Contents

Introduction:............................................................................................................... 2
Organizations mission and Governance structure:....................................................2
Corporate Social responsibility model:.......................................................................4
Coca colas culture as virtue ethics:...........................................................................5
Ethical, social and environmental standards from its suppliers:.................................6
Eco-friendly products and services:............................................................................7
Information about companys environmental performance to customers and other
stakeholders:.............................................................................................................. 8
Future opportunities:.................................................................................................. 9
Coca Cola as a responsible organization:.................................................................11
Benefits of ethical, social and environmental performance:.....................................11
Recommendations:................................................................................................... 13
Conclusions:............................................................................................................. 14
References:............................................................................................................... 15
Appendix:................................................................................................................. 16

Introduction:
The Coca Cola Company is the known as worlds largest beverage company.
It refreshes the consumers with different sparkling brands. The valuable

brands of Coca Cola includes Diet Coke, Fanta, Sprite, Coca-Cola Zero,
vitamin water, Powerade, Minute Maid, Simply, Georgia and Del Valle. The
company portfolio includes 15 billion dollar brands.
The global presence of the company marked it as the best source of
spangled beverages, coffees which are ready to drink and other juices. With
the support of largest beverage distribution system, the consumers of Coca
Cola Company are able to enjoy all these brands in more than 200 countries.
Almost 1.7 billion of people are being served every day. In every second
almost 19,400 beverages are sold (Allen 12).
For civilizing the employees and other stakeholders of the company, it has
developed various codes of conduct. Some of the aspects of these codes of
ethics and organizations social responsibility are discussed as following:
Organizations mission and Governance structure:
Ethics:
The core of the ethics at Coca Cola Company is Code of Business Conduct.
This code of business ethics provide the guidelines for conducting the
business, it requires honesty and integrity. It is mandatory for all the
directors and other employees to read understand and follow the Code of
Business conduct at work place and in large community.
This code of ethics is managed by Ethics and Compliance Committee. This
cross-functional senior management team monitors all the organizational
ethical programs. The staff of this committee has monitors operations related
to Code of Business Conducts like education, consultation, monitoring and
assessment. The staff also administers training courses related to ethics and
compliance (Blanding 52).
2

The company offers Ethics Line, which is a global web and telephone
information service. With the help of this service the employees, bottling
partners, suppliers, customers and consumers can ask queries about Code of
business conduct.
Social responsibility:
The company is socially responsible in number of ways. Some of the
programs the company has in order to be socially responsible are as
following:
Beverage Benefits:
The company has the goal to provide quality products that customers can
trust. The company tailors the taste of drink according to the customers
lifestyle.
Active, Healthy Lifestyles:
The company follows the mission that people should lead healthy and active
lives. This goal is accomplished by offering a wide variety of drinks. The
company focuses on information, education and also supports physical
activity.
Climate and Energy Protection:
The company focuses on the growth of the business, not the growth of
carbon in its manufacturing operations. Being a socially responsible
organization Coca Cola Company improvises energy efficiency and reduces
the emission of greenhouse gases in cold drink equipment.
Environmental sustainability:
The company has the ambition to reduce carbon emission during the
manufacturing process. To achieve this ambitious goal, company is work
together with its associates on energy-efficiency and climate protection
programs

involving

packaging,

cooling

equipment,

ingredients,

manufacturing and distribution.

3

Corporate Social responsibility model:

The companys important responsibility is to meet the expectations of
stakeholders and to constantly improve social, environmental and economic
performance. Also the company should ensure organizational stability and
operational progress of the company.
Economic Viability and Profitability:
Economic viability and profitability refers to that the company should make
profit or it should be profitable. The companys shareholders elect the board
members who monitor and oversee the shareholders interest in long-term
health and also manage the overall success of the business along with
financial strength. This depict that company has keen interest in making the
profit. The figure 1 in Appendix shows different performance indicators. The
companys net sales in increasing every year, also earning per share.
Legal Responsibility:
The legal responsibility depicts that the company carefully monitors the
environmental impact of companys operations and also targets the
performance standards that exceed legal requirements. The company
complies with legal requirements related to environmental and energy
management systems and it also adopt the best industrial practices
whenever required. The employees receives minimum wage, but generally
the salary policy is above the minimum wage rate. The company established
long term relationship with suppliers according to legal requirements
according to that particular region. It also follows the legal standards of sales
of food and beverages in school cafeterias issues by Ministry of Health.
Ethical Responsibility:

