1

Evaluation Report: Coca-Cola Responsible Business and Sustainability Approach

By

(Student’s Name)
 2

Table of Contents

1. Introduction.............................................................................................................................................3
Background/ Summary of the current situation...........................................................................................3
ISSUE Identification/ External Analysis.....................................................................................................4
Issue Analysis..............................................................................................................................................5
Issue One: Coca-Cola's Lack of Proactivity in Maintaining Environmental Sustainability...................5
Issue Two: Coca-Cola's Lack of Care and Involvement with Employees.............................................6
Solutions & Recommendations...................................................................................................................8
Issue 1:.....................................................................................................................................................8
Possible actions:......................................................................................................................................8
Positive consequences:............................................................................................................................8
Universal decision:...................................................................................................................................8
Advantages:.............................................................................................................................................8
Step 5 of the 7-step Ethical Framework – Character factors...................................................................9
Step 6 of the 7-step Ethical Framework – Comprehensive assessment...................................................9
Issue 2:...................................................................................................................................................10
Process, Outcomes, and Repercussions are the fourth pillar of the Ethical Framework.......................10
The seven-stage Ethical Framework......................................................................................................10
Evaluation is the sixth step of the Ethical Framework's seven steps.....................................................10
Solutions & Recommendations.................................................................................................................11
7. Conclusion.............................................................................................................................................12
Questions for Discussion...........................................................................................................................13
References List..........................................................................................................................................15
 3

1. Introduction

As a third-party consultant, this report evaluates Coca-Cola’s responsible business and

their approach to sustainability. This report will focus on the topic of social responsibilities of the

company and will use ethical theories such as Utilitarianism, Deontology, and Virtue Ethics to

evaluate Coca-Cola’s approach to sustainability. The report will be structured as follows: first,

we will provide an overview of Coca-Cola’s approach to sustainability. Second, we will evaluate

Coca-Cola’s approach to sustainability using ethical theories. Finally, we will provide

recommendations for Coca-Cola to improve their approach to sustainability.

Questions for further discussion:

1. What are some other sustainability programs Coca-Cola has?

2. What are some ethical issues Coca-Cola has faced?

3. Can you give me an example of how to apply an ethical framework?

Let me know if you have any questions or if you need help with anything else!

Background/ Summary of the current situation

Coca-Cola Australia has been working with NGOs and other charities to implement

campaigns/programs about maintaining environmental sustainability. Since 2015, they have

reduced sugar and kilojoules in 25 of their goods and removed sugar from 25 of their products.

They have also worked diligently to increase the amount of recycled material bottles produced in
 4

Australia. Since 2002, the Coca-Cola Australia Foundation has provided more than $17 million

to local communities and reduced annual runoff to the Great Barrier Reef by 180 tonnes.

Coca-Cola Australia has implemented a number of steps to lessen their environmental

effect as a result of their strong commitment to sustainability. One of their primary goals is to

reduce the amount of sugar and calories in their products. Since 2015, they have decreased sugar

and kilojoules in 25 of their goods and removed sugar from 25 of their products. They are also

working hard to increase the amount of recycled bottles produced in Australia. Since 2002, the

Coca-Cola Australia Foundation has provided more than $17 million to local communities and

reduced annual runoff to the Great Barrier Reef by 180 tonnes.

ISSUE Identification/ External Analysis

Coca-Cola Australia is up against a number of issues stemming from the surrounding

environment. In order to determine these obstacles, we shall do a PESTEL analysis. The

incapacity to ensure the continued health of the ecosystem is one of the primary problems is one

of the issue. The second issue is that there is insufficient involvement with the employees. Coca-

Cola Australia faces several issues related to sustainability. One issue is that the company did not

involve customers and employees in their sustainability initiatives. Another issue is that the

company did not provide detailed action plans or solutions on how to implement being a

sustainable business or maintaining environmental sustainability. This can lead to limited

strategies to adjust the issue and limited investment in R&D of developing renewable materials

(OHCHR, 2015).
 5

Issue Analysis

Issue One: Coca-Cola's Lack of Proactivity in Maintaining Environmental Sustainability

Step 1: Assessing the Situation Coca-Cola has been working with NGOs as a sponsor and

supporter of various environmental sustainability programs. However, the company needs to be

more proactive in taking corresponding Corporate Social Responsibility (CSR) and maintaining

environmental sustainability (Crittenden). At present, the company only serves as a sponsor and

can no longer meet the requirements of Sustainable Development Goals (SDGs).

The stakeholders impacted by this issue are the environment, customers, and employees.

