During the quick growth of the world economy, environmental sustainability, corporate communal responsibility and cultural accounting become the core factors for current organization. Coca-Cola and Pepsi are both well-known America beverage brands on earth. Coca-cola is the world's largest beverage company which provides sparkling, sports beverages and food in over 200 countries and marketplaces (The Coca-Cola Company 2010. ). On the other hand, Pepsi is also a world innovator in convenient appetizers, foods and beverages which is the major rival to Coca-Cola (PepsiCo Inc 2010). As a global company, they spend money on innovation to attain sustainability and produce the sustainability record. For the sustainability of Coca-Cola, it is to produce a positive difference on earth (The Coca-Cola Company 2010). Besides, "Pepsi is performance with goal and investing in sustainable progress" (PepsiCo Inc 2010). The accounts provide the companies methods to sociable and environment sustainability and social accounting. Therefore, the evaluations of the two companies' sustainable information are critical to all or any stakeholders and communities.
1. 2 Aim of the report
The reason for this record is to build up an eco-audit record for Coca-Cola and Pepsi. The article is to evaluate the sustainable report of both companies and compare the business approaches on social accounting.
1. 3 Opportunity of the report
The report will mainly discuss the idea of social accounting, contrast of Coca-Cola and Pepsi on communal accounting. It'll structure the issues into two parts. Each part will detail discuss in the article.
1. 4 Way to obtain information
The source and information is mainly come from Internet and exterior textbooks. It will combine text messages and journal articles.
2. 0 DEFINE AND EXPLAIN THE CONCEPT OF "SOCIAL ACCOUNTING"
2. 1 Classification of public accounting
As the Ghosh (n. d. ) define that, public accounting means the development of a way of measuring system to screen the internal or external business activities on interpersonal and environmental impacts to stakeholders with non-monetary devices. Public accounting is concern of the business performance and participation in the sociable and environmental activities. It includes all the fine detail activities participation and contribution from group. Social accounting is same as the sustainability report to identify and gauge the public contribution of the company, determine the company strategies on the communities and social sectionsprovide relevant information of organizations goal, polices and performance to the interpersonal goals (Ghosh n. d. ). The idea of interpersonal accounting is developed by the public, community and stakeholder which under the monetary development. It stimulates more extensive business activities and productions which in turn causes the environmental destruction, such as water and air pollutions from the increasing manufactories. For the increasing matter of sustainability, corporation behaves in the interpersonal and environmental issue is the significant part after success. The objective of social accounting is provide a opportunity for stakeholders to understand the ways or attitudes of the business work in sustainability. Therefore, many of the companies supply the sustainability are accountable to earn the reputation and fulfill the corporate interpersonal responsibility.
2. 2 The ideas of "good" public accounts and global standards
To maintain the quality of interpersonal accounting, there are five basis key points to apply. The five key points are completeness, comparability, regulation, external confirmation and ongoing improvement. The first rule is completeness. To provide a report, it will cover all the areas of the organization's activities rather than the positive parts (Crane & Matten 2007). Company always chooses the favourable performance to entail in the report. The statement only includes the positive aspect will lose the truth. It is common for company hiding the unfavourable information since it will certainly reduce company reputation and expose the weakness. The next principle is comparability. The diagnosis of the record should be accessible to comparable, ideal for the external confirmation and global standard in another type of durations and countries (Crane & Matten 2007). Beneath the globalization, the current organization isn't only package with one region and looking for the market expansion to the world. Therefore, the global standard survey will be easier for different countries to evaluation and evaluation. The comparability report will be crucial for the business expansion and appearance of sustainability concept. For the principle of legislation, the statement should conform to all the guidelines and lawful restrictions which provided by federal government and company. It will avoid the improper terms and against the law factors. Beside, the exterior verification is approximately the outsiders have the right to verify the truth of the report posting (Biz/ed n. d. ). Stakeholders have capacity to evaluate the statement and boost the certainty. The final principle is continuous improvement. Cultural accounting is also a strategy to reflect the inadequate and deficient company performance which stimulates the business improvement (Crane & Matten 2007). The constant improvement can keep up with the company in a higher competitive level.
