Originally Posted by
makie
In some ways, it might look like as a way to avoid taxes but on the other end, it's just the same thing. Taxes are intended for the nation's welfare and with the corrupt officials that we have, using such funds directly for the welfare of the people is much better than handing it over the the government.
Our education system needs a massive overhaul and even school buildings are built in a substandard way. Having a private company do the job is way much better than having the government do it. Coke has a reputation to keep so we could expect that they'd do a very good job, way much better than the government.
However, it's hitting two birds with one stone. First, it's business as usual, and second, Coke is doing something positive and getting involved in the community.
On the business side, such actions will further improve their appeal to the people and that means much better reputation. Coca Cola is a business giant internationally and they know how the market works, that reputation is very important. They've got great products but by doing humanitarian activities, it will further boost their stock. People will go for "humane" companies over purely business companies (at least on the way it looks).
On the community side, Coke could provide really great structures and personally, I'd rather have it that way than the government making school buildings. They are really well funded (in comparison to the government) and they could provide much better service if they really wish. Setting business aside, Coke is sharing it's blessings and it is one of the traits of successful individuals and entities, giving back to the community.
Summing it all up, here's how I look at it.
1.) Better have it that way than paying taxes to the government. After all, the taxes are intended for the people and the country and with the corrupt officials around, most likely that the amount that the community will be receiving is much less than if Coke have it done that way. Maybe Coke will be "spending" less compared to paying taxes but looking at the other side, will we rather have Coke pay less and give more or let them pay more taxes and let the government give the community less?
2.) It's helping the company build a solid reputation, a reputation of being humane and not just care about profits. As John Maxwell pointed it out, "people will never care how much you know until they know how much you care". Coke is building bridges and is becoming an instrument of positive change.
Many companies have done that before and if we notice, these companies are very successful companies. An individual or a company's success is built on reputation.
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