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  1. 1. College : SNJB’s COE, Chandwad. Class : MBA 1st year. Guidance By : Hon. Prof. Mr. U. S. Kasar Sir. Company : The Coca-Cola Company. Presenters : Gaziyani Md. Hasnain Rahul O. Bhandari Khushbu Mutha Abu Swaleh Bhagyashree Mankar
  2. 2. Scam 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. 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. 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. 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. 6. Unusable Well in Kala Dera Showing Depleted Water Level
  7. 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. 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. 9. Company's Response The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition
  10. 10. The assessment noted that the plant's operations would continue to worsen water situation Stop Using Groundwater in Kala Dera
  11. 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. 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. 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. 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. 15. Some serious concerns about CocaCola'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. 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. 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. 18. Coca-Cola Threatens Top Indian Photographer with Lawsuit a billboard by : Mr. Haksar
  19. 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.