Coca Cola Hellenic Inc, Essay Example

Corporation Background and History

Coca-Cola is the largest international beverage corporation with over 500 sparkling brands.

The company has opportunities and challenges that prompt some corporate social responsibility issues

Description of CSR Issue     

• The CSR is the change in the leadership in the company has made Coca-Cola vulnerable to ethics decisions and issues.
• The competitors benefited during this time because the unethical practice had made consumers switch to other companies that were rivals of the company

Organizational Stakeholder Impact

• The constant changes in the top level management from 1999 to 2004 left the company in a vulnerable situation.
• This involved the inconsistencies in leadership directly affected principal stakeholders.

Societal Stakeholder Impact

• The company entered in to a vulnerable situation, where the inconsistencies in leadership directly affected principal societal stakeholders.
• During this period, because of the changes in leadership consumers experienced negative consequences due to the company’s manufacturing practices (Mangos, 2014).

CSR Filter Failure

• The CSR Filter Failure involved the failure of the management to evaluate the planned action.
• This is achieved through a critical appraisal of daily tactical decision together with the long term strategies on the constituents of the organization.

Current Status of Corporation

• This affected the performance of the company where some employees were retrenched, or laid-off, consumers were also affected after taking contaminated products.
• Therefore, the company had to reduce the number of suppliers and distributors.

Strategic CSR

• The company reacted to these issues by developing programs and policies to deal future occurrences.
• The company has developed policies that focus on the processes of production and distribution coupled with an effective quality management and assurance programs.

First Chosen Driving Force of CSR

• The company has solicited the assistance of an outside agency to maintain a diverse labor force.
• The two CSR forces that have driven the corporation towards embracing effective CSR practices are sustainability and globalization (Ferrell et al, 2008).

Second Chosen Driving Force of CSR

• Coca-Cola has been involved in programs that are aimed at increasing its CSR initiatives whereby the programs include energy efficiency and climate protection, education on HIV/AIDS, and water stewardship.
• These initiatives have received full green light from the main stakeholders because they were involved in every decision-making process (Mangos, 2014).

Conscious Capitalism

• Coca-Cola fulfills the “conscious capitalism” by making people in the world more conscious of the opportunities in the world through sustainable, entrepreneurial and social commitments.
• They use the resources they accrue from the business to impact the world in many ways

CSR Now and in the Future (CSR Initiatives and Stakeholder Priority)

• The company reacted to these issues by developing programs and policies to deal future occurrences through development of policies that focus on the processes of production and distribution.
• This has been coupled with an effective quality management and assurance programs and soliciting for assistance of an outside agency to maintain a diverse labor force. The two CSR forces that have driven the corporation towards embracing effective CSR practices are sustainability and globalization

Lessons Learned (Lessons Learned and CSR Filter)

• The company learned from the CSR issues they were passing through those CSR initiatives are important towards sustainability and profitability of the business.
• The company understood that they have the responsibility to maintain shareholders’ interest as they undertake their CSR practices through addressing social demands, as well as fashioning accountability to all their shareholders (Hawkins, 2006).

References

Ferrell, O., Ferrell, L. & Fraedrich, J. (2008).Business Ethics: Ethical Decision Making and Cases, 7th Edition.

Hawkins, D. E. (2006) .Corporate Social Responsibility: Balancing Tomorrow’s Sustainability and Today’s Profitability.NY: Palgrave MacMillan.

Mangos, S. (2014). Coca Cola Hellenic Inc. Corporate Social responsibility Report and GRI statements. Flinders University, Adelaide, Australia, viewed on 2014.