CSR PRESENTATION
Transcript: CASE STUDIES in Organizational, Economic and Societal CSR Issues BENGİSU ÖZDER 18300015013 COMM580 OUTLINE Introduction -The aims of CSR and definition of CSR concept -Benefits of the CSR activities -General Issues of CSR Case Study of Coca-Cola Conflict in India Conclusion&Comments INTRODUCTION The concept of corporate social responsibility has still different definitions and, the function or role of companies’ CSR activities in society are being debated. According to the European Commission, the definition of corporate social responsibility is ‘the responsibility of enterprises for their impacts on society’. These impacts involve the providing some solutions to environmental and social issues as well as economic ones. In order to get higher performance and to reach ethical standards, many corporations have developed CSR programs. Surely, they aim to adopt more sustainable business practices and take benefit from the results of such initiatives at the same time. Therefore, corporate social responsibility firstly promotes a vision of business accountability to a wide range of stakeholders, besides shareholders and investors. Key areas of concern are environmental protection and the well-being of employees, the community and civil society in general, both now and in the future. In addition to these, the concept of CSR is consructed by the idea that corporations can no longer act as isolated economic entities that just consider their profits and they are no longer detached from broader society. Therefore,traditional views about competitiveness, survival and profitability are being abandoned. Benefits of CSR Programs Company Benefits: • Improved financial performance • Lower operating costs • Enhanced brand image and reputation • Increased sales and customer loyalty • Greater productivity and quality • More ability to attract and retain employees • Reduced regulatory oversight • Access to capital • Workforce diversity • Product safety and decreased liability • Charitable contributions • Employee volunteer programmes • Corporate involvement in community education, employment and homelessness programmes • Product safety and quality Environmental Benefits: • Greater material recyclability • Better product durability and functionality • Greater use of renewable resources • Integration of environmental management tools into business plans, including life-cycle assessment and costing, environmental management standards, and eco-labelling. General Public and Community Benefits: CSR Issues From 2000s, CSR has evolved into a complex concept that is now a key component of the corporate decision-making. However, this evolution came with a cost that various corporations had to pay because of some problems such as campaigns and public scandals. These involving issues that ranging from environmental pollution to child labour and racial discrimination resulted in unwanted media attention. After all, this raises the question of whether reputation damage is a main motivation behind the adoption of CSR policies by a multinational companies. (Cedillo Torres et al., 2012) CSR covers a broad range of issues that must be taken into account in business conduct. This includes working conditions, human rights, the environment, preventing corruption, corporate governance, gender equality, and consumer interests Coca-Cola's Case Study about the Conflicts in India In 2003, the Indian NGO Centre for Science and Environment published a report. According to the report, in a sample of a dozen Coca-Cola and Pepsi beverages that sold in India has contained pesticides, to a level that exceeding European standards. After the informing Indian government about the report, the issue gained great public and media attention, resulting in very negative effects on Coca-Cola revenues. In 2006, the CSE published its second test on Coca Cola drinks, also resulting in a high content of pesticide residues. CSE published this test to prove that nothing had changed. Using pesticides in beverages Coca-Cola was also accused of causing water shortages in Southern India. Groundwater and soil were polluted to an extent and also the water wasn't fit for human consumption. Water pollution and the over-extraction of groundwater Local people claimed that they started experiencing water scarcity soon after the Coca-Cola's operations began in Plachimada. After the long legal procedures such as investigations and prohibitions against the company, and unstable process which Indian government and Coca-Cola company had to face, there were surely some negative outcomes for Coca-Cola. The brand suffered a great loss of consumer trust and reputational damage in both India and abroad. In India there was an overall sales drop of 40% within two weeks after the release of the 2003 CSE report. The impact in annual sales was a decline of 15% in overall sales in 2003. They were also boycotted by public opinion. Post-Conflict CSR Policies of Coca-Cola Although some important evidences,
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