The company aimed to reduce the amount of energy that is consumed

during its operations; also its objective is to reduce carbon footprints in order
to protect the climate while working within community.
The company aims to provide a fair and safe working environment for
employees while implementing projects and programs that support personal
and professional development.
The company has aimed to develop its purchase, production and marketing
practices with a sustainable corporate governance perception, also creates
surplus value for value chain (Pat 22).
The company fulfills its objective to develop sustainable development in
communities where it has operations and also contribute to the welfare of
the society.
Discretionary Responsibility:
According to discretionary responsibility company states that coca cola is a
local product of every region, it is made by local people and over a period of
time it has developed strong relationships with the communities where it has
manufacturing sites. The company values these relationships as they want to
make a positive difference within these communities. It addresses the social
and environmental needs of the community. Also the business makes
significant contribution to the countries where it is operating.
Coca colas culture as virtue ethics:
The virtue ethics are also known as character ethics or Aristotles
Nicomachean Ethics. The theory virtue ethics has a normative position, it
prioritize the development of character traits in an individual before the
evaluation of his decisions and actions. This theory focuses on the characters

traits such as kindness, honesty, trustworthiness, truthfulness, bravery and

reliability.
The theories of teleological and deontological perspectives focus on the
question that What should I do? but the theory of virtue ethics asks an
entirely different question related to what type of a person I should be. What
kind of moral characters I should develop in myself before evaluating my
actions. Therefore the virtue ethics theory gives importance to the character
of the individual rather that judging his actions as right or wrong. The theory
concludes that the individual person with good moral characters in turn take
moral decisions, which make him a good human being in the society.
Therefore the culture of Coca Cola Company is developed on the same basis.
The

company

focuses

on

the

characters

traits

such

as

honesty,

trustworthiness, truthfulness and reliability

Ethical, social and environmental standards from its suppliers:
The company buys from different suppliers with best performances in social,
environmental, and economic areas. The company produces the product of
best quality in accordance with food safety principles. The company takes
the

responsibility

of

introducing

the

product

in

the

market

with

comprehensive planning and effective distribution strategies.

The suppliers have to follow the Supplier Guiding Principles (SGP) to
communicate the values and expectations of the suppliers. The company
also emphasizes on the significance of responsible workplace practices.
These work practices incorporate respect and compliance of human rights.
The company also applies environmental and local labor law practices. The
6

guiding principles for suppliers reflect the commitment to respect human

rights across the global supply chain. These guiding principles are part of all
the agreements between the direct and authorized suppliers and the Coca
Cola Company. It is expected from the suppliers to perform the internal
business process in accordance with the Supplier Guiding Principles.
Product Ingredients/Materials:
Above than ninety percent of coca colas products are made from
concentrates supplied by its brand owners. The other are finished products
that company distribute around the world. Company purchases sugar
directly; its low-calorie sweeteners are already contained in the concentrates
the company is buying. Coca Cola also purchases juices, mineral waters and
carbon dioxide to make produce different products and are working with the
suppliers to reduce the carbon and water impacts of these raw materials.
Packaging:
The packaging materials aluminum, steel, PET plastic (virgin, recycled and
plant-originated) corrugated cardboard and shrink wrap come from a range
of approved suppliers. The company works with these suppliers in order to
be innovative within its product line to reduce the impact of packaging
materials company put in the market place (Cheatham 10).
Eco-friendly products and services:
According to the environmental management approach of the company, the
management responsibly selects eco-friendly coolers with an innovative
technology that reduces the environmental impact.
Across the globe with the Coca Cola is performing its operations have
reduced the emissions from its corporate care and van fleet by introducing
CO2/Km caps for different list of cars. This offers eco-friendly models to
7

organizations employees and chooses energy-efficient vans. Company also

evaluates the electric cars to better understand if it is suitable for companys
needs (The Coca Cola Company).
Company is producing its Coca Cola brands in recyclable PET plastic bottles
for more than 30 years. The bottle packaging with plant materials in Coca
Cola Company is their new idea. The innovative plastic bottles looks like the
same previous traditional pet bottle but it was manufacture with plant-based
materials.
The major difference between Plant bottle packaging and traditional PET
plastic bottle is that instead of using petrol and other fossil fuels to produce
the major ingredients of plastic, for plant Bottle Company utilizes ingredients
that are up to 30% plants-based. In essence, company is trading fossil fuels
for plant-based material without sacrificing performance or recyclability.
Information about companys environmental performance to customers and other
stakeholders:
According to transparency strategy of the company, which is an essential
business principle, company shares its financial, environmental and social
consequences of the operations with its stakeholders. The company has the
keen interest to increase its transparency level each year by publishing
annual reports. Economic impact studies, carbon disclosure report and
corporate social responsibility reports. According to latest corporate social
responsibility report the company has obtained A+ level GRI approval. In this
report the company has presented the data from 4 major countries which
compose 85% of total sales volume of Coca Cola Company. These countries
8

include Turkey, Azerbaijan, Jordan and Kazakhstan. Additionally, some good

practices and effort of our Pakistan Operation, which was acquired in 2008,
were

included.

