COURSE: CSR, SUSTAINABLE DEVELOPMENT AND ETHICS

INTRODUCTION TO BUSINESS ETHICS AND

CORPORATE SOCIAL RESPONSIBILITY

Written by
STUDENTS:
➢ HANNEBICQ Alice
➢ TALOM KAMDJO Dilane
➢ LOBE Franck Bryan Noé

Supervised By
Father Michael TEKE

Academic Year 2024-2025

 TABLE OF CONTENTS
TABLE OF CONTENTS ..........................................................................................................i
TABLE OF FIGURES ............................................................................................................. ii
Introduction ............................................................................................................................1
Chapter 1: Corporate Social Responsibility (CSR)....................................................................2
I. Etymological Origin .........................................................................................................2
II. Definition and Key Components, Types ............................................................................2
III. Benefits for business, employees and society ....................................................................4
1. Benefits for Businesses ...................................................................................................4
2. Benefits for Employees ...................................................................................................5
3. Benefits for Society ........................................................................................................5
IV. Impacts of CSR ..............................................................................................................6
V. Implementation of CSR....................................................................................................6
Chapter 2: BUSINESS ETHICS ..............................................................................................7
I. Introduction to Business Ethics ...........................................................................................7
II. Meaning of Ethics ............................................................................................................8
III. Definition of Business Ethics ............................................................................................9
IV. Importance of Business Ethics ........................................................................................ 10
V. Role of Ethics ................................................................................................................ 11
VI. Elements of Business Ethics ........................................................................................... 12
VII. Advantages of Business Ethics ...................................................................................... 13
Chapter 3: RELATIONSHIP BETWEEN CSR AND BUSINESS ETHICS .............................. 14
Chapter 4: Practical Case Study - Corporate Social Responsibility (CSR) Practices at Coca-Cola
............................................................................................................................................. 16
1. Environmental Sustainability............................................................................................. 16
2. Community Engagement and Social Development ............................................................... 19
3. Health and Wellness ......................................................................................................... 20
4. Ethical Marketing and Corporate Governance ..................................................................... 21
5. Challenges and Criticism .................................................................................................. 21
Conclusion ............................................................................................................................ 23
Bibliography ......................................................................................................................... 24

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 TABLE OF FIGURES
Figure 1: Howard R. Bowen ......................................................................................................2
Figure 2: Caroll's CSR pyramid .................................................................................................3
Figure 3: What is business ethics? ..............................................................................................8
Figure 4: Importance of business ethics..................................................................................... 13
Figure 5: Business ethics vs social responsibility........................................................................ 15
Figure 6: Water reservoirs installed by Coca-Cola ...................................................................... 17
Figure 7: Coca-Cola's equipment ............................................................................................. 18
Figure 8: Parivartan Challenge launched by Coca-Cola ............................................................... 20

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Introduction
Corporate Social Responsibility (CSR) and business ethics have become fundamental concepts
in the modern corporate world. These notions involve practices aimed at ensuring a balance
between economic development, social commitment, and environmental protection.

CSR refers to the voluntary commitment of companies to integrate social and environmental
concerns into their activities and interactions with stakeholders. Business ethics, on the other
hand, encompass the principles and values that guide decision-making and business conduct
within an organization.

In an increasingly globalized world, businesses face growing expectations for transparency,

human rights compliance, and environmental preservation. Integrating CSR and ethics into
corporate strategies helps build consumer trust, improve reputation, and ensure sustainable
growth.

This presentation will cover CSR and Business Ethics, their definitions, key components,
impacts, and implementation. It will also explore their connection, real-world case studies, and
key lessons on responsible business conduct.

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Chapter 1: Corporate Social Responsibility (CSR)
I. Etymological Origin
The concept of CSR has evolved over time. The term "responsibility" originates from the Latin
word responsum, meaning "to respond" or "to be accountable." The modern notion of Corporate
Social Responsibility (CSR) began to take shape in the mid-20th century. One of the earliest
formal discussions on CSR was introduced by Howard R. Bowen in his seminal work Social
Responsibilities of the Businessman (1953), where he argued that businesses have obligations
to society beyond profit-making. The 1960s and 1970s saw further developments with scholars
like Keith Davis and Archie Carroll refining the concept, leading to Carroll’s famous CSR
pyramid in 1991, which categorized corporate responsibilities into economic, legal, ethical, and
philanthropic dimensions.

