Coca Cola and Pepsi Sustainability Report

Keywords: coca cola sustainability, pepsi sustainability

During the speedy growth of the globe economy, environmental sustainability, corporate and business public responsibility and cultural accounting become the key factors for current corporation. Coca-Cola and Pepsi are both well-known America beverage brands on the globe. Coca-cola is the world's largest beverage company which gives sparkling, sports beverages and food in over 200 countries and market segments (The Coca-Cola Company 2010. ). On the other hand, Pepsi is also a global leader in convenient snack foods, foods and beverages which is the major competitor to Coca-Cola (PepsiCo Inc 2010). As a worldwide company, they invest in innovation to attain sustainability and produce the sustainability article. For the sustainability of Coca-Cola, it is to make a positive difference on the globe (The Coca-Cola Company 2010). Besides, "Pepsi is performance with goal and investing in sustainable expansion" (PepsiCo Inc 2010). The records supply the companies approaches to sociable and environment sustainability and cultural accounting. Therefore, the evaluations of both companies' sustainable accounts are critical to all or any stakeholders and communities.

1. 2 Goal of the report

The purpose of this report is to develop an eco-audit survey for Coca-Cola and Pepsi. The report is to evaluate the sustainable record of both companies and compare the business approaches on social accounting.

1. 3 Scope of the report

The record will mainly discuss the concept of social accounting, contrast of Coca-Cola and Pepsi on interpersonal accounting. It'll structure the subject areas into two parts. Each part will feature discuss in the record.

1. 4 Way to obtain information

The source and information is mainly come from Internet and external textbooks. It'll combine texts and journal articles.

2. 0 DEFINE AND EXPLAIN THE CONCEPT OF "SOCIAL ACCOUNTING"

2. 1 Definition of cultural accounting

As the Ghosh (n. d. ) define that, social accounting means the development of a measurement system to monitor the inner or external business activities on public and environmental effects to stakeholders with non-monetary models. Sociable accounting is concern of the business performance and participation in the public and environmental activities. It offers all the information activities contribution and contribution from corporation. Cultural accounting is same as the sustainability report to identify and measure the public contribution of the business, determine the business strategies on the neighborhoods and social segments˜provide relevant information of businesses goal, polices and performance to the sociable goals (Ghosh n. d. ). The idea of social accounting is produced by the communal, community and stakeholder which under the economic development. It stimulates more rigorous business activities and productions which causes the environmental damage, such as drinking water and air pollutions from the increasing manufactories. For the increasing concern of sustainability, firm behaves in the public and environmental issue is the significant aspect after success. The goal of social accounting is give a chance for stakeholders to understand the ways or behaviour of the business work in sustainability. Therefore, many of the companies provide the sustainability are accountable to earn the reputation and fulfill the corporate cultural responsibility.

2. 2 The key points of "good" interpersonal accounts and global standards

To keep up with the quality of interpersonal accounting, there are five basis concepts to apply. The five principles are completeness, comparability, regulation, external verification and continuous improvement. The first theory is completeness. To supply a report, it will cover all the areas of the organization's activities as opposed to the positive parts (Crane & Matten 2007). Company always selects the favourable performance to involve in the survey. The survey only includes the positive aspect will lose the fact. It is common for company covering the unfavourable information since it will reduce company reputation and expose the weakness. The next rule is comparability. The diagnosis of the statement should be accessible to comparable, suitable for the external confirmation and global standard in some other periods and countries (Crane & Matten 2007). Beneath the globalization, the current organization is not only offer with one region and looking for the marketplace expansion to the globe. Therefore, the global standard article will be easier for different countries to evaluation and assessment. The comparability survey will be crucial for the business extension and manifestation of sustainability idea. For the rule of rules, the report should conform to all the policies and lawful restrictions which provided by federal government and company. It should avoid the unacceptable terms and illegal factors. Beside, the external verification is approximately the outsiders possess the right to validate the truth of the record posting (Biz/ed n. d. ). Stakeholders have power to evaluate the statement and improve the certainty. The final principle is constant improvement. Social accounting is also a method to reflect the insufficient and lacking company performance which motivates the company improvement (Crane & Matten 2007). The continuous improvement can keep up with the company in a higher competitive level.

