The Coca-Cola Company

An Assessment of Corporate Social Responsibility of Coca-Cola Bottlers Philippines, Inc. – Tacloban Plant

Part I

THE COCA-COLA COMPANY

The Coca Cola Company is the world’s largest beverage company. The company

operates in more than 200 countries and market a portfolio of more than 3,000 beverage

products including sparkling drinks and still beverages such as waters, juices and juice

drinks, teas, coffees, sports drinks and energy drinks. (The Coca-Cola Company, 2011)

History

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical

Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a coca

wine called Pemberton's French Wine Coca. He may have been inspired by the

formidable success of Vin Mariani, a European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation,

Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of

French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on

May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda

fountains, which were popular in the United States at the time due to the belief

that carbonated water was good for the health.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but

the other two manufacturers could continue to use the formula. So, in the summer of

1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed

to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, In order

to force his two competitors out of the business, Candler purchased exclusive rights to

the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in

1914, Dozier came forward to claim her signature on the bill of sale had been forged,

and subsequent analysis has indicated John Pemberton's signature was most likely a

forgery as well.

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In 1892 Candler incorporated a second company, The Coca-Cola Company (the

current corporation), and in 1910 Candler had the earliest records of the company

burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink

had reached the status of a national icon in the USA. In 1935, it was certified kosher by

Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some

ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first

outdoor wall advertisement was painted in the same year as well in Cartersville,

Georgia. Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred

in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was

Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from

the much later hobble-skirt design that is now so familiar. Asa Candler was tentative

about bottling the drink, but two entrepreneurs from Chattanooga, Benjamin F. Thomas

and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler

signed a contract giving them control of the procedure for only one dollar. Candler never

collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola

bottling company. The loosely termed contract proved to be problematic for the company

for decades to come. Legal matters were not helped by the decision of the bottlers to

subcontract to other companies, effectively becoming parent bottlers.

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in

small quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

New Coke

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change

the formula of the drink with "New Coke". Follow-up taste tests revealed that most

consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola

management was unprepared for the public's nostalgia for the old drink, leading to

a backlash. The company gave in to protests and returned to a variation of the old

formula, under the name Coca-Cola Classic on July 10, 1985.

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21st Century

On February 7, 2005, the Coca-Cola Company announced that in the second

quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial

sweetener sucralose, the same sweetener currently used in Pepsi One. On March 21,

2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a blend

of aspartame and acesulfame potassium. In 2007, Coca-Cola began to sell a new

"healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and zinc, marketed

as "Diet Coke Plus."

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of

16-ounce bottles sold in parts of the southeastern United States. The change is part of a

larger strategy to rejuvenate the product's image. (Wikipedia, 2011)

Mission, Vision and Values

Company Mission

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

Company Vision

People: Be a great place to work where people are inspired to be the best they can

be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and

satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create

mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support

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sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

Company Core Values: Live Our Values

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

Coca Cola People

The company is built around two core assets, its brands and its people. That's

what makes working here so special. Coca-Cola believes that work is more than a place

you go every day. It should be a place of exploration, creativity, professional growth and

interpersonal relationships. It is about being inspired and motivated to achieve

extraordinary things. The company wants its people to take pride in their work and in

building brands others love. “After all, it's the combined talents, skills, knowledge,

experience and passion of our people that make us who we are.”

Coca-Cola’s 92,800 associates around the world live and work in the markets it

serve -- more than 87 percent of these are outside the U.S. In this geographically

diverse environment, the company learns from each market and share those learnings

quickly. As a result, the Company culture is ever more collaborative. From beverage

concept and development to merchandising, company associates are sharing ideas

across departments and markets in new ways. Consequently, these associates are

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increasingly enthusiastic about their work and inspired to turn plans into action. (The

Coca-Cola Company, 2011)

Leadership

Since our first soda fountain sales in 1886, we have been a driver of marketplace

innovation and an investor in local economies. Today we lead the beverage industry with

more than 500 beverage brands -- including four of the world's top-five sparkling brands.

