Introduction
Corporate social responsibility (CSR) entails the responsibilities that businesses have towards the societies within which they operate. Effective corporate social responsibility is associated with enhancing the value of shareholders. When a firm runs its business in a manner that accounts for social responsibility, the image and brand of the firm is highly recognized as well as respected.
The recognition and respect for a firm’s brand is noted to affect the shareholders positively through adoption of a company’s products and services that is reflected by increased sales (Glann, 2009). There are various models of corporate social responsibility that guide businesses in executing their social responsibilities towards the societies within which they operate.
For philanthropy model of CSR, companies are free to contribute to the social needs of the societies where they operate, but firms cannot be forced to do so. The integrative model entails a complete integration of social responsibility with a company’s mission as well as its strategy. The social web model considers firms as a citizen of the society in which it operates and thus, business should comply with the various ethical requirements and obligations that all citizens in the community face.
The economic model involves limiting a company’s social responsibility to minimal economic responsibility of offering products and services, while ensuring they maximize profits within the law (Hartman & Desjardins, 2011). Coca Cola Values and CSR Model Most Closely Associated With the Values
Coca Cola is a company that upholds social corporate responsibility towards the community within which it operates. Coca Cola Company focuses on social responsibilities on various spheres of its operations. Coca Cola company social responsibilities values encompass social, economic, ethical as well as environmental concerns.
Through the philanthropic model, the company is very committed towards the social affairs of the community. In order to cater for the social affairs of the community, Coca Cola Company provides health programs that provide health services for individuals suffering from tooth decay, diabetic and obesity. Similarly, Coca Cola Company has taken proactive approach to these health issues that are closely associated with its products and thus it finances various sport programs.
In addition, Coca Cola has supplied various schools with countless fitness equipments and sports garments. Furthermore, Coca Cola has financed building and renovation of many youth centers. The Coca Cola Company does not limit its giving in United States of America only, but also extends its giving to other regions where it operates such as England, Egypt, New Zealand as well as Singapore among other places.
The company is dedicated in sponsoring sports initiatives in order to encourage people and particularly in the regions where it operates to take part in healthy lifestyle through engaging in physical exercise. Sports and exercise has been noted as essential in preventing obesity, diabetics as well as cardiac related illness that are the major causes of death in developed nations
Using the economic CSR model, Coca Cola Company believes in customer satisfaction and places quality as its top most priority. Coca Cola Company produces high quality products as well as quality packaging that are guaranteed by using quality ingredients and materials as well as controlling all its process such as manufacturing, bottling and distribution.
The regulation is done in order to make sure that its products and packaging meet the company’s standards as well as address consumers’ expectations in the marketplace. The company is committed in offering high standard products both in quality as well as safety. Coca Cola has used its high quality products as its competitive advantage over its rival firms in extending its operations in order to maximize its profits.
Coca Cola Company uses the integrative model of CSR in order to ensure sustainability for natural resources as well as environment. Coca Cola Company uses energy in the best possible manner to ensure sustainability as well as reduce greenhouse gases emissions. In addition, the company uses water in the best way possible to save water wastage. As its strategy for saving water, the company engages in water treatment and recycling.
Coca Cola uses the social web model of CSR in order to ensure it conforms to the communities’ ethics and obligations. Coca Cola Company does not engage in unethical conducts such as corruption as well as spillage of industrial wastes in rivers. In addition, Coca Cola Company marketing department does not engage in misleading advertisements in order to lure consumers to take its products.
The company believes it is its responsibility to inform its consumers about the nutrition value of its products in order to help them make informed decisions. Coca Cola Company being a U.S. multinational company is entitles to act ethically in all its dealings.
The company is not allowed to participate in any bribery instances in order to get business favors. In addition, the company is entitled to include a correct label for all the ingredients that have been used to make its products. This is important in order for customers to make informed decisions when buying the company’s products (Neill, 2009).
The Benefits of Coca Cola CSR Initiatives The Coca Cola Company has greatly benefited by adopting its social corporate responsibility. Coca Cola has engaged in social programs such as sponsoring social activities such as sports that are important in promoting the health of the communities concerned.
