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Company Background

      •   Coke – A sweet carbonated drink containing
          caramel and other flavouring components

      •   Invented in 1886 by Dr. J.S. Pemberton

      •   Contained extracts of Coca leaves and Kola nuts

      •   Business sold in 1888 to business men

      •   Candler acquired competitors and promoted
          Coca-Cola
          → Rapid sales increase since 1895

      •   In 1894 J.A. Biedenharn invented selling the
          prepared drink in bottles
Company Background (continued)


•   In 1919 a group of investors bought Coca Cola for
    around $25 million
•   Robert Woodruff turned the company into what it is
    now:
•   One of the world's most recognized brands and a
    MNE with huge profits
•   1993, Coca Cola entered India through a strategic
    alliance with Parle Exports
•   By now, it offers a portfolio of world class quality
    beverages, extending through over 400 brands
SWOT Analysis
Strenghts
•   Strong brand-name
•   Global distribution system
•   High-profile global presence
•   Low cost of operation
•   Broad-based bottling strategy
•   High market share
SWOT Analysis
Strenghts                           Weaknesses
•   Strong brand-name               •   Carbonates market is in decline
•   Global distribution system      •   Existing distribution system is less
                                        efficient for non-carbonates
•   High-profile global presence
                                    •   Health care issues
•   Low cost of operation
•   Broad-based bottling strategy
•   High market share
SWOT Analysis
Strenghts                                Weaknesses
•   Strong brand-name                    •   Carbonates market is in decline
•   Global distribution system           •   Existing distribution system is less
                                             efficient for non-carbonates
•   High-profile global presence
                                         •   Health care issues
•   Low cost of operation
•   Broad-based bottling strategy
•   High market share

Opportunities
•   Expansion
•   Use distribution strengths
•   Large domestic market (India)
•   Increasing average income in India
SWOT Analysis
Strenghts                                Weaknesses
•   Strong brand-name                    •   Carbonates market is in decline
•   Global distribution system           •   Existing distribution system is less
                                             efficient for non-carbonates
•   High-profile global presence
                                         •   Health care issues
•   Low cost of operation
•   Broad-based bottling strategy
•   High market share
                                         Threats
Opportunities
                                         •   Competition from health drinks
•   Expansion
                                         •   Competition from Pepsi
•   Use distribution strengths
                                         •   Boycott in the Middle-East
•   Large domestic market (India)
                                         •   Government regulations on
    Increasing average income in India
                                             production (license)
•
Coca-Cola India CSR Initiatives




      Focus on Environment Responsibility
Water
Methods

• Watershed Protection
  Community Watershed Partnership (CWP) (2005)

• Rainwater Harvesting Projects
  Kaladera plant in Rajasthan (2006)

• Educating
  Jal Tarang (a part of World Water Day) (2007)
  “Think Green, Go Green” Campaign (2007)
  Film (2007)
Water (continued)
Achievements
1. Reduced water consumption by 35%
   between 1999 to 2006

1. Reached zero water balance (2009)

1.   Returned all water in manufacturing
     processes (2010)

2.   Improved the livelihoods of Bottom of the
     Pyramid populations (BOP) (poor farmers)
Water

Goal: Reduce the emission of GHGs (especially HFCs and CO2)


                 Methods
                 1. eKOfreshment Cooler Program (2000)

                 1. Converted old equipment to HFC-free fridges (2006)

                 2. Installed over 8500 units of HFC-free equipment (2007)

                 3. esKO Project (2007)

                 4. Enhanced energy efficiency

                 5. Developed Energy Management System (EMS) (2006)
Energy



                             New Coke: Isdell wants to
                             reduce Coca-Cola's carbon
                             footprint.




  - E. Neville Isdell, CEO
Energy (continued)
Achievements

          1. GHGs emission reduces by 75% (2006)


          2. Reduced energy consumption by 640 million
             kilowatt-hours, which equals to 3 million
             metric tons


          3. Increased the energy efficiency of
             equipment by 40 to 50%
Fuel


Coca-Cola had local operations
for production, bottling, and
delivery in each country of
operation.

Take Taiwan for example:
  SWIRE Coca-Cola Taiwan LTD.
  and its factories are in
  No.46, Singbang RD.,
  Taoyuan County.
Packaging + Recycling

               •   Focus on 3R (Reduction, Recovery,
                   Reuse)

               •   PET Recycling Project in Mumbai
                   (2005)

               •   “Abhiyan – The Movement”, a film
                   on PET recycling
  Methods
               •   e3 Program

               •   Redesigned trademarked bottles

               •   Invested millions of dollars on
                   collecting and recovering
                   packaging materials used for
                   beverages
Packaging + Recycling (continued)
Achievements
  1.   Raised the income of
       about 100 PET crusaders by
       50%

  1.   Recycled nearly 80% of the
       PET waste (2006)

  2.    Redesigning of bottles
       saved 89000 metric tons of
       glass (2006)

  3.    Most of the packaging
       material was 100%
       recyclable
Depletion of Water Table


  Coca-Cola India depleted groundwater tables and
  overexploited the groundwater reserves,
  leaving the local communities with no access to
  drinking water and water for farming which was their
  primary source of income!
Depletion of Water Table (continued)
Data collected by the government agency the Ground Water
Board showed that groundwater level had dropped in the first
seven years of the company‟s operation.