But while our business opportunities are enormous, our commitment to our consumers

and the communities in which we operate is even greater. Muhtar Kent, our Chairman of

the Board and Chief Executive Officer, leads us into the new century with a firm

commitment to the values and spirit of the world's greatest brand. In our journey to

become a sustainable, profitable growth company, our management structure has

evolved to sharpen external focus on the marketplace with greater speed, productivity

and effectiveness. (The Coca-Cola Company, 2011)

Background of the Study

Corporate social responsibility (CSR) has emerged as a form of sustainability

governance with advantages to the economic, environment and social progress.

According to a study conducted in 2004, there was only 43% of companies had reported

to some extent in the social performance while 26% were pending to do so in future and

most CSR commitment was expressed in terms of charity (Mallenbaker.net 2006). This

shows that current awareness on CSR has increased among organizations in the world.

Therefore, this study aims to assess the approaches taken by Coca-Cola Bottlers

Philippines, Inc. – Tacloban Plant with respect to Corporate Social Responsibility. (Siwar

& Haslina)

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http://www.thecoca-colacompany.com/ourcompany/bios/bio_76.html


Scope and Limitation of the Study

This study was conducted to basically analyze the extent of CSR practices of the

Coca-Cola Bottlers Philippines, Inc. – Tacloban Plant with respect to the triple bottom-

line approach: (1) Social, (2) Economic, and (3) Environmental.

However, this study was limited on gathering information from the subject

company because the proponents were reliant on the degree of disclosure of information

that the company may provide during the interview with Mr. Marlon Ventulan, HR

Specialist.

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Part II

COCA-COLA AND THE TRIPLE BOTTOM-LINE

Social

The Coca-Cola Company commits itself to its community through corporate

social responsibility. In each of the countries in which Coca-Cola Company is situated, it

takes its responsibilities as a resident and a neighbor very seriously. It accepts the fact

that it has a duty to contribute to the local community and protection of the local

environment.

Coca-Cola Company considers itself as an active member of the community. It is

committed in investing its time, expertise and resources to protect, support and enhance

the quality of life through a wide range of locally relevant initiatives. In addition to the

economic benefits its day-to-day business activities bring, Coca-Cola supports local

communities through community investment programs. Key social, economic or

environmental needs are identified through consultation, and the company partners with

government agencies, non-governmental organizations (NGOs) and other experts to

conduct programs. Through two-way dialogue with stakeholders, including government

agencies, non-governmental organizations (NGOs), and numerous groups and

organizations, it strives not only to respond to requests for assistance but also take an

active role in identifying needs, extending support and developing meaningful

partnerships.

Its efforts are seen through core business activities in terms of direct

contributions to the economy, which it makes through investments and taxes, and also

indirectly through the stimulus of related activities. In addition, it contributes financially

and materially to the welfare and growth of the community, seeking to add further value

through our active participation in supportive programs and initiatives that will benefit all

members.

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“Across its countries of operation, it partners with local institutions, educational

bodies, government agencies, non-governmental organizations (NGOs) and others to

provide effective and efficient benefits for young people while encouraging involvement

by others in the community,” Mr. Ventulan stressed during an interview.

Local elementary and secondary schools are also recipients of Coca Cola’s

generosity. The company gives out 100 boxes of Nutri-Juice per school. Among the

beneficiaries are the Palo Central School and Elementary Schools in San Jose

specifically in Manlurip. The company takes part in local festivities, for example, during

Flores de Mayo, Coca Cola ties up with the nearby barangays. It gives out free food and

soft drinks to the participants in the said event. With regards to employment, Coca Cola

prioritizes the people living the community in which it is located. The residents benefit

from the opportunities given by the corporation. The recipients show their heartfelt

gratitude by sending back cards, notes, and other tokens as a sign of their appreciation.

As part of Coca-Cola’s ongoing commitment, the company supports efforts to

understand and prevent disasters, to provide immediate relief when they do strike and to

offer long term support in order to help communities recover and rebuild in the aftermath

of disasters. Emergency relief plans are in place, enabling resources to be quickly

mobilized and swiftly delivered to those most in need. The company works together with

relief agencies at the local level and, if necessary, with international organizations and

other group members, in efforts to prevent potential calamities. In the aftermath of

tragedies it continues its support to assist in rehabilitation efforts for the victims and the

environment, not only through funding but also through volunteer work.