Beside the ideas, the adoption of global requirements is making more comparable to the survey. The global benchmarks involve two aspects which are auditing and confirming. As Crane & Matten (2007, p. 217) declare that, "Auditing is approximately the global work place standard, SA 8000, which cover the working time, discrimination and independent certified auditors". For SA 8000 is grounded on the rules of center ILO conventions, UN Conventions, and an ISO-style management system, it does apply to all industrial sectors to measure their performance and responsibly in resource chains (Friendly Accountability International n. d. ). SA 8000 protects the labour and individuals right in office under the global qualification. For reporting, the Global Reporting Initiative (GRI) of G3 Guide is common implemented and accepted by the current company to their sustainability report. Regarding to Crane & Matten (2007, p. 217) make clear that, "GRI as a worldwide reporting standard, which create a common platform for voluntary reporting on economical, interpersonal and environmental performance triple bottom line of sustainability". "G3 Recommendations are construction of GRI Sustainability Reporting and require the guidelines to define statement in materiality, stakeholder inclusiveness, comparability and reliability" (Global Reporting Initiative n. d. ). It ensures the report content and quality in a typical level. There are still some of the other global benchmarks for interpersonal accounting. The ideas and global specifications develop the public accounting record in a professional and equivalent level.

3. 0 CRITICAL Analysis THE Sociable AND ENVIRONMENT REPORTS OF COCA-COLA AND PEPSI

3. 1 Coca-Cola on public accounting

Coca-Cola is the world leading company in food and beverage industry. As the leading stage, there's a huge responsibility to determine a positive and lively image in communal and environmental sustainability. "Coca-Coal thinks that buying the economic, environmental and communal development can help the business enterprise grow" (The Coca-Coal Company 2010). "The value of Coca-Cola is to produce a positive difference on the planet through redesign the living way to generating business expansion and developing a sustainable world" (The Coca-Coal Company 2010). The business value is matter on the non-public health and renewable living. On the other hand, Coca-Cola consists of seven key areas to business sustainability which is more particularities than Pepsi. It offers "Beverage Benefits, Dynamic Healthy Living, Energy Management and Local climate Safeguard, Community, Sustainable Packaging, Drinking water Stewardship and place of work" (The Coca-Coal Company 2010). Each areas provide different extend of the sustainable actions. The targets of sustainability from 2008 to 2009 are contained in the record. However, Coca-cola only mentions the achieved targets and shows, such as decrease the drinking water and energy rate, and open up the world most significant PET recycling herb for reusing the containers (The Coca-Coal Company 2010). Additionally, the large part of the report is about the business's future targets, improvements and programs in sustainability for another four years. The activities taking in the sustainability are very similar with Pepsi in such areas. For example, it offers the glucose free refreshments and footprint lowering. The company article invest in the rules of the US Global Compact, resistant to the Global Reporting Initiative (GRI) G3 suggestions and CEO Drinking water Mandate (The Coca-Coal Company 2010). Coca-Cola more participates in environmental and governance, commitments and engagement sections that may supply the full GRI G3 Report in late season (The Coca-Coal Company 2010). To increase transparency of the report, company invites the Panel of Directors and BECO Verification Affirmation as the users aren't employees, to supervise the ethics and information certainty (The Coca-Coal Company 2010). It ensures that the statement is high level of conformity to the expectations. Interpersonal accounting is part of the business goals and strategy in Coca-Cola.

3. 2 Pepsi on communal accounting

"Pepsi as a world beverage company, they guarantee to deliver sustainable growth by investing in a much healthier future for consumers, globe and areas" (PepsiCo Inc 2010). The continuity of sustainable expansion and positive impact in the surroundings will be the major value in Pepsi. Pepsi develop their obligations and commitments into individual, environmental and talent sustainability. Based on the PepsiCo Inc (2010), "the real human sustainability aspires to encourage people to live healthier by responding to diverse and complicated global diet needs". For example, decrease the average sugar amount and eliminate the direct deal of full-sugar carbonated drinks to university (PepsiCo Inc 2010). However, Pepsi always face the challenge in the high glucose and calorie on the products. To cope with this problem, the goal of human being sustainability is focus on the nutrition by adopting the global diet standards and 100 % natural ingredients. Pepsi work hard to control the nourishment and make their products healthier. For environmentally friendly sustainability, "Pepsi is constantly on the innovate and useful use of land, energy, drinking water and presentation in operations for guarding the natural resources" (PepsiCo Inc 2010). Pepsi do something to minimize footprint, reaching positive drinking water balance and moving toward zero landfill within a decade (PepsiCo Inc 2010). Environmentally friendly ecological goals are realistic and attainable for company. Pepsi have the Environmental Excellence Honor from the U. S. Environmental Security Agency command and 2010 Global Water Accolades with "Environmental Contribution of the entire year" (PepsiCo Inc 2010). Nevertheless, some environmental goals are also involve in the Coca-Cola lasting record, such as package deal re-design and reduce carbon footprint. Talent sustainability is the previous responsibility area cover in the record. "Pepsi continues to remain the very skilled, diverse workforce and offer a safe and healthy place of work" (PepsiCo Inc 2010). Personnel are the property for company to success. Pepsi spend a lot of resources in workers' health insurance and associate with different management levels to achieve the sustainable development. Pepsi uses G3 Recommendations of GRI without disclose the entire report. The sections of Pepsi's GRI article are not mention in the lasting article and difficult to do the comparability. The level of the conformity to the benchmarks is uncertain. Pepsi set up many goals and commitments in human being, environmental and talent sustainability for the coming years. Pepsi will attempt to meet the targets base on these three areas. The effect can only just see in the future.

