Analysis of a Publicly Traded Company
Analysis of a Publicly Traded Company
Scenario
You are an analyst for an investment firm that operates the Global Pioneer Fund, a collection of publicly traded stocks featuring companies with outstanding track records in the areas of ethics, social responsibility, and global stewardship. The fund’s chief analyst has asked you to research the Coca-Cola Company’s financial filings and other annual reports to help decide if the fund should invest in Coca-Cola shares next year.
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· Based on your research, write an analyst report that analyzes the company’s information and provides specific examples that describe the company’s ethics, social responsibility programs, and commitment to global stewardship and development. Include a brief recommendation that is supported by the evidence collected as to inclusion of Coca Cola in the Global Pioneer Fund. What concerns, if any, would you have about including Coca-Cola shares in the fund? (450–750 words)
Your Response
Maximizing shareholder value has been the main goal of many companies. However, in recent years, companies have realized that customers and investors are more concerned with companies’ reputation especially their corporate social responsibility and sustainability. Commitment to global stewardship and development, social responsibility and ethics have become many companies’ focus. The Coca Cola Company is among the leading companies when it comes to corporate social responsibility. The company started this concept in the following main areas: active, healthy living, energy and climate, the community, beverage benefits, the workplace, water stewardship, and sustainable packaging (The Coca-Cola Company, 2017). The company has also adopted various international guidelines on corporate social responsibility like the Respect and Remedy framework, and Global Compact into its conduct.
The company focuses on conserving the environment by using materials that are recyclable. In 2009, the Coca Cola Company launched Plant Bottle becoming the first PET plastic bottle globally that is fully recyclable. Plant Bottle packaging account for approximately 7 percent of the company’s packaging volume globally and 30 percent in North America. Coca-Cola Company makes the PET plastic bottles from sugar and plant matter material hence reducing CO2 emissions. Coca-Cola is investing in more technology that will enable the company to utilize recycled material more in packaging. In 2018, the company announced its intentions to expand the access to the IP for the Plant Bottle (Moye, 2019). One of the goals of the company is to push innovation to chemical recycling and packaging design.
Since its start, the Coca Cola Company has given back over one billion dollars to promote local communities sustainability all over the world through The Coca-Cola Foundation. This is the company’s main philanthropic arm internationally. The company has committed itself to give back 1% of each previous year’s operating income through company donations and this foundation. In 2017, the company gave back over 138 million dollars to benefit almost 300 organizations across over seventy territories and countries (The Coca-Cola Company, n.d). The priority areas of the company include protecting the environment, empowering women and enhancing communities.
The Coca Cola Company uses the advertising platforms to promote and celebrate its values. It celebrates unity especially when there is cultural division. It reminds it customer about togetherness. For instance, in a spot named: A Coke is a Coke”, the company highlight that Coca-Cola is for everyone. In the ad, the animated characters represent people in various walks of life. This is an expression of the company’s values (Moye, 2019).
The discussed examples above are simply some of Coca-Cola’s main programs that promote corporate social responsibility, its values, and ethics. The company has numerous programs set to promote sustainability, company ethics and values, and its commitment to global development and stewardship. It has an outstanding record in social responsibility, ethics, and global stewardship and I would recommend the fund to invest in the company.
References
Moye, J. (2019, Jan 25). Coca-Cola CEO at Davos: Collection and Recycling Key to Driving Circular Plastics Economy. Retrieved from: https://www.coca-colacompany.com/stories/coca-cola-ceo-at-davos-collection-and-recycling-key-to-driving-circular-plastics-economy
Moye, J. (2019, Jan 24). Together is Beautiful: Coca-Cola Uses Big Game to Celebrate Unity and Diversity in Both its Advertising and Hometown. Retrieved from:
The Coca-Cola Company. (2017). 2017 Sustainability Report. Retrieved from: https://www.coca-colacompany.com/2017-sustainability-report
The Coca-Cola Company. (n.d). The Coca-Cola Foundation. Retrieved from:
https://www.coca-colacompany.com/our-company/the-coca-cola-foundation
Rubric
| 0
Not Present |
1
Needs Improvement |
2
Meets Expectations |
3
Exceeds Expectations |
|
| Sub-Competency 2: Analyze annual reports and other credible sources to outline a publicly traded company’s ethics practices from a financial point of view. | ||||
| Learning Objective 2.1:
Identify a publicly traded company’s ethics practices. |
Identification of a publicly traded company’s ethics practices is missing. | Identification does not include three specific examples.
