Corporate social responsibility which is also referred to as social citizenship is running a business in a way that accounts for its environmental social impacts. In this way, the business goes beyond what it is required of it by regulatory provision and commits itself to developing and reasonably implementing policies that incorporate responsible activities into usual business operations. Businesses choose to spend on welfare programs that may benefit employees, the public, customers and share holders. This comes with some financial cost but apart from benefiting the target group, the businesses also benefit from such programs. Company’s efforts to role CSR programs grant the business a social good will and gain trust and respect. This may translate to more sells but I realize that CSR do not equal advertisement (Though some companies advertise through CSR).
In this paper I am going to analyze corporate responsibility report for coca-cola company and compare it with that of Abbot Company.
The company core values:
Coca-Cola Company is a worldwide organization that has always taken an active role in giving back to the community. The company is very public in its core values that define Coca-cola. The following are some of the company’s core values which may translate to its social responsibilities
- Quality
- Integrity
- Respect and Trust
- Excellence
Quality is a promise to consumers that products dealt with are trustworthy and are up to standard in terms of quality. That is the company’s social responsibility to the consumers. Since its inception, there have been minimal complaints from consumers concerning Coca-Cola product. The emergence of food related illnesses have caused the company to come up with special products for persons under diet restrictions like the introduction of the “Zero coke”.
Integrity is to do with partners and collaborators of the company. Such collaborators may include investors and business partners. The company as historically partnered with governments around the world; just to mention its collaboration with the American Government to engage the youth in preserving, protecting and promoting public land. While every business operates in an environment that is either within its control or not, success may be realized by striking a balance between profit pursuit and collaborations. Coca- Cola Company is not a closed system organization but one that distribute its products through other businesses. The company has partnered with numerous bottling companies around the world and has played host in profit sharing and timely paying its shareholders.
The sustainability Report
The company had earlier identified three key areas that it commits itself to fulfilling by 2020. This social initiative runs under the trade mark the sustainability project. Areas focused are the Women, Water and well being. Being a company of many years of experience the company seem to be on tract on its vision.
The sustainability report sow that there was no customer complain in 2013 and the well- being initiative take much credit for the introduction of low calorie products.
The ambition to reach to 5m women by 2020 is alive and is on right track according to the company’s report.
Weaknesses of the report
Coca-Cola Company does not operate from one location and the nature of bottling companies in this different locations have different technological levels as well as efficiency. The report incorporates the carbon emissions of these partner companies while it is hard to directly decide the technology a partner should acquire. If the partner companies were affiliates of coca cola this vision is possible. Most bottling companies have more than one client.
The company should be clear on the following issues
- Nutritional Values printed in front of products are not mare advertisements.
- Carbon Emission Accounting Protocol Should be expounded audited as other projects have been.
This report is an imporstant tool of evaluation and control. This report adds value. There are slight deviations from the expectation and by indicating such defects the management is able to tract the cause and rectifies it. This report may also benefit investors, consumers and the governments.
Difference between the coca-cola and Abbott CRS:
Abbot is an international medical research organization. Its social citizenship forces on patients who are its clients. The company‘s main focus is in engineering and medicine. Such a focus is proactive contrary to that of Coca-Cola Company that reacts to issues that are already effective like green house effect and poverty.
The citizenship of Coca-Coola company revolve around business, financial, well being and community empowerment while Abort focus much on well being and health science.
Similarities:
Both Abbott and Coca-Cola Company run social programs in their communities of operation like engaging the youth in sports.
Reports from both organizations focus much on the achievement and it is hard to tell of failures if there are any.