Figure 1: Howard R. Bowen

II. Definition and Key Components, Types

Corporate Social Responsibility (CSR) refers to a company’s commitment to operating ethically
while considering its social, environmental, and economic impact. It goes beyond legal
obligations, integrating responsible practices into business operations to benefit stakeholders,
employees, communities, and the environment. CSR encourages businesses to balance
profitability with social good, ensuring sustainable and ethical growth.

For example, Patagonia, the outdoor apparel company, is widely recognized for its strong CSR
commitment. The company donates 1% of its sales to environmental causes, uses recycled

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materials in its products, and actively supports fair labour practices in its supply chain. This
demonstrates how CSR can be embedded into a company’s core business strategy while
fostering long-term social and environmental impact.

CSR encompasses various dimensions, including:

➢ Economic Responsibility: (required of business by society) ensuring profitability while

acting ethically.

➢ Legal Responsibility: (required of business by society) complying with laws and

regulations.

➢ Ethical Responsibility: (expected of business by society) going beyond legal

requirements to promote fairness and integrity.

➢ Philanthropic Responsibility: (desired of business by society) contributing to social

causes through charitable activities.

Here we have a representation of Carroll's CSR pyramid:

Figure 2: Caroll's CSR pyramid

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CSR can be divided into four main categories:

1. Environmental Sustainability Initiatives – Actions to reduce a company’s

environmental impact, such as using renewable energy, cutting carbon emissions, and
sustainable sourcing.
Example: IKEA uses sustainably sourced wood and invests in renewable energy.

2. Ethical Labor Practices – Ensuring fair wages, safe working conditions, and
preventing child or forced labour.
Example: Nike improved labour conditions in its factories after past controversies.

3. Community Engagement – Supporting social initiatives like education, healthcare, and

charity programs.
Example: Google invests in educational programs to improve tech access in underserved
communities.

4. Corporate Governance Policies – Ensuring ethical decision-making, financial

transparency, and anti-corruption policies.
Example: Unilever enforces strict transparency and ethical standards in its supply chain.

These categories highlight how CSR integrates social, environmental, and ethical concerns into
business operations.

III. Benefits for business, employees and society

Implementing Corporate Social Responsibility (CSR) brings significant advantages to
businesses, employees, and society by fostering ethical practices, sustainability, and social well-
being.

1. Benefits for Businesses

For companies, CSR enhances their reputation and brand image, making them more
attractive to consumers who prioritize ethical and sustainable businesses. A strong CSR
strategy also builds brand loyalty, as customers are more likely to support businesses
that align with their values. Additionally, companies with responsible practices attract
investors seeking sustainable and socially conscious investments.

Moreover, CSR helps reduce operational risks and costs. For instance, adopting energy-
efficient technologies or sustainable supply chains can lower production expenses while

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mitigating environmental and regulatory risks. Companies that engage in CSR also
experience a competitive advantage, as consumers and partners increasingly favour
businesses committed to social and environmental responsibility.

2. Benefits for Employees

A well-implemented CSR strategy improves the work environment and fosters a sense
of purpose among employees. Fair labour practices, diversity, inclusion, and employee
well-being initiatives contribute to higher job satisfaction, leading to increased
motivation and productivity. Employees are more engaged when they feel their company
aligns with ethical values and contributes positively to society.

Furthermore, CSR enhances employee retention and attracts top talent. In today’s job
market, many professionals prefer to work for socially responsible companies that
prioritize ethical business practices and corporate citizenship.

3. Benefits for Society

CSR plays a crucial role in social and environmental development. Businesses that
invest in education, healthcare, and sustainability projects contribute to the overall well-
being of communities. For example, companies funding scholarships, skill development
programs, or healthcare facilities help create long-term socio-economic improvements.

