting on the progress in which performance is measured and a report on performance is provided internally and externally. The last step is evaluations and improvement of the performance where stakeholders are engaged to identify opportunity areas that can further support the corporate citizenship effectiveness to both the business and the society. Essentially, the framework presented helps the company managers to assess the effect of the firms on society and the challenges and opportunities that it presents and how this will affect the business activities in the practical sense. This is an important article that helps in the application of a well-designed corporate citizenship implementation framework and how it incorporates the input of stakeholders.
Jonker, J., & De Witte, M. (Eds.). (2006). The Challenge of Organizing and Implementing Corporate Social Responsibility. New York, NY: Palgrave Macmillan.
This article highlights the main challenges that characterize the corporate citizenship implementation process. Corporate citizenship is highlighted as an aspect that must be maintained even with the rapidly changing business contexts. The main challenge in the implementation of the corporate citizenship is the ability to balance the use of competencies in the company to address social concerns and operating successfully in the business sense. This challenge is because many companies and managers fail to develop an innovative vision that goes beyond the typical traditional management mentality or thinking. In some cases, the article points out that a company may develop a vision but fail to embed it in the business processes and systems. This, essentially, means that it becomes difficult to sustainably realize the corporate citizenship goal because the systems and processes are not oriented towards the goals. The importance of stakeholders is pronounced in the implementation process as highlighted by the authors. However, it is the lack of engagement with stakeholders that presents another major challenge in the implementation of corporate citizenship. The authors point out that stakeholder engagement is often left out when managers are discussing the organizational processes. Without a good stakeholder relationship and an effective engagement process, the business is unable to develop social capital and thus the members of the society and the employees become less willing to take risks and act for the benefit of all, including all the stakeholders. This article will help in understanding why failing to engage stakeholders and lacking the leadership and managerial competencies affect the implementation of corporate citizenship.
Rasoulzadeh, H., Hosseinipour, S. J., Yusof, N. A. M., Soltani, M., & Hashemi, S. (2013). Effect of dimensions of corporate social responsibility on organization performance. International Journal of Innovative Ideas, 13(2), 37-47.
This article discusses the role of businesses in the society and how it relates to corporate citizenship. Businesses have to take note of the marketplace, workplace, community and the environment in regard to their operations and practices. According to a survey indicated in this article, the first priority for companies in relation to their responsibilities towards the society is to enhance the quality of lives in the communities they operate. It is important to note that the quality of lives of the people relates to aspects such as welfare, human rights, health, ambitions, choices, freedom, and other life-related factors. The authors point out the fact that stakeholders exist both outside and in a firm and thus to satisfy the consumers, the focus on corporate citizenship and social responsibility are important. The authors also point out the common misconception that social responsibility does not tangibly affect economic performance. However, reading the article highlights the importance of social responsibility as an aspect that allows business professionals to focus on the quality of products, ethical obligations, and innovativeness which help to support the short-term investments of businesses. This means that corporate citizenship is a long-term strategic component of companies and it is important to have it from the start of the business because it supports what the company seeks to achieve in the short-term. Therefore, it is part of the vision and mission of the companies, which is what the stakeholders operate based on their different capacities.
The Coca Cola Company. (2009, December 2). Online Social Media Principles. The Coca Cola Company. Retrieved from http://www.viralblog.com/wp-content/uploads/2010/01/TCCC-Online-Social-Media-Principles-12-2009.pdf
Corporate citizenship deals, to a large extent, with how a company relates to the community. In the previous years, social media and the internet technology have been part of the social community, and firms like Coca-Cola have taken the social relationship development to social media. The “Online Social Media Principles” summarizes the principles that relate to the company’s use of social media, considering the importance of conversing with consumers online. It is important to note that social media use is guided by social norms and values. The article highlights how Coca-Cola Company has been able to employ best practices when engaging the online community. In particular, it highlights that the company focuses on compliance with applicable laws to reflect the standards of behavior appropriated by the society. The article also highlights the rationale behind the company focus on its core values of transparency, protection, respect, responsibility and utilization have been employed in the use of social media. The company also focuses on human rights such as free speech and the fact that it needs to be responsible for all its social media engagements. The importance of this article is that it provides a simplified understanding of how Coca-Cola Company is being a responsible corporate citizen in the social media world. One will be able to understand that corporate citizenship helps in decision-making by orienting managers towards thinking about the consequences of any of their actions or decisions. Choice of actions that may adversely affect the community or go against social norms is avoided when firms take heed of the aspect of corporate responsibility.
References
Arli, D., & Tjiptono, F. (2014). Does corporate social responsibility matter to consumers in Indonesia? Social Responsibility Journal, 10(3), 537-549.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.
Chan, L. Y. (2014). Corporate Social Responsibility of Multinational Corporations. Global Honors Theses. Paper 18. Retrieved from http://digitalcommons.tacoma.uw.edu/cgi/viewcontent.cgi?article=1018&context=gh_theses
Cheers, Z. (2011). The Corporate Social Responsibility Debate. Honors Program of Liberty University.
Coca-Cola Deutschland. (2011). Sustainability Report 2011. Coca-Cola Enterprises. Retrieved from http://nachhaltigkeitsbericht.coca-cola.de/download/executive-summary-english.pdf
Corporateethics. (2011, July 12). Usefulness of Corporate Citizenship Concept- Jeremy Moon. YouTube.com. Retrieved from https://www.youtube.com/watch?v=FyuASCknXMk
Crane, A., Matten, D., & Moon, J. (2008). Corporations and Citizenship. Cambridge University Press.
Gond, J. P., El-Akremi, A., Igalens, J., & Swaen, V. (2010). Corporate Social Responsibility Influence on Employees. International Center for Corporate Social Responsibility Research Paper Series - ISSN 1479-5124. Nottingham University. Retrieved from http://www.nottingham.ac.uk/business/ICCSR/assets/ibyucpdrvypr.pdf
Hohnen, P., & Potts, J. (2007). Corporate Social Responsibility. An Implementation Guide for Business. Winnipeg, Manitoba: International Institute for Sustainable Development. Retrieved from http://www.iisd.org/pdf/2007/csr_guide.pdf
Jonker, J., & De Witte, M. (Eds.). (2006). The Challenge of Organizing and Implementing Corporate Social Responsibility. New York, NY: Palgrave Macmillan.
Rasoulzadeh, H., Hosseinipour, S. J., Yusof, N. A. M., Soltani, M., & Hashemi, S. (2013). Effect of dimensions of corporate social responsibility on organization performance. International Journal of Innovative Ideas, 13(2), 37-47.
The Coca Cola Company. (2009, December 2). Online Social Media Principles. The Coca Cola Company. Retrieved from http://www.viralblog.com/wp-content/uploads/2010/01/TCCC-Online-Social-Media-Principles-12-2009.pdf
