The black-and-white picture of “capitalist vs. unadulterated socialist” illustrated by Friedman doesn’t capture the many shades of grey that exist in the real world. Take for example the Coca-Cola Company. It’s a multi-billion-dollar company that is able to make great returns to its investors as well as devote a significant portion of its resources responding to social issues. Businesses like the Coca-Cola Company are in fact capable of increasing profits while acknowledging their social responsibilities without “undermining the basis of a free society”.
To further explore the Coca-Cola Company, could it be responding to its social responsibilities as both an ethical response as well as a marketing tool? Whether it was hydrating African countries affected by drought or building shelters for Syrian refugees, Coca-Cola has shown up eager and willing to help.
Coca-Cola’s response to the drought in Lagos, Nigeria.
But why spend the money?
An interesting article reports that the business landscape is shifting towards companies that want to make a difference. Business executives are realizing the power they have to effect positive change and are using this power for the greater good. And this philanthropy sells itself – people simply buy into a “good company”.
In the end, people in disaster get their water while Coca-Cola increases its market shares, profits and reputation. It’s a win-win.