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Unethical practices done by coca cola company

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  • 1. Coca-Cola Continues Unethical and Dishonest Practices in India -Ravichandra Devadiga
  • 2. Overview  The Indian government forced Coca-Cola out of the country in 1977.  The company returned in 1993  Each bottling plants extracts up to 1.5m liters of water everyday from the ground.  It takes nine liters of clean water to manufacture a liter of Coke.  In 2000 Coca-Cola opened a plant at Plachimada, a village in Kerala to produce 1.2m liters of coke every day.
  • 3.  The conditional license granted by the local Panchayat authorized the use of motorized pumps  But the company drilled more than six wells & illegally installed high-powered electric pumps to extract millions of liters of pure water.  The level of the water table fell from 45 to 150 meters below the surface.
  • 4.  The company started dumping waste outside causing a serious health hazard.  The court gave Coca-Cola a notice to cease water extraction  The theft of water was not only limited to kerala  Overexploitation of groundwater soon started in Kaladera
  • 5. Kala Dera - Thirsting from Coca-Cola  Kala Dera is a large village outside the city of Jaipur.  Agriculture is the primary source of livelihood.  Coca-Cola started its bottling operations in Kala Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels.
  • 6. Unusable Well in Kala Dera Showing Depleted Water Level
  • 7.  For farmers, loss of groundwater translated directly into loss of income.  For many children it meant leaving schools to provide a much needed helping hand in household since the women had additional burdens.
  • 8. Community response The community in Kala Dera organized itself to challenge the Coca-Cola company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant.
  • 9. Company's Response The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition
  • 10. Stop Using Groundwater in Kala Dera The assessment noted that the plant's operations would continue to worsen water situation
  • 11. Coca-Cola's Response - Unethical and Dishonest  Coca-cola took seven month to respond  Coca-cola not respond to the concern raised  Unethical and dishonest campaign  Chosen to continue the operation  Continued in misery of thousand people
  • 12. Coca-Cola should no longer utilize the overexploited groundwater resource in Kala Dera 1. Transport water from the nearest aquifer that may not be stressed 2. Store water from low-stress seasons 3. Relocate the plant to a water-surplus area 4. Shut down this facility The community in Kala Dera welcomed the recommendations and waited for company’s response.
  • 13. COKE’S Corporate Social Responsibility - A Scam? The Coca-Cola steps up its corporate social responsibility announcing to the world that it is a “green and socially responsible company.” --- but was not the case at kala dera
  • 14.  The company announce its rainwater harvesting initiatives in India  It also announce that the company will become "water neutral" in India by 2009.
  • 15. Some serious concerns about Coca-Cola's claims on rainwater harvesting  The company announced that it has recharged five times the amount of water it has used.  When asked to back it up with numbers, Coca-Cola does not provide any.  Coca-Cola states that they "will install measuring devices that will verify the amount of water recharged."  If they do not have measuring devices installed to verify the amount of water recharged, how can they make a claim of recharging five times the water that they have extracted?
  • 16.  People across Rajasthan are well known in rainwater harvesting and have been harvesting rainwater long before Coca-Cola started.  Coca-Cola started rainwater harvesting to overcome response to the growing campaigns against its water mismanagement.  Coca-Cola was bluffing people with its rainwater harvesting.  The rainfall in the area is too low, and the amount of rainfalls fluctuates a lot contributing to 30 days of rains every year  80% of those rains come in just two or three days and hence rainwater harvesting is simply not efficient
  • 17.  Based on their rainwater harvesting initiatives Coca- Cola company has announced that they will become water neutral in India by 2009  Coca- cola will recharge more water than the use from the groundwater resource. ---A BLUFF
  • 18. Coca-Cola Threatens Top Indian Photographer with Lawsuit Billboard by: Sharad Haksar
  • 19.  In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar threatening him with serious legal actions unless the billboard was replaced 'unconditionally and immediately'.  Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for "incalculable damage to the goodwill and reputation" of Coca-Cola, and also sought an 'unconditional apology in writing'.  Mr. Haksar said that he had no intentions of issuing any apology because he has not committed anything wrong.
  • 20. THANK YOU