Coca-Cola has just recently decided to investigate their sugar suppliers to ensure that they are not purchasing sugar from plantations that use “land grab” policies 1.These tactics used by certain plantations evict farmers and local citizens from their land. By taking action and addressing their social responsibilities, Coca-Cola will guarantee that land rights of local communities in these countries are being protected 2.
Many people tend to view Coca-Cola as a large, mass-producing company that has never before addressed these significant problems. Switching to suppliers with more ethical policies might be costly for Coca-Cola, although they are addressing issues that will benefit the company in the long run while also having a huge positive influence on societies in developing countries. This is a step in a new direction for the company. By confronting this major ethical issue, Coca-Cola will incorporate corporate social responsibility into their practice and earn the reverence of countless consumers and companies alike.
Hopefully Coca-Cola is setting the stage for other companies such as PepsiCo to follow their lead and engage in corporate social responsibility in the future and further improve society while still remaining a profitable and successful business.
1: Schneider, Howard. “Coke, Pressed by Oxfam, Pledges Zero Tolerance for Land Grabs in Sugar Supply Chain.” Washington Post. The Washington Post, 09 Nov. 2013. Web. 10 Nov. 2013. <http://www.washingtonpost.com/business/economy/coke-pressed-by-oxfam-pledges-zero-tolerance-for-land-grabs-in-sugar-supply-chain/2013/11/08/cb6946e4-48b3-11e3-a196-3544a03c2351_story.html>.
2: Tran, Mark. “Coca-Cola Vows to Axe Suppliers Guilty of Land Grabbing.” The Guardian. N.p., 08 Nov. 2013. Web. 10 Nov. 2013. <http://www.theguardian.com/global-development/2013/nov/08/coca-cola-suppliers-land-grabs>.
Figure 1: http://www.sugarstacks.com/img/colas.jpg