products or service of your chosen organization, and two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale.

De Beers is the world’s famous diamond company, established in 1888, with proficiency in exploration, mining and marketing of diamonds. More than 20,000 employees make contribution to the communities in which we work. De Beers carries out profitable business which helps the government reach their aims of turning natural resources into natural wealth and is working to provide good long-term development for Africa. Anglo American and the Government of the Republic of Botswana are the two shareholders of De Beers, 85% and 15% respectively. This company is made up of fully owned partnerships, investments and subsidiaries. It is involved in most of the diamond chain value such as exploration in four continents, mining in Namibia, Canada, South Africa and Botswana; valuation, arrangement, and sale of rough diamonds to sight holders; sale and marketing of polished diamonds and jewelry to consumer markets and development of synthetic materials for industrial applications (De Beers Group, 2012a).

The external environment of the organization deals with the finding and mining of diamond fields in the stages which are usually carried out by governments, at times in joint-ventures with for example, De Beers. When a reserve is discovered, it is worth to be utilized because the market value of production the raw material, which leads to financial rewards, is very high (De Beers Group, 2012a).

2) Examine three (3) salient stakeholders of the chosen organization based on their key roles and relationship with the company.

De Beers diamond Company has three stakeholders which includes; The Kimberley Process, which is a joint government, industry and civil society initiative to root the flow of rough diamonds which are used by rebellious movements to provide money to war against certain governments (De Beers Group, 2012b).

The second stake holder is Business Action for Africa, which is an international business organization from Africa and supports three basic targets which are, positive influence policies needed for growth and poverty reduction, showcase good business practice and promote a balanced view of Africa. De Beers also encourages continual business to assure long-term developments for Africa and this commitment is declared through their hefty social investment activities in South Africa, Namibia and Botswana (De Beers Group, 2012b).

The third stake holder is Diamond Development Initiative which is a program that seeks to allay poverty amongst more than one million African informal or artisanal, small diamond diggers and their families by characterizing the economies surrounding artisanal diamond mines (De Beers Group, 2012b).

A fair proportion is returned to the continent every year by De Beers. Their approach to feasible development is essential to business and is built by five critical focus areas such as Environment, Communities, Ethics, Employees and Economics. DDI was founded by De Beers with other famous NGO’s as well we the British Government, and the World Bank after being inspired by the cross sector cooperation of the Kimberley Process. It unites governments, NGO’s and the private sector to convert diamonds into an engine for development (De Beers Group, 2012b).

3) Suggest five (5) ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for the response.

Successful marketing of diamonds has been done so they are recognized to be the only way to manifest heartfelt and long lasting devotion and commitment towards others which means that they are given as presents to celebrate weddings, births, anniversaries and hold a unique place in hierarchy of jewelry and there are no replacements for them. To some limit, jewelry such as platinum, silver and gold are surrogates but they are all integral products as often diamonds are placed on top of gold and silver in their final form jewelry used by consumers (Durnovich, 2014). Synthetic diamonds are produced on a large scale, but a lot of them i.e. 3 billion carats, are mostly used for industrial use. With some few thousand carats of gem quality synthetic diamonds which are being produced each year, against production of 120 million carats of natural diamonds. Because there are very few non-clear natural diamonds being produced annually, synthetic diamonds being produced for the jewelry industry are mostly colored to meet the demands of the consumers for colored gems and because they have very less surrogates, diamonds are flexible products (Durnovich, 2014). De Beers have managed to attach an emotional value to diamond jewelry, thus ensuring it is a necessity for every marriage proposal, as well as a host of other distinctive occasions such as anniversaries and birthdays. Today diamonds are perceived to be the ultimate way to demonstrate enduring love and devotion and as such consumers are willing, and expect to pay a high premium for such a gift (Bieri and Boli, 2011).

