A review of the social performance of Coca-Cola: Treatment of the Natural EnvironmentIntroductionLarge Corporation’s duty of being interested in the environment and the community constitutes the concept of corporate social responsibility (CSR) (Porter and Kramer, 2006). The CRS is a voluntary action aimed at improving the living standards of the community by the companies (Asongu, 2007b). The social performance of a company often offers the company some competitive edge. This is illustrated by Asongu (2007a) argument that the role of CSR should be to increase company’s dividends and not altruism. There are several components of corporate social performance.
They include diversity, community relations, employee relations and the environment. The way a company structures the provision of these components determines its competitive edge. The way a company evaluates, hires, trains and promotes its policies in relation to minority and women determines the diversity component of a company. Philanthropic spirit and the support of the community by a company determine its community relations component. In employee relations component, there is examination of social responsibility. Taming of pollution by a company addresses the environmental dimension of the firm.
The ability of a company to provide these components, dictates its competitive advantage over related companies. Coca-Cola company’s contribution to the environment, marketplace and the communities is tremendous in their daily actions (Asongu, 2007b). This paper tries to analytically examine the Coca-Cola’s contribution to the environment as an aspect of social performance. Coca-Cola Company produces markets and distributes a wide range of non-alcoholic beverages world wide. The headquarters of the company are found in the United States of America. The first product of the company, coca cola, was invented by Pemberton John Smith in 1889.
The company has about 400 brands which are manufactured and sold in many countries currently (Arnold, 2005). The company’s role in the corporate social responsibility has been seen in the support of affirmative action (Sakuma, 2010), addressing HIV/AIDs pandemic (Asongu, 2007b) and many other charity services. Coca-Cola Company and the Environment Coca-Cola Company has made tremendous contribution toward the environmental conservation. This is reflected in the many awards the company has won in response to their role in environmental conservation. Some of the awards include highest environmental eco-efficient award received in 2007 in Russia, best environment based CRS award received in 2006 in Ireland and in Bulgaria for the Green Danube Initiative (Sakuma, 2010).
According to the company’s website, the company has been involved in waste water treatment in Nigeria, use of recycled polyethylene terephthalate (PET), training in Safe and Eco-Driving in all countries (Jennifer, 2006). This demonstrates the Coca-Cola Company’s commitment toward conservation of the environment. The company is also committed to reducing carbon (IV) oxide emission through construction of the 15 CHP units (Sakuma, 2010). The Coca-Cola Company has been involved in the protection of the climate, soil, and water in order to make life to be sustainable on earth.
The company has recognized that their major impact on society and the environment occurs in their agricultural supply chain (Sakuma, 2010). The company realizes that many lives are dependent on Agriculture for human survival, industry and employment. The involvement of coca cola in farming is indirect through commitment to the economic progress and health of the communities involved in farming. The commitment of coca-cola company is in provision of water, packaging which is sustainable, climate protection and proper management of energy.