@2009Corporate Social Responsibility for Multi-nationalsCorporate Social Responsibility (CSR) also known as corporate citizenship, corporate social performance or sustainable responsible business refers to the balanced approach that multinational organizations use to address the economic, environmental and social issues in ways that aims to be beneficial to the people, communities and the society (International Institute for Environment and Development 2004). The strategic advisory group on social responsibility agrees that there is no authoritarian definition of CSR but all the proper definitions involve the emphasis of interrelationship between economic, social and environment issues for the benefit of man.
Any of such a definition on CSR must explain the responsibility of a multinational organization to the issues of the environment. This concept has different names which all refer to the same thing but indifferent words for instance in Chile it is referred to as Entrepreneur Social responsibility while in South Africa it is referred as Corporate Social Investment. Definition and Purpose of Silent and Shadow ReportSocial and environment reporting is fundamentally concerned with the production of accounts of how a specific organization is acting responsibly concerning the matters of the environment and social development.
These CSR reports are usually prepared by these organizations to portray the positive side of such an organization towards the public. These kinds of reports and data by individual organization to show their own social responsibility are called the silent reports (Medawar 1976). However theses accounts are not always detailed and can be bland and therefore need arises to check this. On the other hand other independent organization also may produce environmental or social reports that concern these multinational business organizations.
These independent organizations are called external social audits. These reports produced by a secondary organization showing the social or environmental responsibility of other organizations are referred to as the shadow accounts (Medawar 1976). The objective of the shadow accounts is basically twofold. These external social audits acts as balancing inspection to the resources that that an organization may use to emphasize their positive contributions to environmental and social issues which may be exaggerated. Secondly these secondary organization use their information to effect change that ensures that the accountable organization becomes socially responsible and more accountable to people and the environment.
The external social audits are independent of the silent accounts and comprise the publicly available non-company resources. Company BackgroundThe coca cola company is the world’s largest manufactures, distributors and marketers of non alcoholic beverage concentrates and syrup. This business multinational corporation is among the largest and the most important corporations in the USA with regard to employment and revenue generation. John Stith Pemberton invented the flagship product-coca cola for the company, in 1886. This brand name and the formulae were purchased by Asa Candler in 1889 and since then the company has expanded to all parts of the globe.
Situated in Atlanta Georgia, the company’ products are available in about 500 brands 1.6 billions servings every day (The Coca Cola Company 2009). Coca Cola Company and CSRDriven by an enduring commitment to ensure that sustainable communities are built, The Coca Cola Company is focuses on initiatives that preserve the environment, enhance economic development among the communities and conserve resources in all countries that the company is under operation (The Coca Cola Company 2009). The commitment of the company to the above cause is stipulated in the 2007/2008 commitment highlights.
These commitments involves respecting people, protecting the environment, effective water and other environment resources usage, supporting communities development through donations and charitable contributions by the coca cola foundation and finally by offering a wide range of safe quality products. The concept of the corporate social responsibility is now a widely acknowledged method where an organization must be accountable to the people it serves. The political and the social change as a result of the globalization have raised new questions and expectations about governance and social responsibilities.