For instance, on February 17, 2006 a massive rock slide-debris avalanche

occurred in the Philippine province of Southern Leyte that caused widespread damage

and loss of life. Coca-Cola Tacloban responded at once to the call of the local

government by giving immediate assistance to the locals who survived. Along with the

Philippine Red Cross, the local government, and many other institutions, Coca Cola

gave out relief goods, potable water, and food supplements like the “Nutri-Juice”.

To reach its business goals, Coca-Cola strives to ensure a safe, healthy and

inclusive workplace for its employees while engaging, training and rewarding them.

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http://en.wikipedia.org/wiki/Southern_Leyte

http://en.wikipedia.org/wiki/Provinces_of_the_Philippines

http://en.wikipedia.org/wiki/Philippines


Every employee is compensated accordingly which is more than the law requires. With

their reward system, incentives and salary increases are given to employees who

deserve such a reward. For improved performance in the workplace, Coca-Cola also

conducts trainings and seminars for its employees and workers. Corporate trainings for

speaking and presentation are organized by the main office. Sub departments also put

together minor trainings, like on waste disposal.

Coca-Cola’s human rights and equality of opportunity policies were adopted in

2004. All operations are required to create and sustain an open and inclusive workplace,

to ensure that employees are developed, challenged, respected and rewarded within a

positive and inclusive work environment. Equal opportunities are given to employees

without bias to gender or race. In fact, today the company strongly prefers women as

their new employees. It is said that the company is male dominated, women composes

only 14% of the total population. Due to this, Coca-Cola honors women empowerment

by conducting special events for the women of the company, such as the activities on

International Women’s Day.

Coca-Cola respects its employees' right to freedom of association. It consults

employees about major business developments and issues of shared concern, whether

they choose to join trade unions or not. Where unions do not exist, we recommend

establishing employee bodies for consultation. For instance, in Coca-Cola Tacloban, two

Labor Unions are presently active, one from the manufacturing department, and another

from the sales department. Managers tend to tap these unions to help them in

conducting the CSR activities.

Economic

The Coca-Cola Company operates in more than 200 countries. Because

of the local nature of the business, Coke is in the unique position to contribute to the

economic vitality of even the most remote communities across the globe. Coca-Cola

collaborates with bottling partners and third parties to combine knowledge and

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http://www.coca-colahellenic.com/sustainability/ourapproach/sustainabilitypolicy/


experience in order to create economic opportunities in communities that the company

operates. (2009/2010 Sustainability Review: Our Commitment to Making a Positive

Difference in the World, 2010)

In Coca-Cola Bottlers Philippines – Tacloban Plant, it contributes to the economy

in two simple yet impacting ways. One is through employment. Employment itself

contributes to the welfare of the economy. As a matter of fact, one of the key drivers to

economic heights is employment. Across the globe, 92,400 are employed representing

thousands of communities and many cultures. In addition, Coke’s bottling partners

employ hundreds of thousands of people around the world and are committed to

supporting community investment programs. (The Coca-Cola Company, 2011)

Our large global presence is a competitive advantage, but we also see it as a responsibility. Our products are purchased by consumers around the world millions of times a day, making the sustainability of our business dependent upon sustainable economies. We have always tried to be the first to gain access to a market and to grow along with that market by providing jobs, investment and economic opportunities. This in turn provides community members the ability to afford an improved standard of living. To add further value to local economies, we seek to ensure that our ingredients are sourced in an ethical, sustainable manner. (2009/2010 Sustainability Review: Our Commitment to Making aPositive Difference in the World, 2010)

The global business stimulates job creation throughout the value cycle. The

company contributed to the economic success of each community by employing local

people, paying taxes to the government, paying suppliers for goods, services and capital

equipment, and supporting community investment programs. In Coca-Cola Tacloban,

the company employs about 250 employees, of which 86% constitutes male. Especially

now that Tacloban City has become highly-urbanized by nature, it just means that the

market just keeps on getting bigger, thus, there are more people to feed and greater

demand to be satisfied. As in Economics, if more people are employed, more people pay

taxes or more people have money for spending. Spending money then boosts the

economy through taxes and the cycle just goes on when everyone shops.