Beside the key points, the adoption of global benchmarks is making more much like the record. The global benchmarks involve two aspects which can be auditing and reporting. As Crane & Matten (2007, p. 217) claim that, "Auditing is about the global workplace standard, SA 8000, which cover the working hours, discrimination and self-employed licensed auditors". For SA 8000 is grounded on the key points of center ILO conventions, UN Conventions, and an ISO-style management system, it does apply to all professional sectors to measure their performance and responsibly in source chains (Sociable Accountability International n. d. ). SA 8000 defends the labour and individual right in workplace under the global certification. For reporting, the Global Reporting Effort (GRI) of G3 Guide is common adopted and accepted by the existing company to their sustainability report. Corresponding to Crane & Matten (2007, p. 217) make clear that, "GRI as a global reporting standard, which generate a common framework for voluntary reporting on financial, social and environmental performance triple important thing of sustainability". "G3 Suggestions are construction of GRI Sustainability Reporting and involve the guidelines to define survey in materiality, stakeholder inclusiveness, comparability and dependability" (Global Reporting Initiative n. d. ). It ensures the article content and quality in a standard level. There are still some of the other global benchmarks for sociable accounting. The rules and global expectations develop the public accounting report in a professional and equivalent level.
3. 0 CRITICAL Analysis THE Community AND ENVIRONMENT Reviews OF COCA-COLA AND PEPSI
3. 1 Coca-Cola on social accounting
Coca-Cola is the entire world leading company in food and drink industry. As the leading stage, there is a huge responsibility to determine an optimistic and productive image in cultural and environmental sustainability. "Coca-Coal thinks that buying the financial, environmental and interpersonal development can assist the business enterprise grow" (The Coca-Coal Company 2010). "The worthiness of Coca-Cola is to make a positive difference on the planet through redesign the living way to traveling business progress and developing a ecological world" (The Coca-Coal Company 2010). The business value is concern on the personal health and green living. In the mean time, Coca-Cola has seven key areas to business sustainability which is more particularities than Pepsi. It offers "Beverage Benefits, Working Healthy Living, Energy Management and Local climate Safeguard, Community, Sustainable Packaging, Water Stewardship and work environment" (The Coca-Coal Company 2010). Each areas provide different extend of the sustainable actions. The focuses on of sustainability from 2008 to 2009 are contained in the statement. However, Coca-cola only mentions the achieved focuses on and performances, such as reduce the drinking water and energy rate, and open up the world largest PET recycling flower for reusing the containers (The Coca-Coal Company 2010). Moreover, the large area of the report is about the business's future targets, inventions and strategies in sustainability for the next four years. The actions taking in the sustainability are very similar with Pepsi in such areas. For example, it provides the sugars free drinks and footprint decrease. The company statement invest in the concepts of the US Global Compact, against the Global Reporting Effort (GRI) G3 rules and CEO Normal water Mandate (The Coca-Coal Company 2010). Coca-Cola more participates in environmental and governance, commitments and engagement sections that may supply the full GRI G3 Report in late 12 months (The Coca-Coal Company 2010). To increase transparency of the article, company invites the Panel of Directors and BECO Confirmation Affirmation as the people aren't employees, to supervise the ethics and information certainty (The Coca-Coal Company 2010). It means that the survey is higher level of compliance to the standards. Social accounting is part of the business goals and strategy in Coca-Cola.
3. 2 Pepsi on social accounting
"Pepsi as a global drink company, they promise to deliver lasting growth by purchasing a more healthy future for consumers, world and areas" (PepsiCo Inc 2010). The continuity of lasting growth and positive impact in the environment will be the major value in Pepsi. Pepsi develop their responsibilities and commitments into individuals, environmental and talent sustainability. Based on the PepsiCo Inc (2010), "the human sustainability aims to encourage people to live healthier by dealing with diverse and complicated global diet needs". For instance, decrease the average sugar amount and eliminate the direct deal of full-sugar carbonated drinks to school (PepsiCo Inc 2010). However, Pepsi always face the task in the high sweets and calorie on the products. To cope with this problem, the purpose of human sustainability is focus on the nutrition by adopting the global nourishment standards and natural ingredients. Pepsi work hard to control the nourishment and make their products healthier. For the environmental sustainability, "Pepsi is constantly on the innovate and successful use of land, energy, water and presentation in businesses for protecting the natural resources" (PepsiCo Inc 2010). Pepsi do something to minimize footprint, achieving positive water balance and moving toward zero landfill within a decade (PepsiCo Inc 2010). Environmentally friendly ecological goals are genuine and achievable for company. Pepsi receive the Environmental Excellence Award from the U. S. Environmental Safety Agency leadership and 2010 Global Water Prizes with "Environmental Contribution of the Year" (PepsiCo Inc 2010). Nevertheless, some environmental goals are also require in the Coca-Cola ecological record, such as package deal re-design and reduce carbon footprint. Talent sustainability is the last responsibility area cover in the record. "Pepsi continues to stay the very skilled, diverse workforce and offer a safe and healthy work environment" (PepsiCo Inc 2010). Workers are the advantage for company to success. Pepsi spend a whole lot of resources in personnel' health and affiliate with different management levels to achieve the sustainable development. Pepsi uses G3 Guidelines of GRI without disclose the complete report. The sections of Pepsi's GRI article are not talk about in the sustainable statement and difficult to do the assessment. The amount of the conformity to the benchmarks is uncertain. Pepsi setup many goals and commitments in human being, environmental and talent sustainability for the returning years. Pepsi will try to meet the targets basic on these three areas. The effect can only see in the foreseeable future.
