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Case Study on Business Ethics
Made by: Anmol Sawhney
College: MPSTME,NMIMS
Case Study On Business Ethics
• A UN report on water conservation in 2014
suggested that by 2025, nearly 3.4 billion people
around the world would be living in
“waterscarce” countries and the situation would
become grim in the next 25 years.
• The report further stated that due to its unique
geographical position, India would face the brunt
of the crisis and would be at the center of this
conflict.
• Now following this subject we’ll see two cases of
two different companies and their CSRs!
Coca-Cola in India
• 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.
• Kala Dera, a large village in Rajasthan where
agriculture is the primary source of livelihood, is one
such bottling plants.
• Coca-Cola started its bottling operations in Kala
Dera in 2000.
• Within a year of operation, the
community started to notice a
rapid decline in groundwater
levels.
• For farmers, loss of groundwater
translated directly into loss of
income.
• Many organizations and NGOs
started protest against production
plant
• Two panchayat samitis — Amber
and Govindgarh — have passed
unanimous resolutions
demanding closure of the plant.
Coca-Cola'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 could not
provide any.
• Coca-Cola stated 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?
TATA SWACH: THE WATER PURIFIER
• The idea to create this product came from the
2004 tsunami that left thousands without
drinking water.
• It is manufactured by Tata Chemicals.
• Tata Swach is the world’s cheapest water purifier.
• Tata Swach, the water purifier, delivered safe
drinking water at a new market benchmark of
Rs.30 per month for a family of five.
• It was user-friendly and affordable and did not
require electricity, boiling, or running water to
operate making it useful for isolated villages and
disaster hit areas.
Tata Swach: CSR
• In 2011, Tata Chemicals with the US-based public
charity, Hawaii Children's Foundation, distributed
Tata Swach purifiers in the villages and primary
schools of India.
• During the 2014 floods, Tata Group companies
provided support in kind in thousands of units
like 5000 Tata swatch water filters, 5000 solar
power lamps.
• The group planned the forestation process to
restore flora & fauna destroyed by floods.
• Tata consultancy engineers & Tata Housing
Development company started working towards
low cost housing solution to provide shelters.
Conclusions
Coca-Cola in India
• Production at Kaladera was
shut down on January 25,
2016 due to increased
difficulty in accessing
groundwater from a
depleted aquifer.
• Coca-Cola lacked the CSR
required for a reputed
company which led to loss
for the company as well as
the society.
TATA SWACH
• Tata company was ranked
11th in the Forbes list of
most reputed brands in
2009.
• Tata’s four companies were
in the top 6 positions in
Indian Companies for
Sustainability and CSR 2016.
References
• http://businessethicsblog.com/2010/03/21/ethics-
definition/
• http://www.kractivist.org/india-kaladera-farmers-battle-
beverage-giant-coco-cola-coke/
• http://www.indiaresource.org/campaigns/coke/2008/kalad
eraunethical.html
• http://www.business-
standard.com/article/companies/coke-s-rajasthan-plant-
csr-claims-lack-merit-study-114022600387_1.html
• http://www.thehindu.com/news/national/other-
states/water-wars-between-farmers-and-beverage-giant-
at-kaladera/article5606745.ece

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Business ethics case study

  • 1. Case Study on Business Ethics Made by: Anmol Sawhney College: MPSTME,NMIMS
  • 2. Case Study On Business Ethics • A UN report on water conservation in 2014 suggested that by 2025, nearly 3.4 billion people around the world would be living in “waterscarce” countries and the situation would become grim in the next 25 years. • The report further stated that due to its unique geographical position, India would face the brunt of the crisis and would be at the center of this conflict. • Now following this subject we’ll see two cases of two different companies and their CSRs!
  • 3. Coca-Cola in India • 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. • Kala Dera, a large village in Rajasthan where agriculture is the primary source of livelihood, is one such bottling plants. • Coca-Cola started its bottling operations in Kala Dera in 2000.
  • 4. • Within a year of operation, the community started to notice a rapid decline in groundwater levels. • For farmers, loss of groundwater translated directly into loss of income. • Many organizations and NGOs started protest against production plant • Two panchayat samitis — Amber and Govindgarh — have passed unanimous resolutions demanding closure of the plant.
  • 5. Coca-Cola'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 could not provide any. • Coca-Cola stated 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?
  • 6. TATA SWACH: THE WATER PURIFIER • The idea to create this product came from the 2004 tsunami that left thousands without drinking water. • It is manufactured by Tata Chemicals. • Tata Swach is the world’s cheapest water purifier. • Tata Swach, the water purifier, delivered safe drinking water at a new market benchmark of Rs.30 per month for a family of five. • It was user-friendly and affordable and did not require electricity, boiling, or running water to operate making it useful for isolated villages and disaster hit areas.
  • 7. Tata Swach: CSR • In 2011, Tata Chemicals with the US-based public charity, Hawaii Children's Foundation, distributed Tata Swach purifiers in the villages and primary schools of India. • During the 2014 floods, Tata Group companies provided support in kind in thousands of units like 5000 Tata swatch water filters, 5000 solar power lamps. • The group planned the forestation process to restore flora & fauna destroyed by floods. • Tata consultancy engineers & Tata Housing Development company started working towards low cost housing solution to provide shelters.
  • 8. Conclusions Coca-Cola in India • Production at Kaladera was shut down on January 25, 2016 due to increased difficulty in accessing groundwater from a depleted aquifer. • Coca-Cola lacked the CSR required for a reputed company which led to loss for the company as well as the society. TATA SWACH • Tata company was ranked 11th in the Forbes list of most reputed brands in 2009. • Tata’s four companies were in the top 6 positions in Indian Companies for Sustainability and CSR 2016.
  • 9. References • http://businessethicsblog.com/2010/03/21/ethics- definition/ • http://www.kractivist.org/india-kaladera-farmers-battle- beverage-giant-coco-cola-coke/ • http://www.indiaresource.org/campaigns/coke/2008/kalad eraunethical.html • http://www.business- standard.com/article/companies/coke-s-rajasthan-plant- csr-claims-lack-merit-study-114022600387_1.html • http://www.thehindu.com/news/national/other- states/water-wars-between-farmers-and-beverage-giant- at-kaladera/article5606745.ece