Week 1 Written Assignment

Discussion Case: Coca-Cola’s Water Neutrality Initiative

Jose O. La Santa

Benedictine University

MBA 520: Business in Society

 Discussion Case: Coca-Cola’s Water Neutrality Initiative

Abstract

In the discussion case “Coca-Cola’s Water Neutrality Initiative” being reviewed at the end

of chapter two, we can see a perfect example of a company successfully managing a public issue

by using stakeholder relationships. The “world’s largest beverage company” (Lawrence &

Weber, 2014) that is partnered with more than 300 bottlers and operates in more than 200

countries dealt with the impact their bottling plants were having on fresh water resources all

around the globe. As a result the company made a study of their operations and announced a goal

of “water neutrality” that would be achieved by reducing, recycling, and replenishing the water

used at their bottling plants.

 Discussion Case: Coca-Cola’s Water Neutrality Initiative

Discussion Questions

1. What was the public issue facing The Coca-Cola Company in this case? Describe the

“performance-expectations gap” found in the case – what were the stakeholders’

concerns, and how did their expectations differ from the company’s performance?

If a public issue is defined as “any issue that is of mutual concern to an

organization and one or more of its stakeholders” (Lawrence & Weber, 2014); the issue

that The Coca-Cola Company is facing is the quality and the availablity of the fresh

water.

The general public expectation is that the “world’s largest beverage company”

(Lawrence & Weber, 2014) should provide its customers with products free of

contaminants and that it’s production shouldn’t affect the local communities around

their plants. But Coca-Cola did not meet the stakeholders expectations when a group of

people from areas located in their bottling plants in India brought to the public attention

that the company had depleted local groundwater supplies for their use affecting their

drinking water and irrigation resources. It was also brought to the public that Coca-

Cola’s production was contaminated with “dangerous levels of pesticide residues”

(Lawrence & Weber, 2014). World leaders (United Nations) also stressed the alarming

shortages of water at some areas.

2. If you applied the strategic radar screens model to this case, which of the eight

environments would be most significant, and why?

If we applied Karl Albrecht’s strategic radar screens model to this case, four out

of the eight environments would apply. And those four environments would be; the

customer environment, the legal environment, the social environment, and the

geophysical environment. But for this case the most important is the last, because of the

public concern that the company contaminanting products and depleting fresh water

resources.

3. Apply the issue management life cycle process model to this case. Which stages of the

process can you identify in this case?

All five stages of the issue management process can be identified in this case. The

first two stages; Identifying the Issue And Analyzing it, can be identified when Coca-

Cola “undertook a comprehensive study” (Lawrence & Weber, 2014) to understand

their water management in their different processes, and even included third parties as

part of their investigation. The third and fourth stage; generating options and taking

actions, can be identified when they announced their goal of “water neutrality” and how

it would be ad reached by recycling, reducing and replenishing. The last stage;

evaluating results, easily identified because after the initiative was started in 2011 the

company measured and reported the improvements achieved.

4. How did TCCC use stakeholder engagement and dialogue to improve its response to

this issue, and what were the benefits of engagement to the company?
 Coca-Cola used stakeholder engagement and dialogue when they reached out to

other stakeholders and experts to seek their advice. Some of them include the CARE

organization, Nature Conservancy and the World Wildlife Fund. The benefits from that

engagement can be seen with the results of their initiative. An estimated 39 % of its

facilites using recycled water, and 23% of the water used being replenished through the

different community water projects. (Lawrence & Weber, 2014). For 2012, their goal

was to improve water efficiency in manufacturing by 20 percent compared with a 2004

baseline, and this was achieved by the end of 2011, They had reduced our water use

ratio by 20 percent. (Coca-Cola 2011/2012 Sustainability Report)

5. In your opinion, did TCCC respond appropriately to this issue? Why or why not?

I believe that Coca-Cola responded appropriately by turning the public concern

issue in their favor. They took in consideration their relationships with internal and

external stakeholders by addressing their concerns and solving the issue using a

systemic approach. The company is showing commitment to the society, the

environment and most importantly their customers. And the evidence shows that they

have made improvements and continue setting goals for 2010. (Coca-Cola, 2015)
 References

Lawrence, A. & Weber, J. (2014). Business and Society: Stakeholders, Ethics, Public Policy

(14th ed.) McGraw

Coca- Cola's Water Neutrality Initiative by David Bosko on Prezi. (September 18, 2013)

Retrieved in September 1st, 2016 from https://prezi.com/3c54nclxtgyw/coca-colas-water-

neutrality-initiative/

Water Stewardship - The Coca-Cola Sustainability Project Retrieved in September 1st, 2016 from

www.coca-colacompany.com/.../water-stewardship.html

Coca-Cola on Track to Meet 100% Water Replenishment Goal (August 25, 2015) Retrieved in

September 1st, 2016 from www.coca-colacompany.com › Press Center › Press Releases