Business Sustainability in Coca Cola and Woodward Iron Industry - Research Paper Example

?Business Sustainability Task: Contents Page Executive summary………………………………………………………………….3 Introduction………………………………………………………………………3 1.1 Purpose……………………………………………………………………….3 1.2 Scope…………………………………………………………………………3 1.3 Method………………………………………………………………………..4 1.4 Limitations……………………………………………………………………4 1.5 Assumptions…………………………………………………………………..4 1.6 Background…………………………………………………………………..4 2 Findings………………………………………………………………………………….5 3 Discussions……………………………………………………………………………….5 4 Conclusion………………………………………………………………………………..7 5 Recommendations and Implementation…………………………………………………..7 6 Bibliography……………………………………………………………………………….8 Executive Summary The purpose of this report is to understand the difference of corporate sustainability between two companies. Similarly, it tackles how non-financial reporting has revolution the field of business in terms of information dissemination to clients, governments, stakeholders and investors among others (Eccless & Krzus 2010 p.67). Therefore, this paper is going to analyze the various corporate reporting that happens in Coca Cola and Woodward Iron Industry. All of these organizations belong in the industrial sector and each of them has its unique composition, goals and objectives. For example, Coca Cola deals in soft drinks with its market spread in more than 200 countries and about 500 brands from production plant. On the same note, Woodward Iron Industry is an organization that specializes in the provision of iron and steel but has limited number of employees (Epstein 2008, p.65). This is because of its small jurisdiction in the state of Alabama, Tennessee. This paper is also going to assess the limitations that were experienced during the period of searching for information in order to understand the two companies. Therefore, this has prompted for the formulation of assumptions in order to understand the purpose and scope of the report. It also delves into recommendations and implementations of the findings and discussions. Introduction 1.1 Purpose The purpose of this report will be to make comparisons between two industrial companies based on their sustainability policies and practices. Similarly, the report will comprise of comparison analysis, types of reports produced such as environmental or sustainability reports or corporate responsibility or CSR reports (Ferrel et al 2006, p.123). Apart from the composition, the composition will also delve into overall approaches of sustainability between these two industrial companies in relation to the emphasis they are accorded. On that note, the sustainability will bank its focus on policy or practice of that industrial sector and conduct comparisons and evaluations. Alternatively, this task should be able to determine the significance of chosen companies in the context of their produced reports. 1.2 Scope In terms of scope, the business report covers wide areas of company sustainability. For example, it touches on the sectors of theory/models of each individual company as well the responses of these organizations. In addition, the scope dwells on more analytical approach than a descriptive perspective in order to determine the defining theoretical concepts and the benchmarks of performance (Hopwood & Unerman 2012, p.145). Alternatively, the report attempts to evaluate the league tables, industry standards and other frameworks of the two industrial sector companies for sustainability evaluation. On that aspect, the scope stretches to cover how the two chosen companies will be able to improve their sustainability depending on the fundamental factors of corporate success. 1.3 Method However, the methodologies employed in conducting the comparisons differ from company to company. For example, in Coca Cola the sustainability police rely on its yearly progress, initiatives and programs. On the same account, this assessment is conducted annually and it’s made possible by visiting the company’s website and verifying their plans for future prospects. Additionally, the method depends on the review of sustainability report and analysis of the environment report (Idowu & Filho 2009, p.55). On the other hand, for Woodward Iron Company, it would be imperative to evaluate its yearly sustainability report to understand the nature of production. Furthermore, it is essential to understand the iron company; its taxation policies and the average number vehicles it manufactures. 1.4 Limitations In terms of limitations, there are various challenges that are countered during research involving both companies. For example, approaches to sustainability for both organizations are a difficult process because they use different mechanisms of assessment of evaluation. For example, while Coca Cola uses the review strategy of releasing its sustainability report detailing its social, economical and environmental, it not the same with Woodward Iron Company (Rainey 2006, p.80). This iron and steel company releases its sustainability report on quarterly format in order to reach its automobile and building clientele on time. Another limiting factor entails the privacy of some of the sustainability reports of these companies that makes it hard to conduct better assessment and evaluation. Therefore, comparing the policies with better financial parameters becomes a huge challenge when results are needed. 1.5 Assumptions Concerning assumptions, the sustainability report and policies of Coca Cola have a direct influence on its performance of the market in terms of sales and number of clients. Similarly, the environmental segment of Coca Cola’s sustainability is anchored on its nature policies that campaign for a polluted free planet (Rittenberg et al 2011, p.156). On the other hand, for Woodward Iron Company, the assumptions depend on the quarterly reports released by senior managers of the organization to its various clients spread around the world. 