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  1. 1. Coca-Cola case 1
  2. 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. 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. 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. 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. 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. 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
  8. 8. Exceptional Average Bad ITC Ltd PepsiCo Inc. Kimberly-Clark Corporation RIL Ltd Philip Morris KFC 8
  9. 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. 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. 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. 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. 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. 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. 15. CSR mandatory or not mandatory??????? 15
  16. 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. 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. 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. 19. THANK YOU 19 Ms. Anu Damodaran MBA (General) 1st Semester