Identification does not include examples from the annual reports and one other credible source. |
Identification includes at least three specific examples from a credible source.
Identification includes examples from the annual reports and at least one other credible source. |
Response demonstrates the same level of achievement as “2,” plus the following:
Identification includes more than three specific examples.
Identification includes examples from more than two credible sources. |
| Learning Objective 2.2:
Analyze a publicly traded company’s ethics practices from a financial point of view. |
Analysis of a company’s ethics practices from a financial point of view is missing. | Analysis does not include a recommendation that is supported by the evidence.
Analysis does not make reference to potential concerns.
Analysis does not connect the company’s practices to the interests of shareholders. |
Analysis includes a recommendation that is supported by the evidence.
Analysis references potential concerns and cites them, if any.
Analysis connects the company’s practices to the interests of shareholders. |
Response demonstrates the same level of achievement as “2,” plus the following:
Analysis links ethics practices to positive impacts at the local, national, and/or global level.
Analysis links ethics practices to positive impacts on employee recruiting, satisfaction, and retention. |
| Sub-Competency 3: Analyze annual reports and other credible sources to outline a publicly traded company’s social responsibility programs from a financial point of view. | ||||
| Learning Objective 3.1:
Identify a publicly traded company’s social responsibility programs. |
Identification of a company’s social responsibility programs is missing. | Identification does not include three specific examples.
Identification does not include examples from the annual reports and one other credible source. |
Identification includes at least three specific examples.
Identification includes examples from the annual reports and at least one other credible source.
|
Response demonstrates the same level of achievement as “2,” plus the following:
Identification includes more than three specific examples.
Identification includes examples from more than two credible sources. |
| Learning Objective 3.2:
Analyze a publicly traded company’s social responsibility programs from a financial point of view. |
Analysis of a company’s social responsibility programs from a financial point of view is missing. | Analysis does not include a recommendation that is supported by the evidence.
Analysis does not make reference to potential concerns.
Analysis does not connect the company’s practices to the interests of shareholders. |
Analysis includes a recommendation that is supported by the evidence.
Analysis references potential concerns and cites them, if any.
Analysis connects the company’s practices to the interests of shareholders. |
Response demonstrates the same level of achievement as “2,” plus the following:
Analysis links social responsibility programs to positive impacts at the local, national, and/or global level.
Analysis links social responsibility programs to positive impacts on employee recruiting, satisfaction, and retention. |
| Sub-Competency 4: Analyze annual reports and other credible sources to outline a publicly traded company’s global influence from a financial point of view. | ||||
| Learning Objective 4.1:
Identify a publicly traded company’s global influence. |
Identification of a publicly traded company’s global influence is missing. | Identification does not include three specific examples.
Identification does not include examples from the annual reports and one other credible source. |
Identification includes at least three specific examples.
Identification includes examples from the annual reports and at least one other credible source.
|
Response demonstrates the same level of achievement as “2,” plus the following:
Identification includes more than three specific examples.
Identification includes examples from more than two credible sources. |
| Learning Objective 4.2:
Analyze a publicly traded company’s global influence from a financial point of view. |
Analysis of a publicly traded company’s global influence from a financial point of view is missing. | Analysis does not include a recommendation that is supported by the evidence.
Analysis does not make reference to potential concerns.
Analysis does not connect the company’s practices to the interests of shareholders. |
Analysis includes a recommendation that is supported by the evidence.
Analysis references potential concerns and cites them, if any.
Analysis connects the company’s practices to the interests of shareholders. |
Response demonstrates the same level of achievement as “2,” plus the following:
Analysis links global influence to positive impacts at the local, national, and/or global level.
Analysis links global influence to positive impacts on employee recruiting, satisfaction, and retention. |