Corporate Social Responsibility Case Study: Coca Cola India

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Discover a case study of Coca Cola India in which how they turns their corporate social irresponsibility/issue into corporate social responsibility that give benefits to parties around where Coca Cola India operates their factories.

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Corporate Social Responsibility Case Study: Coca Cola India

  1. 1. Prepared by: sma uhamad
  2. 2. Starts with selling 9 beverages/day 1886 - Atlanta Local soda producer 20th century Products appears everywhere 2005 Largest company for non-alcoholic beverages & syrups 1977 withdrawal 1992 – Re- enters India India Production factory since 1950s
  3. 3. Conflict 2003 Publication issued by Centre for Science & Environment 1. Presence of pesticides in Cola Cola product 2. Water pollution 3. Excessive used of groundwater # Drought in Placimada, Wada & Mehdiganj Issues forwarded to government of India & been put for investigation
  4. 4.  Well known brand & product sells almost in every country in the world  Provide jobs for local people (25k direct & 150k indirect employees  Thums Up & Sprite are top selling brands  Unethicaly conducting business  The way issues been handled had aroused more grievances among local people  India is world’s largest fastest growing population after China  Provides large market for products  Negative image from the issues  40% of sales drop (2 weeks after CSE report released)  Bear for damage & fine (Rupee 216 crore=US$48m)  Shutting down of the bottling plant in Placimada in 2004
  5. 5. 1) Growth 2) Environment 3) Climate CSR Initiatives by Coca Cola India 4) Community 5) Workplace + Corporate Governance Ethics
  6. 6. 1) Growth  Council of Applied Economic Research (India premier economic research institute) reported that the industry has a 2.1 of multiplier effects.  Job opportunities (25 000 direct and indirect employees of > 150 000).  “Parivartan” program (means change towards the better) for enhancing skills among retailers. • At the end of 2009, the program had trained 30 000 retailers in North India.
  7. 7. 2) Environment a) Water Stewardship # 2005 Improved water use efficiency by >25% # Water usage ratio= amount of litre of water used for the production of 1 litre of finished product b) Recycling Water Treated water # Used for utility (e.g. boilers, chillers, landscape irrigation & dust control) # used for 2ndary purposes (e.g. toilet cleaning, floor washing, etc) c) Water Replenishment Initiatives # End 2009, 500 rainwater harvesting been installed in 20 states # = 93% groundwater used d) Drip Irrigation Projects # Started in 2008. 27 farmers & covering 13.5 hectares of agriculture land # End 2010, 300 drip system installed in >150 hectares area
  8. 8. Cold Drink Equipment Solid Waste Management Performance 3) Climate  Registered device name “Energy Management System”  Reduce energy consumption by 35%  Material used are recyclable  E.g. cardboard boxes, gunny bags, & wooden scrap.
  9. 9. DisasterRelief&Rehabilitation PrimaryHealthcareClinic 4) Community  Various aids provided like providing bottled drinking water, use delivery vehicles for aid distribution & employee volunteerism  Rehabilitation projects – partnership with NGOs (World Vision India, Plan India & Save the Children) for reconstruction of classroom  Aarogya Health Clinic  It is dedicated to the local community in March 2011  Collaborated with NGO (Guwahati based NGO)  All visiting patients issued “Aarogya Health Card” & free basic medicine provided  On average, 200 patients visit the clinic every month
  10. 10. 5) Workplace  Company given attention to abide rules and laws regarding local and international labor practice.  Employees have right to report any violation without fear of retaliation.  Every employee is treated fairly, with dignity and respect in Coca Cola. Well Being Assessment Pegasus Program  To provide a customized health assessment report to each employee & Annual Check Up Policy for all employees  INR35 000 a year to partly sponsor employee sports related expenses, including gymnasium membership & purchase of sports equipment by company  To develop functional experts each year, enhancing skills, to take on future roles within the Coca Cola system
  11. 11. Corporate Governance Ethics  The Code of Business Conduct  Abide to Anti-Bribery Policy.  Coca Cola also abide to the U.S. Foreign Corrupt Practices Act  The Company is a signatory to the United Nations Global Compact, by which it is committed to work against corruption and bribery around the world.  The Code of Business Conduct for Suppliers  effective in February 2008.
  12. 12. Being more involved in actively improving the social environment Awareness of changing social values Economic function CSR Review  Definition • The European Commission is ‘the responsibility of enterprises for their impacts on society’ • “companies acting in accordance with societal demands” (Han, 2010. p.12)  In 1971, Committee of Economic Development introduced “Three Concentric Circles”  Outer layer (biggest circle) is also achieved and performed by Coca Cola India.  Second circle of CSR is not fully met by Coca Cola India at the early operation of its plants in India.  Inner circle (economic function) is including growth, products and jobs creation are fulfilled. • However the situation is slowly changed • The conflicts of water became a catalyst for Coca Cola India to be more proactive in their CSR activities
  13. 13. Conclusion  Whenever companies do more harm, more good then will be produced.  CSR initiatives as a way to compensate corporate social irresponsibility (water issues).  Comprehensives CSR initiatives are implemented by Coca Cola India has provided better environment to local people. Lesson to be learnt :  Company should be ethically and legally responsible and aware of environment where they operate their business  Avoid any conflicts and also to provide/deliver their philanthropy to people.  CSR is the best way for company to show their concern for environment that they operate and to those people who are affected by their operation
  14. 14. Thank you

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