The purpose of this paper is to identify two organizations that are different forms of legal business. The organizations that we will be focusing on are the Coca-Cola Company which performs its businesses as a corporation and Nike, Inc. Which operates its businesses as a Limites Liability company (LLC).
Company Summary
The Coca-Cola Company, which was formed in 1892, is best known for producing and distributing Coca-Cola syrup and concentrate, a sweetened carbonated beverage that has become a cultural icon in the United States and a worldwide emblem of American preferences. Other soft drinks and citrus beverages are also produced and sold by the company. Coca-Cola is the world’s biggest beverage maker and distributor, as well as one of America’s largest enterprises, with over 2,800 items sold in more than 200 countries. When it comes to market supremacy, Coca-Cola has a number of advantages over its competitors. Due to its emphasis on product quality, marketing, research and innovation, and other aspects, it enjoys a market-leading position. Coca-Cola’s major competitor as a top beverage brand is just Pepsi (Khurana et al.,2020).
NIKE, INC. (Nike) began as a Japanese shoe importer in 1964 and has since grown to become the world’s biggest provider of athletic footwear, with a market share of 37 percent. Nike items are available in over 160 countries, with over 22,000 retail stores in the United States. Nike runs retail outlets both locally and internationally, including Nike Towns and Nike Factory Outlets. Nearly all of the goods are designed, developed, and marketed by Nike, and are almost entirely produced by independent contractors, the majority of whom are based outside of the United States. Nike, a customer-centric firm, places a premium on customer loyalty to obtain a competitive advantage. The company has used a variety of techniques in order to improve consumer loyalty. Furthermore, the company has created an extraordinary business strategy and placed a premium on providing excellent customer service (Grandori, 2022).
Company stakeholders
Coca-Cola Company
Bottling partners, suppliers, consumers, customers, industry partners, governments, and non-governmental organizations are the company’s major stakeholders. Internal stakeholders at Coca-Cola include: Coca-internal Cola’s stakeholders include the company’s board of directors, vice presidents, senior executives, employees, and shareholders. Executives and board members are accountable for the company’s long-term plan and are committed to making a positive impact in the communities in which they operate. Among the primary external stakeholders of the Coca-Cola firm are: Bottlers, consumers, suppliers, industry partners, governments, and non-profit organizations. Although it is hard to quantify the total number of consumers, roughly 1.9 billion servings of the company’s drinks are consumed globally each day. Several bottling partners across the world assist the firm in delivering these vast volumes of servings to clients (Brondoni, 2019).
Nike, Inc Company
Nike Inc. has a diverse set of stakeholders that have a substantial impact on the company’s ability to sell sports shoes and other products throughout the world. The company’s CSR initiatives, on the other hand, are confined to a small number of essential parts. Nike’s main stakeholders are its customers, employees, and communities. The government is an external stakeholder group in Nike’s approach to corporate social responsibility. These stakeholders are worth monitoring because they have a direct impact on Nike’s ability to do business in certain locations. Governments are concerned about legal and regulatory compliance, as well as tax income and community development contributions from businesses. It’s easy to see how community development is approached in this way. Additionally, special Interest Groups Nike’s corporate social responsibility initiatives consider a wide range of external stakeholders. They have a huge impact on Nike in terms of government action and public image of the company’s sports shoes, apparel, and equipment (Silva, 2019).
Corporate Social Performance
Coca-Cola Company
Coca-Cola, as a global organization, is dedicated to making a positive influence in the communities in which it operates by working with local companies and encouraging its employees to participate. In terms of education, they’ve used partnerships with local companies and educational institutions to provide job-related training and mentorship. The company also promotes empowerment and encouragement to live decent lifestyles. They strive for world-class health and safety standards, as well as an accident-free workplace (Brondoni, 2019).
The Coca-Cola CSR program provides a lot of advantages for the company. One strategy for attracting attention and retaining customer loyalty is to inform investors, customers, and employees about the beneficial influence they are making on the world. Because of the extensive usage of social media networks, CSR initiatives are becoming more important. Coca-Cola’s advertising efforts are focused on promoting the company’s ideals and gaining new consumers.
