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Coca Cola CSR Issue
Essay Instructions:
Coca-Cola started it business in 1886 in Atlanta, Georgia. Dr. John Stith Pemberton was a local pharmacist who made the syrup that was teamed with soda water and sold at a local pharmacy.
By 1920 the company started expanding internationally. They first sold their products in Canada and the Caribbean, then moved into Asia, Europe, South America, and the Soviet Union. In 2005 it was pronounced the largest manufacturer and distributor or non-alcoholic beverages in the world.
In 2007 they launched a CSR campaign called "Live Positively." The campaign established seven core areas where the company sets itself measurable goals to improve the business’s sustainability practices. The core areas are: beverage benefits, active healthy living, the community, energy and climate, sustainable packaging, water stewardship, and the workplace. They also formed a partnership with the World Wildlife Fund (WWF) and became a member of the CEO Water Mandate. Water became the company’s more important concerns.
Every year Coca-Cola publishes a report called ‘The Coca-Cola Company Annual Report’ that comprises the company’s activities in that year. The reports describe their initiatives in water preservation and community development. Since 2011 they also publish a report every 2 years called ‘The Coca-Cola Company Sustainability Review’ that are verified by a third party, the FIRA Sustainability Ltd which gives Coca-Cola moderate reliability of the information too.
Against these efforts, Coca-Cola had several conflicts and veracity of their efforts were questioned. In 2003 the Indian NGO Centre for Science and Environment (CSE) published a report that provided evidence of the presence of pesticides in a sample of a dozen Coca-Cola and PepsiCo beverages sold in India. The level of pesticides found was exceeding European standards. The report gained large publicity and media attention.
The Indian government started an investigation as well and carried out their own tests. The tests did show pesticides in the water, however the amount did not fail European standards. Therefore, the conclusion was, that Coca-Cola did not violate any national laws.
Coca-Cola denied the accusations as well as accusations related to having over-exploited and polluted water resources.
In 750-1000 words respond to the following:
How might Coca-Cola's CSR efforts affect its reputation and bottom line?
What are the key issues that Coca-Cola is facing by deciding to deny the allegations?
Describe whether Coca-Cola violated any of the NCA Credo policies? Provide examples.
How should have Coca-Cola use strategic communication to effectively deal with the problem?
Use three to five scholarly resources to support your explanations.
Prepare this assignment according to the guidelines found in the APA Style Guide
Essay Sample Content Preview:
Coca-Cola’s Corporate Social Responsibility (CSR) Issue
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Coca-Cola’s Corporate Social Responsibility (CSR) Issue
Nowadays, a CSR problem is nothing more than a concern of whether a firm is making sound business choices that will help it maintain its high status among ethical marketers and develop brand loyalty among customers. Coca-Cola Company is the world leader in non-alcoholic beverages, and it has launched various Corporate Social Responsibility programs such as the “Live Positively” campaign and “Economic, Environmental, and Social Development (EESD)” to emphasize the necessity of sustainable operations (Austin & Gaither, 2016). While the corporation has contributed positively to water and air conservation via its business and advertising activities, it has also received criticism for some of its practices. This article examines the impact of Coca-Cola’s CSR initiatives on the company’s image and financial performance, the top issues that arise in addition to denying accusations, and which possible branches of Coca-Cola may be violating the rules of the NCA, as well as some suggestions for how to address this issue through strategic communication.
Impact of CSR Efforts on Coca-Cola’s Reputation and Bottom Line
Being an ecologically responsible brand is essential to Coca-Cola’s CSR program, as seen by the ‘Live Positively’ slogan and its focus on sustainability. More significantly, this effort raises Coca-Cola’s brand value, attracting eco-conscious consumers and leading to higher market share, revenue growth, and customer loyalty (Hamilton & Pedelty, 2015). While the above are mentioned, water conservation techniques are said to be forceful. The lights of chemical contamination and water resource exploitation severely undercut these efforts. If confirmed, those rumors are likely to have an impact, posing a significant threat to the company’s Corporate Social Responsibility (CSR) projects and negatively impacting the brand and CSR initiatives, boycotting the brand, and decreasing consumer confidence, affecting the company’s income.
Key Issues Faced by Denying Allegations
Accepting comparable charges based on the belief that the sources are highly regarded and credible without responding to any proof of them jeopardizes Coca-Cola’s secrecy and authenticity. As a result, denying any prior violations without explaining the reasons is seen as a failure to admit and accept responsibility for possible environmental damage (Liptak & Pronay, 2020). Because proving wrong the claim hinders future partnerships and connections that Coca-Cola has with local governments, NGOs, and communities, the company’s capacity to form such alliances is restri...
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