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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)
•
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.
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.
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
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
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
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Despite the efforts of Coca Cola it still received criticism
Let’s recap of what happened here
Let’s recap of what happened here
Let’s recap of what happened here
Let’s recap of what happened here
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
Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives POSSIBLE ALTERNATIVES TO RESOLVE1.
Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
Coca Cola should’ve not acted so fast in attacking the institute Take time to analyze the situation and alternatives
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
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
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
There are different arguments that describe where Coca Cola stands on the matter of social responsibility
There are different arguments that describe where Coca Cola stands on the matter of social responsibility
There are different arguments that describe where Coca Cola stands on the matter of social responsibility