  • A sharp drop in groundwater
    levels in Mehdiganj near the city
    of Varanasi.

  • Groundwater levels in Kala Dera
    have continued spiraling
    downwards.
Depletion of Water Table (continued)


   One report, in the daily newspaper Mathrubhumi,
  described local women having to travel five
  kilometers to obtain drinkable water, during which
  time soft drinks would come out of the Coca-Cola
  plant by the truckload.
Depletion of Water Table (continued)


                       “Coca-Cola sucks India dry.”
Supplied Sludge to Farmers
as Fertilizer


  Coca-Cola had seized land from farmers and
  discharged hazardous material and sludge in the
  areas surrounding its plants in India. In a "goodwill
  gesture", Coca-Cola was distributing the solid waste
  from its bottling plants to farmers in the area as
  fertilizer!!
Supplied Sludge to Farmers
as Fertilizer (continued)




    The Central Pollution Control Board of India found in
    2003 that sludge from Coca-Cola‟s Uttar Pradesh
    factory in Mehdiganj was contaminated with high
    levels of cadmium (up to 86mg/kg), lead (up to
    538mg/kg), and chromium (up to 134mg/kg),
    effectively making the solid waste toxic.
Supplied Sludge to Farmers
 as Fertilizer (continued)


Cadmium is a      Lead is
carcinogen        particularly
and can           dangerous to
                  children and the
accumulate in
                  results of
the kidneys,      exposure can be
with repeated     fatal. Even at low
exposure          levels it can
possibly          cause mental
causing           retardation and
kidney failure.   severe anaemia.
Supplied Sludge to Farmers
as Fertilizer (continued)

When confronted by BBC reporters…


                       “It's good for the farmers
                       because most of them are
                       poor.”




       Coca-Cola's
      Vice-President
Supplied Sludge to Farmers
as Fertilizer (continued)

When confronted by BBC reporters…


                       “It's good for the farmers
                       because most of them are
                       poor.”



                         The Coca-Cola company
                         was ordered to stop the
                         practice by the government
       Coca-Cola's
      Vice-President     authorities immediately.
Supplied Sludge to Farmers
as Fertilizer (continued)




                  The bottling facilities at Kala
                  Dera also reported that the
                  groundwater contained
                  pesticides.
Liquid waste from the Coca-Cola bottling plant at Balia
Banner at
 >
Coca-Cola Museum



                   Major Protest Demands
                   Coca-Cola Shut Down
                    Plant March 31, 2008.
Coca-Cola India’s Response

        Coca-Cola India’s response to the allegations
        www.cokefacts.org
Coca-Cola India’s Response

        Coca-Cola India’s response to the allegations
        www.cokefacts.org


        Overexploitation of the groundwater reserves
        Study by National Geophysical Research Institute
        disapproved these allegations

        Decreased rainfall by 60% was the cause
Coca-Cola India’s Response

        Coca-Cola India’s response to the allegations
        www.cokefacts.org


        Overexploitation of the groundwater reserves
        Study by National Geophysical Research Institute
        disapproved these allegations

        Decreased rainfall by 60% was the cause


        Release of untreated water by the factory
        Wastewater management technology is among the
        most advanced in the world
Coca-Cola India’s Response

        Coca-Cola India’s response to the allegations
        www.cokefacts.org


        Overexploitation of the groundwater reserves
        Study by National Geophysical Research Institute
        disapproved these allegations

        Decreased rainfall by 60% was the cause


        Release of untreated water by the factory
        Wastewater management technology is among the
        most advanced in the world

        Supplied sludge to farmers as fertilizer
        Sludge is not harmful to the environment
Analysis
Of Coca-Cola India’s Response
Coca Cola was attacked by different institutions
Analysis
Of Coca-Cola India’s Response
Coca Cola was attacked by different institutions

          Coca Cola had to face image problems in the Indian and
          American market
          Consumers would lose trust in the company
          Loss of reputation as a socially responsible corporate citizen
Analysis
Of Coca-Cola India’s Response
Coca Cola was attacked by different institutions

          Coca Cola had to face image problems in the Indian and
          American market
          Consumers would lose trust in the company
          Loss of reputation as a socially responsible corporate citizen

                Coca Cola’s plan: Attack credibility
                Refuting the allegations and calling them baseless
                Aggressively stressing their innocence hoping to
                resolve the issues
Analysis
Of Coca-Cola India’s Response
Coca Cola was attacked by different institutions

          Coca Cola had to face image problems in the Indian and
          American market
          Consumers would lose trust in the company
          Loss of reputation as a socially responsible corporate citizen

