How Coca-Colas’ Philanthropy Matches its Core Competencies
| ← International Logistics & Supply Chain Management | BUPA and NHS → |
Corporate philanthropy is described as the pattern by companies of all manners big or small, and sectors’ doing charitable contributions to deal with the social, economic and extra emerges, as part of their general corporate citizenship strategy. And strategic philanthropy is the synergistic exercise of organizational center competencies to deal with key stakeholders concerns and to attain equally organizational and social benefits .It emerged in the 1980s as a management practice to sustain social accountability in organizations in the United States. It involves the following in a corporation; the employees, that is understanding their needs and core skills, organizational expertise which involves the equipments, knowledge and financial resources and finally the capacity to tie employees, customers, suppliers and societal demands with the central assets.
For several reasons big corporations are essentially accountable for determining the perceptive of strategic philanthropy practice. First large cooperation has developed a set-up and organizational unit to direct this flexible feature of their social responsibilities. As part of a company’s’ contribution to the society coca-cola has practiced several philanthropy programmes for example it has a better pay for the local workers in the under-developed countries, it has supported local communities sports, it has supported the construction of sports grounds in several countries, it has cheaper brands for selected countries, it has supported local water supply and several other community developments.
Coca-cola has several philanthropies that match its core competencies. It has been noted by former coca-cola CEO Roberto Goizueta “By embracing a strategic approach to philanthropy, corporations fulfill their responsibilities to their shareholders and their commitment to the community.
A strategic view has been taken by coca-cola company by taking the role in the society. This has been embraced in several ways by linking the company’s recourses and operating practices to the stakeholder’s concerns. For example while recognizing the innumerable of problems in the today’s world, coca-cola has preferred to center its energies and resources to the environment. Like it has supported world wildlife fund project by supporting it with $20-million to preserve its seven main rivers worldwide, and plans to modify its bottling practices to lessen water use and reduce on pollution. Under this plan the company will make up to 76gallons of water. The saved water will be used to recover water competence to sugarcane producers and other providers of ingredients for its projects. Coca-cola has offered finances and proficiency around the world to maintain collaborations that respond to these environmental alarms. This matches its core competency of marketing the company will have a competitive advantage while marketing its products.
Coca-cola has worked with the local communities, governmental and non-governmental organizations. It has backed projects applicable to community needs and it has focused on those areas that make exceptional and sustainable disparity. With its global philanthropic arm, the coca-cola foundation strive daily to be receptive to the citizenship prioritiesing the global communities where they live and work. It has devoted itself by bettering the quality of life in the communities where it does its business. Its investment priorities reproduce on the global and nature of business and focuses on the global pillars which include: water stewardship, lively healthy living, community recycling and education. This matches its core competency of brand building because many communities that have been assisted by coca-cola will tend to buy its products, the company’s image is appreciated and reckoned, and it’s the most admired soft drink accessible, its brand logo has on no account been mistaken that’s why many consumers feel contented while purchasing the product.
The reorganization of the company is a philanthropic move that has helped it. Many employees from the old outer affairs are now reapplying for the jobs in the latest division this has helped the company match it core competency of administrative competency in that the company is well organized and is running well. It has ensured the company wins in providing the best products to its clients.
Conclusion
Coca-cola corporate philanthropy has helped it improve its bottom line. Consumers argue that they switch to better brand if the price and quality are equal and this is what coca-cola is embracing. This has also improved customer devotion and enhanced reputation and eminence in the community.
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