Corporate Social Responsibility

Corporate social responsibility (CSR) is a business model in which for-profit

businesses seek ways to generate social and environmental benefits while pursuing
organizational goals such as revenue growth and shareholder value maximization.
Johnson & Johnson, also known as JNJ, is one of the best examples of this. It
is headquartered in New Brunswick, New Jersey, and is one of the world's largest
multinational corporations. The three Johnson brothers, James Wood Johnson, Robert
Wood Johnson, and Edward Mead Johnson, founded it in 1886.
Johnson & Johnson derives its profitability from three distinct segments—
pharmaceuticals, medical devices, and consumer products.
The company trades on the New York Stock Exchange (NYSE) with a share price of
approximately $167 as of Dec. 2021, with a market capitalization of over $442 billion.
JNJ reported $82.58 billion in revenue for the 2020 fiscal year—$43.13 billion from the
United States while the remaining $39.45 billion came from international sources.
They have focused on reducing their impact on the planet for three decades.
Their initiatives range from leveraging the power of the wind to providing safe water to
communities around the world. Their purchase of a privately-owned energy supplier in
the Texas Panhandle allowed the company to reduce pollution while providing a
renewable, economical alternative to electricity. The company continues to seek out
renewable energy options with the goal of having 100% of its energy needs from
renewable sources by 2025.
Coca-Cola is another company that practices corporate social responsibility. The
Coca-Cola Company, founded in 1892, is primarily engaged in the production and sale
of syrup and concentrate for Coca-Cola, a sweetened carbonated beverage that is a
cultural institution in the United States and a global symbol of American tastes. Other
soft drinks and citrus beverages are also produced and sold by the company. Coca-
Cola is the world's largest beverage manufacturer and distributor, as well as one of the
largest corporations in the United States, with over 2,800 products available in over 200
countries. The company's headquarters are in Atlanta, Georgia.
Coca-Cola aims to donate at least 1% of its annual profits to charitable
organizations. Coca-Cola has pledged to balance its water consumption by 2020. In
2013, the company replenished approximately 68% of its finished beverage volume and
returned approximately 108.5 billion liters of water to communities and nature. In 2014,
the company assisted in the economic empowerment of over 865,000 women through
the 5 by 20 program. By 2020, the program hopes to have economically empowered 5
In 2021, Coca-Cola unveiled its first-ever beverage bottle made from 100% plant-based
plastic. “Our goal is to develop sustainable solutions for the entire industry, We want
other companies to join us and move forward, collectively. We don’t see renewable or
recycled content as areas where we want a competitive advantage,” said Dana Breed,
Global R&D Director, Packaging and Sustainability, The Coca-Cola Company.
Ford Motor Company is another company that practices corporate social
responsibility. Ford Motor Company is an American automaker founded in 1903 by
Henry Ford and 11 other investors. The company was reincorporated in 1919, with
Ford, Clara, and their son, Edsel, acquiring full ownership. They, their heirs, and the
Ford Foundation (founded in 1936) were the sole stockholders until January 1956, when
the common stock was first offered for public sale. The company makes passenger cars
and trucks, as well as auto parts and accessories. The company's headquarters are in
Dearborn, Michigan.
Ford's stakeholders are addressed comprehensively through a variety of
corporate social responsibility initiatives and programs. Ford Motor Company continues
to innovate its products in terms of quality, fuel economy, and safety in order to
maximize customer and other stakeholder satisfaction. The majority of the company's
2015 vehicles received five-star ratings from the New Car Assessment Program in the
United States (NCAP). In addition, the Ford Smart Mobility program aims to improve
mobility and provide self-driving/driverless vehicles. Furthermore, the free Ford Driving
Skills for Life driver education program assists novice drivers in developing skills for
safe and efficient driving. As a result, Ford's corporate social responsibility programs go
beyond simply providing vehicles to improve the driving skills of its customers and key
stakeholders.
Ford Motor Company has reformed its workplace safety policies over time to protect this
stakeholder group and ensure regulatory compliance. The firm’s Sustainable Workforce
initiative aims to optimize employees’ health, efficiency, and productivity. Ford
implemented the One Ford plan in 2008 under former CEO Alan Mulally’s leadership to
achieve consistency and synergy in its global organization. Ford Motor Company
provides sustainability training to its suppliers to improve their sustainability
performance, which is linked to environmental impact. Also, the Ford Motor Company
Fund and Community Services is the company’s nonprofit organization for a wide
variety of philanthropic efforts for this stakeholder group.

Edmond Jayson E. Peregil

MBA-C