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Victoria Jimena Toriz Cuadra 153563 Sustainability in the Business
The business case for sustainability
Milton Friedman´s philosophy is extreme and all extremes are bad, the objective of a company is making money but it is unfair to profit on despite of the environment or the people, the government should provide the frame and incentives for the changes to begin, that way this programs don´t get discarded or postponed since the company perceive them as big investments with cost effectiveness policy reduced in the short term.
It should not be only a governmental or forced challenge, because, in order for companies to commit themselves to the long-term care of the environment in which they are developing, they must have achieved the necessary social awareness to understand that it is not just a law, load or fashion but everything is connected so by making your corporation sustainable will lead to many positive repercussions both economically, politically and socially for the company.
In conclusion, the responsibility should be equally distributed in the business field, however, the government should pay more attention not only to create laws that oblige companies to be sustainable but also by developing programs that educate their populations from an early age, so that they know what their obligations and rights are, this way they can demand from the companies and the government their fulfillment and sustainable reforms can continue to advance in conjunction with the private sector, government and the population, as well like the clients, who have the power to demand a change with their decisions.
The company Coca-Cola in 1995 received a concession from the municipality of San Cristobal de las Casa, Chiapas, to extract water from the María Eugenia wetlands, springs that serve as a supply for the city and play an essential role in the conservation of the biological diversity of the area; daily, 1.1 million liters of water are extracted, paid to the federal government at 10 cents per thousand liters.
The water that FEMSA extracts daily would be enough to supply 200 thousand people throughout the year, the result of this indiscriminate exploitation has led to a diabetes crisis since it is easier to get the refreshment, because to have water they must to ask for pipes or walk
kilometers to get to where the water is not yet contaminated or fianlmente has dried. The advertising campaigns that were made when the coca-cola plant reached this community were so effective that the Tzotzil Indians introduced Coca-Cola to their customs since the commercials were made in local languages and some of the natives attribute it to the drink healing properties.
In response to this humanitarian and ecological crisis that is being experienced, FEMSA began by proposing drinking fountains in schools, which was never developed, and later, in conjunction with a non-profit organization "Pro-Natura Sur" as a measure of legitimacy and altruism with the population, decided to make a water purification plant that would supply five hundred families in the area, Coca-Cola made a donation of 40 million USD to begin the construction of the plant that would occupy more than 4 hectares within the wetland that has a polygon of 12 thousand 831 square meters.
The inhabitants, already in constant disagreement with the existence of the company in their municipality, made protests that forced the company to stop the construction under the arguments that the water treatment plant will not be enough for the growing demand, that they will not to allow atone for their sins to FEMSA with that construction since the government has to take responsibility for the shortages of goods and services and that in the end it is not necessary to make an artificial wetland within a natural one that is being contaminated by the multinational.
The political forces are always important when implementing new sustainable policies, the measures taken must be consistent due to the common clash between the environmental objectives and the profitability objectives, the projects have to be highly localized and visualize the importance of including aspects such as physical, social, institutional, political, economic, and cultural factors; FEMSA failed to implement this social measure because, in the first instance, they took it as a corrector and did not integrate it as an important factor from the beginning. they never thought that the community was going to end up being in disagreement with the solutions, which was not a surprise since they did not publicly survey the inhabitants, so they ended up having an angry community that does not want them in their land, a big investment lost and a bad public image.
On the other hand, we have the supermarket company Soriana, which in the state of Tamaulipas have invested millions in recent years to create clean energy, its last and fourth wind farm had an
After his scandal in 2000 this purchase was going to provide a good image, since it was handmade, familiar, organic, even the name: “Green and Black” tells you about how it involves the ecology while suggesting that it is of excellent quality and all that was just what they needed after the terrible scandals in which they had been involved.
By 2006 the brand was about to be forgotten, even when the terrible mistake of child labor had already been forgotten, the recent epidemic of Salmonella which had caused them to lose more than 20 million, sent them to an abyss, but nevertheless the word of mouth marketing did wonders with a commercial so random that it began to be in the thoughts of the whole world, was a gorilla playing the drums, this simple action managed to make them talk more about gorillas than salmonella and the world forgot the misfortunes in which they had incurred in the past.
Marketing and social networks were great allies for this company because it was one of the first confectionery companies that engages with these means and even after the Salmonella episode they returned to take the sale of the bar that had been extracted for this incident and managed to create expectation with advertising through Facebook, MySpace and interacting in Twitter.
In its shift towards sustainability, Cadbury also committed to fair trade practices that helped them know what went through the value chain, which also allows them to become aware of the social and environmental impact of their processes and not only focus on the economic aspect, this led the brand to take full responsibility for each of the steps taken in the realization of their products.
Some of the brands that have the certification of this organization tend to develop their own programs hand in hand with Fairtrade partnership, Cadbury decided to make its own program, but this time only supervised by the institution, so in 2016 the logo that certifies them change for the back of the chocolate bar what made them publicly accused of fudge, the opinion was not in his favor under the argument that in order for consumers to know if the product that they were purchasing is ethical or is not, the logo of the certification is used for this purpose but if each company begins to make its logo under each of the programs that are created then the people will be confused which can also lead to companies not meeting the minimum requirements.
The program that was developed as part of the partnership with the fair trade organization was called cocoa life sustainability program, which focused on a fair trade with cocoa producers and
their communities, which is estimated that in the United Kingdom five times as much Cadbury chocolate will now be made with sustainably sourced cocoa, which secures a positive future for 200,000 farmers and 1 million community members in six key cocoa growing origins by 2022, with this initiative they expand their commitment to all Cadbury products in the UK and Ireland by 2019, so now all Cadbury products are governed by a single sustainable sourcing program.
Today the benefits that this program has brought are $ 400m investment by 2022, empowering 200,000 farmers and reaching 1 million people in communities in Ghana, Cote d'Ivoire, Indonesia, the Dominican Republic, India and Brazil, farmer income has increased 49% more and cocoa yield increased 37% more in Ghanaian Cocoa Life communities in communities outside the program and investment in more than 795 cocoa farming communities, helping them set and delivering their own tailored action plans that address their needs, whether that's education, healthcare, infrastructure or other priorities.
In a decade the image of Cadbury took a huge turn to find that today is a responsible employer with its consumers and within the value chain, there are no more scandals that leave in judgment the integrity of the brand and the programs that he implemented to improve the conditions in which he carried out his processes have continued to improve and have high goals, the fact that the brand is stable recognized and respected gives the company an unparalleled value for responsible consumers who want to have a quality product and that they are willing to pay to eat something that is ethically produced.
Apart from the clear humanitarian advantages of this project, its value proposition is to be a company that cares, this year the green market is expected to grow by 20% and within the movement the ethical consumption is highly valued, so the company has taken the right decision to begin to look towards a more equitable future.
Domínguez, A. (2019). Ayuntamiento de San Cristóbal de las Casas aceptó que Coca Cola pretenda construir planta de tratamiento en los Humedales María Eugenia. May 3, 2019, de Chiapas paralelo Sitio web: https://www.chiapasparalelo.com/noticias/chiapas/2019/04/ ayuntamiento-de-san-cristobal-de-las-casas-acepto-que-coca-cola-pretenda-construir-planta-de- tratamiento-en-los-humedales-maria-eugenia/