De Beers has been successful to attach an emotional value to diamond jewelry, ultimately ensuring it as a requirement for every marriage proposal and also as a host of other special occasions such as birthdays and anniversaries. In the present day, diamonds are seen as the only way to exhibit enduring love and devotion and customers are willing and expecting to pay a high price for such a gift. This determines that there has been an increase in the demand for diamonds during the 20 thcentury while prices increased heedlessly during that era (Bieri and Boli, 2011). Ever since the discovery of the diamond fields in South Africa in the 1870’s, production has consistently risen over time and now an acquired total of 4.5 billion carats have been minded since then. 20% of that amount has been determined in the last five years itself. The increased global need for diamonds is very large and owes it to the marketing enterprise of the De Beers group. As mentioned before, De Beers, from 1930 onwards, handled the increasing consumer demand by presenting diamonds as the only product of love and devotion, which lead to the diamond ring being necessary for marriage proposals. It also came up with a motto “Diamonds are forever” to bestow stones with sentimental value. This concluded in a very small amount of diamonds being sold privately by people as the public owns more than five hundred million carats of gem diamonds which is more than fifty times the number produced by the diamond corporation. There is no decrease in the demand for brand new diamonds from high street jewelers because of this. Globalizing consumer markets for diamonds is another thing which De Beers should be credited for. This successfully increased demand for diamond jewelry in countries which include Japan, Brazil and Germany. De Beers altered marketing campaigns to construct a demand for numerous small diamonds set on a single piece of jewelry instead of just one large stone, after Russia began to produce large amounts of rough diamonds that were small in size in 1960’s. These steps by De Beers lead to the demand of creating small stones to match the supply. This global decline is resulting in the demand for diamonds to go down fiercely. De Beers has had absolute control of the market and has been able to preserve the high price because of which diamond is seen as an abiding exclusivity and luxury (Claasen and Roloff, 2012).

4) Specify one (1) controversial corporate social responsibility concern associated with your selected organization.

At one time, De Beers Diamond Company was considered to be a fighting diamond that was worth 1.2 billion dollars which drifted to the market globally due to the 1990s civil war in Sierra Leone and Angola. With the fear of losing the competitive advantage, De Beers Diamond felt it necessary to buy the diamonds which were in new supply. De Beers were accused of blood on their hands and the new purchase of the diamonds resulted in disaster in public relations. The United Nations also under the pressure of campaigns and boycotts set sanctions on the diamonds (Saunders, 2000).

5) Assuming you are the leader of the most influential stakeholder group, outline a plan to form a stakeholder coalition to force the organization to address your chosen controversial issue. The plan should include the key steps that you would take to identify membersfor your coalition group, the major reasons why you believe that the particular target group can help you to accomplish your goal, and the method you would utilize to foster collaboration among the various groups you target.

In 2000, De Beers in order to redeem the PR image that had worsened and to re-store people’s trust in their brand started Kimberly Process in which seventy industries devoted a stern process of certification to the industry for a lawful diamond origin. This process has been in use since 2003 and has also decreased the amount of conflict diamonds to a global production of less than one percent. Apart from that, De Beers also extended health insurances to the workers who were HIV positive and to their families in Namibia, Botswana and South Africa and they became the first company to do so. It is important for De Beers to focus on their footprints in the environment in the operations that they perform. The main operations of De Beer have been certified. In order to create an opportunity to make a product that is different from everyone else’s, the company is also developing a brand of luxury goods and diamonds (Reilly, 2004). It also created a joint venture with successful companies in LVMH in 2001 and also opened a store in Tokyo by the name of De Beers LV. It was very frustrating for the company to open the stores in the U.S.A. which they strongly desired because the U.S. government put a ban on their business due to the alleged violations and mistrust (Business Write, 2003).

De Beers is one of the most reputed company with an immense amount of experience in adapting to the different environments, however, despite all their advantages, the market share of the company is reducing due to other competitors in the market and the interference by the government with demands of expenditure. The company De Beers had been a leader in price for a lot of years even though its monopolistic market position makes them no threat to other companies. In order to build a new brand and create and adapt to a more diverse market, De Beers have opened luxury stores in New York which has become a positive sign for the company for some years because the public buys directly from the store (Reilly, 2004).

6) Assume the role as the leader of the most influential stakeholder group, and indicate three (3) potential challenges that you may face in encouraging stakeholders to form a coalition to help you achieve your goals. Suggest the significant steps that you would take in order to overcome these challenges that you have identified. Justify the response.

The company De Beers Group/Coalition is solely responsible for the high price in the market due to which the supply is restricted and aimed towards the increase in demand. Looking back at the development of De Beers and their involvement in the development of the industry of diamond, they were in a very limited amount and were found solely in the Brazilian jungles and Indian River beds. Those diamonds were also cherished by the nobility only and cost a fortune. A large number of diamond reserves were found in South Africa in 1970 after which the idea of the diamonds becoming available widely was formed. Due to the lack of proper equipment, the individual miners of production levels were restricted and the local businesses gave them expensive equipment at rent to do the work. Cecil Rhodes was one such businessman who started buying claims of diamond mines production. De Beer was set up by him in 1887 and it had by that time owned the right to every mine in the South African territory. The company initially was able to establish full control in the country because (Reilly, 2004):

The color bar was supported by the government at that time which allowed racial discrimination to take place between non-white and white and this offered a lot of advantages of labour employment, and (Reilly, 2004),

A market that was free virtually in order to register and acquire claims.

