Coca-Cola and Nestle Philippines: National Companies’
Corporate Social Responsibility
In partial fulfillment of the requirements in
LM 211 CORPORATE SOCIAL RESPONSIBILITY
Submitted to:
Ms. Rea Migrenio Galos
Submitted by:
Almansa, Cyme Jay
Cuestas, Darlene Joyce D.
December 20, 2024
COCA-COLA PHILIPPINES
PURPOSE
Coca-Cola’s purpose is to refresh the world by uplifting people physically and
emotionally, caring for the planet, and supporting communities everywhere the
company operates. This purpose drives its commitment to creating sustainable
change and making a positive impact on every community it serves.
VISION
The company’s vision for growth aligns with this purpose, focusing on crafting
brands and beverage options that consumers love while building a sustainable
business that fosters a shared future. By prioritizing these efforts, Coca-Cola aims to
positively impact people’s lives, communities, and the environment.
OBJECTIVE
Coca-Cola’s objective is built on three interconnected pillars. The first pillar,
Loved Brands, focuses on offering beverage choices that resonate with consumers,
including sugar-free options while innovating in design, marketing, and experiences.
The second pillar, Done Sustainably, emphasizes ethical sourcing practices,
reducing the company’s carbon footprint, and working toward a sustainable future for
the planet. The third pillar, For a Better Shared Future, highlights Coca-Cola’s
investment in improving the lives of employees, investors, and the communities it
serves by promoting personal growth, equal opportunities, and inclusivity.
GOALS
To support these goals, Coca-Cola emphasizes two guiding principles. The
first principle, Acting with a Growth Mindset, encourages a forward-thinking approach
that fosters innovation and continuous improvement. This mindset involves being
curious to explore better solutions, empowered to take accountability, inclusive by
leveraging diverse talent, and agile in applying iterative, real-world approaches. The
second principle, Following a Clear Conscience, emphasizes fact-based,
science-driven decisions with a commitment to transparency and the courage to
make corrections when necessary.
Water security is a critical focus for Coca-Cola, as water is essential to its
business and the communities it serves. The company aims to achieve 100%
regenerative water use across 175 high-risk Leadership Locations by 2030, with
robust plans already developed in 2023. Coca-Cola is also working with partners to
improve the health of 60 critical watersheds by 2030 and has already replenished
148% of the water used in its beverages as of 2023. Additionally, the company plans
to return 2 trillion liters of water to nature and communities globally between 2021
and 2030 and has made significant progress by reducing its water use ratio by 10%
since 2015.
In terms of packaging, Coca-Cola aims to make 100% of its packaging
recyclable globally by 2025, achieving 90% recyclability by 2023. The company is
working toward using at least 50% recycled content in its packaging by 2030, having
reached 27% globally by 2023. Coca-Cola is also striving to reduce virgin plastic use
by 3 million metric tons by 2025, achieving a net reduction of 75,000 metric tons in
2023 compared to the previous year.
To address collection and recycling, Coca-Cola aims to collect and recycle
one bottle or can for every one it sells by 2030, with 62% of its packaging collected
for recycling in 2023. Additionally, the company is working to ensure that 25% of its
beverages are sold in refillable or reusable packaging by 2030, achieving 14% by
2023.
Coca-Cola is committed to addressing climate change by reducing
greenhouse gas emissions throughout its operations and supply chain. The company
has set science-based targets aligned with the Paris Agreement and has achieved
an 8% decline in emissions against a 2015 baseline. Coca-Cola’s use of renewable
electricity increased to 24% in 2023, and it received an A- rating on the CDP Climate
Change Score.
Sustainable agriculture is another priority for Coca-Cola, as it works to source
100% of its priority agricultural ingredients responsibly over time. By 2023, 64% of its
12 global priority ingredients were sustainably sourced in line with its Principles for
Sustainable Agriculture.
Coca-Cola believes in fostering diversity, equity, and inclusion within its
workplace and the communities it serves. The company aspires to achieve global
leadership by women in 50% of its roles and align U.S. race and ethnicity
representation with census data by 2030.
