Environment Issue in Business

Major Assignment

Name

Bong Woan Huey

Student ID

18589144

Tutorial day and time

Monday, 12-2pm

Tutor

Ms Reimara Valk
Q1 : Can corporate social responsibility play a constructive role in

Topic

achieving the UN sustainable development goals? Present a

compelling case for your response.

All over the world, corporate social responsibility (CSR) has become an
interesting topic in the business community. CSR has various meanings in different
contexts. Bowen (1953, quoted In Xiaoou, Han 2010, 12) proposes that corporate
social responsibility (CSR) is a responsible of the company to pursue policies and
make a decision in order to meet society desirable values. Corporate Social
Responsibility (CSR) also can be defined as a management concept where businesses
maximize their shareholders' profits by integrating social and environmental concern
(Melikyan 2010 quote in Dodh, Pankaj, Singh and Ravita 2013, 2). CSR also
perceived as a solution to the inequalities created by globalization. Thus, it is taken as
a character to plan an action that enables company to benefit all levels of society and
allow business quickly to the emerging needs of a society, including economics,
environmental, or social problems (Konrad Adenauer Stiftung).
Carroll (1979, quoted in Ping Kan, Wai 2012, 4) had created a threedimensional model in order to define CSR. CSR model has categorized into 4
important components which includes economic, legal, ethical and discretionary. In
economically, companies are required high performing and meet the society needs.
Then they are the legal component where companies require to conducting the
business that complies with the laws. The ethical components are companies should
conduct their business ethically and morally. Lastly, companies should be doing
business in their own discretion and willing to contribute for companies (Ping Kan,
Wai 2012, 4). Therefore, businesses should make the profit and act both ethically and
legally and only practices CSR activity that bring long term benefits to shareholder
wealth. By practicing CSR activity, it helps to establish a positive company image in
eyes of society, which directly helps to advertise their products with a positive image
(Cheers Zachary 2011, 30). For instance, the CSR can affect the consumer evaluations
of companies as well as evaluate the products (Cheers, Zachary 2011, 28).
The Sustainable Development Goals (SDGs) as the United Nations view of
the future development until 2030. The SDGs succeed their predecessor Millennium
Development Goals (MDGs), expanding the challenges that must be solved to
eliminate poverty and embracing a wide range of inter-connected topics across
sustainable development. In addition, it used to strengthening the development agenda
where the MDGs did not archived and create a better coverage to address three
dimension of development including economic (to promote high quality of life and

wellbeing), social (equitably shared) and environmental ( staying in planetary

boundaries and offer sustainable)

(Kumar, Kumar, and Vivekadhish 2016, 2)

(Costanza et al. 2014). The Sustainable Development Goals (SDGs) are a set of 17
global goals and 169 targets which proposed by scientific communities at Rio+20
(Glaser 2012, 35). These goals are universally applicable and create a common
language for all actors including governments, business and others player in both
developing countries. In addition, the SDGs can be divided into three categories. The
first seven goals is an extension of MDGs. The goal 8 until goal 10 which refer to the
inclusiveness. And last 7 goals is third categories which cover on the sustainability
and urbanizations (Kumar, Kumar, and Vivekadhish 2016, 2).
In this report, CSR will be defined as a company voluntary actions to improve
social welfare, economics conditions, and the environment in order to achieve
sustainable developments goals that ensure sustainable benefits for stakeholders and
the community. Thus, Sustainable development being the goal for all nations while
CSR is one of the primary means to that goals.
The American Multinational beverage corporation, Coca-Cola Company is a
soft drinks and other non-alcoholic drinks manufacturer and distributor (Marques
2010, 438). Coca-Cola is flagship products for its company, which invented by
pharmacist John Stith Pemberton in Columbus, Georgia in 1886 (Kaur and Aggarwal
2012, 266). With the accelerating pace of globalization and increasing competition, it
becomes the primary obligation of the Coca-Cola Company to making ethical
practices for their public interest (Kaur and Aggarwal 2012, 267).
Water is critical to human survival as well as the main ingredient in the
beverage of Coca-Cola Company. Coca-Cola holds strong commitment to protecting
the local water source that sustains local communities. Therefore, Coca-Cola
Company designs a Water Stewardship program to preserving and improving local
water source (Coca-Cola Journey n.d.). The water stewardship program aim to reduce,
recycle and replenish the water used in its finished products (Wrights 2009, 4 , quoted
in Schuerkens 2014, 101). In particular, SDGs Goal 6 focuses on the water with the
goal to ensure clean water and sanitation for all. It includes improving the water
quality and efficiency, protecting the ecosystems, and managing water resources