Moreover the company was in control and had power over all the channels of distribution which allowed them to administer the levels of supply and command the cost of the rough diamonds that were created in South Africa. De Beers, it was clear, was in control of everything n the country and enjoyed being the center of attention of their phenomenal success of the industry of diamonds. It was also clear that De Beers enjoyed the profits which were also being relished by the investors of the company. The company was clearly gaining profit from the operations being performed by their group and they also knew that the diamond industry being profitable was in their best interests as well as their investors. They also contended to make sure that every party from production and mining to the retailers was satisfied (Reilly, 2004).

De Beers for many years had guaranteed the producers with a balanced tide of the foreign currency and the prices were stable by the dealers which were transferred very easy to the consumers. However in the years since the cartel broke up a lot of restricted but important changes have been detected in the diamond industry’s structure. The distribution and production have been spread evenly in the market but it is not under a very noticeable pressure and is static. According to the consumers and the retailers, there have not been any large changes in the diamonds supply which is still restricted and in line with the demand in which the per year production has increase to a double along with high demand of the consumers. This has in return led to much higher prices of the diamond (Reilly, 2004).

Part 2:

1. Specify, in brief, the nature, structure, types of products or service of the business you selected. Examine the information within the company’s code of ethical conduct, and choose three (3) key issues from within the document that you believe are critical for success. Provide a rationale for the response.

One of the world’s largest companies of beverages is the Coca Cola Company which also has twelve other billion dollar brands under its belt namely Minute Maid, Powerade Vitamin water, Coca Cola Zero, Sprite, Fanta, and Diet Coke. The Company is number one in providing ready to drink coffees and teas and also provides juices, drinks and beverages. It sold around 24.4 billion beverage cases in 2009 globally and generated 8.2 billion dollar flow of cash from it. Coca Cola also has the largest system of distribution in the world with around 300 local retailers and bottling partners and their customers in more than 200 countries with daily 1.6 billion servings rate (Coca-Cola 2009, Annual Review).

Coca Cola as a part of its planning made a 2020 Vision in which 6 main areas like productivity, portfolio, partners, profit and people are discussed (Coca-Cola corporate website 2010). This will make sure that the company remains the top in the world. Coca Cola started a Live Positively manta for the sustainability ad managing and measuring their use of water which makes then think as a whole and take sustainable actions through accountability and transparent work (Coca-Cola 2009, Annual Review).

The Sustainability Review of 2008 and 2009 of the company focuses on energy and climate protection, sustainable packaging and water stewardship. They have set their targets for reducing recycling, reusing, carbon emissions and refilling the water that is used in the production of the beverages. The goals of Coca Cola include water efficiency improvement by 20 per cent by 2012, and achieving a status of being ‘water neutral’ by 2020. The company in 2009 increase the ratio of water efficiency to 2.43 liters for the production of 1 liter beverage and it has participated in a lot of community water partnerships globally to provide the communities with safe drinking water (Coca-Cola 2008/2009, Sustainability Review).

Using the three (3) key issues you selected as a benchmark, compare and contrast the codes of conduct of two (2) similar companies within the same industry as your chosen company.

First Company – Coca Cola

The Sustainability Review of 2008 and 2009 of the company focuses on energy and climate protection, sustainable packaging and water stewardship. They have set their targets for reducing recycling, reusing, carbon emissions and refilling the water that is used in the production of the beverages. The goals of Coca Cola include water efficiency improvement by 20 per cent by 2012, and achieving a status of being ‘water neutral’ by 2020. The company in 2009 increase the ratio of water efficiency to 2.43 liters for the production of 1 liter beverage and it has participated in a lot of community water partnerships globally to provide the communities with safe drinking water (Coca-Cola 2008/2009, Sustainability Review).

Second Company – Pepsi Co.

PepsiCo is also making way towards the sustainability stance and unveiled ‘Performance and Purpose’ as their new mantra. The company stated fifteen global commitments and goals which emphasized on water operations and packaging, energy, efficient land use, and protection of the natural resources by innovation. It has also set 2015 target of sustainability which include water efficiency improvement by 20 per cent in return providing 3 million people with safe water to drink and reducing the electricity usage and greenhouse gases by 25 per cent. The company has also planned to use potato peelings for their crisp packaging and announced in 2010 to reduce carbon emissions and water usage to train and fund farmers (Pepsico 2010). Pepsi has also developed a crop management tool which is web based and called i-crop, to help the farmers calculate carbon emissions and water use.

