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COMPARING SUSTAINABILITY REPORTS 2
Introduction
Coke and Pepsi companies have been perennial competitors since their inception, each
having the quest of controlling huge market share within the United States and other parts of the
world (Hillman, 2009). Each of the companies has implemented strategic frameworks to retain a
competitive edge. However, some of the strategies are similar. For instance, since the year 2000,
enhance sustainability of the companies. Consequently, both companies ventured into bottled
water, juices, and a number of tea variants. Some of the brands that Pepsi developed included
Aquafina for water while Coke introduced Dasani. Secondly, the companies ventured heavily in
advertising campaigns. Overtime, Coke has been advertising using lifestyle promotion while Pepsi
has been using sports celebrity as the advertising strategy. Finally, both companies considered the
possibility of having concentrate suppliers from other parts of the world, especially in Asia. This
was aimed at ensuring that the market for carbonated soft drinks remained outside the United States
Insofar as the sustainability reporting of Coca-Cola and Pepsi is concerned, the two
nations, most of the companies share inadequate information in their reports. Also, the content and
extent of sustainability reporting varies in the tow companies, meaning that the sustainability
efforts of the two companies vary. Therefore, the aim of this paper is to compare the sustainability
reports Coca-Cola and Pepsi. The paper focuses on soft drinks companies that report their
reporting refers to the open reports provided by firms giving external and internal stakeholders the
clear overview of corporate situation on operations regarding environmental, social, and economic
industry, company, sector, national, and international levels. There is variation in disclosures for
diverse segments and environmental reporting. Developing countries are still behind when it
comes to research concerning sustainability reporting since majority of the researches are done in
developed nations. Therefore, there is need to carry out more studies in the perspective of non-
Pepsi and Coca-Cola are the main rivals within the beverage and food business. The two
companies produce the sustainable report with almost comparable standard and content.
Nevertheless, Coca-Cola delivers a comprehensive and more complete report as compared to Pepsi
environment and social for creating a sustainable future, business growth, and transforming the
society through changes peoples’ lives. The company believes that changing peoples’ live styles
and making them to live positively is the greatest means of establishing a sustainable globe that
comprise seven key aspects in sustainable matters. While, Pepsi’s objective is to put in place
is based on the environmental, and human ability. The area concern and objective the investors are
more wide-ranging as compared to Coca-Cola. For the target environment, Coca-cola states the
attained objectives from the past years in the report. Though the company only shows the attained
objectives and hides unattained goals. Coca-Cola provides the information for stakeholders to get
the clear of what it has successfully achieved in regards to sustainability (Gertner and Rifkin,
2017).
To survive the volatility of the current market situation, there is a dire need to invest in
intensive market research. This will be instrumental in ensuring that the market trends and
consumer preferences are captured and addressed appropriately by the cola companies.
Additionally, it will be imperative for the companies to consider innovations that tailor various
blends of concentrates to fit the taste of the consumers especially in the wake of globalization. This
could include venturing into manufacture of energy drinks, using alternative sweeteners, and
introducing diet sodas while maintaining corporate branding strategies. However, this should be
done dependent on the preferences of the local market rather than implementing it as one global
package. On the same breadth, the companies could consider rebranding in order to rejuvenate
their images and enhance global brand recognition (Roy and Sarkar, 2015). For this to take effect
there must be rigorous corresponding advertisement campaigns to sensitive the existing and
Considering the financial muscle of these companies, it is also possible introduce new
manufacturing technologies that could improve on the current production capacity as well as
enhance making of new blends. Additionally, the top management of these corporations need to
remain abreast of the major changes within the external environment to make the necessary
strategic adjustments. The aspects of external environment to consider may include political,
COMPARING SUSTAINABILITY REPORTS 5
economic conditions. This will not only be beneficial to the concentrate producers but also to the
associated bottlers. Finally, companies ought to relook into the internationalization strategies,
especially Pepsi since it is heavily dependent on the U.S. market (Azuayi, 2016).
Derdiyok, 2018). Coca-Cola has developed seven key aspects in sustainability that are more
specific as compared to those of Pepsi. The objectives and timeframe are evidently stated in the
report. The GRI has the mandate to work as an international standard. The BECO Verification
Statement and Board of Directors give the report in noble principles of global standards and social
account. Pepsi Company concerning social accounting is more comprehensive as compared Coca-
Cola. The objective of Pepsi is simply to attain the sustainable development. Pepsi is inferior o
environmental talent, and human sustainability. Similarly, the past objects and GRI report are not
revealed in the report. Sustainability actions and objectives are put in place as a long-term plan
The marketing mix of both Coca-Cola and Pepsi are very similar in nature as they are two of the
world’s leading soda beverage providers. Both brands have different strategies in the way that they
attract the customers that they wish to attract and retain by a number of means. Being aware of
consumer views regarding product differentiation have for sustainability decisions such as product
positioning, pricing policies, and consumer segmentation. The products offered by these firms are
alike but different in appearance, price, and taste. These aspects are cantered the demand for the
COMPARING SUSTAINABILITY REPORTS 6
products and goods being sold. Coca-Cola is more global than Pepsi, and the brand has indeed
taken advantage of that. Their marketing has been consistent, and therefore it is at a different
Coca-Cola and Pepsi have created numerous measures that aim at attaining a sustainable
setting. For example, Coca-Cola has taken an exceptional attention to protect the water sources
which sustain the society. The company also has a vested business that aims at preserving and
improving the sources of the local water. On the other hand, Pepsi has taken the approach of
participating in the global sustainability initiatives and also connecting the social responsibility
issues with the businesses. Lastly, Coca-Cola has been involved in sustainable management
through engagement in the community activities, environmental footprint and also the running of
Coca-Cola, in its report shows the care offered to the stakeholders and the general public.
