Introduction
It is imperative to note that corporate social responsibility is a fascinating topic that is actively discussed by scholars. The role of this concept has been increasing, and many companies have focused on the development of numerous strategies and approaches (Mullerat & Brennan 2011). Understandably, the primary goal of every firm is profit, and it would be beneficial to deliver the information regarding such activities to the public to increase the level of trust and to avoid possible risks (Combs & Holladay 2011).
Sustainability reporting is the process that is focused on the provision of information regarding vital decisions made by an organisation and is mainly focused on environmental and social aspects (Carnevale & Mazzuca 2014). It is paramount to understand that sustainability has become vital because of the enormous demands of customers (Brinkmann 2016). Furthermore, this term has become closely connected with social responsibility, and it has led to changes in reporting.
Discussion
Many individuals are willing to support only socially responsible enterprises. Moreover, many think that it should be viewed as an essential part of every business, and can be regarded as a viable business strategy. One of the most significant differences between these two approaches is that the Inditex Group devotes much more attention to the development of sustainability reports and it is possible to state that they are aimed at different audiences (Inditex annual report n.d.). The problem is that companies in this industry have been criticized because of the use of cheap labour, and it has been trying to take the necessary measures to resolve this problem (Perez 2014).
Moreover, Inditex Group has devoted enormous attention to this aspect and has developed a range of policies to ensure that child labour is not used, discrimination in the workplace is not acceptable, working hours are appropriate, and other vital aspects are taken into account (Code for manufacturers and suppliers n.d). Coca-Cola Company acknowledges the fact that consumers are incredibly interested in the product, and they are worried about possible harm to their health. Moreover, it tries to ensure that all of the core aspects of sustainability are addressed. Sustainability goals that are set by the enterprise are quite high in most cases, and it will not be an easy task to accomplish them in the coming years (see Table 1).
Table 1: Coca-Cola Company’s environmental goals.
Both companies operate according to the guidelines suggested by the United Nations Compact for Business. This policy is focused on human rights, labour, environment, and anti-corruption (Wallace 2014). Furthermore, it can be seen that both Coca-Cola Company and Inditex Group acknowledge the fact that these principles should be respected and focus on them in their reports. The need to focus on the health and well-being of customers also needs to be acknowledged.
The problem that the company frequently has to deal with is that the brand is associated with its adverse effects in most cases. There is an enormous difference in resources that are used by the companies. The fact that Coca-Cola company has to use significant amounts of water to produce its products makes the company responsible when it comes to issues that are related to this topic. Furthermore, the enterprise is participating in water-use reduction programs (2014/2015 Sustainability Report 2016).
The company is willing to provide enormous amounts of resources to regions that are in need because it recognizes that this resource is valued, and all necessary measures should be taken to ensure that its use is reduced and people that need it the most can access it. However, Inditex also supports similar activities because it recognizes that it regards it as a global program that needs to be addressed (Global water management strategy n.d.). Decisions of Inditex are mostly based on the principles of sustainability, and it has developed a set of policies to ensure that such rules are respected (see Table 2).
Table 2. Inditex sustainability programme.
It is necessary to understand that one of the primary reasons the differences between these approaches is so enormous is that the dissimilarity between these two industries is tremendous. Inditex Group is not pressured by the public as much, and the risks related to environmental damage are not as significant. Also, the quality of products offered is another aspect that is worth noting, and the enterprise is pressured to ensure that only the best available materials are used for manufacturing.
Coca-Cola Company participates in numerous conferences and forums to discuss issues that are the most important and needs of stakeholders are also taken into account. The biggest difference that should be noted is that it pays much more attention to needs of women, and the firm has acknowledged the fact that such problems as inequality and unfair treatment should be addressed (see Table 3).
Table 3. Primary objectives.
Conclusion
In conclusion, numerous differences between the approaches used by these two companies are present. It is imperative to understand that enterprises try to address aspects that are viewed as the most problematic by stakeholders most of the time (Blowfield 2013). Another aspect that is worth noting is that the focus on such activities helps to increase the level of prestige of a particular brand. Both firms do not want their products to be viewed as low-quality, and the focus on social responsibility allows influencing the opinion of the public.
Reference List
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