The negative impact on the environment can be linked to utilitarianism and consequentialism, in

which the company's activities should be based on the greatest good for the largest number of

individuals (Polman, & Winston, 2021). The company has a responsibility towards its customers

to ensure that the products they purchase are sustainable, and it can be linked to stakeholder

theory, where the company should take into account the needs and interests of its stakeholders.

Step 2: Assumptions and Worldviews The shortcomings in Coca-Cola's sustainability

programs are related to several assumptions. The company has done something and involved its

stakeholders in the program, but it is not listed on its webpage. The senior management team did

not make any decisions regarding the issue. As an external consultant, I do not know whether the

company has developed relevant training or workshops for its employees.

The worldview that society as a whole expects the whole package of its products can be

recycled is the basis for this issue. Investment in research and development is now valued more

than the growth in sales (Lev, & Srivastava, 2019). The occurrence of this issue may be due to a

lack of resources or knowledge, but it is essential to address it to maintain sustainability.

 6

Step 3: Principles, Duties, and Care Needs Coca-Cola violates several principles by

focusing only on generating profit. The negative impacts on the environment can be avoided by

improving sustainability. The company has duties towards its key stakeholders and should take

steps to ensure that these duties are not in conflict. For instance, while the company works with

NGOs to promote sustainability, it should also consider involving customers and employees to

promote a more proactive approach towards sustainability.

Issue Two: Coca-Cola's Lack of Care and Involvement with Employees

Step 1: Assessing the Situation: Coca-Cola does not show its care, involvement, and

duties towards its employees on its company's "responsible business" webpage. This issue

indicates that the company needs to improve its connection with the local community and

involve more stakeholders or customers in its sustainable programs. The stakeholders impacted

by this issue are employees, customers, and the local community. The company's customers

should also be involved in promoting sustainability, and the local community should be

considered as well, as the company's actions may have a direct impact on the environment and

the community's well-being.

Step 2: Identify Possible Solutions :To address this issue, Coca-Cola can consider

implementing the following solutions:

1. Employee Training and Benefits: Coca-Cola can offer sustainability training programs to

its employees, provide eco-friendly benefits, and improve working conditions. It can also

establish a reward system that recognizes employees' efforts in promoting sustainability

and reducing waste.

 7

2. Sustainable Packaging: Coca-Cola can use eco-friendlier materials, such as biodegradable

plastics or recyclable materials, to create its bottles, caps, and packaging. It can also work

on reducing the amount of plastic used in its products and packaging, and promote the

use of reusable containers.

3. Community Engagement: Coca-Cola can involve the local community in its sustainable

initiatives by partnering with local organizations, hosting events, and sponsoring

environmental programs. The company can also conduct surveys to understand the

community's needs and concerns regarding sustainability and tailor its programs

accordingly.

Step 3: Evaluate the Solutions. To evaluate the solutions, Coca-Cola can use various metrics,

such as employee satisfaction, waste reduction, customer feedback, and community engagement.

The company can track the progress of its sustainability initiatives, gather feedback from its

employees and customers, and assess its impact on the environment and the local community.

Step 4: Implement the Solution Coca-Cola can implement the solutions by developing a

sustainability action plan that outlines specific goals, strategies, and timelines. The company can

allocate resources, establish a sustainability team, and communicate the plan with its employees,

customers, and stakeholders.

Step 5: Monitor and Adapt the Solution After implementing the sustainability action plan,

Coca-Cola should continuously monitor and evaluate its progress and adapt its strategies based

on the feedback received. The company can identify areas that need improvement, adjust its

goals and strategies, and communicate the changes with its stakeholders.
 8

Solutions & Recommendations

Issue 1:
Possible actions:
One possible solution for Coca-Cola's lack of proactivity in maintaining environmental

sustainability is for the company to set up its own campaigns to involve its stakeholders and

develop a training or workshop plan for its employees to improve their awareness of the

importance of environmental sustainability. This solution aligns with the ethical frameworks of

utilitarianism and deontology and is in line with the SDGs, stakeholder theory, and CSR (Tseng,

& Wang, 2021).

Positive consequences:
Implementing this solution would lead to several positive consequences for key

stakeholders. For instance, it would improve the reputation of the company and industry

standards, as well as involve its customers in participating and making contributions to

environmental sustainability. Additionally, it would care for and respect the rights and duties of

its employees, who would receive effective training and support. Finally, this solution would

help Coca-Cola achieve its goal of becoming a sustainable and responsible business, serving the

common good by contributing to environmental sustainability.