sustainably (Sustainable Development n.d.). Therefore, Coca-Cola water stewardship

program is coming along with and apply effort to meet SDG 6.
In 2015, Coca Cola increase the water efficiency by using 1.98 liters of water
to make 1 liters if product compared to 2.7 liters of water used in 2004. This is the
start of the water footprint program where to help the company to understand how the
water across manufacturing process and supply chain (Coca-Cola Journey n.d.).
Moreover, Coca-Cola Company starts its water replenishment program in 2005 and
cooperate with local communities, government and third parties to support the
projects. For instance, 191.9 billion liters of water is successfully replenished by
Coca-Cola Company through 248 community water projects in 71 countries towards
local community and nature in 2005 year. Coca-Cola Company also successful
returns

145.8 billion liters of water used in production process back to local

watersheds by using treated water waste in 2015 (Coca-Cola Journey n.d). Therefore,
it significantly achieved the goal to replenish the water used in global sales volume
and achieved the SDG 6 as to safely return the amount of water to society equal to
what company use for their finished product (Coca-Cola Journey n.d).
Recently, Replenish Africa Initiative (RAIN) program by Coca-Cola is
expands in order to supply save water access to 6 million people by 2000. This
program is created for a better quality of life for communities in Africa by improving
the access to clean drinking water. It also help to enhances sustainable water
management practices and sustainable use of water for economic development (CocaCola Journey n.d.). For instance, RAIN has been successful make more than 2 million
people in more than 1800 communities are sustainable access to safe water by end of
2015. Moreover, Coca-Cola Company also engaged actively in WASH program to
support safe water and sanitation access. For instance, Coca-Cola partner with the
U.S. Agency for International Development (USAID) to practice Water and
Development Alliance (WADA) which aim for address the local community water
needs around the world. WADA main objective is to improve the sanitation service for
the world poor, enhancing the water uses, increasing the water supply and to protect
and improving watersheds sustainability (Mann n.d.). Therefore, it significantly
showed that Coca-Cola CSR activities not only aligns with increase company image
but also play an active key role in support the United Nations Sustainable
Development Goals (SDGs) goal 6.

Today, women and girls around the world are hard to exercise their rights, face
discrimination and violence, receive unequal pay and treatment in the workplace and
are underrepresented in power and decision-making roles. Coca-Cola has emphasized
the gender balance in the workplace by introducing variety program and training for
its workers. To support the point, Coca-Cola had received catalyst awards for their
good work in empowering women. In 2013, Coca-Cola also awarded for place 38th of
the top 50 diversity and inclusion companies (Global Diversity mission 2013, quote in
Dike 2013, 32). Coca-Cola Company has been achieved the SDG 5, gender equality
where the company is built to ensure that discrimination against women and girls to
be end. For instance, in March 2016 Coca-Cola initiated a Pledge for Parity to
increase their commitment to hiring female talent employee in the workplace. As a
result, over 50% more female were hires compared in 2014, bringing over 120 new
female employees into the workforce. It also results in the supply chain team made up
of approximately one-third female (Coca Cola Company 2016). In addition, Coca
Colas has developed a training program to develop female talents. This training
named as Achieve Your Best Self (AYBS), is a three days programs that aim to
guides women to identify personal values and goals and provide support and career
plan in order to gain succeed in the workplace. Besides, Coca-Cola offers a regional
training program for cultivates future female senior leaders called Leveraging and
Inspiring Female Talent (LIFT) (Coca Cola Company 2016).
Further, Coca-Cola Company introduces latest CSR practice called 5by20.
This aiming for improving 5 million women entrepreneurs of their economic lives
across the global value chain by 2020. Today, 5by20 have been implemented in a total
of 60 countries around the world (Coca-Cola Journey n.d.). In the Leadership
Economic Forum (Dubai Wforum), 5by20 program was named as Best Global
Initiative for Womens Economic Empowerment (Johnson 2014). For instance,
women from fruit farmers to retailers to artisan are provided business skills training
course, access to financial service and mentoring and networking opportunities in
order to address and solve the barriers for business success. 5by20 is the partner with
UN Women, IFC, TechnoServe, the Bill & Melinda Gates Foundation, IDB and
Mercy Corps, among many other NGOs in order to develop a 5by20 program based
on the countries (Johnson 2014). As a result, 5by20 had reached more than 865,000
women in 52 countries in 2014 since it began in 2010 (Sustainable Development

