Unethical Issue

1. Kala Dera Case

2. Company profile
• Type of the company : Public
• Founded : 1886
• Founder : Asa Candler
• Headquarter : Atlanta, US
• Area served : Worldwide
• CEO : Muhtar Kent
• Slogan of 2012 : Open Happiness

3. Cont.…..
• Number of employees : 146200
• Beverages : 3500+
• Product types : Energy drinks
Juices
Soft drinks
Sports drinks
Water
Milk and soya based beverages

4. 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 2000, and within a
year, the community started to notice a rapid decline in groundwater levels

5. • Kala Dera lies in an overexploited groundwater area and
access to water has been difficult.
• Summers are particularly intense in the area, when water
shortages are most acute.
• Moreover it was summer month, when Coca-Cola
reaches its peak production.
• Coca-Cola bottling plant in Kala Dera continues extracts
the most water, making already existing water shortages
even worse.
Cont…..

6. Waterbed got depleted

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. 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. The company, in usual fashion, denied any wrong
doing, blaming "outsiders" for the increasing local
community opposition. They claimed to have
conducted an environmental study and found the
project safe to the village.
Company Response

10. Unethical and Dishonest response of Coca-Cola
• 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

11. Assessments
Assessment says that;
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.

12. 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
Rainwater harvesting --- Dilapidated and a Bluff

13. Some serious concerns about Coca-Cola
• 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?

14. • 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
Cont.…..

15. • 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.
Cont.…..

16. Solutions
• Follow the suggestions provided by the assessment.
• Installing measuring device for knowing the amount
of water recharge
• Maintaining the good conditions of the recharge
shaft

17. Coca-Cola Threatens Top Indian Photographer with Lawsuit

18. By,
Deeksha
Veeksha