Environmental initiatives, such as reducing carbon footprints, promoting renewable

energy, and minimizing waste, lead to a healthier planet and a more sustainable future.
By addressing social and environmental challenges, businesses can make a meaningful
impact on society.

By integrating CSR, companies build strong relationships with stakeholders, including

customers, employees, investors, and the communities they operate in. CSR is not just
about philanthropy; it is a strategic approach to ensuring long-term business
sustainability while positively contributing to the world.

In essence, CSR fosters ethical and sustainable development, ensuring that businesses
grow responsibly while benefiting people and the planet.

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IV. Impacts of CSR

Integrating CSR into corporate strategies has significant effects on multiple levels:
➢ On the environment: waste reduction, energy consumption optimization, biodiversity
protection.

➢ On society: improved relationships with local communities, fight against inequalities,

and promotion of social justice.

➢ On financial performance: better risk management, increased attractiveness for

investors, and reduced operational costs.

V. Implementation of CSR

The application of CSR within companies involves several key steps:

1. Initial assessment: evaluating current practices and identifying areas for improvement.

2. Defining a CSR strategy: setting short- and long-term objectives aligned with the
company’s vision and values.

3. Implementing concrete actions: adopting eco-friendly practices, engaging employees,

and collaborating with stakeholders.

4. Monitoring and evaluation: measuring the impact of CSR initiatives and adjusting
actions based on the results obtained.

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Chapter 2: BUSINESS ETHICS

I. Introduction to Business Ethics

A business is any organisation or entity whose primary objective is to provide goods or services
for profit. Otherwise, Ethics is the study of morality. In short, the moral status of the sorts of
decisions that are made in the context of buying and selling goods and services can be assessed
as narrated below.

For any decision that affects some individual in a positive or a negative way is a moral
decision—and decisions made by businesses are among those that affect individuals the most!
That being said, anyone who owns, or runs, or works for a business—in short, almost all of us!
—needs to be in the position to know which decisions are morally acceptable, and which are
morally not acceptable.

So, business ethics is the applied ethics discipline that addresses the moral features of
commercial activity. In practice, however, a dizzying array of projects is pursued under its 5
rubrics. Programs of legal compliance, empirical studies into the moral beliefs and attitudes of
business people, a panoply of best-practices claims (in the name of their moral merit or their
contribution to business success), arguments for (or against) mandatory worker participation in
management, and attempts in applying traditional ethical theories, theories of justice, or theories
applicable to firms or to the functional areas of business are all advanced as contributions to
business ethics and especially in its academic literature. These projects vary considerably and
often seem to have little in common other than the conviction, held by those who pursue them,
that whatever each is pursuing is business ethics. Therefore,

• Business ethics is a branch of ethics which prescribes standards regarding how the
business is to be carried out.

• Business ethics guidelines to stakeholders.

• Business ethics is the responsibility of the managers and employees.

• Business ethics is the application of ethical judgments to business activities

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 Figure 3: What is business ethics?

II. Meaning of Ethics

Business ethics means both as written and unwritten codes of moral standards that are critical
to the current activities and future aspirations of a business organisation. They can differ from
one company to another because of differences in cultural perspectives, operational structures
and strategic orientations. The guiding framework of business ethics exists at all levels of the
organisation. It is all about having the wisdom to determine the difference between right actions
and wrong decisions. In simple terms, business ethics fundamentally denotes the organization’s
codes of corporate governance. It stipulates the morality standards and behavioural patterns
expected of individuals and the business as a whole. These moral benchmarks can be perceived
in terms of the microenvironment and macro environment of the business. Ethics is a set of
standards, or a code value system worked out from human reason and experience, by which
free human actions are determined as ultimately right or wrong, good or evil. If an action agrees
with these standards, it is ethical; if it does not agree, it is unethical.

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III. Definition of Business Ethics
According to Kirk O. Hanson, a renowned ethics expert who also doubles as the Executive
Director of the Markkula Centre for Applied Ethics, "business ethics is the study of the
standards of business behaviour which promote human welfare and the good."

