1.Toxins level are much higher about 30 times higher than used that other countries.
COCA-COLA’S HISTORY Coca cola was concocted by pharmacist John Pemberton and was first introduced as a health tonic in Atlanta , Georgia in 1885. The company makes an annual profit of approximately US$15 billion and has a huge marketing budget of US$2million per annum. The company operates almost in all countries of world selling as many as 12,500 drinks every second.
COCA-COLA IN INDIA Coca-cola ,the world’s largest selling soft drink manufacturer, Refused to reveal its secret formula of coca-cola, When new janatagovernment ordered to do the same in 1977. On its return in 1993, It took over ownership of the nation’s top soft-drink brands, It bought out for Rs 3500 million a cluntch of popularsoft drinks including Thums up, Gold spot, Limca , Citra and Maaza fromparle’s chauhan brothers . Which enabled them to get 66% marketshare.
CODE OF BUSINESS CONDUCT: This code serve as guide to company`s action, advancing and protecting core values of Honesty, Integrity, Diversity, Quality, Respe ct, Responsibility and Accountability. ENVIRONMENT POLICY: It promises to operate company`s facilities taking into account all applicable environment safely and health rule.
The Company expects supplier to follow the following principles: Built on the Compliance of Perfection: Company claims that it is built on trust. Good corporate citizenship for long term business success. Share value as foundation of relationship. Fair employment practice with employees with a commitment to human right, at workplace.
Continued… Better communication with employees in local language and posted in a accessible place. Provide better working environment within the organization. Safe workplace with policies and practice in place. Employ labour under legal working age and protection from unlawful abuse or harassment. Compensate fair wages and benefits to employees. The company expects suppliers to conduct business in a way that protect and preserve the environment.
Quality and promises Keeping high quality promise in marketplace is their long term business objective. Coca cola is a brand of refreshment because of- i. The symbol of quality ii. Customer and consumer satisfaction iii. A responsible citizen of the world Company promises to provide consistently attractive return to the owners and to their business.
Supplier Guiding Principle Built On The Compliance Of Perfection Relationhips Built On Good Corporate Citizenship Shared Values, the foundation of R’ship Workplace Practices Communication
Unethical Practices by Coca Cola Several complaints against company`s operations and its business: Lack of transparency and Accountability: The company is not listed on stock exchange. Unlisting enables flexibility to company to hide their unethical decisions and wrong practices. De-listing kills competition and hides true picture of unethical practices such as manufacturing cost or pricing policies. Company can escape the inspection of the investors, analyst and the media
Continued… Lack of Marketing Ethics the company accused of adopting unethical marketing practices such as Offering products/services against the interest of society. Discrimination in pricing Making tall claims in advertising Misleading sales promotion Targeting inappropriate audience like children.
Continued…Unhealthy Practice The company had provoked a no. of boycotts and protests as a result of its perceived low health and hygiene standards and adverse impact on the environment. The contamination by high level of cadmium, lead and chromium found in effluent sludge of 8 out of 16 bottling plants was much more in excess to the acceptable central pollution control board(CPCB) standards. The company has been the subject of allegation such as monopolistic practices and racist employment practice.
Continued… Unhealthy nature of Colas FDA in Mumbai has advised school to ban the sale of colas, and also prevent any advertisement of aerated drinks in their premises. FDA commissioner Ramesh Kumar warms that soft drinks cause obesity and tooth decay, besides posing other health risk due to presence of chemical, such as Landane, a confirmed cancer causing chemical, Malathion, DDT and Chlorpyrifos American Epidemiologist reported that colas are associated with bone mineral density loss and their consumption may increase osteoporosis risk in older women.
Continued… Practices inimical to Stakeholder Interest The company was challenged on 20-04-2006 at Shareholders Meeting for misleading them as the company was not disclosing full extent of liabilities incurred in India. The company had unsustainable relationship with water, especially in developing countries like India and Columbia. University of Michigan has suspended business with the company in Dec 2005 because of unfair environment practices and human rights in India and Columbia.
Continued… A Speaking tour to hold coca cola accountable was held from 4 to 19 April,2005 through public events on the East coast highlighting its crime against humanity, particularly in India and Columbia. From 1993,the company has been accused of a series of unethical practices in India. Several NGOs launched anti-coca cola campaign in India.
Excessive Water Usage In India many states protested that coca-coal Is using thrice of water used in production of a litre of cola. It is been reported that farmers are facing acute shortage of water causing crop failure. activists alleged that states like uttar Pradesh, kerala, rajasthan, Maharashtra are facing severe shortage of water around establishment of coke bottling plants.
Continued… kerala In 1998,coca-cola`s bottling plant was set up at Plachimada, Kerala. Local villages been complaining of depleting water level for their cultivation Company dumped waste sludge on land of local farmer claiming it as useful fertilizer. Research found that it contain toxic chemicals including lead and cadmium. On 15-01-2005,over 1000 people took part in blockading the entrance of the plant to shut down permanently. The day also marked 1000`th day anniversary of permanent dharna(vigil) in front of factory gate. The plant remained shut down over a year due to intense community pressure.
Continued… In other states almost the scene was same. there was one major issue linked with every state and that was shortage of water for irrigation process as water level drops to a significant amount. Uttar pradesh (mehdiganj ), Maharashtra States like (kudus village) etc. had similar issues.
Continued…Pesticide controversy (2003-2006) According to CSE (Center for Science Environment) coca-coal contain toxins including lindane, DDT, Malathian, chloropyrophys etc. Pesticide can results into cancer and breaking down of immune sys. Coca-coal have continued selling soft drink in India even it was banned by government of India. About 57 Samples were collected from 25 bottling plants from 12 different states. And was fund that drinks were containing 24 times highr amount of pesticides that of allowed.
Coca-Cola angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. David Cox, Cokes Hong Kong-based communications director for Asia, accused Sunita narain, CSEs director, of “branjdacking " — using Cokes brand name to draw attention to her campaign against pesticides. Narain defended CSEs actions by describing them as a natural follow-up to a previous study it did on bottled water. Coca-coal claimed that their soft drink is safe in every aspect and upto Indian standards. There are other food stuffs in market which contain much higer level of pesticide . In the end they managed to have “clean chit” from TERI (the Energy and resource Institute)
Every coin have two faces and results or conclusion can be drawn from both aspects it’s pretty much depend on which side you chose to present your answer. -Ve Aspects Huge loss of fuel. Tons of solid waste. Unnecessary use of water causing depletion of potable water. Pollution caused by its plants. Unnecessary product. Health issue.
Continued…+Ve Aspects Providing sufficient amount of taxes. Foreign investment (FDI). Employment opportunity. Standers of living is increasing. Consumer satisfaction.
Presented by: team VII ATUL KUMAR SINGH- 178 S LALSIVA RAJU-138 RAJKUMAR-158 NAVITA-182 CHARVI-181 PUNEET GOSAIN-183