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Coca-Cola case

1
Corporate conscience, corporate citizenship, social performance,
or sustainable responsible business/ Responsible Business.

A form of corporate self-regulation integrated into a business
model.

A policy which functions as a built-in, self-regulating mechanism
whereby a business monitors and ensures its active compliance
with the spirit of the law, ethical standards, and international
norms.

A process with the aim to embrace responsibility for the

company's actions and encourage a positive impact through its
activities on the environment, consumers, employees, communities,
stakeholders and all other members of the public sphere who may
also be considered as stakeholders.
2
In developing countries, CSR is most commonly associated with
philanthropy or charity, i.e. through corporate social investment
in education, health, the environment and other community
services.

No international standardization including the adoption of global
CSR codes and standards by the multinationals and subsidiaries
of multinationals or the big national companies wishing to export.
3
COCA–COLA INDIA
Mission, Vision, Values
Planet: Be a responsible citizen that makes a difference
by helping build and support sustainable communities.

4
Coca-Cola's irresponsible practices
Lead to:
 Water shortages
 Pollution of groundwater and soil
 Exposure to toxic waste and pesticides
The Centre of Science and Environment (CSE) released a report, which
revealed that coke contains maximum permissible limit of pesticides. It is 45
times higher than that is allowed by European norms (Centre for Science and
Environment, 2003). Such abuse of pesticides could cause cancer, damage to
nervous and reproductive system and lead to the severe disruption of the
immune system.
5
Perception of the company as behaving unethically has led to the
formation of pressure groups such as "Killer Coke", boycotts of
Coca-Cola and related products and lawsuits.
Environmental issues
Pesticide use
Water use

6
Present Day Scenario
The report by a government appointed committee on the
Coca-Cola plant in Plachimada village of Kerala is still
pending with the President for approval.
Despite a sustained effort, the real victory has eluded the
villagers who have now been crusading for many years now.

7
Exceptional

Average

Bad

ITC Ltd

PepsiCo Inc.

Kimberly-Clark
Corporation

RIL Ltd
Philip Morris
KFC

8
ANALYSIS
Laws And Regulations Enforcing CSR

As of now, CSR should be voluntarily pursued.
This way the society at large is at stake.
Therefore, in order to protect the society and to encourage
companies and businesses to take up CSR the only way left is to
make laws which would mandate CSR.
9
Besides individual efforts by all the countries, internationally also
some CSR standards and guidelines have been defined. These CSR
standards and guidelines include:
 The International Labor Organization Tripartite Declaration of Principles
Concerning Multinational Enterprises and Social Policy.
 The Organization for Economic Co-operation and Development's (OECD)
Guidelines for Multinational Enterprises.
 UN Global Compact and The Universal Declaration of Human Rights.
10
The International Protection of Human Rights
includes the Non-governmental organizations,
Human Rights defenders, Corporations, Human
Rights Violations and Substantive Rights such as
Right to Life, Future Generations, Water, Human
Rights and the Environment.

11
8 consumer rights:









Right to information
Right to safety
Right to be informed
Right to choose
Right to be heard
Right to redress
Right to have consumer education
Right to a healthy environment
12
As far as Companies act, 1956 is concerned it does not
contain any provision regarding corporate social
responsibility.
It is just mentioned that there will be a Corporate Social
Responsibility Policy in each and every company beyond a
certain limit, which are profitable companies and which are
of certain size.

13
With the Companies Bill, 2011, which will replace the
Companies Act, 1956 the government may manage to
break a legislation deadlock.
The changes in the bill, which has been pending for
approval for two decades, aim at improving corporate
governance, increasing transparency and making
independent directors more accountable.

14
CSR mandatory or not mandatory???????

15
CONCLUSIONS & RECOMMENDATIONS
“Asking companies to voluntarily act in the public interest
will not be enough to solve many of the environmental
challenges the world faces. It is essential to develop
regulatory regimes with appropriate incentives and ability to
enforce sanctions.”

