Organizational System

IM-501

CORPORATE SOCIAL RESPONSIBILITEIS

Group Members
Majid Khan IM-201/16-17
Hassan Ali Khan IM-203/17-18
 Topic

• Corporate Social Responsibility

COMPANIES

Coca Cola Apple

THEME OF PRESENTATION
PROFILE CONFLICT CSR POLICIES
.

What is Corporate Social Responsibility?

The responsibility of enterprises for their impacts on

society
 CSR is about how companies manage the business
processes to produce an overall positive impact on
society

 Achieving commercial success in ways that honor

ethical values and respect people, communities, and
the natural environment
.

1- COCA COLA

PROFILE

Coca Cola is one of the largest international

manufacture, distributer and marketer of non alcoholic
cold drinks.
Coca-Cola started its business in 1886 as a local soda
producer in Atlanta, Georgia (US).
 COCA COLA CSR POLICIES
 In 2007 Coca-Cola launched its sustainability framework Live
Positively.

 The company’s CSR policy Live Positively Establishes seven

core areas where the company sets itself measurable goals to
improve the business’ sustainability practices.

 The core areas where beverage benefits, community health,

sustainable packaging, water saving, active climate.

 Coca cola has code of business conduct aims to provide

guidelines employees about social responsibility.

 In India 2007 COCA COLA have partnership of World wild life

fund and provide its funds

 Coca cola became the member of water mandate community.

 COCA COLA CSR POLICIES

- Since 2001, every 2nd year Coca cola published a

separate detailed CSR report named “ COCA COLA
SUSTAINABILITY REPORT”

- Report is verified and review by Third party FIRA

sustainability rating firm

- Coca Cola has also adopted international CSR

guideline.
DISTRIBUTION OF CSR EXPENSE
 COCA COLA CONFLICTS

The presence of pesticides

 2003 NGO of INDIA “ Center of Science and Environment”

issue a report providing evidence against the high level of
pesticides exceeding European standard.

 NGO claimed that products have been sold with high level of
pesticides

 Indian Government formed the Joint committee for

investigation of case which focuses the media attention
resulting the Revenues of Coca Cola.
 COCA COLA CONFLICTS

Water pollution and the over-extraction of groundwater

 In 2006 Coca-Cola was also accused of causing water

shortages in – among other areas – the community of
southern India.

 In addition, Coca-Cola was accused of water pollution by

discharging wastewater into fields and rivers surrounding
Coca-Cola’s plants in the same community.

 Groundwater and soil were polluted to an extent that Indian

public health authorities community that the water was unfit
for human Consumption.
State Govt. recommended to
fined charge of 3 millions
rupees
The brand suffer great loss of
customer trust and in that
year 40 % sales decreases
Indian population viewed
Coca Cola as corporate
Villain who cares more
about profit than Public
health
COCA COLA CSR POLICIES POST CONFLICTS

Reason of Controversy:
According to Pirson and Malhotra,
- Bad response of Coca Cola.
- Coca Cola denied about concerns.

Coca cola Integrity Statement:

To address the controversy , a report was published about

the good practices and water management in its operation.

Change of strategy:

Formed strategy to damage control measures worked with

Local Communities and NGO for Local water Problem.
COCA COLA CSR POLICIES POST CONFLICTS

Water Saving projects:

Water Harvesting Project in 17 states of india to save rain

water from evaporation.

Treatment plant of water:

In house treatment plant and RO plants

Member of WWF and Water mandate

 It appears that this
controversy is the learning
experience for COCA COLA
that motivated the
company to adopt PRO
ACTIVE CSR POLICY on
GLOBAL SCALE
.

2- APPLE

PROFILE

Apple Inc. is an American multinational technology

company headquartered in Cupertino, California, that
designs, develops and sells consumer electronics,
computer software and online services.
 APPLE CSR POLICIES
 In accordance with Section 135 of the Companies Act 2013, the
Board of directors has adopted the CSR policy.

 Apple releases its progress report annually and it includes the

details of CSR programs and initiatives engaged by the company.

 The Company shall undertake specific CSR projects and

programs, as approved from time to time by the Board in its
capacity as the CSR Committee of the Company.

 Global Volunteer Program’ was launched in 2011 to encourage

employees to volunteer in local communities.

 Apple education and development program is offered free of

charge by 18 factories and more than 280,000 workers took
various courses in 2016.
 APPLE CSR POLICIES
 Apple enforces The Supplier Code of Conduct that is claimed to
be the toughest in the electronics industry.

 The company has launched Apple Supplier EHS Academy, an 18-

month program that aims to improve employee health and safety
in the industry throughout the globe.

 Apple employees are 32 percent female, 9 percent black and 12

percent Hispanic. Out of a global workforce of 116,000, 37
percent of new hires in the last 12 months were women.

 Apple emerges as the only company that has been awarded with
a Clean Energy Index of 100per cent , according to Greenpeace’s
Clicking Clean Report.

 In 2015 more than 60 per cent of paper used in packaging was

prepared from recycled wood fiber.
 APPLE CSR POLICIES

 The company launched Clean Water Program in 2013 and in

2015, 73 supplier facilities joined the program to increase the
efficiency of their water usage.

 The company is working towards reducing carbon intensity

associated with manufacturing and using its products.

 Apple offers recycling programs in 99 percent of the countries. It

operates and the company has diverted more than 508 million
pounds of electronic waste from landfills since 2008.
 APPLE CONFLICTS

Labor and human rights

 A well known conflict involving Apple’s suppliers is the

suicides at Foxconn. It is the largest contracted electronics
manufacturer in the world.

 During an undercover investigation it was discovered that the

reason for multiple suicides was related to internal
management.

 In February 2011, the media reported the child labor issues

had worsened at the suppliers for computers, iPods and
iPhones.
 APPLE CONFLICTS

Workers’ health and safety

 In May 2010, two workers were killed and sixteen employees

were injured during an explosion at Foxconn.

 In the same month, The Guardian reported that workers from

Wintek had been poisoned by n-hexane, a toxic chemical used
to clean the touch screens of iPhones.

 The employees complained that the compensation Wintek

offered for the health damage was not sufficient. The workers
who did receive compensation were asked to resign from their
jobs.
APPLE CSR POLICIES POST CONFLICTS

 The Supplier Responsibility Report 2012 states that during inspections

Apple discovered ten facilities with underage labor violations. One of
the facilities had a large number of underage workers.

 Because the management did not want to address the problem, Apple
terminated businesses with this facility where underage labor has been
discovered.

 In November 2010, Apple set up a training program to prevent the future

hiring of underage workers.

 The Supplier Responsibility Report of 2012 states that suppliers are

obliged to return underage workers to school and finance their
education through Apple’s Child Labor Remediation Program.

 In February 2012, Apple announced it would be the first technology

company to join the Fair Labor Association (FLA) as a participating
company.