Business Ethics can be defined as the critical, structured examination of how people &
institutions should behave in the world of commerce. In particular, it involves examining
appropriate constraints on the pursuit of self – interest or (for firm). Business ethics is defined
by the IBE as ‘the application of ethical values to business behaviour’.

According to Kenneth Kernaghan is defined as “Ethics is concerned not only with

distinguishing right from and good form but also with commitment to do what is right or
what is good. The concept of ethics is inextricably linked to that of value, that is enduring belief
that influences the choices we make from available means and ends.”

According to R.E. Freeman, A.F. Stoner, “Ethics broadly and simply is the study of how our
decisions affect other people. It is also the study of people’s rights and duties and of the rules
that people apply in making decisions”

According to Wiley “Ethics reflects the character of the individual and more contemporarily,
perhaps the character of the business firm, which is a collection of individuals”.

According to Baumhart “Ethical standards are principles of ideals of human conduct”.

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IV. Importance of Business Ethics

Gautama Buddha (c. 5th–4th century BCE), who was a spiritual leader and the founder of
Buddhism, emphasized the significance of ethical business practices, comparing a trader to a
honeybee that extracts nectar without harming the flower. This analogy highlights the symbiotic
relationship between businesses and society—businesses benefit from consumers while also
contributing to their well-being. Ethics serve as the foundation for a successful and sustainable
business system.

The importance of ethics in business can be outlined as follows:

● Integration with Society – Business is an integral part of society and cannot be

separated from ethical conduct. Just as professionals (doctors, lawyers, etc.) follow
ethical guidelines, businesses must do the same.

● Stakeholder Expectations – Various stakeholders expect businesses to uphold high

moral and ethical standards.

● Employee Trust and Morale – Ethical business practices foster trust, equality,
teamwork, and a positive work culture among employees.

● Reputation Building – Maintaining ethical standards enhances the company’s image,

trust, and respect among stakeholders.

● Workplace Relationships – A lack of ethics leads to strained employer-employee

relations, reducing productivity and increasing costs.

● Public and Government Trust – Ethical companies gain recognition and credibility,
strengthening their brand value and leadership position.

● Long-Term Benefits – Ethical businesses enjoy goodwill, public appreciation, and

long-term financial success.

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V. Role of Ethics
We have studied Ethics as the study of morality. It examines the moral standards of a society,
group, profession or religion, whether these standards are reasonable or not, i.e., whether they
are supported by good reasons. It is the process of examining the moral standards of a person
to determine whether these standards are reasonable or unreasonable to hold, in order to apply
them in practical situations and issues. The aim of ethics is to develop a body of moral standards
that we feel are reasonable to hold. We should not come to the conclusion that ethics is the only
way of studying morality. There are several social sciences like Anthropology, Sociology,
Psychology which study about morality.

Ethics is a normative study of morality, while other sciences make only a positive or descriptive
study of morality. We know that normative study inculcates norms in the study. It tells what is
good and what is bad. In other words, normative studies ultimately tell what are good and what
are not good; what are right and what are wrong. It is a study of what should be. On the other
hand, positive or descriptive study tells what it is. This does not reach any conclusion about
good or bad. Instead, it simply describes what they are.

Anthropologists or Sociologists may describe the character and culture of a particular society
or a group of aboriginal tribes. In this context, they may also study about moral standards
involved in the culture of the people. These social scientists would try to investigate the genesis
of that type of culture.

Finally, we have to differentiate between the terms Moral, Immoral and Unmoral. Morality
or moral is an expression connected with ethics which declares as good and right. On the other
hand, ‘immoral’ is a term which is considered as ‘inconsistent with what is right’. It is definitely
wicked or licentious. The term ‘unmoral’ does not connote immorality. Unmoral is an
expression which denotes ‘having no moral attached’. Morality is not given to making moral
reflections. This expression is also called amoral i.e., it is neither moral or immoral; without
moral sense or principles attached. Thus, Ethics is a study of moral standards whose explicit
purpose is to determine, as far as possible, whether a given moral standard (or moral
judgment based on that standard) is more or less correct.

