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Corporate social responsibility (CSR) refers to operating a business in an ethical and socially responsible manner through practices like fair employment, community involvement, environmental sustainability, and economic contribution. Factors driving CSR adoption include increased consumer awareness of social and environmental issues and challenges posed by globalization. Coca-Cola and Walmart are examples of large corporations that have developed CSR policies and reporting to guide their social and environmental practices in response to stakeholder expectations.

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70 views

External

Corporate social responsibility (CSR) refers to operating a business in an ethical and socially responsible manner through practices like fair employment, community involvement, environmental sustainability, and economic contribution. Factors driving CSR adoption include increased consumer awareness of social and environmental issues and challenges posed by globalization. Coca-Cola and Walmart are examples of large corporations that have developed CSR policies and reporting to guide their social and environmental practices in response to stakeholder expectations.

Uploaded by

Vishnu Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Corporate social responsibility (CSR)

• Corporations are increasingly adopting socially


responsible actions, activities, policies and processes. A
corporate social responsibility (CSR) policy is beneficial
not only for a corporation’s bottom line but also for its
employees, stakeholders, consumers, and for
communities, the environment and society at large. It
is, therefore, imperative to assess and know the extent
to which a corporation is socially responsible
Corporate social responsibility (CSR) means operating a business in a
socially responsible manner whereby the business:
• undertakes ethical practices in employment and labour by
improving workplaces;
• is involved in building local communities and communicates with
concerned communities regarding the consequences of its policies
and products;
• invests in building social infrastructure;
• contributes to a cleaner environment, its protection and
sustainability; and
• contributes by way of its corporate governance to economic
development at large
•
FACTORS RESPONSIBLE FOR ADOPTING
CSR
• consumers across the globe are becoming
more and more aware of the environmental
and social implications of their purchases
• globalization has given rise to new challenges
for corporations in terms of government
regulations, tariffs, varying standards, ethical
issues, environmental restrictions, labour
exploitation, and so on
CASE STUDY
Coca-Cola

• 2.1. Coca-Cola’s profile Coca-Cola started its business in 1886 as a


local soda producer in Atlanta, Georgia (US) selling about nine
beverages per day. By the 1920s, the company had begun
expanding internationally, selling its products first in the Caribbean
and Canadian markets and then moving in consecutive decades to
Asia, Europe, South America and the Soviet Union. By the end of
the 20th century, the company was selling its products in almost
every country in the world. In 2005 it became the largest
manufacturer, distributor and marketer of non-alcoholic beverages
and syrups in the world.14 Coca-Cola is a publicly-held company
listed on the New York Stock Exchange (NYSE).15
Coca-Cola’s CSR policies and reporting In 2007 Coca-Cola
launched its sustainability framework Live Positively
embedded in the system at all levels, from production
and packaging to distribution. The company’s CSR
policy Live Positively establishes seven core areas
where the company sets itself measurable goals to
improve the business’ sustainability practices. The core
areas are beverage benefits, active healthy living, the
community, energy and climate, sustainable packaging,
water stewardship and the workplace.
• Coca-Cola has a Code of Business Conduct which aims at providing
guidelines to its employees on – amongst other things –
competition issues and anti-corruption.16 The company has
adopted international CSR guidelines such as Global Compact17
and Ruggie’s Protect, Respect and Remedy Framework (Ruggie’s
Framework),18 but these guidelines do not seem to be integrated
into the Code of Business. However, these CSR initiatives are
included in other activities or policies of the company. For instance,
the UN Global Compact principles are cross-referenced in the
company’s annual Sustainability Reviews19 and Ruggie’s Framework
is partly adopted in the company’s ‘Human Right Statement’.20
After the conflict in India, in 2007 Coca-Cola formed a partnership
with the World Wildlife Fund (WWF)21 and became a member of
the CEO Water Mandate, as water is one of the company’s main
concerns.
• It appears that the controversy in India was a learning
experience for the company, and that it motivated the
company to adopt a more proactive CSR policy on a
global scale that focuses on water management. In
June 2007, Coca-Cola implemented a water
stewardship programme and committed itself to
reduce its operational water footprint and to offset the
water used in the Company’s products through locally
relevant projects.57 To achieve those commitments
Coca-Cola established three measurable objectives:
• Reducing water use by improving water efficiency by 20% over 2004
levels by 2012. The latest data
• available from 2010 shows a 16% improvement over the 2004
baseline. (2) Recycling water through wastewater treatment and
returning all water used in manufacturing processes to the
environment at a level that supports aquatic life and agriculture by
the end of 2010. By September 2011, the progress observed
concerning this target was 96%. (3) Replenishing water used by
offsetting the litres of water used in finished beverages by 2020
through local projects that support communities and nature (i.e.
watershed protection and rainwater harvesting). Currently, Coca-
Cola reports that it holds a global portfolio of 386 community water
partnerships or community-based replenish projects. By 2011,
about 35% of the water used in finished beverages was replenished.
WALMART
• Walmart’s profile Walmart Supercenters (hereafter Walmart) has a
full offering of groceries and general merchandise in a single store.
Walmart offers to its customers a one-stop shopping experience
and is the largest private employer in the US as well as being the
world’s largest retailer.66 It has more than 10,130 retail units under
69 different banners in 27 countries. They all share a common goal:
‘Saving people money so they can live better’.67 Walmart employs
2.2 million associates worldwide68 and generated net sales of $
443 billion during the fiscal year of 2012.
• Walmart was founded in 1962, with the opening of the first
Walmart discount store in Rogers, Arkansas (US). The company was
incorporated as Wal-mart Stores, Inc. on 31 October 1969.69 The
company’s shares began trading on OTC (Over-The-Counter)
markets in 1970 and were listed on the NYSE two years later.70

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