                Coca Cola’s plan: Attack credibility
                Refuting the allegations and calling them baseless
                Aggressively stressing their innocence hoping to
                resolve the issues

                       Problem: NGOs are very powerful!
                       NGOs have higher credibility in the eyes of the
                       general public
Analysis
Of Coca-Cola India’s Response
Coca Cola was attacked by different institutions

          Coca Cola had to face image problems in the Indian and
          American market
          Consumers would lose trust in the company
          Loss of reputation as a socially responsible corporate citizen

                Coca Cola’s plan: Attack credibility
                Refuting the allegations and calling them baseless
                Aggressively stressing their innocence hoping to
                resolve the issues

                       Problem: NGOs are very powerful!
                       NGOs have higher credibility in the eyes of the
                       general public

                              Mistake
                              Acting to fast by attacking and
                              underestimating NGOs power
How Coca-Cola India
should have responded

Thinking and analyzing alternatives
How Coca-Cola India
should have responded

Thinking and analyzing alternatives




               Alternative 1: Collaboration instead of attack
               Coca Cola should have collaborated with the NGOs
How Coca-Cola India
should have responded

Thinking and analyzing alternatives




               Alternative 1: Collaboration instead of attack
               Coca Cola should have collaborated with the NGOs

               Alternative 2: Ignore
               Ignore the allegations and wait till the buzz goes away
How Coca-Cola India
should have responded

Thinking and analyzing alternatives




               Alternative 1: Collaboration instead of attack
               Coca Cola should have collaborated with the NGOs

               Alternative 2: Ignore
               Ignore the allegations and wait till the buzz goes away

               Alternative 3: PR Campaign
               A PR campaign that informs the American public
               about Coca Cola‟s efforts as responsible corporate
               citizen
How Coca-Cola India
should have responded

Thinking and analyzing alternatives




               Alternative 1: Collaboration instead of attack
               Coca Cola should have collaborated with the NGOs

               Alternative 2: Ignore
               Ignore the allegations and wait till the buzz goes away

               Alternative 3: PR Campaign
               A PR campaign that informs the American public
               about Coca Cola‟s efforts as responsible corporate
               citizen
The Plan

   Solution: Collaboration with
   NGO and PR Campaign


                 Goal
              Regain trust
            and loyalty of
                customer

Capabilities needed
  > Coca Cola and NGO have
  to collaborate

Actions
  > NGO has to correct their mistakes
  publicly
  > NGO has to issue an apology to
  Coca Cola
The Plan

   Solution: Collaboration with
   NGO and PR Campaign
                                                   Goal
                                           Rebuild and repair
                 Goal                         the Coca Cola
              Regain trust                       brand name
            and loyalty of
                customer                Capabilities needed
                                          > A PR team which will plan
Capabilities needed                       and lead the campaign
  > Coca Cola and NGO have
  to collaborate                        Actions
                                          > Organize promotional activities
Actions
                                          (including charity work)
  > NGO has to correct their mistakes
  publicly                                > Hand out free drinks, coupons,
                                          vouchers at public events
  > NGO has to issue an apology to
                                          > Broadcast TV advertisements which
  Coca Cola
                                          show the good side of the company
The Plan

   Solution: Collaboration with
   NGO and PR Campaign
                                                   Goal
                                           Rebuild and repair
                 Goal                         the Coca Cola
              Regain trust                       brand name
            and loyalty of
                customer                Capabilities needed
                                          > A PR team which will plan
Capabilities needed                       and lead the campaign
  > Coca Cola and NGO have
  to collaborate                        Actions
                                          > Organize promotional activities
Actions
                                          (including charity work)
  > NGO has to correct their mistakes
  publicly                                > Hand out free drinks, coupons,
                                          vouchers at public events
  > NGO has to issue an apology to
                                          > Broadcast TV advertisements which
  Coca Cola
                                          show the good side of the company
What is Greenwashing?


  “Coca-Cola attempts to
  manufacture a green image of
  itself that it clearly is not, as their
  practice in India shows.
  We call this „Greenwashing.‟ ”




                                            - Amit Srivastava
Examples of Greenwashing

       •   In 2009, European McDonald’s changed the
           color of their logos from yellow and red to
           yellow and green to demonstrate its
           concern for “being green.”
Examples of Greenwashing

       •   In 2009, European McDonald’s changed the
           color of their logos from yellow and red to
           yellow and green to demonstrate its
           concern for “being green.”

       •   Comcast, a cable service company, has the
           slogan of "Paper LESS is MORE" but it uses
           large amounts of paper for direct marketing.
Examples of Greenwashing

       •   In 2009, European McDonald’s changed the
           color of their logos from yellow and red to
           yellow and green to demonstrate its
           concern for “being green.”

       •   Comcast, a cable service company, has the
           slogan of "Paper LESS is MORE" but it uses
           large amounts of paper for direct marketing.

