Coca Cola CSR
1. Why did Coca-Cola Vietnam chose to work on water projects? Coca Cola is a beverage company, a major consumer of water resources, it uses 2.43 liters of water to produce just 1 liter of beverage which makes it prone to criticism and consumer boycotts so to protects its brand image and defend its vision statement, which said be a responsible citizen, and run its business smoothly it decided to start water program to maintain its operations in Vietnam and build a CSR reputation.
2. What is the risk to Coca-Cola’s reputation in using too much water and producing waste water? As Coca Cola uses too much water, it uses 2.43 liters of water to produce just 1 liter of beverage, and produces waste water in the manufacturing process that is condemn by environment and community activist for lessen the water supplies and destroying the environment through waste water it is a risk to Coca Cola reputation as it work globally as a CSR company and its strong brand imagining
3. How does Coca-Cola’s community based projects help them promote their business interests? Coca Cola demonstrate itself as a profit-making company and a global company with a highly institutionalized CSR program and has a positive brand image because of its community based projects and it helps it to run its business. As according to the company publication Relish Report, the motives for replenish the water is for sustainable and suitable communities because it is the foundation of the business and it support to enhance business interests. Further its water stewardship strategy involves plant performance, watershed protection, sustainable communities and helping to raise awareness all things work as a catalyst in promoting business interests.
4. Identify Coca-Cola’s stakeholders in Vietnam. What key stakeholder(s) is Coca-Cola missing with its community projects in Vietnam? Coca-Cola’s stakeholders in Vietnam are local rural Communities, environmental activists, international NGOs like World Wildlife Fund, CEFACOM and different local NGOs. In addition, Duyen Thai People’s Committee and local Government health officials are other key stake holders. However, Coca-Cola in Vietnam lacks an employee volunteer component a key stakeholder which should be involve in Vietnam community projects which is the major part of strategy in the other part of the world.
5. What risk is there to Coca-Cola in using its NGO partners as a key means to reach out to local communities? The NGOs running the program on behalf of Coca-Cola do most of the interaction with the local communities and it utilized its NGOs to learn about their specific needs and target assistance where it was most needed. It does not reach out the local communities it-self and primarily focused on the outputs of the programming, such as the number of communities students served and it measures whether the NGO partner meets the timeline, budget targets and amount spent per beneficiary reached. The risk is there that Coca Cola might not be having the true information as it is using NGOs as middle man. The true needs might be ignored and not properly addressed by the NGOs. 6. What can Coca-Cola do to improve its community programming?
Coca has developed a comprehensive CSR community programming which covers education, health care and the environment projects. However, in Vietnam a key stakeholder, employee volunteer component, is missing which is important for the improvement of community programming. Further, Coca Cola is using NGOs to interact with the communities but it has a risk that coca cola might not be able to have true information and the some needs of community might not be properly addressed. Hence, Coca Cola should try to build direct relation with community that to improve the quality of the community programming. In addition,if the quality and standard of community programs would be same all over the world it will improve their functioning
7. Will Coca-Cola’s efforts for sustaining program after their direct supports ends succeed? Coca-Cola focuses on sustainability in its CSR programming that how will the families and schools continue to use the equipment after the project, including funds for repairs and maintenance.
To address this issue Coca-Cola has formed partnerships with local health officials to teach about protection and measurement of water system safety. It has trained community and school officials on water systems maintenance and educated them about water health. so, the communities will continue to receive the benefits of clean water after Coca-Cola support comes to an end so that it move on to assist other communities in need.
8. How can Coca-Cola make its monitoring and evaluation provide information to measure whether its CSR programming is supporting its strategy? Coca Cola strategy is to use its CSR programming to make positive brand image and run its business successfully as it believes that successful communities translate to successful businesses. In a letter to stakeholders in 2008, Muhtar Kent, president and chief executive officer of Coca-Cola claim that the partnerships helps it to improve its way of running business.
Hence, Coca-Cola has invested heavily in monitoring and evaluating its projects and results have been a more positive brand image, with positive press coverage. In September 2010 alone, one press event on the launch of the clean water project in Lien Chieu District generated 13 positive press articles in local papers