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Source: (2009/2010 Sustainability Review: Our Commitment to Making a Positive Difference in the World,2010)

Another contribution of Coca-Cola Tacloban to the economy is its support to

business and entrepreneurship. The unique business model of Coca-Cola allows the

company to support entrepreneurship and economic development at many different

levels. The Coca-Cola system creates opportunities for farmers to supply ingredients for

the beverages, opens the door to entrepreneurs wishing to distribute the products,

partners with small-scale retailers selling the products in communities worldwide. Coca-

Cola takes these steps for the reason that these people are able to help communities

progress towards achieving the UN Millenium Developmental Goals, in the same way as

these people also benefit from the company.

“In Eastern Visayas, we partner with small-scale entrepreneurs in the distribution

of our products. This does not just benefit the company, but these local entrepreneurs as

well,” Mr. Ventulan emphasized.

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Environmental

Managing Climate Change

Global climate change which is caused in part by man-made greenhouse gas

emissions has widespread implications for the planet and the communities where we live

in. Water and land resources, public health and safety, agriculture and more are at risk.

And through the Coca-Cola system, they recognize that climate change has the great

ability and potential to affect the lifespan of our organizations and the supply chain. They

increasingly focus on energy efficiency and climate protection to help reduce costs and

minimize our environmental impact. Efforts are made in order to lessen the sudden

effects of these natural phenomenon, it is already clear that it is already difficult to stop

nor obstruct these after effects of climate change, hence, preventive measures and

remedies are the one focused by the company.

When producing and distributing its products, the Coca-Cola Company aims to

use the best possible mix of energy sources while improving its overall energy use and

efficiency. It commits to effectively tracking and managing its carbon emissions and it is

taking the necessary steps to do so as a system. The company also invests in

renewable energy resources where others make sense for their business, and it is

making decisions to improve the overall energy use and efficiency of their facilities. It is

also committed in pacifying its own energy end marks. The company continually

improves its energy efficiency per liter of product produced and working to stabilize its

emissions system-wide. In 2008, the Coca-Cola system set global targets for energy

management and climate protection within its manufacturing operations and to achieve

around 5 percent absolute emissions reduction in developed countries and grow its

business without growing the carbon emissions approximately by 2015.

The Coca-Cola system is working to meet each goal, and it is committed in

reporting or disclosing its progress. Tree-planting activities worldwide are also done to

increase the number of trees that saturate or neutralize the emissions in the air that

circulates. In that same time period, emissions in some countries improved by 8 percent.

The company is absolutely making progress and change in the environment, but it has

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more work to do in order to meet these targets. Local tree-planting events are done in

different places where plants are located. The latest here in Tacloban City was recently

conducted last September 2010 at Upper Diit, Tacloban City. Through this consolidated

efforts of each plant, the plans and goals to lessen and manage the aftermath of climate

change would come to reality.

Managing our Carbon Emission and Energy Saving

The Coca-Cola Company remains committed in protecting the environment and

reducing greenhouse gas emissions across our system. Through strategic partnerships

and innovative problem-solving techniques, the company continues to identify and

leverage new technologies and innovations to reduce their carbon emissions. The

company has also built energy efficiency and climate protection targets into business

plans and projections. Coke is focusing efforts to reduce emissions in three key areas:

manufacturing, fleet/transportation and sales equipment like coolers and vending

machines. It remains committed in publicly disclosing its system-wide emission

information, and it currently engages in a variety of partnerships with governments,

industry and NGOs to find solutions for climate change.

Coca-Cola continually looks for ways to reduce their greenhouse gas emissions

through renewable energy resources. Some of the company’s bottling partners are

installing solar panels on their bottling facilities to help reduce energy use and

greenhouse gas emissions. The solar panels capture sunlight across a 360-degree

surface, converting light energy into electricity. Additional investments are being made in

biodiesel and wind power generation technologies, among other initiatives.

