By; E. te Grotenhuis
Today I want to talk about something what most businesses do not want to show if they are not good in it. Something that will decrease their brand value if the company does not manage it will. The subject of today’s blog is about social responsibility. To understand the problem better the Fanta brand will be used for a small analysis.
So first things first, as most know Fanta is a soda drink which is part of the Coca-Cola Company portfolio. The drink is successfully positioned in the market. The logo of Fanta is ranked as one of the most familiar in the world. Probably because it is one of the most consumed beverages. As a brand is the most important asset a company has, founders invest a lot of money into it. Money such as; advertisements, slogans, packaging. Every aspect what will help a consumer to convince that it is the best product to buy.
In addition, a successful brand has loyal customers, which result in higher sales and a higher market value. In a world where social responsibility is growing, it is important that companies follow these unwritten rules. Research showed that the management of society and environment has a positive effect on the long term value of a brand.
Most people buy the product, because they were already convinced by the company’s tactics. Most people, also me, do not look into the achievements of the social responsibilities of a company. That is why Oxfam published a website with i
nformation about these achievements. Oxfam use this way to encourage
Fanta to do better at the social responsibility ladder. To push the brands to change policies where it is necessary. Oxfam knows that a bad image will influence the perception of the consumers, which will result in lower sales of course.
On the website Fanta scores now 57% in total. This number is composed by watching the scores in the following categories; land rights, women, farmers, labourers, climate, transparency and water. In my opinion the score is pretty low, this is mostly because of their scores in the category farmers and transparency.
After launching this campaign Fanta, and thus Coca-Cola, changed a lot. The company changed their policies against issues like; hunger, poverty and women’s rights. These changes are kind of slow, and it could go faster. Especially when you take into account that it is a multibillion company. As well that the company states on their website that; “we aim to lead by example and to learn from experience”. The company has started to have the right intentions, however they do not totally focus on it yet.
The companies are changing their perspectives. However it is necessary that we all build on a better world. So it is important that more consumers will raise their voices. In this way companies will change, and the “just-enough” 60% can be changed in a grade we are all proud of!
- Farooq, O. (2015). Corporate Social Resonsibility Policy and Brand Value. The Journal of Applied Business Research.
- (2014, februari 26). http://www.behindthebrands.org. Retrieved from Behind the brands: http://www.behindthebrands.org/~/media/Behind%20the%20Brands%20Year%20One%20Update%20Media%20Briefing%20FEB%2026.ashx