1.6 Background Coca Cola Company as Beverage Company in the industrial sector deals in various drinks that it distributes across the world. With its headquarter in the US, this beverage corporation is found in more than 200 nations with drinking brands exceeding 500. This company is for sustainability efforts in terms of routine polices and practice of corporate responsibility (Schaltegger et al 2006, p.90). Alternatively, Woodward iron Company is an entity that was established by two brothers and deals with the supply of pig iron. With more than 2000 employees within the state of Alabama, this organization is viewed as a formidable force in the steel industry. In the context of its sustainability reports and policies, the company releases its quarterly reports to facilitate better assessment and evaluation. 2. Findings It is essential to state that both Coca Cola Company and Woodward Iron Company use different theory models of sustainability. These models are hedged on the paradigms of capital whereby organizations weigh their sustainability on stipulated practices. Therefore, Corporate Sustainability Reporting (CSR) takes the form of environmental reportage for both the organizations to help in the delivery of alternating interpretations. Additionally, the publishing of such sustainability reports are meant to achieve to achieve various results. For example, it is meant to repair damaged reputation for organizations that do not produce financial statements but sensitize their clientele on their ethical missions. This is why Coca Cola as a beverage entity differs with Woodward Iron Company in their projection of its final reports and policies. On that account, while Coca Cola Company performs its sustainability reporting after wide consultations consisting of mangers, staff and customers among other concerned stakeholders. In addition, the beverage company engages in wide consultations wide the global market dominants in order to remain relevant with a fast transforming market (White 2009, p.156). Alternatively, Coca Cola is known to dispense its reports in the public through various media outlets especially the internet through its website to reach at a mass market. This also allows its loyal customers to make thoughtful decisions in terms of their tastes and preferences. However, the sustainability reporting of Woodward Iron Company takes a different angle in order to prove its mission models and theories. This means it does not directly depend on the media to disseminate its policies for review by customers and financial experts. Furthermore, the sustainability principle and concepts used by this company of iron and steel also differs from that of Coca Cola. For example, Woodward Iron Company is much business oriented while it targets specific clientele in the steel industry. On the same perspective, there is regulatory approach adopted by this company in order to comply with legal government requirements. This suggests even with its stipulated objectives, Woodward does depend on its consumers directly for the buying of its products (Ferrel et al 2006, p.123). Alternatively, unlike Coca Cola that employ lobbying pressure in achieving the outcome of sustainable reports, Woodward Iron Company does not. This also applies both in the business perspective and in sustainable value where there is no reliance on stakeholders for partner development. Therefore, it is crucial to note that Woodward Iron Company uses Corporate Social Performance Model in its efforts to remain relevant in the market. On that note, it abides by the four modes of business sustainability and social responsiveness in order to remain viable and attractive in the word of steel industry (Epstein 2008, p.72). An example of a model it uses is the reaction approach. On this aspect, the corporation does own liability but instead blames the government on most of its unethical blunders. Similarly, it suggests that it aims at maximizing on the unsustainable value at the expense of speaking the truth to its customer base. Another clever tactic and strategy it uses is called defense. This is whereby there is admissibility of guilt but a fight back must ensue. In this case, the company refutes various ethical and professional blunders it has accepted and apportions the blame on the shifting markets and ineptitude of some of its workers. Alternatively, the steel company may decide to adopt the accommodation model whereby it owns and delivers a comprehensive sustainability reporting. Furthermore, if runs of tricks, it can settle for a corporation model that has been used by organizations for a long time called proaction (Ferrel et al 2006, p.123). This is whereby the company intends to excel beyond the norms of the industry and anticipation of future prospects such as business growth and expansion. In addition, this model pressurizes the company to set the objectives of its business sustainability high to compete at a higher level. 3. Discussion In the discussion section, we going to delve on these two corporations earn their profits through sustainable policies and models. For example, Coca Cola earns its profits through mass marketing of its brands using various distributors and vendors spread across more than 200 nations (Epstein 2008, p.69). Other than that, there are profitable approaches adopted by such companies in order to transcend the pressure and assessment of society of sustainability reporting. Therefore, because of the pressures, these companies have decided to evaluate their sustainability in business strategy while they cooperate with stakeholders. This implies that societal impacts of the environment are not accorded all the interest such as the human labour found in most corporate organizations. On the same line, the avoidance of risk for both companies is paramount in the event of the release of the reports that do not validate the use of social and ethical responsibility in the various departments. For example, Woodward Iron Company has been at the forefront of its risk formulation policies that help in the mitigation of the concepts and theories of Corporate Sustainability Reporting (CSR). Alternatively, Coca Cola uses its set days in the calendar to raise awareness of its corporate responsibility through raising of funds and conservation of the environment. This is supported by the recent advent non-financial reporting that is becoming a characteristic of most companies around the world especially in the industrial sectors. Examples of these reports include new sustainability and CSR reporting (Ferrel et al 2006, p.134). These reports are always released annually especially for Coca Cola that is made of