       •   The Poland Spring’s bottles is touted as "A
           little natural does a lot of good", although
           80% of its beverage containers go to the
           landfill.
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing   Coca Cola is Greenwashing
because…                        because…
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing   Coca Cola is Greenwashing
because…                        because…


  We have implemented
  many environmental
  protective initiatives
  since 2000!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing      Coca Cola is Greenwashing
because…                           because…


  We have implemented
  many environmental            Those are not enough
  protective initiatives        even to make up for the
  since 2000!                   pollution you‟ve made in
                                India!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing    Coca Cola is Greenwashing
because…                         because…

  We voluntarily initiated The
  Energy and Resource
  Institute (TERI) to conduct
  a survey on ourselves! And
  the survey shows we‟re
  doing well!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing     Coca Cola is Greenwashing
because…                          because…

  We voluntarily initiated The
  Energy and Resource
  Institute (TERI) to conduct
  a survey on ourselves! And
  the survey shows we‟re
  doing well!                    The reliability of the
                                 survey is questionable!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing   Coca Cola is Greenwashing
because…                        because…




  We‟ve invested
  US$20million for our water
  conservation project!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing      Coca Cola is Greenwashing
because…                           because…




                                That‟s just 1 percent of
  We‟ve invested
                                Coca Cola‟s annual
  US$20million for our water
                                advertising budget!
  conservation project!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing   Coca Cola is Greenwashing
because…                        because…



  We‟ve built a lot of rain
  harvesting sites since
  2006 to recharge
  ground water!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing        Coca Cola is Greenwashing
because…                             because…



  We‟ve built a lot of rain
  harvesting sites since        That‟s nothing special. Rain
  2006 to recharge              harvesting has already
  ground water!                 been a common practice
                                in India.
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing   Coca Cola is Greenwashing
because…                        because…


  We‟ve won many
  awards for our
  CSR(Corporation
  Social Responsibility)
  initiatives!
Is Coca Cola Greenwashing?

Coca Cola is not Greenwashing        Coca Cola is Greenwashing
because…                             because…


  We‟ve won many
  awards for our
  CSR(Corporation               Conferment of awards may
  Social Responsibility)        not be objective. It can be
  initiatives!                  manipulated!
Is Coca Cola Greenwashing?
2000                                                                  2007
•   Coca-Cola India launched an eKOfreshment cooler that used         Coca-Cola India launched a rooftop rainwater harvesting
    technologies to helped it curb its emission of GHGs               initiative at Varanasi, expecting to recharge more than
    (greenhouse gases)                                                4,900 cubic meters of groundwater.
2005                                                                  Coca-Cola India launched oa rainwater harvesting project
•   Coca-Cola India initiated a PET recycling project in Mumbai.      at Greater Kailash, in New Delhi, which aimed to recharge
                                                                      around 4 million liters of water every year.
2006
                                                                      Coca-Cola India establishment 10 rainwater harvesting
•   In 2006, the company completed a rainwater recharge
                                                                      projects in different schools of Jamshedpur city.
    initiative at its Kaladera plant in Rajasthan. As part of the
                                                                      Coca Cola announced a three-year, US$ 20 million
    project, the company built around 110 recharge shafts that
                                                                      partnership with the World Wildlife Fund63 (WWF) on
    collected rainwater.
                                                                      water conservation
•   Coca-Cola India called, ‘Abhiyan — The Movement’. The film
                                                                      Coca-Cola India organized a program, “Think Green, Go
    focused on the need for and significance of recycling PET
                                                                      Green” that focused on environment education.
    bottles.
                                                                      2008
•   By the end of 2006, Coca-Cola India had established PET
                                                                      The Hindustan Coca-Cola Beverages Pvt. Ltd (Coca-Cola
    recycling projects at over 100 locations in India and built a
                                                                      India), was awarded the Golden Peacock award4 for
    capacity to collect and recycle nearly 80 percent of the waste
                                                                      Corporate Social Responsibility (CSR) for the several
    generated from the PET.
                                                                      community initiatives it had taken and its efforts toward
•   Coca-Cola started an initiative called e3 to redesign its
                                                                      conservation of water.
    trademarked bottle, saving 89,000 metric tons of glass in 2006
    at a global level. Most of the packaging material used by Coca-
    Cola India becomes 100 percent recyclable.
•   Coco Cola developed an Energy Management System (EMS)
    that curbed energy consumption by 35 percent.
•   Coca Cola launched an initiative called Project esKO, which
    aimed to reduce Coca-Cola’s carbon footprint at a global level
    by improving its driving and manufacturing operation to curb
    its carbon dioxide emissions by 10,000 metric tons every year.
Conclusion

So, is Coca Cola seriously doing something to fulfill its
social responsibility?
Conclusion

So, is Coca Cola seriously doing something to fulfill its
social responsibility?




