Romlan A. Durano Jr.

BSMA- 31
AUD 312 Governance, Business Ethics, Risk Management and Internal Control

Coca- Cola Philippines Sharing Opportunities Through its CSR

I. Introduction
Corporate Social Responsibility has been changing through time. In 1990,
most people viewed corporate social responsibility as a duty and conducting
business activities in the right manner upholding the integrity and the standards
of society. The modern approach began during the early 1990s when the idea of
CSR transformed from a mandatory concept to a strategic instrument for
assisting business promotion activities and to positively impact a corporation’s
image and repute.
According to Marrewijk (2003), Corporate Social Responsibility is described as
a business theory within which companies integrate social and environmental
concerns into their operations. Corporate Social Responsibility is largely where
business firms balance their financial and social responsibilities while addressing
concerns of the stakeholders and investors. This time, CSR has become one of
the most important strategies in business, as it doesn’t only attract stakeholders,
and uphold the reputation of the company, it also makes the working
environment holistically healthy, creating team spirit that brings everybody
together and results in happier and more industrious workers.

II. Statement of the problem

This case study seeks to address the following problem statement:
How does the Coca-Cola Company implement its CSR efficiently in the
Philippines?
In 2019, Coca-Cola Philippines has been awarded by the Asia Corporate
Excellence and Sustainability Awards (ACES) collectively of the highest Corporate
Social Responsibility (CSR) Advocates in Asia for their commitment in quality,
social ethics and giving back to the community.
III. Company Background
Coca-cola Company has been sharing opportunities since 1886 in Atlanta,
United States. By the first 1920s, the corporation had started expanding globally,
retailing its brand first in Canada and so growing to European, Asian, and South
American markets. By the end of the 20th Century, Coca-Cola was retailing its
products in almost all countries in the world (Pendergrast 2013, p.46). In the year
2005, it became the world’s leading producer, supplier, and seller of the non-
alcoholic drinks and syrup.
In the Philippines, Coca-Cola started in 1912 and fully penetrating the local
market in 1927. Since then, such a lot went on to the history of Coke in these
islands, including ownership. Today, Mexico-based franchise-owner Coca-Cola
Femsa manufactures, distributes, and sells soft drinks within the country. What
remains unchanged is that the beverage’s taste and recognition.
They now have around 19 plants spread around the country, Coke Sta. Rosa is
the largest one, occupying a total land area of 35 hectares. There, towers upon
towers of bottle palettes containing Coke, sister brands like Sprite and Royal, and
also the local Sparkle.
According to Cat Avellino, external communications and CSR manager of
Coke Femsa Philippines, every soda variety they produce consists of 90-percent
sparkling water combined sweeteners and natural flavors.
Of course, the beverage is brewed fresh at the plant by an expert, in addition
to microbiologists and chemists. There are even taste-testers who confirm that
each batch tastes exactly like Coke before the world-famous carbonated drink is
poured inside the bottles.
As one of the leading companies in the beverage industry, it surely a great
pressure as well as responsibility for their company to serve the people with
quality products as well helping the environment and the society for its
betterment.

IV. Corporate Social Responsibility

In their World Without Waste project, it aims that one hundred percent
(100%) of their packaging to be recyclable globally in 2030, thus in the
Philippines, Coca-Cola has been putting efforts for the efficiency of the waste
management system in the country. Their packaging goes full-circle,
transformed into recycled PET bottles – which is a plant-based packaging or
other useful products. With the aid of public and private partners they’re able to
come up with efficient collection and recycling system across various
communities within the country, taking the World Without waste project even
further.
On the path of environment conservation, Coca-Cola has also developed
water leadership, managing water operations, and replenishing it to nature and
communities. Approximately eighty-five percent (85%) of the total water
footprint of their products comes from their agricultural ingredient supply chain,
increasing water reuse and now are working on new, transparent metrics or
water use going forward. In the Philippines, through the Agos program, they’re
able to provide communities with access to water and protect watersheds.
Through Agos Ram Pump, they’re now around 49 provinces and 21,000
members have access to clean water. And in Marawi, they’re able to provide
potable water plant that will serve more than 500,000 gallons of safe drinking
water to communities.
In terms of empowering women, they also laid opportunities for street-smart
women who drive 90% of the Company’s local business – the sari-sari store
owners, through the Sari-Sari Store Training and Access to Resources (STAR)
program. It trains, educates, and facilitate women, acquiring new skills, and
giving access to more opportunities to grow their business.
Besides offering employment opportunities to many people through their
supply networks, they also have partnered with some charitable organizations to
further elevate and help the people in the community, supporting students to
achieve higher education, and giving back to the environment.

V. Evaluation
As presented, Coca-Cola Philippines' corporate social responsibility is
revolving towards, community empowerment, labor rights, and environmental
conservation. This follows their intention in creating shared opportunities within
the community and elevating their economic status. With their theme “better
shared” for their sustainability report in 2019, they have completely shown that
each one of us in the community has an essential role in creating a much better-
shared future.
VI. Conclusion
In today’s world, a company’s success cannot be measured only by its
profitability, quality products, and excellent corporate governance, but also
through its purpose. Coca-Cola Philippines has surely created a positive impact
for its employees, consumers, investors, and society in addressing issues that we
are facing today. Nurturing a culture that values the people, the environment,
and encouraging inclusivity, diversity, and empowerment for every individual.
Embracing a mindset with a global perspective, seizing every opportunity that
may come, and building a community where everyone can grow and prosper.

Sources:
- BusinessMirror. (2019, October 16). Coca-Cola Philippines recognized as
one of the top Socially Responsible Companies in Asia. Retrieved October
09, 2020, from https://businessmirror.com.ph/2019/10/16/coca-cola-
philippines-recognized-as-one-of-the-top-socially-responsible-
companies-in-asia/
- Valdez, E., Casocot, I., Calayag, K., & Canlas, J. (2016, April 23). The
making of the iconic Coke. Retrieved October 09, 2020, from
https://www.manilatimes.net/2016/04/23/weekly/the-sunday-times/the-
making-of-the-iconic-coke/257889/
- Marrewijk, V 2003, ‘Concepts and Definitions of CSR and Corporate
Sustainability: Between Agency and Communion’, Journal of Business
Ethics, vol. 44, pp. 95-105.
- Pendergrast, M 2013, For God, country and Coca-Cola: the definitive history
of the great American soft drink and the company that makes it, Basic
Books, New York NY.
- 2019 business sustainability report. (2019, September 16). Retrieved from
https://www.cocacolacompany.com/content/dam/journey/us/en/reports/c
oca-cola-business-and-sustainability-report-2019.pdf