1. A Coca-Cola bottling plant began operations in 2004 in the village of Kala Dera, India, which relies on agriculture for livelihood. Within a year, rapid groundwater decline was noticed as the plant extracts up to 1.5 million liters of water daily.
2. Farmers experienced loss of income and children left school to help with household burdens due to water shortages exacerbated by Coca-Cola's operations. The community organized against the plant's closure but Coca-Cola denied wrongdoing.
3. Assessments found Coca-Cola's operations worsened the water situation and recommended relocating or shutting down. However, Coca-Cola
This is a research project focusing mainly on the water sustainability issue caused by coca cola India in the state of Kerala. It also suggests firm level steps, to avoid such incidents in future.
This is a research project focusing mainly on the water sustainability issue caused by coca cola India in the state of Kerala. It also suggests firm level steps, to avoid such incidents in future.
Corporate Social Responsibility Case Study: Coca Cola IndiaAsma Muhamad
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Corporate Social Responsibility Case Study: Coca Cola IndiaAsma Muhamad
Discover a case study of Coca Cola India in which how they turns their corporate social irresponsibility/issue into corporate social responsibility that give benefits to parties around where Coca Cola India operates their factories.
In our "Public Relations" course at SFSU my group and I analyzed Coca-Cola's problems with the CSE in 2003 and came up with an alternative to handle the situation.
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
Discussion Case Coca-Cola’s Water Neutrality Initiative From ap.docxelinoraudley582231
Discussion Case: Coca-Cola’s Water Neutrality Initiative
From approximately 2005 to the early 2010s, Coca-Cola faced an emerging issue: its cor- porate impact on water quality, availability, and access around the world.
The Coca-Cola Company (TCCC) was the world’s largest beverage company. The com- pany operated in more than 200 countries, providing 1.7 billion servings a day of carbon- ated beverages, juices and juice drinks, bottled water, and ready-to-drink coffees and teas. The company also partnered with more than 300 bottlers, independent companies that manufactured various Coca-Cola products under franchise. Seventy percent of the company’s revenue came from outside the United States.
Water was essential to Coca-Cola’s business. The company and its bottlers used around 82 billion gallons of water worldwide every year. Of this, about two-fifths went into finished beverages, and the rest was used in the manufacturing process—for example, to wash bottles, clean equipment, and provide sanitation for employees. Water supplies were also essential to the production of many ingredients in its products, such as sugar, corn, citrus fruit, tea, and coffee. Coca-Cola’s chairman and CEO put it bluntly when he commented that unless the communities where the company operated had access to water, “we haven’t got a business.”
In 2003, Coca-Cola was abruptly reminded of the impact of its water use on local com- munities when the Center for Science and the Environment, a think tank in India, charged that Coca-Cola products there contained dangerous levels of pesticide residues. Other activists in India charged that the company’s bottling plants used too much water, depriv- ing local villagers of supplies for drinking and irrigation. Local officials shut down a Coca- Cola bottling plant in the state of Kerala, saying it was depleting groundwater, and an Indian court issued an order requiring soft-drink makers to list pesticide residues on their labels. In the United States, the India Resource Center took up the cause, organizing a grassroots campaign to convince schools and colleges to boycott Coca-Cola products.
Water was also emerging as a major concern to the world’s leaders. In the early 21st century, more than 1 billion people worldwide lacked access to safe drinking water. Water consumption was doubling every 20 years, an unsustainable rate of growth. By 2025, one- third of the world’s population was expected to face acute water shortages. The secretary general of the United Nations highlighted water stress as a major cause of disease, rising food prices, and regional conflicts, and called on national governments and corporations to take steps to address the issue.
44 Part One
Business in Society
Discussion Questions
Coca-Cola undertook a comprehensive study, surveying its global operations to assess its water management practices and impacts. It also reached out to other stakeholders, includ- ing the World Wildlife Fund, the Nature Conserv.
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2. Overview…..
• 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 litres of water everyday from the
ground.
• It takes nine litres of clean water to manufacture a litre of Coke.
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 2004, 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 summer months are also 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.
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
wrongdoing, 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. The assessment noted that the plant's operations would continue to
worsen water situation
Coca-Cola should no longer utilize the overexploited groundwater
resource in Kala Dera
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.
Assessments
12. • 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
Coca-Cola's Response Unethical and Dishonest
13. • Coca-Cola is supposed to have conducted an Environmental
Impact assessment.
• Company started its operations even though it found to be
"overexploited 1998.
• Describes itself as a "hydration" company.
Criminal Negligence
14. 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
15. Some serious concerns about 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 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?
16. • 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
18. • In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar
threatening him with serious legal actions unless the billboard was replaced
'unconditionally and immediately'.
• Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for “the
damage to the goodwill and reputation" of Coca-Cola, and also demanded an
'unconditional apology in writing'.
• Mr. Haksar said that he had no intentions of issuing any apology because he
has not committed anything wrong.
The conditional licence granted by the local panchayatauthorised the use of motorised pumps. But the company drilled more than six wells & illegally installed high-powered electric pumps to extract millions of litres of pure water.The level of the water table fell from 45 to 150 metres below the surface.