corporate social responsibility mid term assignment

More specifically, to promote and reduce plastic waste from packaging, Coca-Cola Vietnam has become the first beverage company to pioneer in using 300% recycled plastic packaging in the

HANOI UNIVERSITY FALCUTY OF INTERNATIONAL STUDIES

H

CORPORATE SOCIAL RESPONSIBILITY

MID-TERM ASSIGNMENT

Name: | Nguyen Le Yen

Nguyen Thanh Dat Class: | INC20

2006060038

2006060004

Lecturer: | Nguyen Thi Dieu Huong

Student ID:

COCA-COLA Vietnam

Introduction

Coca Cola is known as the carbonated soft drink brand of The Coca Cola Company

On May 8, 1886, Dr John Pemberton brought Coca-Cola to the world for the first time when it was sold at Jacobs Pharmacy in Atlanta, Georgia From that one iconic beverage, Coca-Cola has grown into a complete beverage company

More than 1.9 billion servings of our drinks are enjoyed in over 200 countries every day And it is the 700,000 individuals who work for The Coca-Cola Company and its more than 225 bottling partners that help bring refreshment around the globe It can be said that Coca-Cola is an eternal shining pearl in the beverage industry with a global presence, the company still maintains the first position, and is the world's No 1 selling soft drink company

Coca-Cola in Viet Nam

Since 1960, Coca-Cola has been known in Vietnam It was not until

1994 that Coca-Cola officially entered the Vietnamese market Over a long period of time, joint venture and association with Vietnamese

CLEY, partners Today, Coca-Cola is known as a 100% foreign owned

company Now, Coca-Cola has become a big brand in the Vietnam

market after nearly 30 years of development

The company has been constantly striving day by day to realize the company's mission - that is to develop in a sustainable way and towards a better common future, to bring positive influences to the lives of people, communities and the whole world Economically, Coca-Cola has contributed to GDP 3500 billion VND annually through investment activities, 91% of suppliers for Coca Cola Vietnam are domestic suppliers, 80,076 jobs have been created More than 1,9,000 employees have jobs and have 1.2 million retail partners nationwide, 3 production factories are located mn 3 big cities Ho Chi Minh City, Hanoi, Da Nang, currently At the 4th factory, which is being started in Long An, it is expected to be completed by 2039

In addition, aiming to become a comprehensive

beverage business for everyone is one of Coca Cola's

Therefore, the enterprise is constantly researching and

improving formulas to create new and diversified

products that are suitable for the needs of different

customers: carbonated soft drinks with and without

sugar, water fruit, fruit milk drinks, energy drinks,

purified water, sports drinks, tea and coffee; Top 10

most popular beverage brands worldwide have been

launched in Vietnam market: Coca Cola, Sprite, Fanta,

Maid, SmartWater, Aquarius, Max Coffee

For society, according to 2017 and 2018 data, 86

billion VND of social responsibility for social and

environmental initiatives in Vietnam has been invested

by Coca-Cola Moreover, 11 EKOCENTERs have been

established nationwide, 2.368 women benefit from

knowledge sharing programs and business consulting

support Not only that, the Company also cares about

environmental issues when it has provided the

opportunity to access tap water and drinking water for

82,000 people

With its mission, the company always focuses on

all activities so that it can ensure sustainable

development goals in many different fields to bring a

quality life to everyone To contribute to bringing

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11 EKOCENTER _ cơ hội cho phụ nữ

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launched the Worth Without Waste campaign in Vietnam with the message For a world without waste in three aspects: design, collection, cooperate

In terms of economics, Coca-Cola sets two goals that by 2025, recycled materials in product packaging must be used at least 50%, and by 2030, the company's product packaging can be completely recycled 100% recycled More specifically, to promote and reduce plastic waste from packaging, Coca-Cola Vietnam has become the first beverage company to pioneer in using 300% recycled plastic packaging in the market Vietnam implemented a program to remove plastic shrink film on Dasani bottled water products (350ml, 500ml and 1500ml) This is also Coca-Cola's commitment to the long-term strategy

of responsible plastic waste management

Changing the design, helping to minimize plastic

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waste are generated Therefore, Coca-Cola has carried out

@ isi GAM activities of collecting, sorting and recycling waste in the

localities, as one of the founding members of the Vietnam Packaging Recycling Alliance (PRO Vietnam) , to be able

circular economy in Vietnam PRO Vietnam has set forth four main pillars to guide its activities The first is to raise consumer awareness about recycling and segregation; Strengthening the existing packaging collection ecosystem is the second pillar The third is the support of recycling programs of treatment plants and factories producing recycled materials Finally, cooperate with the Government for recycling activities in the 3R principles: Reduce — Reuse — Recycle

