Coca-Cola\'s Philanthropic Practices as a Successful Organizational

Coca-Cola's Philanthropic Practices as a Successful Organizational Behavior

Coca-cola is an immensely successful corporation, and a large part of that success is owing to unbeatable brand recognition. No one asks for an "RC Cola," whereas everyone asks for a "Coke." Coke, a private brand, has become synonymous with that particular type of beverage -- something against which PepsiCola has had to struggle during its entire existence, especially in the United States.

But fortunate posturing in brand recognition does not go entirely to organizational behavior. Rather, Coke benefits from a corporate culture in which philanthropy is encouraged and indeed lived. Coke informs its employees constantly of its philanthropic moves and commitments, and really instills the feeling that employees are working not only for higher dividends but for humanity as well.

This practice has been so successful for Coke that it has turned into an organizational behavior for them -- it is almost as responsible for the company's profits as is the brand recognition.

This organizational behavior is evident in a recent interview of Ingrid Saunders Jones, head of the Coca-Cola Foundation.

Jones comments, "We are only as good a company as the people who work for our company. We're looking for the most qualified people that we can find. We must have a diverse workforce. And we cannot be about the business of training people to think and to act. We need that diversity to be in the education populace, to be the student body in all of the schools. So that's why it's important for us. We charge colleges and universities with not being islands unto themselves, but understanding that they have a responsibility to have a relationship with the feeder systems that provide their students." (Black Issues in Higher Education, 1997)

Coca-cola, as part of its organizational behavior, understands the responsibility it has as a corporate citizen, and draws that responsibility from its people. It instills and trains its entire workforce to focus not only on corporate profits and dividends or their everyday tasks and chores, but on the concept of helping humanity from the success of its beverage manufacturing industries.

Coca-cola, as an advancement of their organizational behavior, also understands that it must trot its beliefs on philanthropy throughout society, as it must draw new employees to its ranks who share the same vision. As a result, Saunders comments at length upon the importance of plumbing colleges and universities for the next generation of philanthropic key and low-level Coca-Cola employees.

Saunders continues that Coca-Cola's philanthropic efforts will continue full-steam even if profits at the corporation are down -- this is a clear indication that philanthropy is not just a profit device but an organizational behavior. Coca-Cola truly believes that its corporation cannot succeed without a philanthropic background and a philanthropic motive throughout its ranks and organization.

As Saunders discussed before, the Coca-Cola Corporation focuses on higher education philanthropy in order to link philanthropy and dividend success in the years and indeed decades to come: "For much of its history, the Atlanta-based Coca-Cola Company and its corporate leadership and regional bottling franchises have offered broad support to charitable causes in the state. Emory University was an early beneficiary of Coca-Cola philanthropy through the Candler family, which owned the company until 1919. Coca-Cola's philanthropy has also extended through its bottlers since 1900. Although the bottlers are independent operating concerns organized by region, they are an important part of the corporate "Coke family" and have carved out a philanthropic tradition that emphasizes locally-based giving. Robert W. Woodruff, named president of the Coca-Cola Company in 1923, was a powerful force behind the company's transformation into a worldwide enterprise. Until his death in 1985, Woodruff and his family came to personify the company's philanthropy and civic-mindedness." (New Georgia Encyclopedia, 2005).

It is quite notable through this quote that throughout Coca-Cola's history, its leaders have focused on organizational importance from a behavioral perspective -- indeed, Coca-Cola's philanthropy and profits extend over the last century. These historical notes lend credence to the belief and understanding that not only is philanthropy a profit tool, it is a way of corporate practice and success at Coca-Cola Corporation.

And Coca-Cola has influenced other corporations to understand the importance of philanthropy as a key organizational behavior. Take for instance the program in philanthropy as a corporate practice at the Stanford Business School: "Led by Stanford's world-class faculty, the Executive Program for Philanthropy Leaders focuses on the leadership and strategy of grantmaking institutions with a special emphasis on vision, power, governance, and collaboration.