16
The advantage of CSR for companies
 The use of CSR as a tool for companies’ strategy
and public relations brings economic success,
because economy and stock exchange know that
sustainable oriented companies are companies
for the future.
 An advantage in the personnel market, to get the
best workers, to improve the relationship to
your customers and also more security to
shareholders and owners.
17
The advantage of CSR for the public
 The economic progress brings prosperity to
a lot of people and therefore they have the
opportunity to create their way on their
own.
 It seems that financial and social lives are
secure for many people.
18
THANK YOU

19

Ms. Anu Damodaran
MBA (General)
1st Semester

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CSR

  • 2. Corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business. A form of corporate self-regulation integrated into a business model. A policy which functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. A process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. 2
  • 3. In developing countries, CSR is most commonly associated with philanthropy or charity, i.e. through corporate social investment in education, health, the environment and other community services. No international standardization including the adoption of global CSR codes and standards by the multinationals and subsidiaries of multinationals or the big national companies wishing to export. 3
  • 4. COCA–COLA INDIA Mission, Vision, Values Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. 4
  • 5. Coca-Cola's irresponsible practices Lead to:  Water shortages  Pollution of groundwater and soil  Exposure to toxic waste and pesticides The Centre of Science and Environment (CSE) released a report, which revealed that coke contains maximum permissible limit of pesticides. It is 45 times higher than that is allowed by European norms (Centre for Science and Environment, 2003). Such abuse of pesticides could cause cancer, damage to nervous and reproductive system and lead to the severe disruption of the immune system. 5
  • 6. Perception of the company as behaving unethically has led to the formation of pressure groups such as "Killer Coke", boycotts of Coca-Cola and related products and lawsuits. Environmental issues Pesticide use Water use 6
  • 7. Present Day Scenario The report by a government appointed committee on the Coca-Cola plant in Plachimada village of Kerala is still pending with the President for approval. Despite a sustained effort, the real victory has eluded the villagers who have now been crusading for many years now. 7
  • 9. ANALYSIS Laws And Regulations Enforcing CSR As of now, CSR should be voluntarily pursued. This way the society at large is at stake. Therefore, in order to protect the society and to encourage companies and businesses to take up CSR the only way left is to make laws which would mandate CSR. 9
  • 10. Besides individual efforts by all the countries, internationally also some CSR standards and guidelines have been defined. These CSR standards and guidelines include:  The International Labor Organization Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy.  The Organization for Economic Co-operation and Development's (OECD) Guidelines for Multinational Enterprises.  UN Global Compact and The Universal Declaration of Human Rights. 10
  • 11. The International Protection of Human Rights includes the Non-governmental organizations, Human Rights defenders, Corporations, Human Rights Violations and Substantive Rights such as Right to Life, Future Generations, Water, Human Rights and the Environment. 11
  • 12. 8 consumer rights:         Right to information Right to safety Right to be informed Right to choose Right to be heard Right to redress Right to have consumer education Right to a healthy environment 12
  • 13. As far as Companies act, 1956 is concerned it does not contain any provision regarding corporate social responsibility. It is just mentioned that there will be a Corporate Social Responsibility Policy in each and every company beyond a certain limit, which are profitable companies and which are of certain size. 13
  • 14. With the Companies Bill, 2011, which will replace the Companies Act, 1956 the government may manage to break a legislation deadlock. The changes in the bill, which has been pending for approval for two decades, aim at improving corporate governance, increasing transparency and making independent directors more accountable. 14
  • 15. CSR mandatory or not mandatory??????? 15
  • 16. CONCLUSIONS & RECOMMENDATIONS “Asking companies to voluntarily act in the public interest will not be enough to solve many of the environmental challenges the world faces. It is essential to develop regulatory regimes with appropriate incentives and ability to enforce sanctions.” 16
  • 17. The advantage of CSR for companies  The use of CSR as a tool for companies’ strategy and public relations brings economic success, because economy and stock exchange know that sustainable oriented companies are companies for the future.  An advantage in the personnel market, to get the best workers, to improve the relationship to your customers and also more security to shareholders and owners. 17
  • 18. The advantage of CSR for the public  The economic progress brings prosperity to a lot of people and therefore they have the opportunity to create their way on their own.  It seems that financial and social lives are secure for many people. 18
  • 19. THANK YOU 19 Ms. Anu Damodaran MBA (General) 1st Semester