Coca Cola products are classified as fast food which has high calorie content that is associated with causing obesity and diabetic. Therefore, by supporting concerned communities in sports, Coca Cola encourages these communities to embrace healthy lifestyle that is guaranteed by proper dieting and engagement in exercises.
The strict regulations in the production of Coca Cola ensure that they offer very high quality products that do not endanger life of the consumers. In addition, the tendency of Coca Cola Company not to engage in unethical behaviors by not disposing its wastes products in rivers has made many people to have a positive attitude towards Coca Cola brand as well as its products which has eventually resulted to the success of Coca Cola Company both in United States as well as a multinational company.
The Benefits and Drawbacks of the Organization’s CSR Initiatives
Coca Cola corporate social responsibility initiatives have also been associated with some drawbacks. For example, the company has invested a lot of money in the development of alternative sources of energy in order to cut down on the greenhouse gases emission. In addition, the company has equally invested a lot of money in upgrading the efficiency of its water usage as well as in endeavor of sponsoring social activities. However, the company has benefited greatly in these undertakings.
Examples of Ethical and unethical Advertisements
Many companies are engaged in various forms of unethical conducts that ranges from bribery to the use of misinforming ads in order to gain a competitive advantage, over their rival brands. In attempt to increase its market share over its rival brands such as Pepsi, Coca Cola Company can opt to bribe some government officials in order to be given permit to operate in certain regions. Bribery is considered as unethical that is contrary to proper operations of the United States multinational companies.
The United States of America does not allow its companies to give bribes in order to be given business favors (Sandon, 2006). This has often compromised the performance of Coca Cola Company and mainly when the company expansion to certain regions has been limited by corrupt government officials who have solicited for bribes.
Coca Cola Company can also engage in unethical act by using misinforming advertisements in order to lure a certain targeted group to consume their brand. For example, Coca Cola Company can use an ad like ‘a bottle of Sprite a day delays aging’ this ad can be used to lure the young people to start taking a bottle of sprite daily.
This advertisement can mainly be used to increase the sale of sprite in areas where the level of education is low. The use of misinforming ad to increase the sale of the product will help a company to realize its short term objectives for increased sales, but many people will stop consuming a company’s products when they learn they are being cheated. This will affect the performance of the company negatively in the long run.
However, ethical conducts of companies will only have short term drawbacks, but they will greatly eventually greatly benefit the company through increased sales as well as recognition and respect for a company’s brand. A company like Coca Cola can inculcate ethics in its advertisement by including messages that are informative in its ads.
For example, Coca Cola marketing team can use an ad with informative message like ‘For every bottle of sprite, walk for 20 minutes.’ This information is essential for healthy lifestyle as it encourages people to exercise after taking sprite in order to burn the excess calorie contained in sprite.
The model of CSR That is Most Applicable and for ABC Company
The ABC which is a new manufacturing company located in the U.S.A. should take an integrative model of corporate social responsibility. This model is the best for ABC Company because it integrates the social responsibilities of the company with its c mission and strategy that enhanced their success implementation.
In addition, integration of the corporate social responsibilities with a firm’s mission and strategy facilitate the assessment of their realization which is important in evaluating the effectiveness of the strategies employed to realize the set corporate social responsibilities and adjust accordingly. An example of a statement for corporate social responsibility for ABC Company includes; ‘ABC Company aspires to be the manufacturing company that leads in energy efficiency as well as environmental protection for the benefit of all.’
Conclusion
Companies should adopt corporate social responsibility in order to promote recognition as well as adoption of their brands to enhance their performances. There are various models that are used by companies to address social responsibilities for communities concerned. Some of the CRS models that are employed by companies include: economic, philanthropy, social web and integrative model.
Coca Cola Company has used the aforementioned CRS models in order to execute its social responsibility towards the community within which it operates. From the analysis of the models used by Coca Cola Company, the integrative model of CRS was identified as the best for ABC Company as it integrates the social responsibilities to the company’s mission and strategies.
Reference List
Glann, N. (2009). Social Responsibility: Company Management and Shareholders. Web.
Hartman, L. & Desjardins, J. (2011). Business Ethics. Web.
Neill, M. (2009). Coca Cola Corporate Social Responsibility. Journal of International Business. 5, 3, pp.30-60.
Sandon, A. (2006). International Company and Ethics. Web.