Coca-Cola has invested a lot of funds to help create and preserve vibrant and sustainable
stakeholder base. The report gives the stakeholders an overview to perceive the company’s
concerns and effort regarding their interests and the general public. It employs its sustainability
report to function as a guideline for each business activity. Subsequent to evaluating stakeholders’
main concerns including human rights, lively healthy living, product, ingredient safety, water
stewardship and packaging, the company places these concerns into the value chains. Regarding
about human rights, the offers inclusive and safe workplaces for its employees. As a result, the
employees’ satisfaction rise, creating more value for the firm. Coca-Cola has invested much in the
COMPARING SUSTAINABILITY REPORTS 7
society worldwide, since the company believes that when the society is sustainable and healthy,
sustainability. The quality of products can be expressively affected by using chemicals and
additives. Therefore, the solutions to those concerns raised by the stakeholders have been offered
in the sustainability report. In the report, minimization, recycling of residuals, and safe handling
have been clarified. Similarly Risk Management Plan has been instigated by the company to
protect some of the company stakeholders against some threats. Also, the stakeholder are able to
get the information required from company’s sustainability report (Kayabas, Boyraz and Derdiyok,
2018).
Coca-Cola has superior intangible and tangible resources. Its commodities involve
flexibility, responsiveness, and quality. Also, the Coca-Cola’s brand equity and human capital
create loyalty, performance, and long-term value (Taylor et al., 2010). These are actually the
company’s key assets, where the firm has placed its sustainable competitive edge. Its assets enable
it to outdo its rivals constantly due to being internationally recognized, innovative, and coherent.
PepsiCo is committed to increasing its water use efficiency. It also promised to use more
recycled material in its packaging operations to reduce environmental damage. The company is
committed to counter climate change by improving electricity use efficiency, reducing the fuel
used, reducing the greenhouse gas emissions from its operations, and applying on its farmed lands
agricultural practices that proved to be sustainable. These activities increase buyer patronage,
COMPARING SUSTAINABILITY REPORTS 8
reduce the risk of reputation-damaging incidents, lower costs and enhance employee recruiting
and retention, increase revenue, and impress stakeholders. PepsiCo has redone its commitments
many times over the years in a way to help benefit sustainability while still satisfying consumer
concerns. Every time the firm’s sustainability report is released it has a stronger structure that is
Coca-Cola’s sustainability report has a number of commodities that have not received
approval in the market. The company’s marketing practices of promoting sustainability have not
been successful in some areas. The company has not been able to place the right people at an
appropriate in order to get the advertising and right marketing developments for those commodities
is core to attaining success in the sustainability sector. The setbacks to Coca-Cola include water
scarcity.
PepsiCo is operating on a global basis. The competition between the two is heavy and just
like Coca-Cola, Pepsi drinks are available in almost every nation, in almost every food and drink
store. Although fulfilling a similar position as Coca-Cola in their market, PepsiCo has a rough
opponent with Coca-Cola. The past several years, PepsiCo is not as profitable as before and has
more and more trouble with competing with Coca-Cola, also because of the high investments of
GRI report refers to a voluntary form of sustainability report that is prepared by firms which
Coca-Cola and Pepsi and their stakeholders since it offers a prospect to carefully examine
COMPARING SUSTAINABILITY REPORTS 9
performance on daily basis in the social, economic, and environmental areas. Both Coca-Cola
and Pepsi conform to GRI reporting frameworks through the application of the fourth generation
of GRI guidelines. These guidelines are examined and matched in their reports for purposes of
addressing the way they employ GRI report to issue their sustainability approach and where they
In 2011, both Coca-Cola and Pepsi laid strong drive toward their 2020 objective of
expanding their business in the course the decade. In the last two years, the companies have
exceeded or met their longstanding development objectives. Coca-Cola earned $46.5 billion in
2011 as revenues and raised working income by $1.7 billion to $10.2 billion (Kayabas, Boyraz
The layout of the two companies’ sustainability reports varies, however, what is significant
is the information contained in the reports. Sustainability reports are documents that offers a
summary of the sustainability status of the companies for a year (Truant, Corazza and Scagnelli,
2017). These reports give both external and internal customers information required to make
sustainability decisions regarding the firms. The reports contain the environmental activities,
stakeholder, company strategies, and resources. Both of the reports are made available for
References
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Gertner, D. and Rifkin, L. (2017). Coca-Cola and the Fight against the Global Obesity Epidemic.
Hillman, B. (2009). Coke vs Pepsi. Journal of the American College of Radiology, 6(10), p.666.
Kayabas, T., Boyraz, G. and Derdiyok, R. (2018). Examining Coca-Cola and Pepsi Brands under
Kayabas, T., Boyraz, G. and Derdiyok, R. (2018). Examining Coca-Cola and Pepsi Brands under
Odeku, K. (2014). Regulating Food Insecurity and Climate Change to Attain Sustainable
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Roy, S. and Sarkar, S. (2015). To brand or to rebrand: Investigating the effects of rebranding on
brand equity and consumer attitudes. Journal of Brand Management, 22(4), pp.340-360.
COMPARING SUSTAINABILITY REPORTS 11
Singer, M. (2012). What goes around comes around: Perceived vulnerable employment and
economic voting in developing countries. European Journal of Political Research, 52(2), pp.143-
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Taylor, F., Satija, A., Khurana, S., Singh, G. and Ebrahim, S. (2010). Pepsi and Coca Cola in Delhi,
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Truant, E., Corazza, L. and Scagnelli, S. (2017). Sustainability and Risk Disclosure: An