Coca-Cola’s governance structure ensures sustainability is integrated into its
business decisions. The Corporate Governance and Sustainability Committee of the
Board of Directors oversees these initiatives, while the company collaborates with
stakeholders, including governments, NGOs, communities, suppliers, investors,
business partners, and consumers, to drive collective impact. Coca-Cola is
committed to leveraging partnerships and sharing best practices to address shared
sustainability challenges effectively.
BACKGROUND
The product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced
the syrup for Coca‑Cola and carried a jug of the new product down the street to
Jacobs' Pharmacy, where it was sampled, pronounced "excellent" and placed on
sale for five cents a glass as a soda fountain drink. Carbonated water was teamed
with the new syrup to produce a drink that was at once "Delicious and Refreshing," a
theme that continues to echo today wherever Coca‑Cola is enjoyed.
CORPORATE SOCIAL RESPONSIBILITY
Over the years, the company has undertaken CSR Projects in areas of
providing access to water, promoting education (including special education) and
employment enhancing vocational skills, ensuring environmental sustainability, and
rural development projects.
Coca-Cola co-founded an anti-litter organization in 1953 as the first step
toward social responsibility. However, the company did not begin examining the
ecological impact of its products until 1969. when the volume of voices opposing
plastic waste began to grow. Coca-Cola launched its initiatives to combat the plastic
issue. Back in 1991, they began producing bottles from recycled materials. They
have changed completely over time to recycle materials.
Water Stewardship
Water is a priority for The Coca-Cola Company because it is vital to its
business and critical to public health, food security, biodiversity, and the climate. One
of the strategies is replenishing the water used in its products. This means for the
amount of water used in finished beverages, that same amount is returned back to
nature and communities.
The company's 2030 water strategy is focused on accelerating the actions
needed to increase water security where the company operates, sources
ingredients, and touches people's lives.
Women's Empowerment
Coca‑Cola strives for a gender-equal workplace and world. We believe that
investing in and empowering women not only directly benefits them, but also our
business and our communities. Women around the world are pillars of the business
system of Coca-Cola. Women are key to the world's shared success. In 2010, they
set a goal to enable the economic empowerment of 5 million women by 2020. Since
then, they've worked with countless partners to provide business skills training,
mentoring networks, financial services, and other assets to help women
entrepreneurs improve their livelihoods, families, and communities.
Sustainability Packaging & World Without a Waste
Coca-Cola is addressing tangible issues of sustainability in the world today by
reducing waste and reusing materials in bottle manufacturing. With a deadline of
2025, the company has achieved 88% of its packaging being recyclable.
Coca-Cola's commitment to CSR, focusing on the second R, reduce, reuse, and
recycle, demonstrates its commitment to minimizing environmental footprints and
promoting sustainability in the world today.
The Nature of Coca-Cola Philippines' CSR
Coca-Cola Philippines engages in a diverse range of Corporate Social
Responsibility (CSR) initiatives that encompass environmental, economic, and social
dimensions. Their CSR strategies prioritize sustainable practices, community
engagement, and economic development. Environmentally, Coca-Cola Philippines
focuses on initiatives such as water conservation, waste management, and
promoting recycling, aiming to minimize its ecological footprint. Economically, the
company fosters local entrepreneurship through various programs that support small
businesses, thereby enhancing the livelihoods of communities where they operate.
Impact on Internal and External Stakeholders
Coca-Cola Philippines' CSR efforts have significant implications for both
internal and external stakeholders. For employees, CSR initiatives can foster a
strong sense of purpose and belonging, which can enhance morale and productivity.
Employees are often encouraged to participate in community service activities,
allowing them to contribute positively to society while developing their skills.
For external stakeholders, including local communities and consumers, these
initiatives demonstrate Coca-Cola's commitment to social responsibility, thereby
fostering goodwill and brand loyalty. The company's environmental efforts, such as
reducing plastic waste, resonate with consumers increasingly concerned about
sustainability, potentially leading to increased market share and customer
satisfaction.
Stakeholder Engagement
Coca-Cola Philippines employs a proactive approach to stakeholder
engagement, involving various groups in its CSR initiatives. This includes
collaboration with local governments, NGOs, and community organizations to identify
pressing social issues and develop effective solutions. Regular dialogues and
feedback mechanisms are established to ensure that stakeholder voices are heard
and considered in the decision-making process. This collaborative approach not only
enhances the effectiveness of CSR programs but also strengthens relationships with
stakeholders.