        Yes, but           not enough!
Summary

      •   Focus on Environmental Responsibilities
      •   Several initiatives concerning water,
          energy, fuel, and packaging and
          recycling
      •   Although, they attracted criticism
      •   Coca Cola responded to the critics



            Conclusion: Coca Cola is doing
            something to fulfill its social
            responsibility, but not enough!
Summary (continued)




Obstructionist       Defensive     Accommodative            Proactive
 approach            approach        approach               approach



Low social responsibility    Social responsibility   High social responsibility
Summary (continued)




Obstructionist       Defensive     Accommodative            Proactive
 approach            approach        approach               approach



Low social responsibility    Social responsibility   High social responsibility
Summary (continued)




Obstructionist       Defensive     Accommodative            Proactive
 approach            approach        approach               approach



Low social responsibility    Social responsibility   High social responsibility
Thank you for listening!

      Questions?

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Corporate Social Responsibility Initiatives in India

  • 1.
  • 2.
  • 3. Company Background • Coke – A sweet carbonated drink containing caramel and other flavouring components • Invented in 1886 by Dr. J.S. Pemberton • Contained extracts of Coca leaves and Kola nuts • Business sold in 1888 to business men • Candler acquired competitors and promoted Coca-Cola → Rapid sales increase since 1895 • In 1894 J.A. Biedenharn invented selling the prepared drink in bottles
  • 4. Company Background (continued) • In 1919 a group of investors bought Coca Cola for around $25 million • Robert Woodruff turned the company into what it is now: • One of the world's most recognized brands and a MNE with huge profits • 1993, Coca Cola entered India through a strategic alliance with Parle Exports • By now, it offers a portfolio of world class quality beverages, extending through over 400 brands
  • 5. SWOT Analysis Strenghts • Strong brand-name • Global distribution system • High-profile global presence • Low cost of operation • Broad-based bottling strategy • High market share
  • 6. SWOT Analysis Strenghts Weaknesses • Strong brand-name • Carbonates market is in decline • Global distribution system • Existing distribution system is less efficient for non-carbonates • High-profile global presence • Health care issues • Low cost of operation • Broad-based bottling strategy • High market share
  • 7. SWOT Analysis Strenghts Weaknesses • Strong brand-name • Carbonates market is in decline • Global distribution system • Existing distribution system is less efficient for non-carbonates • High-profile global presence • Health care issues • Low cost of operation • Broad-based bottling strategy • High market share Opportunities • Expansion • Use distribution strengths • Large domestic market (India) • Increasing average income in India
  • 8. SWOT Analysis Strenghts Weaknesses • Strong brand-name • Carbonates market is in decline • Global distribution system • Existing distribution system is less efficient for non-carbonates • High-profile global presence • Health care issues • Low cost of operation • Broad-based bottling strategy • High market share Threats Opportunities • Competition from health drinks • Expansion • Competition from Pepsi • Use distribution strengths • Boycott in the Middle-East • Large domestic market (India) • Government regulations on Increasing average income in India production (license) •
  • 9.
  • 10. Coca-Cola India CSR Initiatives Focus on Environment Responsibility
  • 11. Water Methods • Watershed Protection Community Watershed Partnership (CWP) (2005) • Rainwater Harvesting Projects Kaladera plant in Rajasthan (2006) • Educating Jal Tarang (a part of World Water Day) (2007) “Think Green, Go Green” Campaign (2007) Film (2007)
  • 12. Water (continued) Achievements 1. Reduced water consumption by 35% between 1999 to 2006 1. Reached zero water balance (2009) 1. Returned all water in manufacturing processes (2010) 2. Improved the livelihoods of Bottom of the Pyramid populations (BOP) (poor farmers)
  • 13. Water Goal: Reduce the emission of GHGs (especially HFCs and CO2) Methods 1. eKOfreshment Cooler Program (2000) 1. Converted old equipment to HFC-free fridges (2006) 2. Installed over 8500 units of HFC-free equipment (2007) 3. esKO Project (2007) 4. Enhanced energy efficiency 5. Developed Energy Management System (EMS) (2006)
  • 14. Energy New Coke: Isdell wants to reduce Coca-Cola's carbon footprint. - E. Neville Isdell, CEO
  • 15. Energy (continued) Achievements 1. GHGs emission reduces by 75% (2006) 2. Reduced energy consumption by 640 million kilowatt-hours, which equals to 3 million metric tons 3. Increased the energy efficiency of equipment by 40 to 50%
  • 16. Fuel Coca-Cola had local operations for production, bottling, and delivery in each country of operation. Take Taiwan for example: SWIRE Coca-Cola Taiwan LTD. and its factories are in No.46, Singbang RD., Taoyuan County.
  • 17. Packaging + Recycling • Focus on 3R (Reduction, Recovery, Reuse) • PET Recycling Project in Mumbai (2005) • “Abhiyan – The Movement”, a film on PET recycling Methods • e3 Program • Redesigned trademarked bottles • Invested millions of dollars on collecting and recovering packaging materials used for beverages
  • 18. Packaging + Recycling (continued) Achievements 1. Raised the income of about 100 PET crusaders by 50% 1. Recycled nearly 80% of the PET waste (2006) 2. Redesigning of bottles saved 89000 metric tons of glass (2006) 3. Most of the packaging material was 100% recyclable
  • 19.
  • 20.
  • 21. Depletion of Water Table Coca-Cola India depleted groundwater tables and overexploited the groundwater reserves, leaving the local communities with no access to drinking water and water for farming which was their primary source of income!
  • 22. Depletion of Water Table (continued) Data collected by the government agency the Ground Water Board showed that groundwater level had dropped in the first seven years of the company‟s operation. • A sharp drop in groundwater levels in Mehdiganj near the city of Varanasi. • Groundwater levels in Kala Dera have continued spiraling downwards.
  • 23.
  • 24.
  • 25. Depletion of Water Table (continued) One report, in the daily newspaper Mathrubhumi, described local women having to travel five kilometers to obtain drinkable water, during which time soft drinks would come out of the Coca-Cola plant by the truckload.