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VI. Elements of Business Ethics
Throughout the business world, no trait is more important and influential to the success of a
company than practicing respectable business ethics from the inside out. A solid ethics
foundation has four key elements.

(i) A Strong Code of Ethics:

The Sarbanes-Oxley Act of 2002 made it important for businesses to have an ethics
code, something in writing about what one ought to do, and what to strive for. This
also serves to inform employees of the vision that the company’s executives have
for the company’s image and goals. This helps new employees learn important
aspects of how to carry out their actions at work, and provides veteran employees
with something to fall back on; both as a reminder and as something to cite if they
are being pressed to do something that they believe to be wrong.

(ii) Ethics Training:

Any ethics code, no matter how well written, that is not understood or followed is
only on the paper or disk space it is stored on. Some companies have an in-house
training department that can provide the requisite training. A trainer needs to have
sufficient experience and training in the field of ethics to be most effective.

(iii) Ethics Coach:

Either in-house or out-sourced expert, who will be available as a friendly and
confidential resource for employees facing complicated ethical dilemmas should be
arranged in every company. This person needs to have sufficient expertise in
employing ethical concepts, analytical skills and decision- making tools to facilitate
an ethical resolution to the problem. Also essential in an ethics coach is the assurance
of confidentiality and also a friendly and upstanding coach who protects
confidentiality, and speaks with everyone in the office at various times, not just when
there is a difficulty.

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 (iv) Systems for Confidential Reporting:
This serves to provide employees with a means for reporting observed misconduct
or violations without fear of reprisal. This serves to further discourage ethical
violations, while getting everyone involved. It also provides the all-important “do
something about it” option. Additionally, early detection and resolution of ethical
problems may save the company huge amounts of money in cases such as theft or
other misconduct.

VII. Advantages of Business Ethics

More and more companies recognize the link between business ethics and financial
performance. Companies displaying a “clear commitment to ethical conduct” consistently
outperform companies that do not display ethical conduct.

➢ Attracting and Retaining Talent: Ethical companies attract top talent and retain
employees by fostering a trustworthy and respectful work environment. An ethical
climate promotes teamwork, productivity, and professional growth.

➢ Investor Loyalty: Investors favour responsible companies, as an ethical climate

enhances efficiency, productivity, and profitability. Trust and commitment from
stakeholders ensure long-term investor loyalty.

➢ Customer Satisfaction: Ethics strengthen a company’s reputation and customer trust.

Businesses perceived as honest and responsible enjoy long-term customer loyalty, even
during challenges. Strong ethical values enhance competitive positioning and public
image.

Figure 4: Importance of business ethics

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Chapter 3: RELATIONSHIP BETWEEN CSR AND BUSINESS ETHICS

After clarifying the meaning of the concepts of business ethics and CSR, a question arises: Are
we dealing with two completely different concepts or are they synonymous? Moreover, what
are the fundamental differences or similarities between them in terms of the content of these
concepts?

Let us note that the term ethics is a combination of two well-known terms: "ethics" and
"business". CSR, on the other hand, is a term that combines three terms: "corporate", "social"
and "responsibility" (Dimitriades, 2007). The meaning of the terms constituting the above-
mentioned concepts also determines, at least in some sense, the meaning of the concepts we are
interested in this article (Zhou, 2022). The two eponymous concepts have been discussed above.
A brief history of business ethics as part of general ethics and various dimensions of the CSR
definitions have been also presented. Companies doing business activities are an integral part
of social, economic and biological life. Conducting business in accordance with the principles
of CSR results from the belief which has accompanied people for a long time that business is
not an amoral field and therefore, like any type of human activity, it is also subject to ethical
assessment.

The concept that connects CSR with ethics is moral responsibility, especially the moral
responsibility of an organization. Most often, the organization's responsibility for ensuring
financial success and economic growth was emphasized, leaving aside moral considerations
This view suggested that managers or employees do not need to focus on moral issues related
to decision-making in the company. The concept of economic responsibility dominated this
approach. However, if an organization chooses an action plan based on moral rather than
economic responsibility, the ethical behaviour of the organization is then manifested in social
systems such as CSR policies, codes of conduct or ethical principles developed within ethics
(Eriksson et al., 2013; Ha-Brookshire, 2017).