Benefits of CSR to Companies and Employees
The benefits of CSR for Coca-Cola Philippines are multi-faceted. For the
company, robust CSR programs can lead to improved brand reputation, increased
customer loyalty, and operational efficiencies through sustainable practices.
Employees benefit from an enhanced work environment and opportunities for
personal and professional development, which can lead to higher retention rates and
job satisfaction.
However, challenges do exist. Implementing effective CSR strategies can be
resource-intensive, requiring significant time and financial investment. Additionally,
measuring the impact of CSR initiatives can be complex, as the benefits are not
always immediately quantifiable.
Monitoring Implementation
To ensure the effective implementation of its CSR initiatives, Coca-Cola
Philippines employs a systematic approach to monitoring and evaluation. The
company sets clear objectives and key performance indicators (KPIs) for each
initiative, allowing for regular assessment of progress. Surveys, impact assessments,
and stakeholder feedback are utilized to gauge the effectiveness of programs and
make necessary adjustments. This continuous monitoring not only helps Coca-Cola
Philippines stay aligned with its CSR goals but also enhances transparency and
accountability to its stakeholders.
NESTLE PHILIPPINES
PURPOSE
Nestlé's purpose is to "unlock the power of food to enhance quality of life for
everyone, today and for generations to come." The company is committed to
delivering exceptional products to customers while prioritizing sustainability and
value creation. Through their efforts, Nestlé strives to embody the vision of being the
"Good food, Good life company" that people can trust and rely on.
OBJECTIVE
Nestlé aims to transform food production into a more environmentally and
socially responsible system by advancing regenerative food systems at scale. This
approach emphasizes sustainable agricultural practices to ensure long-term food
security and environmental preservation.
GOALS
One of Nestlé's key goals is to promote regenerative agriculture, which plays
a critical role in enhancing soil health, sequestering atmospheric carbon, and
supporting food security. This method also contributes to restoring water resources,
enabling biodiversity, and improving the resilience of farming communities.
Regenerative Agriculture
By the end of 2023, 15.2% of Nestlé’s fresh milk, dairy products, cocoa,
coffee, grains, soy, and vegetables were sourced from suppliers and farmers
practicing eco-friendly and sustainable farming methods. Under the "Nescafé Plan
2030," the company trained over 148,000 coffee farmers across 16 countries in
sustainable farming techniques.
Net Zero Commitment
Nestlé is dedicated to achieving net-zero greenhouse gas (GHG) emissions
by 2050. As of 2023, the company reduced its GHG emissions by 13.58% compared
to 2018 levels. Their Net Zero Roadmap focuses primarily on reducing Scope 3
emissions (supply chain emissions), which account for 95% of their total emissions,
with dairy farming contributing 24%. The remaining 5% of emissions, classified as
Scope 1 and 2, are addressed through energy efficiency and renewable energy
initiatives. Nestlé also implements strategies like the "Forest Positive Strategy" and
"Agriculture Framework" to reduce emissions without relying on carbon offsets. Their
science-based targets, validated by the Science-Based Targets initiative (SBTi),
outline milestones for 2030 and 2050.
Biodiversity
Nestlé actively works to protect and restore natural ecosystems. Their Global
Reforestation Program aims to plant and grow 200 million trees within supply chains
and sourcing landscapes by 2030. The company is on track to achieve 100%
deforestation-free primary supply chains by 2025, covering commodities like meat,
palm oil, soy, coffee, and cocoa. Through the Rimba Collective, Nestlé is protecting
93,000 hectares and restoring 23,200 hectares of forest landscapes in Southeast
Asia by 2025.
Water Stewardship
Nestlé acknowledges water's vital role in its operations and ecosystems and is
committed to responsible water stewardship. This involves efficient water use in
operations, safeguarding water resources in sourcing areas, and promoting access
to safe water and sanitation in communities. In 2023, the company reduced total
water use by 7.6 million cubic meters, surpassing their target of 6 million cubic
meters. Additionally, 52.3% of Nestlé Waters sites were certified to the AWS
standard, and over 40 water regeneration projects were implemented to improve
local water cycles.