  • 26. Depletion of Water Table (continued) “Coca-Cola sucks India dry.”
  • 27. Supplied Sludge to Farmers as Fertilizer Coca-Cola had seized land from farmers and discharged hazardous material and sludge in the areas surrounding its plants in India. In a "goodwill gesture", Coca-Cola was distributing the solid waste from its bottling plants to farmers in the area as fertilizer!!
  • 28. Supplied Sludge to Farmers as Fertilizer (continued) The Central Pollution Control Board of India found in 2003 that sludge from Coca-Cola‟s Uttar Pradesh factory in Mehdiganj was contaminated with high levels of cadmium (up to 86mg/kg), lead (up to 538mg/kg), and chromium (up to 134mg/kg), effectively making the solid waste toxic.
  • 29. Supplied Sludge to Farmers as Fertilizer (continued) Cadmium is a Lead is carcinogen particularly and can dangerous to children and the accumulate in results of the kidneys, exposure can be with repeated fatal. Even at low exposure levels it can possibly cause mental causing retardation and kidney failure. severe anaemia.
  • 30. Supplied Sludge to Farmers as Fertilizer (continued) When confronted by BBC reporters… “It's good for the farmers because most of them are poor.” Coca-Cola's Vice-President
  • 31. Supplied Sludge to Farmers as Fertilizer (continued) When confronted by BBC reporters… “It's good for the farmers because most of them are poor.” The Coca-Cola company was ordered to stop the practice by the government Coca-Cola's Vice-President authorities immediately.
  • 32. Supplied Sludge to Farmers as Fertilizer (continued) The bottling facilities at Kala Dera also reported that the groundwater contained pesticides.
  • 33. Liquid waste from the Coca-Cola bottling plant at Balia
  • 34.
  • 35.
  • 36. Banner at > Coca-Cola Museum Major Protest Demands Coca-Cola Shut Down Plant March 31, 2008.
  • 37.
  • 38. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org
  • 39. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org Overexploitation of the groundwater reserves Study by National Geophysical Research Institute disapproved these allegations Decreased rainfall by 60% was the cause
  • 40. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org Overexploitation of the groundwater reserves Study by National Geophysical Research Institute disapproved these allegations Decreased rainfall by 60% was the cause Release of untreated water by the factory Wastewater management technology is among the most advanced in the world
  • 41. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org Overexploitation of the groundwater reserves Study by National Geophysical Research Institute disapproved these allegations Decreased rainfall by 60% was the cause Release of untreated water by the factory Wastewater management technology is among the most advanced in the world Supplied sludge to farmers as fertilizer Sludge is not harmful to the environment
  • 42. Analysis Of Coca-Cola India’s Response Coca Cola was attacked by different institutions
  • 43. Analysis Of Coca-Cola India’s Response Coca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen
  • 44. Analysis Of Coca-Cola India’s Response Coca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen Coca Cola’s plan: Attack credibility Refuting the allegations and calling them baseless Aggressively stressing their innocence hoping to resolve the issues
  • 45. Analysis Of Coca-Cola India’s Response Coca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen Coca Cola’s plan: Attack credibility Refuting the allegations and calling them baseless Aggressively stressing their innocence hoping to resolve the issues Problem: NGOs are very powerful! NGOs have higher credibility in the eyes of the general public
  • 46. Analysis Of Coca-Cola India’s Response Coca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen Coca Cola’s plan: Attack credibility Refuting the allegations and calling them baseless Aggressively stressing their innocence hoping to resolve the issues Problem: NGOs are very powerful! NGOs have higher credibility in the eyes of the general public Mistake Acting to fast by attacking and underestimating NGOs power
  • 47. How Coca-Cola India should have responded Thinking and analyzing alternatives
  • 48. How Coca-Cola India should have responded Thinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs
  • 49. How Coca-Cola India should have responded Thinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs Alternative 2: Ignore Ignore the allegations and wait till the buzz goes away
  • 50. How Coca-Cola India should have responded Thinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs Alternative 2: Ignore Ignore the allegations and wait till the buzz goes away Alternative 3: PR Campaign A PR campaign that informs the American public about Coca Cola‟s efforts as responsible corporate citizen
  • 51. How Coca-Cola India should have responded Thinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs Alternative 2: Ignore Ignore the allegations and wait till the buzz goes away Alternative 3: PR Campaign A PR campaign that informs the American public about Coca Cola‟s efforts as responsible corporate citizen
  • 52. The Plan Solution: Collaboration with NGO and PR Campaign Goal Regain trust and loyalty of customer Capabilities needed > Coca Cola and NGO have to collaborate Actions > NGO has to correct their mistakes publicly > NGO has to issue an apology to Coca Cola
  • 53. The Plan Solution: Collaboration with NGO and PR Campaign Goal Rebuild and repair Goal the Coca Cola Regain trust brand name and loyalty of customer Capabilities needed > A PR team which will plan Capabilities needed and lead the campaign > Coca Cola and NGO have to collaborate Actions > Organize promotional activities Actions (including charity work) > NGO has to correct their mistakes publicly > Hand out free drinks, coupons, vouchers at public events > NGO has to issue an apology to > Broadcast TV advertisements which Coca Cola show the good side of the company
  • 54. The Plan Solution: Collaboration with NGO and PR Campaign Goal Rebuild and repair Goal the Coca Cola Regain trust brand name and loyalty of customer Capabilities needed > A PR team which will plan Capabilities needed and lead the campaign > Coca Cola and NGO have to collaborate Actions > Organize promotional activities Actions (including charity work) > NGO has to correct their mistakes publicly > Hand out free drinks, coupons, vouchers at public events > NGO has to issue an apology to > Broadcast TV advertisements which Coca Cola show the good side of the company