Collaboration is the final way to close the Worth Without Waste campaign with four projects jointly implemented by Coca-Cola With the goal of working together to create a green, clean, and zero-waste environment, the Zero Waste to Nature Project cooperates with the Vietnam Business Council for Sustainable Development (VBCSD), the Chamber of Commerce and Vietnam Industry (VCCI), Unilever and Dow, have organized a number of typical programs such as: training for commune-level leaders, local communities, seminars for honorary delegates, establishing a Center Circular Economy Center Moreover, 1043 households were provided with information on environmental protection, five schools or about 7500 students were trained in waste segregation at source Not only that, Coca-Cola also cooperated with UNESCO with the project Encourage creativity to raise awareness about recycling, during the pilot phase of the

project, which was carried out in Cu Lao Cham ẤN ven khen nâng cao nhận thức về tái chế sáng tạo a

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near Hoi An city The project has developed an | 85S VÌ rác thải nhựa Mạng lưới hành động

community campaign on reducing plastic waste

Chương trình

34 partners, organizations and individuals have = Ke heach nanh dong _ = Cert sa

joined the network; more than 5671 people

registered to participate; 380 recycling plants to separate waste and plastic at safe source as participate directly in the network, in Ha Long

city alone, there are more than 6000 people

well as effectively enforce 3Rs With 1.7 million plastic bottles; 29.5 million tons of organic fertilizer were collected The "plastic action network" in close cooperation with Coca-Cola with GreenHub has brought certain results, since then the network has not only been

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implemented in Ha Long city but also expanded its scope nationwide Coca-Cola's EKOCENTER community education program in partnership with the British Council is the fourth and final project in terms of the campaign's partnership The project focuses on community groups, the central and northern provinces of Vietnam, has provided innovative educational programs on Plastic Waste Management to high school students and local residents: project presentation projects, the ability to solve problems, develop and implement sustainable business initiatives The positive results of the project have brought such as: 60 teachers, local captains, members of the youth association participated in the training; Organized training sessions at 7 high schools and EKOCENTER areas with more than 280 students participating Moreover, 48 ideas have been proposed and received seed capital for further implementation

Influences on society and stakeholders

Corporate Social Responsibility (CSR) is becoming increasingly important for businesses as they seek to balance their financial goals with their responsibilities to society and the environment CSR is considered important because by adopting CSR practices, companies can make a positive effect on society and the environment, while also boosting their reputation, improving financial performance, and ensuring regulatory compliance CSR can also help to build trust and long-term relationships with stakeholders, such as customers, employees, and local communities Ultimately, CSR can create shared value for all stakeholders and contribute to a more sustainable and equitable world

There are a number of reasons why companies carry out CSR activities, such as meeting stakeholder expectations, enhancing reputation, mitigating risks, improving financial performance, and contributing to the greater good By prioritizing social responsibility, companies can meet stakeholder expectations and build trust and loyalty among customers, employees, investors, and local communities CSR activities can also enhance a company's reputation by demonstrating its commitment to ethical and sustainable practices, while mitigating risks related to social and environmental issues In addition, CSR activities can improve a company's financial performance by reducing costs, increasing

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efficiency, and attracting new customers and investors Other than that, many companies carry out CSR activities because they believe it is the nght thing to do and want to contribute to the greater good, using their resources and expertise to address social and environmental challenges CSR activities can take many forms, such as reducing waste, supporting local communities, promoting diversity and inclusion, and implementing sustainable practices While CSR activities can have a positive impact on society and the environment, they also have the potential to influence their stakeholders in various ways Stakeholders are defined as individuals or groups that are affected by a company's actions, such as customers, employees, investors, suppliers, and local communities The influence of CSR activities on stakeholders can vary depending on the nature of the activity and the specific stakeholder group For example, a company that implements a sustainability program may benefit its employees by reducing its environmental impact and improving job satisfaction, while also benefiting the environment by reducing resource consumption and greenhouse gas emissions At the same time, the program may also benefit customers by providing them with sustainable products and services, and benefit investors by increasing the company's long-term financial performance and reputation

The influence of CSR activities on stakeholders is complex and multidimensional and can have both positive and negative outcomes It is therefore important for businesses to understand the potential impacts of their CSR activities on stakeholders and to prioritize stakeholder engagement and communication in their decision-making processes This can help to ensure that CSR activities create shared value for all stakeholders and contribute to a more sustainable and equitable world

The "World without waste” initiative launched by Coca-Cola Vietnam is a typical example of how companies can use CSR activities to create shared value for stakeholders The initiative aims to reduce plastic waste and promote sustainable packaging solutions through a range of activities, such as recycling programs, public education campaigns, and partnerships with local stakeholders This following part then will explore the ways in which the "World without waste” project influences Coca-Cola Vietnam's stakeholders which can

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be categorized into employees, suppliers, the local communities, the customers and the shareholders of Coca Cola Vietnam By examining these influences, we can gain a better understanding of the importance of CSR activities and their potential to create positive social and environmental impacts