Coca-Cola is continually working to reduce the greenhouse gas emissions

resulting from vending machines and coolers through the installation of HFC-free

systems and intelligent energy management devices. In 2009, through engagement with

Greenpeace (An Environment Concerned Organization), the Coca-Cola system pledged

to transition to 100 percent HFC-free equipment for all new coolers and vending

machines by the end of 2015. As a result of the commitment to eliminate the use of

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HFCs in our refrigeration equipment, the Company also has invested millions in research

and development to advance the use of climate-friendly cooling technologies. The

Company and many of their bottling partners commemorate Earth Hour annually by

switching off all nonessential lights. By running extensive communications campaigns,

the company encourages all system associates, customers, suppliers and partners to

participate in the initiative. In 2010, the company fully supported Earth Hour with

marketing and promotional materials as well as turning off the lights at company facilities

in more than 50 countries all over the world.

Recycling Water in Production and Operation

While Coca-Cola gives much effort to improve the water efficiency for each liter

of product, the company produces and increases their conservation efforts across the

system – the company also recycles water. Water is a very important ingredient in the

manufacturing process, thus very vital in the operations. The goal of the company is to

return all the water used in the manufacturing processes throughout the system to the

environment at a level that supports aquatic life. “Water used in Coca-Cola system

operations is recycled through a stringent treatment and cleansing process to ensure

that our wastewater meets or exceeds applicable laws and regulations before being

released into the environment,” stressed Mr. Ventulan in an interview.

To understand and promote management of water resources for the Coca-Cola

system’s manufacturing operations, it launched a system-wide water resource

sustainability corporate standard. This standard requires each of the more than

900 bottling plants to evaluate the sustainability of the water resources used to produce

the beverages, as well as the sustainability of the water resources used by the

surrounding community. It also requires identification of associated water risks at the

plant level and action plans to reduce such risks. All Coca-Cola system plants are

required to complete this process and be actively implementing their protection plan.

These source water protection plans address critical water challenges at a watershed

level, from hydrological vulnerabilities to local government management. As a company,

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Coca-Cola provides utmost guidance, planning templates, preparation checklists and

training courses to facilitate system wide engagement with this water resource

sustainability corporate standard.

Throughout the Coca-Cola system, the beverages are produced locally and the

water used to create these beverages is sourced locally. One of the company’s key

water strategies is to replenish the water used by investing in projects that include

watershed protection and conservation; expanding community drinking water and

sanitation access; example of which is when Coca-Cola Tacloban had given assistance

to the victims of landslide at Guinsaugon, Southern Leyte wherein the refugees were

given free drinking (potable) distilled water (WILKINS) because of the problem that arose

wherein no clean water was available for drinking in that said location. As the plants

develop and implement the source water protection plans, such projects will become

more locally relevant to the company’s operations. By 2020, Coca-Cola intends to attain

the goal of replenishing to nature and communities an amount of water equivalent to that

used in the finished beverages.

Part III

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COCA-COLA: CSR OBSTACLE

Today’s heightened interest in the proper role of businesses in society has been

promoted by increased sensitivity to environmental and ethical issues. Issues like

environmental damage, improper treatment of workers, and faulty production leading to

customers inconvenience or danger, are highlighted in the media. In some countries

government regulation regarding environmental and social issues has increased, and

standards and laws are also often set at a supranational level. Some investors and

investment fund managers have begun to take account of a corporation’s CSR policy in

making investment decisions. Some consumers have become increasingly sensitive to

the CSR performance of the companies from which they buy their goods and services.

(Corporate social responsibility, Wikipedia, 2006) These trends have contributed to the

pressure on companies to operate in an economically, socially and environmentally

sustainable way.

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Budget Constraint

short-term benefits

limited funds

minimal impact of activities

sustainability of activities


The diagram above shows the main problem regarding with the company’s

performance in Corporate Social Responsibility is budget constraint. Because of this

their activities are being limited, they have short-term benefits and its impact are

minimal. Being able to sustain their corporate activities can affect how people and their

consumers view their company and their product.