3. 3 Compare of Coca-Cola and Pepsi on sociable accounting

Coca-Cola and Pepsi will be the competitors in the meals and beverage industry. Both of them are produce the ecological statement with similar content and standard. However, Coca-Cola give a more complete and extensive survey than Pepsi. The value of Coca-Cola in sustainability is to invest interpersonal and environment for changing the people's living style to create a sustainable future and business expansion. They believe change of the non-public life-style and live positive are the best ways to determine a lasting world such as seven core areas in ecological issues. In contrast, Pepsi target at place the positive environmental influences to attain the sustainable growth. Sustainable growth is concentrate on the individual, environmental and skill. The value and area matter of the stakeholders tend to be more basic than Coca-Cola. For the prospective setting up, Coca-cola mentions the achieved targets from last years in the record. Although it only picking the achieved targets and covering the unattained goals, it still provide the information for stakeholders to know very well what the company efficiently do in the sustainability. Besides, Pepsi just require the upcoming goals and commitments in the article. It didn't include any past goals. Stakeholders will be doubtful to the success or failing of the last focuses on. Coca-cola is placing the survey for four years which is suitable for the quick changing world. For Pepsi, there isn't including a concrete time in the article and setting as a long-term plan. Sustainability plans and focuses on should be up-to-date and verify throughout a period of time. On the other hand, both of Coca-Cola and Pepsi are employing the G3 Rules in GRI. Coca-Cola discloses their GRI survey with the sections or indicators in such areas. Unfortunately, Pepsi is not general population their GRI report to make the comparability. In addition, in addition they shown in the Dow Jones Sustainability World Index and Sustainability THE UNITED STATES Index. However, Coca-Cola also commits to the UN Global Small and CEO Drinking water Mandate group of principle in human right and implementation of normal water respectively (The Coca-Coal Company 2010). Compare to Pepsi, Coca-Cola have higher level of the compliance and transparency to the global specifications. Both Coca-Cola and Pepsi are embedding the surroundings sustainable into the integral area of the business operation and objective.

4. 0 CONCLUSION

After critical analysis of Coca-Cola and Pepsi on social accounting report, it could be concluded that

Social accounting is a measurement system to screen the business performance and participation in communal and environment. The five good key points, SA8000 and GRI as the global requirements create a professional and similar social accounting report.

Social accounting on Coca-Cola is preferable to Pepsi. The article of Coca-Cola is more complete, detailed and transparency compare with Pepsi. Coca-Cola produces seven core areas in sustainability which is more specific than Pepsi. The timeframe and goals are clearly described in the statement. It against the GRI, United Nations Global Compact and CEO Normal water Mandate as the global standard and invite the Mother board of Directors and BECO Confirmation Statement which provide the report in good guidelines of social bill and global specifications.

Pepsi on sociable accounting is more standard than Coca-Cola. The worthiness of company is to achieve the sustainable growth. Pepsi is inadequate to concern in human being, environmental and talent sustainability. Also, the previous targets and GRI article aren't disclosed in the record. The sustainable targets and activities are placed as quite a while plan without a concrete timeframe. Nevertheless, Pepsi also resistant to the GRI similar with Coca-Cola.

5. 0 RECOMMENDATION

It is preferred that

Coca-Cola and Pepsi can form industry-specific agreement to interact in the lasting issues. They are able to establish codes of do or techniques to this areas. For instance, industry-water or work place agreement.

Coca-Cola can disclose the ongoing goals in the record for allowing the stakeholders know the goals progress. Beneath the faster changing world, it should regular review and improve the survey on each year. It can keep carefully the goals up-to-date.

Pepsi should increase matter areas plus more specific. The survey can entail the processing and achieved targets. In addition, it should arranged a concrete timeframe to the article, such as two or five years. Pepsi should disclose GRI statement and invite external audits to confirm the article for enhancing the transparency.

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