2. Examine the extent to which the two (2) similar companies you researched have addressed the key issues you selected. Hypothesize two (2) potential positive outcomes for each company if each addresses the key issues in question and two (2) potential adverse effects if each company fails to address these issues.

The company has created strong business for its continuity as it’s a main drink. Seeing the Coca-Cola’s international scale, the cutback in materials, water, fuel and an increase in recycling across its value chain will save money which is why they have started using light weight packaging and has caused a wave in its paleting, shipping, production and conveying. This sustainability objective caused the company to refine its operations for better control over systems and development. It is obvious that sustainability endeavors offer more than environmental assets from more productive operations to strong employee commitment across the Coca-Cola System.Coca-Cola has a crucial 10-year vision which includes achieving a water neutral position by 2020. Its sustainability efforts are pushed by short-term targets for e.g. water efficiency by 20% and carbon ejections by 5% by 2012.The Company aspires to alleviate business risks and create value through water leadership and has cast a long-term business case for continuity. The long-term aim of Coca-Cola is to become sustainable regarding water management and more volatile in terms of water resource availability. It has also committed itself to present the sustainability report on the basis of global report initiatives G3 guidelines.

The company has overall achieved a business framework of 3.5.In terms of strategy; Pepsi is clearly ahead of Coca-Cola however Coca-Cola is addressing a better strategy on water stewardship. With similarities regarding packaging and recycling Pepsi uses 10% of recycled material in their products while Coca-Cola is testing 30% plant-based bottles and have also been more active with NGO’s regarding its water strategy. By working closely with growers to implement continuous agricultural methods, Coca-Cola has boosted its water management and can have the highest impact on lessening water footprint. It has aimed to increase is water efficiency by 2012 up to 20%. Efforts like re-engineering, recycling and harvesting rainwater are being performed to help the people have access to clean water.

3. Propose two (2) techniques that the original company you selected could use in order to ensure that its code of conduct will remain relevant through years of changing economic, political, social, cultural, and technological forces on business and society. Next, evaluate the effectiveness of two (2) methods that the company currently adopts in order to manage environment issues.

The element of sustainability will remain an important one in the future for Coca Cola. The corruption of water would be reduced if the government and private businesses join hands together. In near future, the prices of water could increase in India and China due to its scarcity. Agriculture being a fundamental solution, Coca cola should also work on the agriculture strategy and the NGOs, government, communities and business should collaboratively work to solve the crisis of water.

Coca Cola and Environment Issues

Sustainability has been embedded in the corporate culture of Coca Cola to make sure about the company’s goal of sustainability as its future depends on their reputation of being a caring corporate and production of safe water for its beverages. The growth of Coca Cola is expected to increase in India, Brazil and China where there is danger of water scarcity, so the Company should work with the locals, communities and governments for the availability of water resources. The company along with WWF is working on plans for Water Protection because Coca Cola requires water for its beverages and the in the future, their water use is likely to grow up.

The company is working on its energy usage as well and per each liter it used 0.46MJ of energy and also replaced around forty thousand former coolers with HFC and Carbon dioxide free vending machines and coolers and grew their energy by 50 per cent. Coca Cola is also working to reduce carbon greenhouse gas emissions by 5% till 2015. It partnered with Carbon Trust in UK to evaluate the carbon emissions of its main beverages. The carbon emissions in packaging are 24.5 per cent and 24.5 in refrigeration (Coca-Cola 2008/2009, Sustainability Review).

Coca Cola also opened a recycling plant that would produce plastic bottles and also decreased the material amount used in making the bottles of the beverages which was known to be light weighting. The Plant Bottle introduced by Coca Cola is 100 per cent recyclable and is created from thirty percent materials that are plant based (Coca-Cola 2008/2009, Sustainability Review).

4. Examine two (2) approaches that the original company you selected has taken in order to embrace technological advancements for innovation and thus improve business offerings. Anticipate three (3) potential technological challenges the company could face, and recommend one (1) strategy that the company could use in order to eliminate or minimize each of these anticipated challenges.