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Part IV

RECOMMENDATIONS

CSR Asia, a social enterprise that provides information, training, research and

consultancy services on sustainable business practices in Asia, published a report titled

“The Future of CSR: Issues of the Next Decade.” It gives a summary of the Top 10

issues that CSR managers will have to confront in the next 10 years, as well as the

action points that will help them address these concerns.

On top of the list is the environment and climate change, which “will... require

companies to look hard at the sourcing of raw materials, waste management, the

management of toxic substances, health impacts of environmental degradation, and the

management of diversity.” Next is “labour rights as human rights”, which means

recognizing “that workers have fundamental human rights and must be treated with

respect rather than mere factors of production.” Third on the list is ensuring transparency

and accountability, which “will require a whole new approach to revealing the positive

and negative aspects of doing business.”

Other issues in the top ten are: (4) the institutionalization of CSR, (5) stakeholder

engagement, (6) “the battle for talent”, (7) community investment, (8) supply chain and

product safety, (9) social enterprises, and (10) poverty alleviation and the private

sector’s role in it. (Recommendations of CSR Report 2007 2008)

The report also offered recommendations for companies to consider in maximizing their

CSR initiatives:

1. Build institutional capacity for CSR;

2. Conduct “properly structured, ongoing stakeholder dialogue” as part of

developing a CSR strategy;

3. “Embed” CSR into the organization;

4. Build stronger partnerships with NGOs, with local communities, and “with any

stakeholder who can add value to the business;”

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5. Involve stakeholders in innovative strategies and projects “to create productive

change;”

6. Find ways to create new relationships with suppliers based on shared visions

about CSR;

7. Establish policies and systems to attract and retain talent for the long-term

success of the business;

8. Develop communities alongside the business, which includes properly

measuring community impacts and having long-term investment strategies

involving stakeholders;

9. Engage in better non-financial risk management; and

10. Ensure good governance.

The above-mentioned set of recommendations by CSR Asia will become a very

useful guideline to the formulation of recommended actions for Coca-Cola Bottlers

Incorporated. Not only do some of these apply to Coca-Cola’s CSR situation today but

they also give way to the formulation of new strategic CSR actions for Coca-Cola.

Coca Cola Bottlers Incorporated has been awarded several times in many parts

of the globe. For instance, Coca-Cola China was awarded the 2009 CSR Award in the

AmCham Shanghai Corporate Social Responsibility Conference and Awards of

November 2009 and Coca-Cola Nigeria Limited, too, was awarded Most Socially

Responsible Company 2008 during the Social Enterprise Reports and Award (SERA) of

August 2008. (Raising the Standard of Excellence 2009) This however does not

guarantee that Coca-Cola’s CSR can no longer be improved.

What can be recommended here first is to review the current Corporate Social

Responsibilities the company is involved in. There is a need for the said review because

this review will allow management as well as all stakeholders involved the activities to

evaluate the said actions and assess their impact on the company’s image not only

globally but within Eastern Visayas itself. Through the suggested review, the people

concerned will be able to pinpoint which activities help the company and society the

most and which ones are worth improving or revising. After conducting the

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recommended activity the next plausible thing to do is prepare a CSR action plan for the

company. This action plan will determine the purpose of each activity, the time allocated

for it and the people responsible for its success. For instance:

ACTION PLAN

Activity Person Involved Time Frame Indicators/ KRAs

1.Nutrijuice Feeding Program

Human Resource Department

All employees1 month

Helping alleviate poverty by aiding unfortunate children get their daily

sustenance thus gradually improving the health

situation in the rural areas

2.Tree-planting in cooperation with the Boy Scout of the Philippines

BSP Human Resource

Management All employees in

Coca-Cola Bottlers Philippines Incorporated

1 month

Advocating the conservation and

preservation of our environment and

influencing others to do the same

Plans presented in the manner stated above not only give the company the right

direction towards proper CSR but also provides an avenue for employees from all ranks

within the company to participate in company activities. This brings us to another

recommendation which is better involvement of Coca-Cola’s employees. At present as

was mentioned in previous chapters, employees in Coca-Cola participate in the CSR

activities conducted by the company but at a minimal level. Employees should be further

encouraged to participate in these types of activities. First, however, the purpose of the

activity must be explained to them. Furthermore, they should be oriented as to the

benefits that they get upon participating – that they will be able to help build the image of

the organization and in turn will improve Coca-Cola’s performance and will mean more

benefits for them.