3. 3 Compare and Contrast of Coca-Cola and Pepsi on interpersonal accounting
Coca-Cola and Pepsi are the competitors in the food and beverage industry. Both of these are produce the lasting record with similar content and standard. However, Coca-Cola provide a more complete and extensive record than Pepsi. The value of Coca-Cola in sustainability is to invest social and environment for changing the people's living style to create a lasting future and business expansion. They assume that change of the personal life-style and live positive are the best ways to determine a lasting world which include seven core areas in sustainable issues. In contrast, Pepsi purpose at place the positive environmental effects to achieve the sustainable growth. Sustainable growth is focus on the human, environmental and talent. The worthiness and area matter of the stakeholders tend to be general than Coca-Cola. For the target environment, Coca-cola mentions the achieved goals from previous years in the report. Although it only picking the achieved targets and hiding the unattained goals, it still supply the information for stakeholders to know what the company successfully do in the sustainability. Besides, Pepsi just require the upcoming goals and commitments in the article. It didn't include any past targets. Stakeholders will be questionable to the success or inability of the previous goals. Coca-cola is establishing the survey for four years which is appropriate for the fast changing world. For Pepsi, there is not including a concrete time in the survey and placing as a permanent plan. Sustainability plans and focuses on should be up-to-date and verify during a period of time. On the other hand, both of Coca-Cola and Pepsi are employing the G3 Suggestions in GRI. Coca-Cola discloses their GRI statement with the portions or indications in such areas. Unfortunately, Pepsi is not general population their GRI are accountable to make the comparison. In addition, in addition they stated in the Dow Jones Sustainability World Index and Sustainability North America Index. However, Coca-Cola also commits to the UN Global Small and CEO Drinking water Mandate group of principle in individuals right and execution of water respectively (The Coca-Coal Company 2010). Compare to Pepsi, Coca-Cola have higher level of the conformity and transparency to the global criteria. Both Coca-Cola and Pepsi are embedding the surroundings sustainable into the integral area of the business procedure and objective.
4. 0 CONCLUSION
After critical evaluation of Coca-Cola and Pepsi on public accounting report, it can be concluded that:
Social accounting is a way of measuring system to keep an eye on the company performance and involvement in interpersonal and environment. The five good guidelines, SA8000 and GRI as the global standards create a professional and equivalent social accounting record.
Social accounting on Coca-Cola is better than Pepsi. The survey of Coca-Cola is more complete, extensive and transparency compare with Pepsi. Coca-Cola produces seven core areas in sustainability which is more specific than Pepsi. The timeframe and focuses on are clearly pointed out in the survey. It up against the GRI, United Nations Global Compact and CEO Water Mandate as the global standard and invite the Plank of Directors and BECO Confirmation Statement which supply the survey in good ideas of social account and global benchmarks.
Pepsi on communal accounting is more basic than Coca-Cola. The worthiness of company is to attain the sustainable growth. Pepsi is inadequate to concern in human being, environmental and talent sustainability. Also, the previous goals and GRI statement are not disclosed in the article. The sustainable goals and activities are place as a long time plan without a concrete timeframe. Nevertheless, Pepsi also up against the GRI similar with Coca-Cola.
5. 0 RECOMMENDATION
It is preferred that:
Coca-Cola and Pepsi can develop industry-specific contract to interact in the sustainable issues. They can establish rules of carry out or techniques to this areas. For example, industry-water or work area agreement.
Coca-Cola can disclose the ongoing goals in the report for letting the stakeholders know the focuses on progress. Beneath the faster changing world, it should regular review and adjust the article on every year. It can keep carefully the goals up-to-date.
Pepsi should increase matter areas and much more specific. The survey can involve the processing and achieved goals. In addition, it should set a concrete timeframe to the article, such as two or five years. Pepsi should disclose GRI article and invite exterior audits to verify the record for enhancing the transparency.