  • 55.
  • 56. What is Greenwashing? “Coca-Cola attempts to manufacture a green image of itself that it clearly is not, as their practice in India shows. We call this „Greenwashing.‟ ” - Amit Srivastava
  • 57. Examples of Greenwashing • In 2009, European McDonald’s changed the color of their logos from yellow and red to yellow and green to demonstrate its concern for “being green.”
  • 58. Examples of Greenwashing • In 2009, European McDonald’s changed the color of their logos from yellow and red to yellow and green to demonstrate its concern for “being green.” • Comcast, a cable service company, has the slogan of "Paper LESS is MORE" but it uses large amounts of paper for direct marketing.
  • 59. Examples of Greenwashing • In 2009, European McDonald’s changed the color of their logos from yellow and red to yellow and green to demonstrate its concern for “being green.” • Comcast, a cable service company, has the slogan of "Paper LESS is MORE" but it uses large amounts of paper for direct marketing. • The Poland Spring’s bottles is touted as "A little natural does a lot of good", although 80% of its beverage containers go to the landfill.
  • 60. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because…
  • 61. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We have implemented many environmental protective initiatives since 2000!
  • 62. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We have implemented many environmental Those are not enough protective initiatives even to make up for the since 2000! pollution you‟ve made in India!
  • 63. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We voluntarily initiated The Energy and Resource Institute (TERI) to conduct a survey on ourselves! And the survey shows we‟re doing well!
  • 64. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We voluntarily initiated The Energy and Resource Institute (TERI) to conduct a survey on ourselves! And the survey shows we‟re doing well! The reliability of the survey is questionable!
  • 65. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We‟ve invested US$20million for our water conservation project!
  • 66. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… That‟s just 1 percent of We‟ve invested Coca Cola‟s annual US$20million for our water advertising budget! conservation project!
  • 67. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We‟ve built a lot of rain harvesting sites since 2006 to recharge ground water!
  • 68. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We‟ve built a lot of rain harvesting sites since That‟s nothing special. Rain 2006 to recharge harvesting has already ground water! been a common practice in India.
  • 69. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We‟ve won many awards for our CSR(Corporation Social Responsibility) initiatives!
  • 70. Is Coca Cola Greenwashing? Coca Cola is not Greenwashing Coca Cola is Greenwashing because… because… We‟ve won many awards for our CSR(Corporation Conferment of awards may Social Responsibility) not be objective. It can be initiatives! manipulated!
  • 71. Is Coca Cola Greenwashing? 2000 2007 • Coca-Cola India launched an eKOfreshment cooler that used Coca-Cola India launched a rooftop rainwater harvesting technologies to helped it curb its emission of GHGs initiative at Varanasi, expecting to recharge more than (greenhouse gases) 4,900 cubic meters of groundwater. 2005 Coca-Cola India launched oa rainwater harvesting project • Coca-Cola India initiated a PET recycling project in Mumbai. at Greater Kailash, in New Delhi, which aimed to recharge around 4 million liters of water every year. 2006 Coca-Cola India establishment 10 rainwater harvesting • In 2006, the company completed a rainwater recharge projects in different schools of Jamshedpur city. initiative at its Kaladera plant in Rajasthan. As part of the Coca Cola announced a three-year, US$ 20 million project, the company built around 110 recharge shafts that partnership with the World Wildlife Fund63 (WWF) on collected rainwater. water conservation • Coca-Cola India called, ‘Abhiyan — The Movement’. The film Coca-Cola India organized a program, “Think Green, Go focused on the need for and significance of recycling PET Green” that focused on environment education. bottles. 2008 • By the end of 2006, Coca-Cola India had established PET The Hindustan Coca-Cola Beverages Pvt. Ltd (Coca-Cola recycling projects at over 100 locations in India and built a India), was awarded the Golden Peacock award4 for capacity to collect and recycle nearly 80 percent of the waste Corporate Social Responsibility (CSR) for the several generated from the PET. community initiatives it had taken and its efforts toward • Coca-Cola started an initiative called e3 to redesign its conservation of water. trademarked bottle, saving 89,000 metric tons of glass in 2006 at a global level. Most of the packaging material used by Coca- Cola India becomes 100 percent recyclable. • Coco Cola developed an Energy Management System (EMS) that curbed energy consumption by 35 percent. • Coca Cola launched an initiative called Project esKO, which aimed to reduce Coca-Cola’s carbon footprint at a global level by improving its driving and manufacturing operation to curb its carbon dioxide emissions by 10,000 metric tons every year.
  • 72. Conclusion So, is Coca Cola seriously doing something to fulfill its social responsibility?
  • 73. Conclusion So, is Coca Cola seriously doing something to fulfill its social responsibility? Yes, but not enough!
  • 74.
  • 75. Summary • Focus on Environmental Responsibilities • Several initiatives concerning water, energy, fuel, and packaging and recycling • Although, they attracted criticism • Coca Cola responded to the critics Conclusion: Coca Cola is doing something to fulfill its social responsibility, but not enough!
  • 76. Summary (continued) Obstructionist Defensive Accommodative Proactive approach approach approach approach Low social responsibility Social responsibility High social responsibility
  • 77. Summary (continued) Obstructionist Defensive Accommodative Proactive approach approach approach approach Low social responsibility Social responsibility High social responsibility
  • 78. Summary (continued) Obstructionist Defensive Accommodative Proactive approach approach approach approach Low social responsibility Social responsibility High social responsibility
  • 79. Thank you for listening! Questions?

