The Coca-Cola Company is one of the most enviable business organisations in the world. It is an instantly recognisable brand, well known all over the planet. It can also be argued that there are only a few people in this world that do not have an idea what the Coca-Cola logo means. More importantly all key cities from Europe to Asia sell or manufacture Coca-Cola products.
Thus, it is easy to believe that the Coca-Cola Company earns a great deal of money from sales of their products. However, in the 21st century, profitability and the production of excellent products are no longer the sole standards used to judge the success of a particular organisation.
Due to the documented effects of climate change and wanton destruction of the natural environment, the general public demands accountability. One of the most potent mechanisms of accountability is the measure of sustainability. This report examines sustainability strategies employed at the Coca-Cola Company.
Accountability in terms of sustainability is a pressing concern when it comes to a conglomerate as powerful and as influential as Coca-Cola. According to a business strategy report, Coca-Cola has a flourishing international market. After the end of World War II, the company secured the capability to produce carbonated soft drinks in markets outside the United States.
Consider the fact that the company has at least nine million outlets that can be found in 200 countries. Furthermore, the report asserted that this particular carbonated soft drink maker has a 51.4 percent share of the global carbonated drinks market.
These figures alone provide a rough idea of the amount of resources that Coca-Cola needs to meet consumer demand for their product. Consider the raw materials required to create bottles made of plastic and glass. More importantly, consider the amount of water needed to produce carbonated water.
The official website of the company stated that their sustainability strategy with regards to water use included the reduction of water use per litre of product; recycling of wastewater; and a replenishment process that they claim to reach at least 23 percent of water taken from source. The company also espoused the need for various stakeholders to work together towards an efficient water conservation strategy.
With regards to climate change the Coca-Cola made the commitment to phase-out hydro-fluorocarbon coolers. The company also said that by the end of 2015 they expect to have 100 percent hydro-fluorocarbon free coolers and equipment. The company also targeted the greenhouse gases that are emitted by trucks carrying their products.
In this regard Coca-Cola purchased hybrid, electric-powered, and even vehicles that run using natural gas. The obvious reason is to reduce the amount of carbon dioxide released to the atmosphere.
In addition, the company utilize the power of solar energy through solar panels and funded a project that utilized methane coming from a landfill. Finally, Coca-Cola invested in equipment that are more energy efficient and so they were able to further reduce their carbon footprint.
With regards to the creation of waste, the company is mindful of how they package their products. The packaging of a product is an important part of the marketing scheme of the company but at the same time it is a major source of pollutants. In this regard Coca-Cola made the commitment that a significant proportion of their case volume must be in recyclable materials.
Another approach is to design the packaging material to be lightweight. For example the PET plastic bottle that they used experienced a reduction in weight and the reduction was 20 percent of the original weight. The company also invested in recycling programs and partnered with NGOs as well as government agencies.
A major aspect of Coca-Cola’s success is their global partners, especially the bottlers that are located in many parts of the world. These bottling facilities are established within a particular community. Thus, Coca-Cola made it clear that they are not only mindful of the products that come out of those bottling facilities but also the people that live in the vicinity of the said bottling plant.
One of the steps that they authorized in this regard is corporate giving. An example of corporate giving is the creation of the Coca-Cola Foundation. In an eight year span the company gave away close to $300 million.
Corporate social responsibility is also a major part of the sustainable programs that the Coca-Cola Company tried to work out with the community that they are in. An example of this approach is to provide women access to skills training and financial services. In many countries there are still social barriers that prevent women from achieving equality with men. Thus, the company helps women achieve their dreams.
It is not right to focus on the external environment and forget about the internal environment of the business organization. Therefore, part of the sustainability strategy of the company is to respect and protect the rights of their workers.
The company expects their partners to comply with rules and regulations that govern workplace conditions in their respective countries. In addition, Coca-Cola created the Supplier Guiding Principles and they expected every supplier to comply with this standard.
It is not enough to provide a set of rules that suppliers must follow. The Coca-Cola Company took a more proactive role by investigating cases of human rights-related complaints. More importantly the company allowed third-party examiners to analyse their business operations and through this process were able to have an unbiased look at the issues regarding human rights-related problems.
In the report submitted by the Danish Institute for Human Rights the company learned about gaps in their operations. As a result the company immediately reviewed their guidelines and implemented a new set of rules that covered hate speech and indigenous people.
Conclusion
The Coca-Cola Company had demonstrated its commitment towards sustainable practices. The company covered various issues related to sustainable practices. They addressed issues regarding climate change, pollution, water conservation and corporate social responsibility. One of the most important steps made concerns the use of water because it is a significant component of their products.
But it is also important to point out that the company also invested in practices and equipment that will lead to a more energy efficient operation. It is also important to highlight the fact that the company made tangible steps to give back to the community. Nevertheless, the company can still improve their commitment to sustainable growth and development.
The company must fast-track their programs so that compliance can be achieved in the next few years. The company must be encouraged to invest more in equipment and vehicles that utilize renewable energy sources. In addition, the company must be encouraged to give more to the communities that are affected by the presence of their bottling facilities.