Many studies show that the individual moral responsibility of organizational employees and the
moral responsibility of the organization are interrelated (LoMonaco-Benzing, Ha-Brookshire,
2016; Poonamallee, Joy, 2018). This is a relation of the type that if the set goals of the
organization are consistent with the principles of moral responsibility, then it strengthens the
moral responsibility of employees and vice versa.

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The close connection between the moral responsibility of an organization and its employees
results from the fact that organizations are social institutions. If we realize that ethics also arises
as an attempt to organize interpersonal relations, then we see a direct relationship between
business ethics and CSR.

The following definition of CSR seems to be explanatory according to which CSR is “the
integration of an enterprise’s social, environmental, ethical and philanthropic
responsibilities towards society into its operations, processes and core business strategy…”
(Rasche et al., 2017, p. 6).

In the light of the above definition, the concept of CSR appears as an attempt to implement
various dimensions of responsibility, including social responsibility, in business. It should also
be remembered, although this issue requires a separate study, that practitioners and academic
researchers have a different view of the relationship between business ethics and CSR (Ferrell
et al., 2019).

The development of business ethics and the concept of CSR in a practical dimension has given
us the paradigm of an entrepreneur as a person who combines business life with ethical life.
This is a person who produces goods and services for society but also treats other stakeholders
in a fair and equitable manner. The summary of the quite long scientific discourse on CSR shows
that this concept has not lost its vitality. Some problems were caused by framing CSR as an
issue related to the actions or results of a single entity, subject to self-regulation within legal
limits with a wide range of possibilities, and resulted in a frustrating and in many respects futile
discussion (Owen, Kemp, 2023). Linking the issues of CSR in the context of business ethics,
i.e. in the social context, allows us to avoid these difficulties. Also, responsibility outcomes are
better viewed from the point of view of multiple actors. because one is always responsible to
someone.

Figure 5: Business ethics vs social responsibility

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Chapter 4: Practical Case Study - Corporate Social Responsibility (CSR)
Practices at Coca-Cola

Overview

The Coca-Cola Company, founded in 1886 and headquartered in Atlanta, Georgia, is one of the
world’s most iconic and valuable brands, present in over 200 countries. Given its massive global
footprint, Coca-Cola bears significant responsibility for the social, environmental, and
economic impact it creates. Consequently, CSR is not just a peripheral strategy but a core pillar
of its long-term sustainability and license to operate.

Coca-Cola’s CSR framework is primarily organized around four core areas:

1. Environmental sustainability

2. Community development

3. Health and wellness

4. Ethical business practices and governance

1. Environmental Sustainability

a. Water Stewardship

Water is a vital resource for Coca-Cola, making water stewardship one of its most ambitious
CSR goals.

• Water Replenishment Goal: Coca-Cola became the first Fortune 500 company to
claim it replenished 100% of the water used in its global beverages and production
processes by 2015—equivalent to over 191.9 billion liters annually.

• Projects: The company partners with governments, NGOs, and local communities to
implement watershed protection projects, improve irrigation, and restore wetlands.
Notable projects include:

o India: Coca-Cola partnered with TERI and other institutions to support local
water harvesting and recharge techniques.

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 o Mexico: Support for reforestation and watershed conservation projects in
drought-prone regions.

• Rainwater Harvesting: Deployed in many bottling plants, especially in India and

Africa, to reduce reliance on municipal water.

Figure 6: Water reservoirs installed by Coca-Cola

b. Sustainable Packaging and Waste Reduction

Through its “World Without Waste” initiative launched in 2018; Coca-Cola aims to:

• Recycle or collect a bottle or can for everyone it sells by 2030.

• Use 50% recycled materials in all packaging by 2030.

• Make 100% of packaging recyclable by 2025.