Company

has

prompted

many

developments

in

environmental and social areas in a very short time across its operating
region, yet the company acknowledges that there are many opportunities for
improvement and its determined to work towards those opportunities (The
Purdue OWL Family of Sites).
The company incorporates information about the environmental performance
in its Corporate Social Responsibility Report of every year. The company
communicates the information related to environmental performance. It also
informs its stakeholders that it has the strategy related to energy
management. This report states that the company pushes forward to reduce
energy consumption and carbon footprints by reengineering the process of
manufacturing the packaging, manufacturing, distribution and cooling
processes. The carbon footprints are minimized by reducing packaging,
water and energy. For climate protection in the community in which
organization has operational unit, it makes efforts to reduce the amount of
energy.
The report also informs the stakeholders that an important business strategy
is to develop sustainable water management model and diminishes the
amount of water the company consumer for manufacturing the product in its
operations. The company aim to reduce water consumption during the
process, also it controls carbon footprints with effective energy consumption.
9

Company aim to minimize water consumption in their operations, control

their carbon footprint with effective energy consumption and reserve natural
resources with workable packaging procedures and high waste management
performances.
The company appreciates the energy efficiency in its operations including
from supply to production and from distribution to sales. The company
monitors its emission of carbon and then takes necessary measures to
reduce it.
Reducing material consumption and waste output, and recycling and
recycled material usage, are the main elements of company climate change
combat strategy. Company can conduct research and development studies to
improve its CO2 emissions process performances, and strive to reduce our
environmental footprint with hi-tech applications.
All the above mentioned information is delivered to the customers and other
stakeholders in the form of report named Corporate Social Responsibility
Report.
Future opportunities:
Most of the sugar company use in its beverages over different regions
originates from sugar beet. The company had set future objective to work
with its sugar suppliers to guarantee that, by 2020, the sugar company
utilize is feasible. In 2012, The Coca-Cola Company worked with Schuttelar
furthermore Partners to survey the current maintainable quality norms that
are set up for sugar beet in North West Europe. As a consequence of the
10

undertaking plan to recognize the ranges of best practice and move towards
a typical standard for sustainable sugar beet become in Europe.
Through a combo of reformulation and higher promoting speculation behind
Coca Cola Companys no-calorie and zero-sugar colas, it is swearing that it
will diminish the normal calories for every liter of its scope of shimmering
delicate drinks in Great Britain by 5 percent between 2012 and 2014. To
accomplish this target, the Coca-Cola company in Great Britain will invest
$23.25 million in the reformulation of a few heading non-cola delicate
beverages marks by 2014, lessen the calories in the non-cola brands it
reformulate by at minimum 30 percent, and build the promoting plan for no
calorie, zero sugar colas by 25 percent before the end of 2014.
Company keep on focusing on driving carbon diminishments over its worth
chain, in place to help stakeholders meet its focus to 'lessen the carbon foot
shaped impression of the beverage in grasp by one third by 2020'. Company
continues to focus on driving carbon reductions across our value chain, in
order to help us meet our target to reduce the carbon footprint of the drink
in your hand by one third by 2020.
PET is made up of two segments, MEG (30 percent by weight) and PTA (70
percent). Since the presentation of Plant bottle engineering by The Coca-Cola
Company, it can supplant MEG with artificially indistinguishable material got
from sugar stick and molasses. Dispatched in 2009, the original of Plant
bottle bundling is a 30/70 mix of plant-based MEG and virgin PTA. The

11

ensuing material looks capacities and reuses like customary PET however a
lower carbon footprint has.
Coca Cola as a responsible organization:
Some individuals accept Coca-Cola is simply an organization that offers
different sorts of drinks, for example, pop, squeeze, games beverages, teas
and espresso however its all the more than that. Coca-Cola is an
organization that offers drinks as well as helps the group that it is in WORLD
WIDE. The organization finances a project called The Coca-Cola Foundation
which leaves on a few exercises. For example Healthy & Active Lifestyles that
support way of life changes by getting to projects that instruct on physical
action and wholesome certainties. Coca-Cola as of late dispatched "Eating
methodology Coke Red Dress Program" which coupled up with the National
Heart, Lung and Blood Institute's for the Heart Truth battle, to put messages
about heart wellbeing on in excess of 2 billion bundles of Diet Coke items
everywhere throughout the United States (Thomas 65).
Benefits of ethical, social and environmental performance:
Benefits at workplace includes company graded 5th in Accountability Rating
Turkey, developed the Workplace Rights Policy. Also it is beneficial that it
has been awarded the Prize for Human Respect in the Kariyer.net Choice
of the Candidates field.
Also the intra-corporate employment of the company was 57%. Since the last
7 years company has been ranked as 5 th best work place. Other benefits
includes that the Coca-Cola ecek News Line was started. Company
12