Responsible Sourcing
To ensure ethical and sustainable practices across its supply chain, Nestlé
aims to source 100% of key ingredient volumes responsibly by 2030. Initiatives like
the Nescafé Plan and Nestlé Cocoa Plan focus on improving farmer livelihoods,
promoting sustainable agriculture, and addressing child labor. By 2023, 36.2% of
Nestlé’s key ingredients were responsibly sourced, and 15.2% were from farmers
adopting regenerative practices, with a target of 50% by 2030.
Packaging
Nestlé is committed to reducing its environmental footprint through
sustainable packaging. By 2023, 83.5% of their plastic packaging was designed for
recycling, while 41.5% utilized recycled or renewable materials. The company also
reduced virgin plastic usage in packaging by 14.9% since 2018.
Ethical Business Practices
Nestlé’s success relies on earning and retaining trust by acting ethically and
adhering to its values, principles, and policies while complying with local laws and
regulations. Their Care Audit incorporates social auditing methodologies to review
topics like health and safety, working conditions, and responsible recruitment.
Additionally, the Speak Up helpline provides employees and stakeholders a platform
to raise concerns and foster a compliance-driven culture aligned with Nestlé’s
Corporate Business Principles.
The Nature of Nestlé Philippines' CSR
Nestlé Philippines adopts a comprehensive approach to Corporate Social
Responsibility (CSR) that encompasses environmental, economic, and social
dimensions. The company's CSR initiatives are guided by the principle of Creating
Shared Value (CSV), which aims to generate long-term benefits for both the
business and society. Environmentally, Nestlé focuses on sustainable sourcing,
reducing greenhouse gas emissions, and promoting responsible water usage.
Economically, the company invests in local communities through programs that
support farmers, enhance nutrition, and foster economic development, thereby
contributing to the overall well-being of the regions in which it operates.
Impact on Internal and External Stakeholders
The impact of Nestlé Philippines' CSR initiatives is significant for both internal
and external stakeholders. For employees, engaging in CSR activities fosters a
sense of pride and purpose, enhancing job satisfaction and loyalty. Employees are
often involved in community outreach programs, which not only develop their skills
but also strengthen their connection to the company’s mission.
For external stakeholders, including local communities and consumers,
Nestlé's commitment to CSR builds trust and enhances brand reputation. By
addressing critical issues such as nutrition and environmental sustainability, the
company positions itself as a responsible corporate citizen, which can lead to
increased customer loyalty and community support.
Stakeholder Engagement
Nestlé Philippines emphasizes stakeholder engagement as a core component
of its CSR strategy. The company actively collaborates with various stakeholders,
including local governments, NGOs, and community organizations, to identify and
address pressing social and environmental issues. This engagement is facilitated
through regular consultations, partnerships, and feedback mechanisms, ensuring
that the voices of stakeholders are integrated into the planning and implementation
of CSR initiatives. By fostering open dialogue, Nestlé can tailor its programs to meet
the specific needs of the communities it serves.
Benefits of CSR to Companies and Employees
The benefits of CSR for Nestlé Philippines are manifold. For the company,
effective CSR practices can lead to enhanced brand loyalty, improved public
perception, and operational efficiencies through sustainable practices. Employees
benefit from a positive work environment that encourages personal growth and
community involvement, which can lead to higher retention rates and increased
productivity.
However, challenges do arise in the implementation of CSR initiatives. These
can include resource constraints, the complexity of measuring the impact of CSR
activities, and the need to balance short-term business goals with long-term social
objectives. Additionally, ensuring that all stakeholders are adequately engaged and
represented can be a challenging task.
Monitoring Implementation
To ensure the effective implementation of its CSR initiatives, Nestlé
Philippines employs a robust system for monitoring and evaluation. The company
establishes clear objectives and key performance indicators (KPIs) for each initiative,
allowing for regular assessment of progress and impact. This includes conducting
surveys, impact assessments, and stakeholder feedback sessions to evaluate the
effectiveness of programs. By continuously monitoring these initiatives, Nestlé can
make informed adjustments and improvements, ensuring that its CSR efforts align
with its overarching goals of creating shared value for both the company and society.
