The Coca-Cola Company is the largest manufacturer of beverages and soft drinks worldwide. “They deal in more than 3000 beverage products and operate in more than 200 countries” (Diamond). The company has a large customer base that they must retain. In manufacturing these numerous beverage products, the company uses different ingredients such as water, sugar, and other additives. In addition, the company packs its products in materials that can have effects on the environment and consumers’ health.
Their industries also produce effluents that have adverse effects to the adjacent environment and the local inhabitants. Daily, the industries consume a lot of energy to run their operations. This energy has its source from the environment (Energy). From this point of view, The Coca-Cola Company should bear a great deal of responsibility to its customers, the public, and the environment.
According to Diamond, Coca-Cola uses water as its main ingredient. This product’s supply remains under immense pressure world over due to human use.
Notably, most of the world large water bodies are salty and are unsuitable for beverage production; this leaves the company with no alternative but to use the available fresh water sparingly and even find a way of cheaply desalinizing the salty water. These undertakings will contribute in decreasing chances of inadequate fresh and clean water supply for human consumption and other domestic use.
Evidently, the company should be considerably concerned with the effects it poses to the environment and the public in its massive use of the available water. For instance, the company has also carried out numerous activities to ensure that African communities get access to clean and fresh drinking water and sanitation by 2015 (“Sustainability: Corporate Responsibility.”).
Moreover, in 2007, the company was at the forefront with other five companies in fulfilling the CEO water mandate; the program is meant to assist companies in controlling their water use. Simultaneously, the company trains its employees and bottling partners on watershed issues and even involves communities and government agencies in managing these watersheds.
Additionally, their concern for the environment is evident in their goal of recycling and treatment of used water before releasing it to the environment. “The water used in our system operations is recycled through a treatment and cleansing process…we are creating our own wastewater treatment facilities.” (“Sustainability: Corporate Responsibility.”).
The Coca-Cola Company’s engagement in the water issues reveals its concern for the health and well-being of the public, environment, and its customers. If the company can stop engaging in the water sustainability, it can end up closing operations, as they will lack the chief raw material. Additionally, the untreated water that goes to the environment affects the customers and non-customers, thus can reduce the customers purchasing power, as they will concentrate on health recovery.
In line with the above roles, the company is encouraging sustainable environment by changing its packaging materials to be environmentally friendly. For example, Coca Cola collaborated with JBF Industries Ltd to supply them with PlantBottle, plastic packaging made from sugarcane waste.
This bottle is not only biodegradable and has low carbon content but also recyclable. Destruction to the environment can be a blow to the operation of this company; therefore, it must work actively towards environmental sustainability. The PlantBottle also ensures that the beverage product in it is free from any contamination.
A review of the IBM Company shows their concern for the nature of their products; for instance, their Stewardship program aims at ensuring that the products are easily disposable, recyclable and consumes less energy. “IBM’s product stewardship program aims to maximize re-use, recycling, and refurbishment within our product design and lifecycle…” (“Corporate Responsibility – Environment”).
According to Diamond, “…clean operations in one country give a company an advantage in bidding on leases in other countries.” This reveals that human beings prefer a clean environment. Coca Cola’s safer environmental practices have also made it a brand to beat in the beverage industry.
In terms of sales, a company gains an edge over other competitors, as consumers like to be identified with best firms and even tend to purchase products they know their state. For this reason, The Coca-Cola Company should surpass its legal responsibility in ensuring environmental safety. Environmental protection in a broader view, if not taken earnestly, can lead to climate change worldwide (Energy). Markedly, the main ingredient that the company uses is water, which they require to be fresh and clean.
Therefore, if they do not apply safer environmental activities, they are merely increasing the cost of purifying this ingredient. The purification cost can be more than that of making PlantBottle.
The beverage products have varied ingredients that require customers’ awareness. An example is the sugary content in the beverages that can cause adverse health effects on the customers. Consistently, the Coca-Cola Company is working on coming up with natural and low calories sweeteners. Recently, they came up with stevia, which have zero calories and originate from natural sources.
Further, the company has a nutritionist department that ensures that the products’ standards meet both the company and the government regulations. The customers, in all businesses, are the center of focus, as they must feel any effect on the business. The company has also created programs where it informs the customers and noncustomers of the healthy living styles.
In these programs, they transparently highlight the adverse effects of overconsumption of some of their products, hence, giving the customers freedom to choose from the variety of products available. The company clearly outlines the effects “Any food or drink that contains fermentable carbohydrates (sugars and starches), including calorific sparkling drinks, can play a role in the development of tooth decay.” (“Sustainability: Corporate Responsibility.”).
Since some of their products can cause health complications, from this perspective; The Coca-Cola Company should be extremely responsible for the well-being of their customers.
On the energy conservation, Coca cola just like IBM, is highly taking a proactive tactic to reduce emissions. For example, Corporate Responsibility – Environment elaborates, “Supporting alternate employee commute options.” The Coca-Cola Company also started a program where it is rewarding those who opted to walk or cycle to work.
Additionally, the company encourages the use of natural sources of energy like windmill. The company relies on the environment to run its activities; therefore, it must take great responsibility for its sustainability.
On the other hand, Corporate Social Responsibility (CSR) implies added cost that may not lead to significant financial strengths. At the same time, the extensive involvement of The Coca-Cola Company in CSR can cause negative perceptions among shareholders. Most public companies aim at meeting the shareholders demands of profit maximization at the expense of CSR.
Moreover, some companies do greater harm to the environment than this beverage company does. Therefore, Coca Cola’s attempts to engage in environmental and minimal energy consumption have low or no effect in the long-term.
Conclusively, as others may have a contrary view of the company’s involvement in these activities, I fully support their actions. Factually, unhealthy environment is unsuitable for all business, and the less concerned included. A company that is responsible for the environment, the public, and its customers build a positive image globally, thus improving sales and retaining skilled employees.
Works Cited
“Corporate Responsibility – Environment .” IBM . IBM, n.d. Web..
Diamond, Jared. “Will Big Business Save the Earth?.” The New York Times 5 Dec. 2009, sec. Opinion: n. pag. The New York Times.Web..
“Energy.” The Environmental Literacy Council. The Environmental Literacy Council, 16 June 2008. Web.
“Sustainability: Corporate Responsibility.” The Coca-Cola Company. The Coca-Cola Company, n.d. Web.