Questions- This assessment will cover the following questions:
- Coca Cola is a soft drink manufacturer. Provide an individual critical evaluation of the organization sustainability and CSR, alongside the financial performance of a major international corporation of your choice.
- Evaluate the corporate social responsibility in the context of Coca Cola company.
Corporate social responsibility (CSR) is the self regulating business model which help the company to be socially accountable to itself, its stakeholders and to the public. By indulging in the corporate social responsibility which is also called corporate citizenship help the organization to sustain longer in the market (Venkatesh and et., al., 2020). To engage in the CSR activities means, the ordinary course of business and the way to operate which enhance the society and the environment. The present report is based upon Coca cola which is American beverage company. This was invented in early 19th century by John stith Pemberton. The company is third worlds most valuable brand after google and Apple. Further this report covers the organization suitability and the CSR activities along with the financial performance. This is crucial for the organization to make effective decision and participate in the CSR activities as help in creating brand image in the market.
Corporate social responsibility is the broad concept which help in making different kinds of reforms depending on the company as well as different organization. With the help of CSR activities the firm can improve its suitability for the longer time period. The CSR includes different activities such as philanthropy, and volunteer efforts, businesses can benefit society while boosting their brands. This kind of activities help Coca cola to forge a stronger bond between the employees and corporations and also help to connect to the outer world.
Sustainability for Coca cola
For the organization like Coca cola has developed a sustainable business model by creating the value for the communities and serving the nation effectively. Sustainability is consider as heart of the business and it is the prime way to create the business present in the market. This is consider as the global strategy which encompasses every DNA of the company and which is executed in all the market. Coca cola is constantly putting the effort to grow and expand the entire business (Saridakis and et., al., 2020) . As the company believes this work must be done internally and mission of the organization is to refresh the world by the drinks.
Coca cola have operation more than 200 countries and there sustainability depends upon the demand from the consumer and strong partnership with the supplier, distribution and retailers. They have created a strong brand image in the minds of customers. Another main reason behind the sustainability is the branding as they spend millions on the marketing and promotional campaign . The Coca cola have unique system which is committed to the inline with the goal of replenishing and balancing the water and the beverages. They are using recycle bottles which help in improving the suitability business model for the company. Further the company is promoting wellness and healthy living which help in improving the financial positions of the company. Coca cola is delivering the promise as they are constantly promoting the benefits of the daily exercise. For the longer sustainability the Coca cola is giving the option and the choices including the sugar free drinks and also focusing on the packages which help in attract more and more customer in the well define manner. Along with this organization is trying to reduce the carbon emissions which help them to make more sustainable business model for the people.
Coca cola is profit organization and have many stakeholder and in the year 1994 the company done the commitment of water usage. The company have trained the community and the staff to maintain the water system as it is natural resources which is limited. For the longer sustainability the company have to make proper use of water or to find out the alternatives present in the market. However the company have tie up with the government and local people to measure the safety of the water system.
CSR activities of Coca cola
Coca cola has created CSR programmes and the initiatives engaged by the company. The main motive of the organization is to give 1% of the annual income for the charitable causes annually. The company have formed different categories in the CSR activities such as in the year 2013 the organization founded education and empowering the workers to live the better life. The corporate social responsibility in the core business of the company and mainly focuses on the welfare of the society. In the year 2014, the company have given back 126 million as the part of CSR activities (Carroll and et., al., 2020). The company spend lots of money on the active and healthy living, stewardship programmes, educations. Other activities such as women empowerment and and the relief programmes are the few of there CSR activities.
In the middle east Coca cola have launched different kinds of campaign as the part of the CSR where the organization is supporting the university student who are hoping to become entrepreneur through providing funds. Along with this firm have helped economically empower more than 865000 women and the aim to achieve the economic empowerment of the 5 million women by the year 2020. Coca cola has supported more than 290 physical activities programmes nearly in every organization. Apart from this, company have working on the technology to develop the plastic bottles which are made from the plants. As per the social responsibility the company do not sell the product below 12 years. According to the company point of view the company does not buy advertising which is directly targets the audience which are above the age of 12. The triple bottom line help the organization to develop the sustainable business model as this focus on the social, environmental and financial aspect of the organization(Matten, 2020).
In the case of social aspect the organization like Coca cola is serving the poor people and empowering the women to have equal rights and pay. For the environment the firm is trying to use green energy to make product and the organization have the plan to reduce the carbon footprint in coming years. The financial aspect is good as the company is earning profit and have seen vast growth in the recent years.
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Coca cola have been able to maintain the impressive gross profit margin (GPM) in the year 2009 to 2018. There has been immense growth which is more than its competition rival Pepsi co. This kind of report is made by the help of accounted by following all the rules and guidelines given by the board.
Mainly the cost structure of Coca cola and its overall position in the market is better than there competitors. Although the Pepsi co have more than Coca cola but the vast operations and market share bring the company at the top position. This company holds the most of the market and have the wider reach to more than 200 countries (Preuss, 2020). Coca cola is the largest global company in the beverage sector and have more capitalization of 102 billion which is higher than the its biggest rival Pepsi co. The organization have the global presences and wide range of distribution channel and strong capital.
The global beverage industry is highly regulated and have seen major changes in the recent years. The stock price of Coca cola is higher than Pepsi co which shows the company have the higher value than other organization. This implies that Coca Cola has powerful bargaining power than Pepsi Co, thus basically gives firm a free interest loan. Notably, the fundamental difference in asset management policies between Coca Cola and Pepsi Co is Equity method investments by company which historically is among the key components of its asset base. The current ratio of the companies are maintained by 1:1 which is constant over the decade and the quick ratio is also similar. The company have enjoyed the limited vulnerability to power as they maintain the solid position in t