Knowledge n.d.). This program is successful in achieving full and productive

employment to all gender with the equal pay for their work. In other meaning, CocaCola had achieved the SDG 5 and SDG 8 by running this CSR activity.
Besides, Coca-Cola Company is making effort in the medical sector in rural
Africa. Coca-Cola Company committed to helping people live healthier and more
active life among Africa where to go along with the SDG 3 (Coca Cola Company
2014). For instance, the Coca-Cola Company identifies that the serious in HIV/AIDS
global health problem. For fighting AIDS, tuberculosis and malaria, Coca-Cola
Company is collaborate with the Global Fund to help deliver much-needed medicines
to rural Africa. In addition, in order to increase awareness about HIV/AIDS in Africa,
1st of the December is set as the annual campaign called Share the Sound of an
AIDS-Free Generation to support World AIDS Day. Further, top artists such as
Queen, Wyclef Jean, and the One Republic also support Global Fund by downloading
the original songs and offered one-in-lifetime experiences through Omaze.com, a
fundraising platform. This result Global Fund was raised more than $950000 which is
sufficient to supply medicine for more than 237500 days (Coca Cola Company 2016).
In addition, Project Last Mile in 2010 is work under the country of Tanzania
where using company resources to deliver critical medicines to rural Africa and other
parts of worlds. The Last Mile projects fight AIDS, tuberculosis, and malaria by using
Coca Colas vast supply chain to improve health systems (Arment 2014, 121). These
practices have achieved the SDG 3 where Coca-Cola achieve universal health
coverage for all. It also achieved the SDG 17 where Coca-Cola is a partnership with
global and support national plans and achieved sustainable development (Sustainable
Development n.d.). For instance, more than $21 million is investing by Coca-Cola
Company partnership with its Foundations, USAID, the Global Fund and the Bill and
Melinda Gates Foundation to support Last Mile. Also, with the global partnership, it
significantly shows that the availability of medicine in medical clinic increased
around 20 to 30 percent (Jordin 2016).
One of the CSR activity that Coca-Cola Company offer recycled PET plastic
bottle to make an effort to reduce the carbon footprint on the planet and its scarce
resources (Cola Coca Company, press release). Today, PlantBottle packaging has
distributed in a variety packaging size across all beverage brand. In addition,

PlantBottle has efficiently reduced the use of traditional fossil fuels and increase the
use of renewable materials. For instance, it successful to reduce carbon dioxide
emission approximately around 315000 metric tons of PET plastic bottles. Further,
PlantBottle packaging is made up with 30 percent of plant-based material such as
sugarcane (Responsible Business 2016). This brings the Coca-Cola meet the SDG 12
which reduce waste products through prevention, reduction, recycling and reuse.
Not only that, in 2013 The Coca-Cola Company is running the CSR activity
called EKOCENTER, a kiosk where Coca-Cola Company collaborate with both
public and private sector corporations to bring basic requirements to the local
community in a rural place (Hamilton 2015, 1). For instance, EKOCENTER is solar
power and furnished with a Slingshot water purification system, which designed by
DEKA R&D. it is run by local women entrepreneur that aiming to provide services
such as power and light, basic goods, safe water, connectivity, education and health
and entertainment (Coca-Cola Journey n.d.). This shows The Coca-Cola Company
make an effort to achieve the SDG 9 where to promote innovation and infrastructure,
which EKOCENTER as downtown in a business (Gonzalez Nayelli 2015). In
addition, EKOCENTER is a product of golden triangle where collaboration
between business, government and civil society such as Dell, SOLARKIOSK,
Ericsson and others (Coca-Cola Journey n.d.).
In conclusion, the CSR have played a constructive role to meet sustainable
development. CSR is a wealth of knowledge, thought, and action across a company
that can be leveraged to support the achievement of the Sustainable Development
Goals. In other meaning, CSR activities not only offer company to strengthen its
reputation but also help them to mitigate risk and achieve sustainable development
objective. From this report, it can be concluded that Corporate Social Responsibility
activity that practice in Coca-Cola Company is a closed link with Sustainable
Development Goals. Further, ideally and well managed CSR is seen as a key catalyst
for a company achieved SDGs. It also helps to support companys business objectives,
reducing the operations cost, as well as improve the relationships between the
company, government, and local community. For instance, Coca-Cola Company can
enhance relationships in golden triangle which will help to deepen and enhance the
economic development of the communities. The Coca-Cola Company is focused in
maintaining good health, gender equity, clean water and sanitation, infrastructure,

responsible consumption in rural local communities. Thus, the government also play
an important role in promoting sustainable development. Therefore, the government
should focus their policy more efficiently integrating the three dimension of
sustainable development goals, economic, social and environmental. This will help to
ensure that company smoothly achieve the SDGs. To create a win-win situation, it is
essential for all actor to work together to achieve sustainable development goals.
(2437 Words)

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