Nike, Inc Company
The world’s growing number of environmental, social, and economic issues need the greatest degree of performance. Nike is making a major effect by using the strength of their brand, the energy and passion of the people, and the scale of their company. It is now simpler than ever to implement a sustainability strategy to push company success, build ties with consumers and the community, and affect positive changes in the social and natural environments. Nike’s CSR programs are focused on areas where the corporation can have the greatest effect and earn the most value, such as the following: This may be seen in the design of their materials, the production process, and the sporting environment in which their products are used.
Nike’s corporate social responsibility (CSR) and corporate governance programs are focused on creating a diverse and inclusive workplace. To do this, the company invests in establishing a workplace that promotes diversity and inclusion. Nike introduced two new CSR projects in 2020 as part of their commitment to racial equality and social transformation: the Juneteenth learning endeavor and the Unconscious Bias Awareness training program.
Corporate Social Performance (CSP) effect on the stakeholders of each company
Coca-Cola Company
CSR activities may help businesses attract and keep customers and investors who are critical to their long-term success. Positive brand awareness, customer loyalty, and high-quality staff all benefit from this strategy. Improved sales, increased brand recognition, and a rise in the company’s stock price are all potential benefits of a more CSR-focused approach for Coca-Cola. As a consequence of a more diverse customer base, sales will rise. As more customers become conscious of corporate social responsibility, Coca-Cola sales will surge (CSR). As a result, increased brand recognition is expected, as well as a higher share price for shareholders. This will be beneficial to all parties involved. Despite the fact that CSR may result in a little reduction in profit margins, the rise in sales will be significantly greater, resulting in higher total revenues and profits.
Coca-Cola, being a well-known global brand, is in the unusual situation of needing to conduct commercial activities all over the world at the same time. As a consequence, both the number of people employed and the level of environmental damage are incalculable. Putting in place CSR programs for environmental conservation and other charitable projects that benefit society as a whole is one method to mitigate the damage. However, there is always room for growth in the job and in one’s surroundings. This is why Coca-Cola must always innovate new methods to contribute to societal well-being.
Nike, Inc Company
Nike’s corporate social responsibility approach takes into account a variety of stakeholders (CSR). In terms of prospective government participation and consumer opinion of Nike and its sports footwear, clothing, and equipment items, these stakeholders have a big impact on Nike. Environmental preservation and fair labor standards are only two of the numerous issues that these various stakeholders are concerned about. The Nike Foundation, as well as sponsorships of a number of related activities, are Nike’s responses to these concerns. In addition, the company has implemented procedures to improve labor management and the environmental effect of its operations. Nike Inc. may be deemed to meet the needs of various stakeholder groups as a result of these features (Levkiv, 2018).
Nike’s focus on consumers illustrates the company’s importance to this demographic. Customer satisfaction has a direct correlation with revenue. Communities are prioritized in a strong corporate social responsibility plan, which considers a wide range of policies and initiatives to aid these groups. Nike’s commitment to CSR, on the other hand, is consistent with the company’s commitment to consumers as its most important stakeholder group. Nike Inc. has done a good job of ensuring that its corporate social responsibility efforts contribute to the company’s overall goal of increasing income through overseas sales of sports shoes, clothes, and equipment.
References
Brondoni, S. M. (2019). Shareowners, stakeholders & the global oversize economy. The coca-cola company case. Symphonya, (1), 16-27.
Grandori, A. (2022). Constitutionalizing the corporation. In The corporation: Rethinking the iconic form of business organization. Emerald Publishing Limited.
Khurana, I., Krichevskiy, D., Dempster, G., & Stimpson, S. (2020). Institutions, entrepreneurial adaptation, and the legal form of the organization. Journal of Entrepreneurship and Public Policy.
Levkiv, A. (2018). Corporate Social Responsibility and Accounting: 2 CSR Case Studies and a Literature Review.
Silva, D. T. D. M. (2019). Equity Research-Nike, INC (Doctoral dissertation, Universidade de Lisboa (Portugal)).
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