Coca Cola in its 2020 Vision has committed to reduce the use of water and focuses on areas that would reduce the ratio of water, recycle the used water in the operations of the company and refill the water through the restoration programs and water access of community. The company is also working to improve the efficiency of water by twenty per cent to gain the water neutral status while working with WWF. By being water neutral, the company would reduce the amount of water used in their operations to nil and also restore the remaining water through the efforts of the community (Coca-Cola corporate website 2010).

More than 2.8 billion people by 2025 would be living in the countries facing water shortage and with the increase in population; the shortage will continue to increase (USAID 2009). Tony Allen the economist stated that reducing poverty will reduce water shortage (Pearce 2008). People who are poor are facing the maximum shortage of water because money can deliver water at any time so the company is doing efforts in Africa and other countries to close the gap of equity and provide the people with safe and healthy drinking water.

The under-valued pricing of water and the water management’s enforceable regulation can be a major reason for the overuse of water. The government need to play a major part in this while the Coca Cola Company should keep on working to achieve the 2020 target of water neutral. This requires partnership of different communities, governments and businesses to make sure that the demands of the future are met. The strict regulations of the government can also help to reduce the waste and use of water. The Company on the other hand is clear on their water management stance that can lead to profits and social advantages.

Another challenge is that certain businesses are not being regulated over their use and waste of water because of which they are not held responsible for their actions. A lot of the companies have made their stance of water management and other principles and in addition to that a figure of virtual water should also be promoted to increase the awareness of the customers. A water certification should be developed by ISO to help the companies strengthen their reputation and reduce green washing.

5. Specify at least one (1) one lobbying strategy that the original company you selected has used in an effort to influence national or local government decisions in its favor. Summarize the issue in question, and ascertain whether or not the lobbying effort was appropriate. Justify the response.

Coca Cola in 2008 amended their risk assessments and changed it to be a requirement system wide that their water source be assessed by the quantity and quality of bottling plants and also to work with local government and civil societies to put in uses a plan of water protection by 2013. For this, the company lobbied a lot to make sure that the government of different countries gives a positive sign to the water protection plan of Coca Cola which talks about the government management abilities, hydro-logical vulnerabilities and difficult challenges faced by the community watershed. This will give a chance to the Company to take several steps work on the issues of water (Coca-Cola 2008/2009, Sustainability Review).

Coca Cola in 2009 took a lead position in the water management and earned itself a position in Dow Jones Sustainability Index. It is also working on its sustainability target to decrease the carbon emissions with their key concentration on water stewardship and making a better environment of the workplace. The company is approaching the water sustainability by partnering with communities, NGOs and governments. It has been clear that Coca Cola is working actively to improve the availability of water in scarce areas and improve its quality as well and decreasing the footprints of water of beverages of the company.

6. Analyze two (2) global corporate citizenship efforts of the original company you selected, and assess the extent to which these efforts are effective in accomplishing the company’s goals. Examine the manner in which the two (2) global citizenship efforts could contribute significantly to the company’s sustainable development goals.

Coca Cola Israel community programs in 2004 changed their direction and focus with response to the instructions of their Atlanta headquarters. The developed a marketing department to talk about the crisis of sales throughout the world. Coca Cola believed that the reasons for these crisis was the increasing awareness of the public regarding the beverages being a harm to nutrition and health and the high sugar level in them being the reason of obesity worldwide (Herrick, 2009). Sustainability scheme was designed by Coca Cola in response to improve their brand image and also committed to promote different solutions globally to the negative health related modern lifestyle side effects (Coca-Cola, 2011). This was called the Active and Healthy Lifestyle and included elements like an enormous launch of health related community interactive projects which would visibly and directly promote physical activity and nutritional education; the product labels would have nutritional information as a new transparency policy and enhancement of the products of Coca Cola to a variety of other products like water, energy drinks, juices and diet beverages (Barkay, 2013).

This particular action of AHL worked to bring together two goals of the organization at the same time: enhancing the brand’s nutritional value by establishing community programs and show the firm’s investment in practices that are socially responsible. So CSR was seen to be a commercial value firm and a better platform for working on the problems like confidence of the investors, trust of the consumers, reputation and re-branding. The community program in this regard has indicated a strategic community engagement from old philanthropy (Austin 2000).

The collaboration of branding and marketing concerns and social responsibility highly affected the community interactive programs of the company in Israel. The headquarters in Atlanta also planned the AHL to provide the guidelines to implement it as a global strategy and make it work in the regional and national bottling companies globally. This required the plan to nourish actively between the collaboration of communities and company but it was up to the local branches to think about the details and work out the suitable ways to fulfill the goals stated (Barkay, 2013).

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