Innovations:

• PlantBottle™ Technology: Coca-Cola pioneered partially plant-based bottles (using

bio-based MEG) to reduce plastic dependency.

• Closed-Loop Recycling: Investment in local recycling infrastructure (e.g., PET

recycling facilities in Kenya and the Philippines).

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c. Energy

Coca-Cola also is striving towards reducing energy wastes and expenses by introducing and
promoting renewable energy sources

• Reducing energy consumption and emission of Green House gases by refrigeration

• Freshment cooler that use technologies devoid of hydrofluorocarbons
• GHG emission reduced by three-fourth
• Increase energy efficiency of its equipment by 40% to 50%

Figure 7: Coca-Cola's equipment

d. Climate Action

Coca-Cola is also working to reduce its carbon footprint:

• Transition to renewable energy in manufacturing facilities.

• Improve the efficiency of cooling equipment and fleet management.

• Target to reduce greenhouse gas emissions by 25% across the value chain by 2030
(compared to 2015 baseline)

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2. Community Engagement and Social Development
Coca-Cola's CSR programs are heavily geared toward uplifting the communities in which it
operates, particularly in the Global South.

a. Coca-Cola Foundation

The foundation, established in 1984, has awarded more than $1.5 billion in community support
initiatives globally. Focus areas include:

• Education and Youth Empowerment

o Example: “Support My School” campaign in India, aimed at improving school

infrastructure, sanitation, and access to clean water. It impacted over 600
schools.

• Women Empowerment

o 5by20 Initiative: Coca-Cola committed to empowering 5 million women

entrepreneurs by 2020. The program trained and funded women in over 100
countries.

o In Africa, women were supported in creating micro-distribution centers and

running retail kiosks.

b. Disaster Relief and Humanitarian Aid

Coca-Cola actively participates in:

• Natural disaster relief (e.g., hurricane and earthquake support in Haiti and Puerto Rico).

• COVID-19 pandemic support—providing PPE, ventilators, and funding for frontline

health workers.

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c. Economic Responsibilities

• Coca-Cola played an active role in providing employment and giving the community
opportunities to expand and grow
• For every job in the Coca-Cola system, 10 more jobs were created indirectly
• In 2007, they launched an initiative called Parivartan (Change) for training small
retailers in India

Figure 8: Parivartan Challenge launched by Coca-Cola

3. Health and Wellness

Coca-Cola has faced increasing scrutiny from public health advocates, especially concerning
the high sugar content in its beverages and its impact on obesity and diabetes.

a. Product Diversification

In response, Coca-Cola has taken steps to promote healthier living:

• Introduced over 500 low- or no-sugar variants worldwide (e.g., Coca-Cola Zero Sugar,
Diet Coke, Vitamin water Zero).

• Expanded into non-carbonated drinks: juices, dairy, plant-based beverages, teas, and
water (e.g., Dasani, Minute Maid, Smart water).

b. Transparency and Consumer Education

• Nutrition labels are now clearly printed on all packaging.

• Coca-Cola publicly supports balanced diets and physical activity, often partnering with
sports organizations and fitness campaigns.

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However, critics argue that marketing strategies often target low-income and vulnerable
populations, especially in developing countries, where regulations may be weaker.

4. Ethical Marketing and Corporate Governance

a. Code of Business Conduct

Coca-Cola’s ethics policy emphasizes:

• Compliance with anti-corruption laws.

• Transparent supplier relationships (via its Supplier Guiding Principles).

• Respect for human rights and labor rights in the supply chain (based on ILO
conventions).

b. Responsible Marketing

• Coca-Cola voluntarily restricts advertising to children under 12.

• Advertising campaigns are reviewed by an ethics board to ensure cultural sensitivity

and fairness.

c. Corporate Governance

The company has:

• An independent Board of Directors and ethics committees.

• Whistleblower protection policies.

• Transparent reporting through its Business & Sustainability Report.