Universal decision:
If Coca-Cola were to make this decision universal, it would lead to a more

environmentally sustainable and responsible industry, benefiting the common good, including

both current and future generations.

Advantages:
The advantages of this solution include increased reputation for the company, effective

training and support for employees, improved industry standards, and successful involvement of
 9

customers in contributing to environmental sustainability. Additionally, this solution aligns with

ethical frameworks, SDGs, stakeholder theory, and CSR.

Step 5 of the 7-step Ethical Framework – Character factors

Virtues:

The virtues that might apply to this situation include responsibility, accountability, and

ethical leadership. Applying these virtues would benefit society, the industry, and stakeholders.

For instance, ethical leadership would ensure that the company takes responsibility for its actions

and is accountable for its impact on the environment and stakeholders (Fraser, 2005).

Kind of organization:

Coca-Cola should strive to be an environmentally responsible and sustainable

organization that respects the rights and duties of its employees, involves its stakeholders in its

operations, and contributes to the common good by serving environmental sustainability.

Step 6 of the 7-step Ethical Framework – Comprehensive assessment

Priorities and recommendations:

The first priority for Coca-Cola should be its employees, as they are key to carrying out

the company's core policies. The company should build employee involvement plans more

quickly and get employees involved in charity campaigns to increase their awareness of

recycling non-renewable resources. The second priority should be customers and the local

community. Coca-Cola should design involvement plans for its customers and the local

community to encourage their participation in environmental sustainability. These actions would

help Coca-Cola achieve its goal of becoming an environmentally responsible and sustainable

organization that contributes to the common good.

 10

Issue 2:
Process, Outcomes, and Repercussions are the fourth pillar of the Ethical Framework.
Coca-Cola needs to take strong action to solve the problem of dispassionate and

disengaged workers. The company may launch a campaign to boost morale and job satisfaction.

Employee surveys, focus groups, and other forms of regular input can help with this. These

changes would make workers more satisfied and loyal, which would lower turnover and raise

output. If this choice were implemented across all industries, employees would be more invested

in their work and happier as a whole.

In addition, Coca-Cola needs to ensure that its employees' health and safety come first.

The company may provide health and safety education and training to its employees in an effort

to cut down on occupational injuries and illnesses. By prioritising worker safety, Coca-Cola may

show that company is an ethical leader and that it values its employees' rights and freedoms. The

company as a whole would gain from this because it would promote a healthy and safe

workplace for all employees.

The seven-stage Ethical Framework.

Coca-Cola's treatment of its employees provides an opportunity for the company to

demonstrate values like fairness, reverence, and responsibility. Equal pay and benefits, room for

advancement in one's career, and protection from discrimination and harassment in the

workplace are all things that this company can provide its workers. The company, its workers,

and the industry as a whole would all gain from Coca-Cola demonstrating these characteristics.

Evaluation is the sixth step of the Ethical Framework's seven steps .

Set Goals and Recommendations

 11

Coca-Cola, first and foremost, should care for its workers. The company should finance

initiatives that raise morale, job satisfaction, and security. Safety protocols, health and safety

education and training, and regular feedback methods are all examples. The needs of the

community and the customers should come second. To show its dedication to social

responsibility and sustainability, Coca-Cola can create customer and community engagement

projects. Efforts in this direction include include backing community charities and organising

recycling drives.

Solutions & Recommendations

After investigating Coca- Cola's role sustainability, it became apparent that the measures

proposed to lessen environmental pollution and foster environmental sustainability are workable

and effective. The organization has a sizable team that has participated in such campaigns before,

so they may draw on that knowledge to make the required adjustments. Furthermore, the

corporation has the wherewithal and means to invest in R&D to develop new packaging

materials, decreasing its reliance on plastic in the process.

To the second point, do the benefits outweigh the drawbacks, it is evident that the long-

term advantages of reducing pollution and ensuring employees’ wellbeing surpass the short-term

expenses. Short-term, the company's revenue could take a hit because the suggested steps could

be labor-intensive and call for a substantial investment in R&D. Yet, Coca-Cola's stakeholders

and the community would profit from minimizing plastic waste and supporting a circular

economy in the long run. It will strengthen the organization's brand, increase customer retention,
 12

and make the company more financially secure. The utilitarian ethical framework, which seeks

to maximize enjoyment and minimize suffering, is consistent with these advantages.

