Coca-Cola has faced numerous controversies and allegations over its business practices in India since 1977. When the Indian government ordered Coca-Cola to reveal its secret formula that year, the company refused and left India. Upon returning in 1993, Coca-Cola took over popular Indian soft drink brands but was later accused of excessive water usage, toxic waste dumping, and selling drinks with pesticide levels above safety limits. While Coca-Cola denies wrongdoing, many Indian communities and environmental groups have continued to protest the company's operations.

2. 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.

3. 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 janata
government
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 popular
soft drinks
including Thums up, Gold spot, Limca , Citra and Maaza from
parle’s
chauhan brothers . Which enabled them to get 66% market
share.

4.  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.

5. 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.

6. 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.

7. 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.

8. 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

9. 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

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19.  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, Coke's
Hong Kong-based communications director for
Asia, accused Sunita narain, CSE's director, of “branjdacking "
— using Coke's brand name to draw attention to her campaign
against pesticides. Narain defended CSE's 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)

20.  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.

21. Continued…
+Ve Aspects
Providing sufficient amount of taxes.
Foreign investment (FDI).
Employment opportunity.
Standers of living is increasing.
Consumer satisfaction.

22. Presented by: team VII
 ATUL KUMAR SINGH-
178
 S LALSIVA RAJU-138
 RAJKUMAR-158
 NAVITA-182
 CHARVI-181
 PUNEET GOSAIN-183