Introduction
In recent years, sustainability has become increasingly important in the business world. Companies are now realizing their operations’ impact on the environment and society and are taking steps to reduce their adverse effects. Coca-Cola, one of the world’s largest beverage companies, has taken up the mantle of sustainability. With operations in over 200 countries, Coca-Cola’s actions significantly impact the world. However, in recent years, the company has faced increasing scrutiny regarding its environmental impact and sustainability practices. As a result, Coca-Cola has implemented several initiatives to address these concerns and improve its sustainability practices. This analysis will examine Coca-Cola’s sustainability practices in-depth, looking at the various industries and actions the company has taken to reduce its environmental impact, promote social responsibility, and create value for its stakeholders. The paper will start by providing a PESTEL analysis of the company’s sustainability practices, including its efforts to conserve water resources and promote sustainable packaging practices. Furthermore, the paper will examine the effectiveness of these practices and evaluate their impact on the environment, society, and the company itself.
Case Synopsis
The cases all revolve around the issue of plastic waste and the efforts made by Coca-Cola and other stakeholders to promote recycling and a circular economy. Coca-Cola partnered with Planet Ark to promote National Recycling Week and to educate Australians on the importance of recycling, investing in recycled plastic, and supporting cost-effective container deposit schemes across the country (Coca-Cola Australia, 2023). Additionally, Coca-Cola is focused on container deposit schemes, explaining what they are and how they work and highlighting their benefits for recycling and reducing new plastic in Australia (Coca-Cola Australia, 2023). Another sustainable practice emphasizes how Coca-Cola bottles and cans are recyclable and the need for responsible recycling practices to tackle the sustainability challenges of single-use plastic.
Issues Discussion (PESTEL)
Coca-Cola is one of the largest beverage companies in the world, producing a wide range of soft drinks, juices, and water. As a company, Coca-Cola has committed to sustainability, recognizing that its operations impact the environment, society, and the economy. Coca-Cola has implemented various sustainability practices to address these impacts, which can be analyzed using a PESTEL framework.
Political Factors: The political environment significantly influences Coca-Cola’s sustainability practices. Governments worldwide are implementing policies to reduce carbon emissions and promote sustainable practices (Chua et al., 2020 p. 46). Coca-Cola is responding to this pressure by partnering with Planet Ark and supporting container deposit schemes to reduce plastic waste.
Economic Factors: The company recognizes that sustainability can have financial benefits, such as reducing costs and increasing efficiency. For example, Coca-Cola is investing in recycled plastic and PET recycling facilities, demonstrating a commitment to a circular economy and reducing waste (Corkery, 2019 p. 4). By supporting container deposit schemes, Coca-Cola is also contributing to creating clean waste streams and reducing the economic cost of waste management by using recycled materials in its packaging. Coca-Cola is reducing its reliance on virgin materials and decreasing costs.
Social Factors: Coca-Cola is aware that its operations can significantly impact society. To address these impacts, the company has implemented various social sustainability practices. Coca-Cola’s sustainability practices, such as partnering with Planet Ark to combat plastic waste and supporting container deposit schemes, align with the sociocultural trend toward environmental sustainability by committing to using less new plastic and working towards a world without waste. Coca-Cola is aligning with societal values around sustainability and environmental responsibility.
Technological Factors: The company continuously explores new technologies and innovations to improve its operations’ sustainability. Developing recycling technologies and facilities makes recycling materials more straightforward and efficient. Coca-Cola is investing in these technologies by supporting PET recycling facilities. Coca-Cola is also using technology to label its products with the familiar “Mobius loop” symbol to indicate whether or not they can be recycled (Muliahela, 2014 p. 10). Moreover, the development of PET recycling technology allows Coca-Cola to increase its capacity to recycle plastic bottles.
Environmental Factors: Coca-Cola addresses plastic waste and its environmental impact by supporting container deposit schemes and investing in recycled plastic and PET recycling facilities. By committing to collecting and recycling the equivalent of a bottle or can for each one it sells by 2030, Coca-Cola is committed to reducing waste and mitigating its environmental impact. The company has also implemented sustainable sourcing practices to reduce deforestation and promote biodiversity. Coca-Cola has shown its commitment to sustainability through various environmental initiatives, such as its partnership with the Australian government on Project Catalyst. This partnership aims to reduce agricultural runoff into the Great Barrier Reef (Hamman et al., 2015).
Legal Factors: Governments worldwide are implementing laws and regulations to promote sustainability and protect the environment. Coca-Cola is subject to these environmental regulations and legal requirements for waste management, product labelling, and safety. The company adheres to industry-specific sustainability standards and certifications such as LEED and FSC. Laws and regulations regulate container deposit schemes, which Coca-Cola complies with. By supporting cost-effective, well-run strategies, Coca-Cola ensures they meet legal requirements while promoting sustainability practices.