Notas del editor

  1. Despite the efforts of Coca Cola it still received criticism
  2. Despite the efforts of Coca Cola it still received criticism
  3. Despite the efforts of Coca Cola it still received criticism
  4. Despite the efforts of Coca Cola it still received criticism
  5. Despite the efforts of Coca Cola it still received criticism
  6. Despite the efforts of Coca Cola it still received criticism
  7. Despite the efforts of Coca Cola it still received criticism
  8. Despite the efforts of Coca Cola it still received criticism
  9. Despite the efforts of Coca Cola it still received criticism
  10. Let’s recap of what happened here
  11. Let’s recap of what happened here
  12. Let’s recap of what happened here
  13. Let’s recap of what happened here
  14. Let’s recap of what happened here:- Coca cola was attacked by different insttitutionsImage problems indian but american marketConsumer lost trust Reputation damagedIn order to Reclaim their status responsible corporate citizenCoca cola attack credibilityDisapporving all criticism and calling them baselessAlso emphasizing their innocenceProblem NGO’s are very powerfulIn public higher credibility than big companysCoca Cola made a mistake hereATTACKING FAST AND UNDERSTIMATING POWER
  15. Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives POSSIBLE ALTERNATIVES TO RESOLVE1.
  16. Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
  17. Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
  18. Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
  19. Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
  20. How does the plan look like?Important to regain the trust of the customer and repair the damages made to Coca Cola’s imageCapabilities needed: - Coca Cola and CSE have to work together on this matterActions (If CSE has reported inaccurate information)publicly correct these statements. apology to Coca Cola will also be necessary to ensure that the Indian public believes itGoal: Rebuild and repair the coca cola brand nameCapabilities - PR TeamActions- Promotional activities, free samples, coupons, vouchers, TV advertisement
  21. How does the plan look like?Important to regain the trust of the customer and repair the damages made to Coca Cola’s imageCapabilities needed: - Coca Cola and CSE have to work together on this matterActions (If CSE has reported inaccurate information)publicly correct these statements. apology to Coca Cola will also be necessary to ensure that the Indian public believes itGoal: Rebuild and repair the coca cola brand nameCapabilities - PR TeamActions- Promotional activities, free samples, coupons, vouchers, TV advertisement
  22. How does the plan look like?Important to regain the trust of the customer and repair the damages made to Coca Cola’s imageCapabilities needed: - Coca Cola and CSE have to work together on this matterActions (If CSE has reported inaccurate information)publicly correct these statements. apology to Coca Cola will also be necessary to ensure that the Indian public believes itGoal: Rebuild and repair the coca cola brand nameCapabilities - PR TeamActions- Promotional activities, free samples, coupons, vouchers, TV advertisement
  23. There are different arguments that describe where Coca Cola stands on the matter of social responsibility
  24. There are different arguments that describe where Coca Cola stands on the matter of social responsibility
  25. There are different arguments that describe where Coca Cola stands on the matter of social responsibility