CocaCola Ethical Vs Unethical

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Presented by:

Corina Bruni
Ankita Mayekar

COMPANY PROFILE
Made a re-entry into India in 1993 after opting to leave operations
in 1977 due to issues with Foreign Exchange Regulation Act.
For Rs 3500 million bought out popular brands Thumps Up,
Goldspot, Citra, Mazaa & Limca from Parles Chauhan brothers
there-by giving a straight-forward 66% percent share on re-entry.

Indian operations include 25 wholly company-owned bottling plants


and another 24 franchisee owned bottling operations.
Directly employees more than 6000 people, and indirectly generates
employement for more than 1,25,000 people from its vast
procurement, supply and distribution opearations.

Companys Ethical
business
The scope of conduct extends to employees, officers as well as
company directors.

Recognizing that there are differences in customs, traditions and


economic conditions that affect business practices, the company
believes that shared-values
must serve as the foundation for
relationships among employees, suppliers.

Enviornmental Policy
Coca-Cola India will carry out their operations in ways that protect,
preserve and enhance the enviornment.
The Policy promises to operate the companys facilities taking into
account all applicable enviornment safety and health rules.
It would be policy of the company to conserve water, energy and fuel
resources by finding ways of reducing and improving usage.
The company would promote the collection of used PET bottles
through awareness programmes.

The company would also ensure that all operations are ecomanagement system and ISO 14001 compliant.

Suppliers Guiding
Principles
Built on the compliance of perfection
Workplace practices
Communication
Work environment

Health & safety


Wages & benefits

Business Objectives
and policies
Consumers across the globe choose coke brand of refreshment more
than a billion times everyday because coca-cola is
The symbol of quality
Customer & consumer satisfaction
A Responbile citizen of the world

Environment
Foundation Award
GPEMA in the recognition of its world class environment
practices
TCCQS covering
SLP,
product quality,
packaging quality,
PCI
customer satisfaction

Unethical Practices
Lack of transparency and accountability
Clause 49: Listing on stock exchange
Integrity, transparency, full disclosure of financial and non-financial
information .

Unhealthy nature of colas


Cause obesity and tooth decay

Lack of ethics in marketing


Offering products or services against the interest of society

Discriminating in pricing
Tall claims in advertising
Targeting in appropriate audience

Unhealthy Practices
Monopolistic and Racist employment practices

Pesticide Controversy
CSE tested aerated waters produced by Coco Cola & concluded to
contain toxins
Pesticides which results into Cancer & breakdown of immune system
CSE found 30 times level of pesticide residues than what is
permitted under EU regulations
Ms Sunita (Director CSE) was accused for Brandjacking by David
Cox (Commn Director Coke Asia)
JPC a committee set by govt found that water which constitutes for
86% to 92% has no standards for MRLs
Ministry of Health entrusted the task of evolving suitable in PFA to
CCFS

Practices Inimical to
stakeholders Interest

Challenged at shareholders meeting


Misleading public on water issues
Speaking tour action against coca-cola
Coca cola challenged on human rights abused

Foreign objects found


Excessive water usage

Kerala
Utter pradesh
Tamilnadu
Rajastan
Maharashtra

Low compensation paid

Exploiting the ground water


Consumption of water

Excessive Water Usage


Uses 3 times as much water to produce a liter of coke.
It is said that those who don't learn from the mistakes of the past are
destined to repeat them.
It seems that the Coca-Cola has not learnt any lessons from Plachimada a village in the state of Kerala in India where the community-led campaign
has shut down its plant since March 2004.
The manner is which the Coca-Cola company has decided to deal with
another community-led campaign in India - in the village of Kala Dera in
the state of Rajasthan - is indicative of the arrogance and impunity of the
company that has landed it in trouble before.

Kala Dera
Kala Dera is a large village located outside
the city of Jaipur.
Agriculture is the primary source of livelihood.

Kala Dera - Thirsting from Coca-Cola


Unusable Well in Kala Dera Showing
Depleted Water Level.
Forced Assessment Validates
Community Concerns.
Stop Using Groundwater in Kala Dera.
Farmer in Kala Dera Shows Increased Electric Bill
from Pumping Water from Depleted Groundwater

Coca-Cola's Response - Unethical and Dishonest


Continued Misery in the Face of Certainty
Criminal Negligence or Straight Incompetence?
Misrepresenting Facts
Corporate Social Responsibility - A Scam?
Rainwater Harvesting - Dilapidated and a Bluff

Coca-Cola Sign - "Kala Dera - A Dream" Next to


Dilapidated Rainwater Recharge Shafts

Companys Defence
Coca-Cola India and the other major soft drink giant refuted CSEs
study as unscientific and biased.
Claim that insecticide levels in other foodstuffs are higher.
T.E.R.I. has found the plants in compliance with applicable with
Indian enviornemental regulatory norms.
Being targeted.

Critical Issues
Pesticides issue
Solid Waste/ Water Issue
Dual Product Standards

Action Taken

Improved business practices & reduced water usage by 34%.


Rainwater harvesting
Solid waste disposal sites set-up
Carbon filtration and purification
Close monitoring of ingredients

Conclusion
Coca-Cola applied discriminatory approaches.
Consumer's well-being that has to matter.
Company continued advertising.
The question that remains at the end of the day is how a multinational
market leader that is aware of quality standards ends up producing
products unfit for human consumptions? This is quite unethical.

Going forward it is responsibility of Coca Cola in India to stick to the


ideals it promises in its corporate communications and ensure that the
promise of quality and adherence of standards is achieved.

Reference
Wikipedia
The Hindu
India Resource
Google images

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