Why Coco Cola Company made to 2010 corporate citizen list

Framework: Business Ethics and Morals Perspective

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Abstract

The 100 best corporate citizens is a company that rank other companies based on publicly available data in categories such as climate change, environmental impacts, philanthropy, financial performance, employees relations, human rights, and governance. Usually employees’ relations and the environmental impacts are given a weighting of 19.5%. Reason behind this is that the listing company believes customers are much concerned about them in a greater degree. Coco Cola Company made to 2010 corporate citizen list and appeared as number 8. This research paper reflects why the Company made to the top list 2010 corporate citizen list. It examines the contribution of the company to the social responsibility, business morals ethics and the entrepreneurship in social responsibility practices. Applicability of social responsibility, business ethics and morals according to Ethical Framework of Waddock, Kohlberg and Carroll are analyzed in depth.

Coca Cola Company Background and Business Summary

            Coca Cola Company was founded by pharmacist John Pemberton in Atlanta, Georgia, 1886 (Stephens, Ford, & Cooper, 2007). The company is the world’s largest global leading manufacture, marketer and distributor of syrups, non-alcoholic beverages. It is has produced over 230 brands sold and distributed on a coca cola trademark in more than 200 countries across the world.  The company gets over 70 percent of its consolidated profits from the globalized market. In addition, it controls and poses ownership interest in and partnerships with bottling and canning operations firms in many countries. Although it is the market leader in the industry, it is faced by many macroeconomic factors such as the Asian crisis and the international financial crises along side others. Despite these challenges the company is geared to success and offering the best to its customers. A strong factor behind the company’s success is its investment and long-term strategy on marketing expertise, bottling systems and the brand name. Coca Cola brand name and loyalty is built from the strong company-customer relationships that exist. In the same way, the relationship is developed due to company’s investment on products, research and development, advertisement band promotions and regularly implore for the customers satisfaction feedback (Stephens, Ford, & Cooper, 2007).

The company has a reputable philanthropic history which enable it be recognized as socially responsible. Apart from its historic success, the company operates under tight competition. It is believed that the company owns approximately 50% of the world’s industry share and with over 80% share in most of the countries. Some of the strong competitors are the National Beverage Company (FIZ), Pepsi Company, Cott Corporation and Cadbury Schweppes plc and associates. Despite competition pressure and challenges in the beverage industry, the company appeared top ten in the 100 best corporate citizens list. All the weighting assigned by the creators, Coca Cola Company shown a positive business ethics, morals and social responsibility applicability in its business operations. Actually, the company is affiliated to committing its resources to building sustainable communities globally, protecting environment, conserve resources and enhance the economic positions in the global community.

Coca Cola Company business ethics and morals

Business managers and leaders are heavily laden a task of promoting and developing business ethics and morals. As suggested by Waddock, nd, every decision made by manager affect either people or the environment affiliated to that organization. Business ethics and morals dictate that organizations must serve the interest of shareholders and other stakeholders such as the community environment, employees, suppliers and potential investors along with others. Coca cola Company since its incorporation through its national or global managers has observed morals and ethics. Business ethics are sum of the organizational; moral values that are recognized as core business management practices.  Coca Cola Company upholds morals such as integrity, trustworthy, creativity and honest. Developing organization’s effective ethics, competitive business practices need to be incorporated in the shared sense of meaning and vision (Waddock, nd). In addition, the company business purpose is connected to the employees and the community not excluding environment.

Coca cola towards sustainability, social responsibility and corporate governance

            As argued by Kohlberg, business morals can follow a particular growth stages hierarchy (Crain, 1985).  As noted in Crain, (1985) Kohlberg suggest stages are from obedience and punishment orientation, individualism and exchange, good interpersonal relationship, maintain social order social contract and individual rights, and application of universal moral principle.  The company morals have grown spontaneously up to a level of making social contracts through social responsibility practices and policies. Similarly, the company observes the rights of employees by providing motivations and favorable workplace. The company’s mission and vision is a clear indication on focus to suitability, social responsibility, and corporate governance. The mission state, “to create value and make difference everywhere it engages its operations” (Coca Cola Company, 2004). Coca Cola Company launched its manifesto in 2004 that indicated sustainable business success and commitment towards sustainable development and conserve environment. The company’s manifesto for sustainability embedded factors such as profits, partners, people, planet, and portfolio to act as pillars to provide sustainable growth (Coca Cola Company, 2004). In addition, Coca Cola Company is dedicated to achieving high standards of corporate governance and business ethics. The company been a multinational corporation, utilize codes and policies given by international community to achieve international best practice of accountability and transparency to promote corporate governance.  Coca Cola Corporations further integrate business ethics and code of ethics to uphold the commitment to business morals and ethics. Honesty and integrity are some of the business ethics applied by employees across the globe. Stakeholders’ responsibility is enhanced and promoted through engaging stakeholders into dialogue. The company’s stakeholders includes, union and non-governmental organizations, employees, bottling partners, customers, governments share owner and the suppliers. The company has instituted various guidance management teams to manage sustainability, provide forums for stakeholders’ participation and advise on the moves towards social responsibility and corporate governance. According to the towards sustainability report, Coca Cola Company, (2004) the company’s framework divide its operations and commitments into four major areas.   These include the market place, work place, environment and community (Coca Cola Company, 2004). This framework was still applicable by 2010.

Based on the framework business ethics and morals of the organization can be summarized as (Coca Cola Company, 2004). First, the company is committed to conduct business in ways to protect and ensure preservation environmental resources. Secondly, the company is committed to invest resources, such as time and human resource to give economic opportunity, improve community life, and advance good will to global communities. Thirdly, the company recognizes workplace human rights, and support motivation, productivity through drivers of business success incentives. Lastly, provision of products that meets the need and satisfaction of customer is vital for business ethics commitment. Again, the business provides compensating opportunities and advantages top suppliers, customers, distributors and local community with NGO’s partnership.

Conclusion

            As evidenced by the discussion, Coca Cola Company is committed to business ethics and empowers its operations towards corporate social responsibility. As market leader, its contribution to the society in regards to business ethics, community empowerment, environment conservation and relations with employees prove significantly great.  For this reason, the company’s 2010 corporate citizen list position 8 is justified.

References

Coca cola Company. (2004). toward sustainability: citizenship report. Retrieved from

Crain, W. C. (1985).Theories of development: concepts and applicationsEdition2, (Chapter 7 Sevenkohlberg’s Stages of Moral Development). Prentice-Hall, ISBN0139136177

http://www.thecoca-colacompany.com/ourcompany/pdf/2004_citizenship_report.pdf

Stephens, R., Ford, W. & Cooper, L. (2007). Coca-Cola Case Study: An Ethics Incident. MaconState College. Retrieved from http://www.marketingpower.com/Community/ARC/gated/Documents/Teaching/AME/AME_Teaching_Materials_2007_08_Ford_Stephens_Cooper.pdf

Waddock, S. (nd). What is the ethical role of the manager? Retrieved from http://pagerankstudio.com/Blog/2011/03/what-is-ethical-role-of-the-manager/