5. Challenges and Criticism

Despite its many initiatives, Coca-Cola has been the subject of multiple controversies:

a. Water Usage Controversy

In India (e.g., Kerala and Uttar Pradesh), the company has been accused of excessive
groundwater extraction, contributing to local water shortages. This led to:

• Factory closures (e.g., Plachimada plant).

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 • Public protests and legal disputes.

• In response, Coca-Cola increased its local water replenishment programs and opened
dialogues with communities.

b. Environmental Pollution

Coca-Cola has been repeatedly listed as a top plastic polluter by environmental watchdogs like
Break Free From Plastic. Activists argue that while Coca-Cola promotes recycling, it also
continues to produce millions of plastic bottles daily.

c. Labor Relations

Accusations of union busting and unsafe working conditions in bottling plants in Colombia and
Guatemala have damaged Coca-Cola’s image in the past. Independent investigations and
boycotts forced the company to review its supplier standards.

Conclusion and Critical Assessment

Coca-Cola's CSR journey illustrates the complexities and contradictions of global corporate
responsibility:

• On one hand, Coca-Cola has made tangible, data-backed efforts to reduce

environmental impact, empower marginalized communities, and promote health-
conscious choices.

• On the other, persistent criticism around water rights, plastic waste, and labor
practices suggests that CSR must be more than a corporate branding exercise—it must
be woven into every layer of operations.

To maintain credibility, Coca-Cola needs to:

• Prioritize third-party audits and public accountability.

• Invest in circular economy models rather than linear packaging systems.

• Foster inclusive stakeholder engagement, especially in vulnerable regions.

As such, Coca-Cola offers a compelling case of both best practices and learning curves,
making it a highly instructive model for CSR implementation in a globalized, ethically-
conscious business environment.

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Conclusion
The study of Business Ethics and Corporate Social Responsibility (CSR) reveals the growing
recognition that businesses are not only economic entities but also moral agents embedded in
society. As stakeholders—from customers and employees to governments and communities—
demand more accountability, the lines between profit-making and ethical responsibility are
becoming increasingly blurred. In today’s interconnected and transparent world, the long-term
success of a company is closely tied to its ethical standards, social impact, and environmental
stewardship.

Corporate Social Responsibility is no longer a voluntary or philanthropic activity relegated to

annual reports; it is now a strategic imperative. Businesses that genuinely integrate ethical
behaviour and social accountability into their operations benefit from enhanced brand loyalty,
risk reduction, competitive advantage, and sustainable growth. On the other hand, companies
that neglect CSR often face reputational damage, legal penalties, and loss of stakeholder trust—
sometimes with irreversible consequences.

The practical case study of The Coca-Cola Company provides a rich illustration of both the
potential and the pitfalls of corporate responsibility. Coca-Cola has made notable strides in
addressing critical global issues such as water conservation, climate change, waste
management, gender empowerment, and public health.

However, the case also highlights that CSR is not without complexity. Controversies over
groundwater usage in India, plastic pollution, and labour rights abuses expose the limitations
of corporate-led sustainability efforts and the ongoing tension between economic interests and
ethical obligations. These challenges underscore the need for transparency, continuous
stakeholder dialogue, independent monitoring, and inclusive decision-making.

Furthermore, this study affirms that business ethics must serve as the compass guiding CSR
initiatives. Ethical decision-making ensures that CSR goes beyond image-building and becomes
a genuine commitment to doing good while doing well.

In conclusion, integrating ethics and CSR into business strategy is not just a path to
legitimacy—it is a pathway to resilience, innovation, and positive global impact. The
responsibility of shaping a better future no longer lies with governments alone; companies, big
and small, must embrace their role as co-architects of a more equitable, sustainable, and humane
world.

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➢ Crane, A., Matten, D., & Spence, L. Corporate Social Responsibility: Readings and
Cases in a Global Context. Publisher.
➢ Lee, D. R., & McKenzie, R. B. The Ethics of Corporate Social Responsibility. Publisher.
➢ Abera, M. (2015). Business Ethics and Corporate Social Responsibility. University of
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➢ Vevere Velga & Svirina Anna. Business Ethics and Corporate Social Responsibility.
EKA University of Applied Science

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