corporate ratings and standards. In the same scope, Woodward Iron Company produces it quarterly release in order to encourage transparency and accountability. This is always meant to sway investors and other interested stakeholders to encourage internal progress. Apart from encouraging accountability and transparency, Woodward Iron Company and Coca Cola can also evaluate their performance though measuring, monitoring and reporting on the aforementioned positive repercussions (Eccless & Krzus 2010 p.105). In terms of measurement, here the organization identifies how the effect of the reports on the economy, improved living standards and a sustainable economy. Similarly, it should follow this with a monitoring mechanism that puts people responsible to account and rewarding those who excel. This can be through motivational techniques such promotion, salary increment and rewards to boost morale. After the successful measurement of standards and monitoring, it is essential to produce a summarized report. This is detailed information such as the sustainability review posted by Coca Cola in its websites to impress on interested investors, customers and other stakeholders. Alternatively, it applies to Woodward Iron Company that publishes its sustainability and Corporate Sustainability Reporting (CSR) information on quarterly journals and periodicals. However, there are guidelines that are fundamental for growth if adopted by both Coca Cola and Woodward Iron Company. For example, there is the use of the Global Reporting Initiative (GRI), rankings and (ACCA) award schemes (Epstein 2008, p.63). On that note, for Global Reporting Initiative (GRI), it assists companies in the ease of evaluating their sustainability performance with various metric standards and economics standards. In addition, it helps in the disclosure of company results in way that resembles financial reporting but is more accessible to its immediate users. These include customers, investors, business rivals and the government among other concerned parties. This technique has been evident in both Coca Cola and Woodward Iron Company in order to avoid being left behind in the adoption of better business methods. Alternatively, in the rankings technique, companies compete with the best in the field in order to gauge their strengths, weaknesses, opportunities and threats (SWOT). This is also a better strategy to appeal for funds from investors, feedback from clients and customers and recognition by the government (Eccless & Krzus 2010 p.109). Additionally, it helps organizations in their integration with their business competitors such Pepsi has been doing to Coca Cola and other related steel industries in America to Woodward Iron Industry. It is also critical to publish corporate sustainability reports on various websites, books, periodicals and journals among other sources to increase mass access to interested parties. On that note, the best website for Coca Cola and Woodward Iron Industry to publish their reports is the website of the United Nations Global Compact initiative. 4. Conclusion In summary, it is imperative to institute better methods of Corporate Reporting Sustainability (CSR) and Sustainability Reports. This numerous merits for the companies discussed above especially for Coca Cola that has been witnessing fierce competition from Pepsi and other beverage entities (Epstein 2008, p.60). Alternatively, Woodward Iron Industry in Alabama should equally strive in the steel industry to make it appealing to investors, stakeholders and clients. On same prospect, the limitations of finding information from various sources should be put the two companies on the spot in order to improve on their image and integrity. There is also the need to mitigate on the social, economic and ethical implications of sustainability reporting, attract, and retain customers and financiers (Eccless & Krzus 2010 p.98). This also the direct effect of ensuring the company expands in growth and enhances the productivity of its workforce. Furthermore, Corporate Sustainable Reporting (CSR) with all its models and concepts has the benefit of reducing the doubts of the company though improved feedbacks from customers. In the same respect, avoidance of risks by organizations especially those in the industrial sector is paramount such as Coca Cola and Woodward Iron Company collaborating with the related entities. 5. Recommendations and implementation I would recommend the implementation of corporate sustainability and sustainability reporting amongst all companies that want to grow and expand (World Economic Forum 2003, p.145). It is also essential for the two companies discussed above ensure its reports reach a wide mass to facilitate the investigation of complaints from clients and implementation of the best practices. This will not only encourage more transparence and accountability but will enhance ethical practice of conducting business. Furthermore, the use of Global Reporting Initiative (GRI), rankings and (ACCA) award schemes to improve on non-financial reporting should be constantly encouraged and recommendations drafted for future reference. Bibliography Eccless, R & Krzus, M 2010, One Report: Integrated Reporting for a Sustainable Strategy, John Wiley & Sons, New York Epstein, M 2008, Making Sustainability Work: Best Practices in Managing and Measuring Corporate Social, Environmental, and Economic Impacts, Berrett-Koehler Publishers, New York. Ferrel, O et al 2006, Business Ethics: Ethical Decision Making & Cases, Cengage Learning, Mason. Hopwood, A & Unerman, J 2012, Accounting for Sustainability: Practical Insights, CRC Press, New York. Idowu, S & Filho, W 2009, Professionals ? Perspectives of Corporate Social Responsibility, Springer, New York. Rainey, D 2006, Sustainable Business Development: Inventing the Future Through Strategy, Innovation, and Leadership, Cambridge University Press. Rittenberg, L et al 2011, Auditing: A Business Risk Approach, Cengage Learning, Mason. Schaltegger, S et al 2006, Sustainability Accounting and Reporting, Springer, New York. White, G 2009, Sustainability Reporting: Managing for Wealth and Corporate Health, Business Expert Press, Mason. World Economic Forum 2003, The Global Competitiveness Report 2002-2003, Oxford University Press, New Jersey. Read More