To begin with, this project has several direct and indirect impacts on Coca-Cola Vietnam's employees One of the most significant influences of the "World without waste" initiative on employees is improved morale As mentioned above, the “World Without Waste” initiative aims to create positive impacts on society and environment and by working for a company that prioritizes sustainability and social responsibility, employees are more likely to feel proud of their work and can be motivated to contribute more to the program or to the company's goals in general This, in turn, can lead to a more positive work environment, increased employee engagement, and reduced turnover rates as staff's satisfactory level is raised which is also another influence of the "World without waste" initiative on employees By participating in the initiative and contributing to its goals, employees are given a sense of purpose and meaning in their work Or in other words, they could feel included, they feel responsible The project has turned out with highly positive outcomes which will be presented with more detail later on Seeing the impacts that their work is having on the environment and society, it can turn into a powerful motivator and source of job satisfaction Ultimately, the "World without waste” initiative also provides employees with enhanced professional development opportunities As part of the program, Coca-Cola Vietnam is investing in employee training and development to build capacity in sustainable packaging solutions, waste reduction, and other related areas These training courses are held in a professional manner with a well-designed curriculum with modern information and high applicability This investment in employee development not only benefits the employees but also contributes to the company's long-term success and competitiveness While the "World without waste" initiative is primarily beneficial for Coca-Cola Vietnam's employees, there is no denying that it may have some negative effects One possible negative effect could be the implementation of new procedures or changes to job responsibilities that employees may need to adapt to Employees may need to sort and

separate recyclable materials from non-recyclable materials, which may be seen as an additional task or burden However, this can be counted as insignificant as these potential negative effects are outweighed by the positive impacts

The "World without waste" initiative launched by Coca-Cola Vietnam is not only creating impacts on their own employees but it is also having significant influences on the company's suppliers The initiative might require suppliers to align with Coca-Cola Vietnam's sustainability goals and implement sustainable practices in their operations This could turn out to have optimistic effects on suppliers including increased demand for sustainable materials, improved reputation and enhanced supplier partnerships Firstly, the program can increase demand for sustainable materials Standing as the role of the initiator, Coca-Cola Vietnam is committed to using sustainable packaging materials, such as recycled PET and plant-based resins, and also encouraging its suppliers to do the same This increased demand for sustainable materials is driving suppliers to adopt more sustainable practices, invest in new technologies, and explore mnovative solutions to reduce waste Nevertheless, one potential negative effect could be extracted from this impact is the increased costs created by adopting sustainable practices, such as investing in new equipment or sourcing sustainable materials This can create financial pressure on suppliers, particularly smaller suppliers who may have limited resources Additionally, the initiative may require changes to suppliers’ existing processes, which could create logistical challenges or impact production schedules Suppliers may need to restructure their operations, which can be disruptive and require additional time and resources However, when placed on the bargaining table, the negative possibilities can be seen to be overpowered by the positive turnovers And the easiest turnover that can be witnessed is the improved reputation for the suppliers By adopting sustainable practices and aligning with Coca-Cola Vietnam's sustainability goals, suppliers can enhance their corporate social responsibility credentials and build a positive reputation among, stakeholders This improved reputation can lead to increased customer loyalty and brand recognition, as well as attract new customers who are increasingly conscious of environmental and social issues Furthermore, another influence of the "World without waste" initiative on suppliers is

enhanced partnerships Working along with Coca-Cola Vietnam in this program, suppliers can strengthen their relationships with the company and position themselves as leaders in sustainability This, in turn, can lead to new business opportunities and increased competitiveness in the marketplace In addition, by working together to develop and implement sustainable practices, suppliers and Coca-Cola Vietnam can share knowledge, experiences and expertise, which can lead to more effective and efficient supply chain operations

Beside employees and suppliers, through this project, Coca Cola Vietnam also created both direct and indirect impacts on the local communities In order to assess this topic, we will have to look through some of the statistical results turned back from the

“World Without Waste” Till the end of 2021, it is reported that the company has collected and recycled more than 44,000 tons of packaging waste in Vietnam since the launch of the initiative in 2018; more than 23,000 recycling bins have been installed across the country Furthermore, the corporation has partnered with more than 50 local organizations to support recycling and waste reduction efforts Other than that, in comparison to the early stage, it resulted in increased the use of recycled plastic in its bottles to 17% as of 2020, with a goal

to reach 25% by 2025 and since 2018, reduced weight of PET bottles raised up to 20% which is approximately more than 1,300 tons Moreover, the company has committed to collecting and recycling one bottle or can for everyone it sells by 2030 This ambitious goal

is part of Coca-Cola's global "World without waste" initiative, which aims to collect and recycle the equivalent of 100% of the company's packaging by 2030 This will help to reduce the amount of plastic waste that ends up in landfills or in the natural environment, which can have harmful effects on wildlife and human health Reducing plastic waste can help to improve the health and safety of the local environment Landfills are a major source

of pollution, and reducing the amount of waste that ends up in them can help to reduce air, water, and soil pollution in the surrounding area By preventing plastic waste from entering the natural environment, Coca-Cola Vietnam can also help to protect wildlife and ecosystems from the harmful effects of plastic pollution Furthermore, reducing plastic waste can also contribute to the circular economy and promote sustainable resource use By