In response to individuals who would advocate for a less moral course of action, it is vital

to stress the significance of CSR and the company's obligation to lessen the negative effects it

has on society and the natural world. The long-term health of the business depends on the

company's commitment to environmental sustainability, thus doing so is not merely the right

thing to do. Coca-Cola can enhance its client base, boost its brand, and aid in the

accomplishment of the Sustainable Development Goals if it adopts policies to reduce plastic

waste and promote a circular economy.

The final verdict is that Coca-Cola can and should implement the suggested measures to

lessen its plastic footprint and boost environmental sustainability. Reducing plastic waste offers

more benefits than drawbacks, and the company has an obligation to aid in sustainable

development and encourage ethical trade. The utilitarian and deontological ethical frameworks,

as well as credible academic journals and outside sources, all lend credence to these suggestions.

Coca-Cola can enhance its influence on society and the environment by adopting these

suggestions. This will allow the company to develop a more sustainable business strategy.

7. Conclusion

In sum, this research has exposed caused by Coca-Cola and offered solutions to fix it.

Utilitarianism, deontology, sustainable development goals, stakeholder theory, and corporate

social responsibility are all applied in this paper. Putting employees’ wellbeing first and

increasing environmental sustainability is essential, as shown by the investigation of multiple

 13

angles of the problem. As the organization already possesses the necessary skills and equipment,

the suggested steps can be easily implemented.

To encourage responsible corporate practices and sustainable growth, the paper highlights the

significance of complying with ethical frameworks, SDGs, and stakeholder theory. Coca-Cola

has a duty to act in the best interests of its stakeholders, which includes the planet and its

inhabitants..

Questions for Discussion

Two possible questions for discussion could be:

1. What role do consumers have in promoting sustainability and holding companies like

Coca-Cola accountable for their environmental impact?

2. How can governments and regulatory bodies work with corporations to incentivize and

enforce sustainable practices in the beverage industry?

PESTEL Analysis for Coca-Cola

Factor Description

Government policies on waste management and environmental protection,

Political regulations on plastic usage, political stability in countries of operation.

Global economic trends, consumer purchasing power and behavior, inflation rates,

Economic currency fluctuations.

Changing consumer preferences towards sustainable products, health consciousness,

Social demographic shifts.

 14

Factor Description

Advancements in technology for alternative packaging materials, automation in

Technological production processes, digital marketing trends.

Climate change, natural resource depletion, pollution and waste management,

Environmental availability of raw materials.

Lawsuits and legal actions related to environmental issues and plastic pollution,

Legal intellectual property rights, labor laws.

The ethical considerations of plastic pollution, sustainability, and social

Ethical responsibility in business operations.

The PESTEL analysis shows that external factors such as government policies, consumer

preferences, technological advancements, and environmental concerns have a significant impact

on Coca-Cola's business operations. The analysis highlights the need for the company to address

the issue of plastic pollution and adopt sustainable practices to align with the changing

expectations of stakeholders and the global community.

 15

References List

Crittenden, V. L., Crittenden, W. F., Pinney, C. C., & Pitt, L. F. (2011). Implementing global corporate

citizenship: An integrated business framework. Business Horizons, 54(5), 447-455.

Fraser, B. W. (2005). Corporate social responsibility: many of today's corporate stakeholders are calling

for increased sustainable development. More and more companies are heeding that call, while

simultaneously realizing performance gains. Internal Auditor, 62(1), 42-48.

Hasnas, J. (2013). Whither stakeholder theory? A guide for the perplexed revisited. Journal of business

ethics, 112, 47-57.

Lev, B., & Srivastava, A. (2019). Explaining the recent failure of value investing. NYU Stern School of

Business.

Office for the High Commissioner of Human Rights (OHCHR) 2015, Sustainable Development Goals

Human Rights Table, online document, OHCHR, accessed 22 February 2023,

<https://www.ohchr.org/sites/default/files/Documents/Issues/MDGs/Post2015/

SDG_HR_Table.pdf>.

Polman, P., & Winston, A. (2021). The net positive manifesto. Harvard Business Review, September–

October.

Rangan, K., Chase, L., & Karim, S. (2015). The truth about CSR. Harvard Business Review, 93(1/2),

40-49.

Responsible Business | Coca-Cola Australia. (n.d.). https://www.coc colacompany.com/au/responsible-

business accessed 22 February 2023, <web-site link>

 16

Tseng, P. E., & Wang, Y. H. (2021). Deontological or utilitarian? An eternal ethical dilemma in

Outbreak. International journal of environmental research and public health, 18(16), 8565.

Wilcox, T & UNSW Business School 2022, MGMT5050: Ethical Decision-making Discussion Question

(7 Steps of Ethical Decision Making), UNSW Business School,