Analysis
Teaming up with Planet Ark is Good Practice
Coca-Cola recognizes the growing problem of plastic waste and its environmental impact. It reduces its impact by partnering with Planet Ark and committing to a “World Without Waste” vision (Lawal and Moerenhout, 2022 p. 7). Coca-Cola assumes that they are responsible for reducing its environmental impact and that the public expects them to do so. Their worldview is that they are a global company that can significantly impact the environment through their actions. Coca-Cola has to ensure that they are using its resources sustainably and responsibly. Care needs include consideration for the environment and the communities in which they operate. Coca-Cola’s process to achieve its “World Without Waste” vision includes partnering with organizations like Planet Ark, investing in recycling infrastructure, and redesigning its packaging to be more sustainable. The outcome is a reduction in the amount of plastic waste produced by the company and an increase in the amount of recycled material used in their packaging (Lawal and Moerenhout, 2022 p. 7). The consequences of not taking action could include environmental damage and harm to the communities in which they operate. Coca-Cola’s commitment to reducing its impact on the environment demonstrates its character as a responsible corporate citizen. Their willingness to invest in recycling infrastructure and redesign their packaging shows they are committed to long-term sustainability.
Considering all of these factors, it is clear that partnering with Planet Ark and committing to a “World Without Waste” vision is a responsible and ethical decision for Coca-Cola. By reducing their environmental impact, they demonstrate their commitment to being a responsible corporate citizen and contributing to a more sustainable future. The decision to partner with Planet Ark and commit to a “World Without Waste” vision is justified by Coca-Cola’s duty to be a responsible corporate citizen and to use its resources in a sustainable and accountable manner. By reducing its environmental impact, Coca-Cola is demonstrating its commitment to the well-being of the planet and the communities in which they operate.
Producing Single-Use Plastic Bottles Is Poor Practice.
Producing single-use plastic bottles and other packaging is a widespread and longstanding practice in the beverage industry. However, the environmental impacts of single-use plastics, including litter, pollution, and harm to marine wildlife, are well documented and increasingly recognized as a global crisis (Escursell et al., 2021 p. 10). The continued production of single-use plastics is rooted in a linear, extractive economic model prioritizing profit and convenience over environmental and social responsibility (Escursell et al., 2021 p. 10). The assumption is that plastic packaging is necessary for the safe and efficient transport of beverages and that the costs of waste management and ecological damage can be externalized. The process of producing and disposing of single-use plastics has adverse outcomes and consequences that are both immediate and long-term (Kozik, 2020 p. 2). These include greenhouse gas emissions from plastic production, litter and pollution of ecosystems, harm to marine wildlife, and the negative impact on human health and livelihoods. These consequences undermine the long-term sustainability and viability of the beverage industry and contribute to broader environmental and social crises (Kozik, 2020 p. 5). Industry leaders are responsible for acting in the best interests of the environment and society, being courageous in challenging the status quo, and demonstrating integrity by aligning their actions with their stated values and commitments.
The environmental and social impacts of single-use plastics and the alternatives and solutions available reveal that continuing to produce single-use plastics is a poor practice. The costs and consequences of this practice are borne by communities and ecosystems around the world, while the benefits are concentrated in the hands of a few powerful corporations. The beverage industry’s continued production of single-use plastics is unjustifiable from an ethical, environmental, and social perspective. As such, the industry must take urgent action to transition to sustainable and circular production models that prioritize waste reduction, reuse, and recycling and ensure equitable benefits and costs. Only by taking bold and transformative action can the industry fulfill its responsibilities to the environment, society, and future generations.
Recommendations
Coca-Cola can shift from single-use plastic bottles to reusable packaging, such as glass or aluminium bottles, which can be washed and refilled multiple times. This would significantly reduce the amount of plastic waste generated and address the concerns of stakeholders, including environmentalists and consumers, who increasingly demand sustainable products. This recommendation aligns with Sustainable Development Goal 12: Responsible Consumption and Production, which aims to reduce waste generation and promote sustainable consumption patterns. It also demonstrates ethical considerations for the environment and future generations.
Moreover, Coca-Cola can increase its investment in sustainable packaging innovation to develop alternatives to single-use plastic, such as biodegradable or compostable packaging. This would address environmental concerns and provide a competitive advantage as consumers increasingly prefer sustainable products. This recommendation aligns with Sustainable Development Goal 9: Industry, Innovation, and Infrastructure, which aims to promote sustainable industrialization and foster innovation. It also demonstrates ethical considerations for the environment and the community by proactively seeking innovative solutions to reduce waste and pollution. Both recommendations would involve collaboration with stakeholders, including suppliers, consumers, and governments, to ensure the feasibility and effectiveness of the proposed solutions. Coca-Cola must also communicate its efforts transparently to stakeholders to build trust and demonstrate its commitment to sustainability.
Evaluation
How can individuals and businesses work together to create a more sustainable future, and what role can technology play?
Conclusion
Coca-Cola’s approach to sustainability is multifaceted and includes a range of initiatives to reduce the company’s environmental footprint, promote ethical practices, and engage with stakeholders to achieve common goals. While the company has made progress in certain areas, such as water stewardship and waste reduction, there are still challenges and areas for improvement, such as using single-use plastic packaging (Walsh and Dowding, 2012). Coca-Cola’s commitment to sustainability is essential for the company’s success and the planet’s and its people’s well-being. The company must continue to innovate and collaborate with stakeholders to ensure that its operations align with sustainability, ethics, and social responsibility values and contribute to achieving Sustainable Development Goals.
Reference list
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