CSR ImplementationFramework
What? (Task Delineation)
1. Conduct a CSR assessment
2. Develop a CSR strategy
and employees
3. Develop CSR commitments
4. Implement CSR commitments
structure
5. Assure and report on progress
6. Evaluate and improve
(Source: Paul Hohmann, Corporate Social Responsibility, An Implementation Guide)
How? (Checkpoints on the journey)
 Assemble a CSR team
 Develop a working definition of CSR
 Identify legal requirements
 Review corporate documents, processes and
activities, and internal capacity
 Identify and engage key stakeholders
 Build support with CEO, senior management
 Research what others are doing, and assess
the value of recognized CSR instruments
 Prepare a matrix of proposed CSR actions
 Develop ideas for proceeding and the
business case for them
 Decide on direction, approach, boundaries
and focus areas
 Do a scan of CSR commitments
 Hold discussions with major stakeholders
 Create a working group to develop the
commitments
 Prepare a preliminary draft
 Consult with affected stakeholders
 Develop an integrated CSR decision-making
 Prepare and implement a CSR business plan
 Set measurable targets and identify
performance measures
 Design and conduct CSR training
 Establish mechanisms for addressing
problematic behaviour
 Create internal and external communication
plans
 Make commitments public
 Measure and assure performance
 Engage stakeholders
 Report on performance, internally and
externally
 Evaluate performance
 Identify opportunities for improvement
 Engage stakeholders
Corporate Social Responsibility Challenges
for Coca Cola
The Coca Cola Company has fully implemented all the possibilities of CSR. While it is
not a company that is dishonest with such practices (such as Mc Donald’s), it could
be said that it seeks the maximization of their profit but also believes in Corporate
Social responsibilities and the contribution of the business to the betterment of
society. However, there is a difference, it has gone much further ahead and has
developed a code of ethical business conduct.

Terms of reference
 Corporate Social Responsibility
 Stakeholders
 Business Ethics
 Multinational Companies

Procedure (Methodology)
Discussing corporate social responsibility theory and how the Coca Cola Company
implements them.

Some of the reasons that companies adopt Corporate Social Responsibility principles are:

1. The shrinking role of government in the interest of the society.

The decrease of the government funds, coupled with the growing distrust of the
state regulations which has led to the implementation of the voluntary and non-
regulatory initiatives.

2. The existing demands for greater corporate disclosure.

There is an increasing demand for the corporate disclosure on behalf of the

stakeholders involved, such as the customers, suppliers, employees, etc.

3. The increased interest of customers.

There are evidences that the ethical behaviour of the companies has an increasing
influence on customer’s purchasing decisions.
4. Growing an investor pressure.

A survey by International Environics, revealed that more than one quarter of the
shares American’s own, was purchased by taking into the account by the ethical
values of the companies.

5. The competitive labour market.

Employees nowadays seek more than just a salary and bonus. They want employers
whose philosophies and operating practices suits to their own values & companies
value. To be able to recruit and keep the qualified employees, companies are obliged
to improve their working environment.

6. Relations with the suppliers.

The interested parties are increasingly concerned about the business matters, many
companies take these steps to ensure that their partners behave in a socially
responsible manner.

Few of the positive results that might occur when the companies adopt the corporate
social responsibility are the following:

Benefits in favour of the company:

 Improved economic performance.

 Lower operational costs.
 Improved brand image and company reputation.
 Better sales performance and customer loyalty.
 Increased productivity and quality.
 Increased ability to keep qualified employees.
 Access to funds for capital purposes.
 Diversified employees/workforce.
 Safe products.

Benefits for the community and the public:

 Charitable contributions.
 Employee volunteer programs.
 Corporate involvement in community programs in education, employment and
programs for the homeless.
 Product safety and quality .

The concept of CSR is now established in the global business agenda. However,
many hindrances need to be overcome.
An important challenge for the modern enterprise is that it needs for more reliable
progress indicators in CSR, along with the implementation of CSR strategies. The
issues of dialogue and transparency, can help the business to be more reliable, and
at the same time to reach the standards of other firms.

Critics of CSR, question the relationship of CSR to the nature of the business and
believe that its incentives are insincere and hypocritical. They believe that it is more
efficient to impose governmental and international regulations to make sure that
companies act in a manner that is socially responsible.

Most businesses (the Coca Cola company is among them) are between the two poles
i.e., on the one hand, they want to achieve profits and have satisfied shareholders
and on the other they want to conform to the social imperatives) and the current
trend is that CSR can improve to a large extent long-term business profitability
because it minimizes the risks and weaknesses and offers a range of potential
benefits such as improved brand image and the involvement of employees.

Another problem is when companies promote CSR, they are also committed to
sustainable development, but, they engage in harmful business practices. For
example, Mc Donald’s while it promotes CSR, the salaries of its employees are very
low. They work in unhealthy environments, and its products are a health risk because
of their high fat content.

Findings

According to CSR Coca-Cola (2010), the corporate social responsibility program of

the company is as follows:

The main objective of the CSR program is sustainability. This is expressed by the
company's business in the following areas: consumer and health, packaging and
recycling, water management, staff development, supplier participation, energy and
climate.

About consumer health, the company wishes to meet the trends of modern
consumer life. For this reason, the product portfolio has expanded with products that
do not get fat, reducing the number of calories in drinks by 88% according to the
school drinks guidelines. The campaign also supported Michelle Obama ("Let's
Move") with a clear calorie initiative.

Axis packaging and recycling company offer bottle plant, "PET fully recyclable bottle
made from a blend of petroleum materials and up to 30 percent of plant-origin
material" (Coca-Cola CSR 2010). Coca-Cola also managed to achieve high rates of
recycling bottles (99 percent in Europe and 92 percent in North America).
About water supervision, the company strives to improve water use efficiency. It has
improved the use of water by 3.5 percent since 2008. The average current usage of
water to make one liter of its products is 1.67 liters.

Cola has created special programs to attract and develop the skills and abilities of
employees. These programs allow employees to properly utilize their energies while
developing the leadership skills and talents that the company needs in all sectors and
in all countries.

Finally, in terms of energy and climate, the company signed the Copenhagen
agreement statement. Was a work in support of the Global Compact on Climate
Change? For the second consecutive year, it has reduced the company's carbon
footprint.

Recommendation

Coca Cola has followed all the basic rules of the CSR theory, and its programs are
successful. Its programs are long term and include many activities. Its strategy
includes environment care, dialogue with all stakeholders and is in line with both its
history and activities.

Coca Cola provides job positions and is taxed. For example, Coca Cola Hellas
specifically paid 100 million euros in income taxes. 1,084.1 million euros in salaries
and benefits and 2,441.8 million euros to suppliers for materials required e.g.
packaging and services.

Coca Cola is also interested in philanthropy. In 2007 it gave more than 10 million
euros to charity programs.

The aim of all these programs is the achievement of sustainable development and
where this is not achieved to the desired level, Coca Cola has established the
necessary controls to achieve it by changing the rules and models.

Consequently, the CSR programs of Coca Cola are considered as highly successful
and worthy of emulation by other companies. Coca Cola appears to have long term
CSR programs because every year it communicates its actions and its faith in it. The
author suggests continuing do so because the global conditions (economic, social)
impose CSR programs and on the other hand, it is a way to give value and thus
achieve a sustainable competitive advantage.
Conclusions
Coca Cola is a multinational company. It implements CSR programs for
environmental protection as well as charity programs.

It has also never been involved in corruption issues or in issues involving child labour.

However, it recognizes the fact that there is always place for further improvements in
employee and environmental issues. Therefore, each annual Coca Cola CSR report
includes additional practices in these areas.