initiated Lean 6 Sigma applications. Company developed Center of

Evaluation and Development works. One more advantage was that the
company carried out a total training of 48.2 hours/person. A total of 967
hours training related to environment was given in 2007. 1,157 of Company
employees get trained from these trainings.
Company Contributed to The Individual Retirement Program began. Also 95%
of purchases from local suppliers were achieved by the company. Company
redefined Company Supplier by guiding principles.
Marketplace: The benefits at marketplace include introduction of returnable
Pet Bottle by the company. The company launched Coca-Cola zero. It was
beneficial when company began production of Aseptic Pet Bottle. Company
released 40 new product packages to the market.
Company also signed the Data Center Agreement that was an advantage for
the company in the market. Considering its ethical responsibility the
company published the booklet Everything You Need to Know about
Beverages.
Environment:
The benefits for environment due to company performance includes usage of
19% less water in company production operations in Turkey Company
decreased company water consumption rate to 1.62 L/L in 2007. Company
energy consumption rate has decreased to 0.258 MJ/L. Also company solid
waste rate has been 3.574 g/L. Company recycling rate has become 90.14%.

13

Further benefits includes that the company production plant has started to
rinse the pet packages with air, without using water. The company reduced
the waste water rate of 0.39 L/L in 2006 to 0.28 L/L in 2007. Company
prevented the contamination of 4.3 billion liters of clean water.
With the Sarayky project Company provided clean drinking water to 15,000
people and prevented the loss of 50 tons of water. It actualized the rain
collecting project in Tekkeky - Beypazar. In the last 5 years it has reduced
packaging wastes, reducing the glass bottle waste by 1,265 tons and the pet
bottle waste by 4,400 tons. It has started the Packaging Recycling Box
practice in cooperation with Tesco Kipa. It has installed equipment in forklifts
that reduces LPG consumption by 10%. Cooperating with HP Coca Cola
Company has started a toner cartridge recycling practice.
All these benefits are related to environment and applied to make the
environment a safe place to live.
Community:
The benefits for community were company donated 5 million YTL to the
Anadolu Foundation in 2007, the Soundwave University Company reached
200,000 youths in its 5th year, company established the Coca-Cola Memorial
Forest in zmir, Company opened Company production plants to more than
7,000 visitors, thus obtaining the opportunity to better acquaint the public
with Company.

14

Recommendations:
For being ethical the organization should be more ethical to its employees.
Other than making them learn the ethics and rules, the organization should
listen to the employees. Therefore is should revise its code of conduct by
mutual understanding with its employees. Same is the case with suppliers.
The organization should also take into account the suppliers opinion before
developing or improvising Suppliers Guiding principles.
Coca Cola is socially responsible organization. But still there is some room
for development. The organization should make other organizations to make
aware of fact that eco-friendly and recycled packaging is important for
environment. If it is not possible then the organization should compel the
customers of soft drinks to buy eco-friendly products therefore the
competitors or other beverage companies will automatically concentrate on
this idea.
The organization keenly takes care of the environment surrounding its
operational processes and manufacturing sites. Along with concentrating on
being an eco-friendly organization, the company should make people more
socially responsible to clean their environment. The company should guide
and monitor the production processes of small beverage companies
therefore they should also compliance with standards of safe environment.
Conclusions:
With a continuing duty to building sustainable commitment, The Coca-Cola
Company is centered on activities that lessen its carbon foot prints, help
15

dynamic, active living, make a sheltered, comprehensive workplace for

employees, and enhance the economic improvement of the communities
where it works.
The company performs in social, environmental, and economic areas with
dignity and honesty. The company produces the product of best quality in
accordance with food safety principles. The company takes the responsibility
of introducing the product in the market with comprehensive planning and
effective distribution strategies.

References:
Allen, Frederick. Secret Formula: How Brilliant Marketing and Relentless
Salesmanship Made Coca-Cola the Best-Known Product in the World.
New York: HarperCollins. 1994.
16

Blanding, Michael. The Coke Machine: The Dirty Truth Behind the World's
Favorite Soft Drink. United Kingdom: Penguin.2010.
Cheatham, Mike. Your Friendly Neighbor: The story of Georgias Coca Cola
Bottling Families. United States: Mercer University Press. 1999.
The Purdue OWL Family of Sites. The Writing Lab and OWL at Purdue and
Purdue U, 2008. Web. 17 November. 2014.
Pat

Watters. Coca-Cola:

An

Illustrated

History.

United

States:

Doubleday. 1978.
The Coca Cola Company. Coca Cola Company, 2014.17 November. 2014.
Thomas, Mark. Belching Out the Devil: Global Adventures with Coca-Cola.
United Kingdom: Ebury Publicating. 2008.

17

Appendix:
Figure 1

18