We can notice that most of the Corporate Social Responsibility Activities held by

Coca-Cola are more inclined towards the environmental area. Although they have

activities and strategies geared towards the social and economic sphere, still a majority

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if its CSR Activities fall under advocacies for environmental preservation. For this

reason, there is a need for Coca-Cola to realign its CSR efforts towards being more

social and economic. First off, Coca-Cola should strive harder in obtaining a more

diversified workforce and more gender-sensitive recruitment and selection process;

specifically that women should be given equal opportunities for selection and growth in

the company like opportunities are given to male employees and potential employees.

Economically speaking, since Coca-Cola is a very large and established organization, it

should also do its best to address poverty in the Philippines. It can do this through

several means. For example, a significantly large number of its product distribution can

be given to micro-entrepreneurial establishments in rural areas so as to give these a

better source of living thus reducing the unemployment rate in the country, one of the

key indicators of poverty. Not only that, Coca-Cola with its organizational size and

influence may be able to provide entrepreneurial assistance to the same people in order

to help alleviate poverty.

One of the CSR strengths of Coca-Cola is its networking and alliances with

numerous government and non-government organizations. These organizations which

have partnered with Coca-Cola in the past and even at present can help the company

address the social and economic issues it is lacking. More than that, the mentioned

allies can help Coca-Cola build a stronger, more sustained and long-term CSR program

for the company. It is thus highly encouraged that these formed alliances and

partnerships be encouraged and strengthened in the following years.

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BIBLIOGRAPHY

2009/2010 Sustainability Review: Our Commitment to Making a Positive Difference in the World. (2010). Retrieved February 26, 2011, from The Coca-Cola Company: http://www.thecoca-colacompany.com/citizenship/pdf/SR09/2009-2010_The_Coca-Cola_Company_Sustainability_Review.pdf

Raising the Standard of Excellence. (2009, January). Retrieved February 25, 2011, from The Coca-Cola Company: http://www.thecoca-colacompany.com/ourcompany/awards_recognition.html

Recommendations of CSR Report 2007. (2008, December). Retrieved February 26, 2011, from Daiichi Sankyo Group CSR Report: http://www.daiichisankyo.com/corporate/report/pdf/2008/g_ds2008_05.pdf

Siwar, C., & Haslina, S. (n.d.). A Study on Corporate Social Responsibility Practices Amongst Business Organizations in Malaysia. Retrieved February 28, 2011, from http://www.csr-weltweit.de/uploads/tx_jpdownloads/Chamhuri_Siwar_Siti_Haslina_Md_Harizan_Malaysia.pdf

The Coca-Cola Company. (2011). Company Reports. Retrieved February 26, 2011, from The Coca-Cola Company: http://www.thecoca-colacompany.com/ourcompany/company_reports.html

The Coca-Cola Company. (2011). Economic Impact. Retrieved February 26, 2011, from The Coca-Cola Company: http://www.thecoca-colacompany.com/citizenship/economic_impact.html

The Coca-Cola Company. (2011). Leading the Industry and Refreshing the World Responsibly. Retrieved February 25, 2011, from Coca-Cola Company: http://www.thecoca-colacompany.com/ourcompany/leadership.html

The Coca-Cola Company. (2011). Working as a Global Company. Retrieved February 25, 2011, from Coca-Cola Company: http://www.thecoca-colacompany.com/ourcompany/meet_our_people.html

Wikipedia. (2011). Coca-Cola. Retrieved February 25, 2011, from Wikipedia: http://en.wikipedia.org/wiki/Coca-Cola

"Raising the Standard of Excellence." The Coca-Cola Company. January 2009. http://www.thecoca-colacompany.com/ourcompany/awards_recognition.html (accessed February 25, 2011).

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"Recommendations of CSR Report 2007." Daiichi Sankyo Group CSR Report. December 2008. http://www.daiichisankyo.com/corporate/report/pdf/2008/g_ds2008_05.pdf (accessed February 26, 2011).

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