CASE 3 - THE CRISIS OF

WATER

• Submitted to - Dr Nilanjan Sengupta

• Submitted by - Section A, Group 9

• Soumya Krishnan - 20052

• Sudeep S - 20054
• Surbhi Malhotra - 20055
• Punnamraju Mangateja - 20056
• Harshith S - 20057
• Neeriksha M - 20058
• Nithin Prakash C - 20059
Case Facts

• Water scarcity has become a very challenging issue thus businesses are controlling its demand and supply
side for their own monetary profit.
• About 18% of world population has no access to safe drinking water and sanitation.
• There has been a rapid increase in Privatization of supply water and package drinking water.
• In terms of business ethics by top corporates like Coco Cola and Nestle have constantly faced backlash on
their action in sensible matters of water.
• Harvesting and ground water level has fallen drastically, and it has resulted in undrinkable water.
• Corporates are trying to become a leader in water management not only by effective utilization of drinking
water resources but also by creating awareness to save.
Q1.Who are the main stakeholders of beverage companies such as Coca-Cola
and Nestle in this case? How could one prioritize their stakes and how
legitimate are the different stakes?

Beverage Company

Owner/Share Suppliers and Local

Customers Employees Government NGO’S
holders Distributors Communities

• We shall answer this question by applying the stakeholder analysis approach. 

• This approach includes, identifying and mapping stakeholder relationships, mapping stakeholder coalitions,
assessing the nature of stakeholder’s interests, creating a matrix to develop strategies and from it, prioritizing the
stakeholders.
• Stakeholder Coalitions: The possible stakeholder coalitions are government and NGOs with the local
communities. Consumers and the government, among others.
 Question-1 Continuous…..

Stakeholder’s potential for threat to organization

Mixed
Blessing - Supportive
High

High
Governments, - Owners and
Suppliers and
Distributors,
Employees
Higher priority
According to the matrix, we can
Consumers
prioritize the mixed blessing and
supportive stakeholders more than
the non-supportive and marginal
Low

Low
stakeholders
Non- Marginal - Local
Supportive - Communities
NGOs
Lower priority
Q2 Discuss the potential and the limits of what corporations can ultimately
achieve in the business of water?
Potentials
Harness the potential of converting sea-water into drinkable water.
Providing safe drinking water to inaccessible and less inhabited areas
such as rural villages.
Privatization can improve quality of infrastructure and services in
areas with existing water supply.
Increasing the efficiency of the Water Purification process through
R&D of machinery & techniques. This will help in the reduction in
the wastage of water.
The business can use their reach to spread awareness on safe sources
of water, including their products.
Limits
The scarcity of natural freshwater resources due to overconsumption
and climate change are important barriers for these organizations.
Increased regulation such as control and taxes by the government can
limit these businesses
The natural deterioration of the quality of packaged water during
storage also acts as a natural limit.
The changing consumer mindset about the ethics of the business of
water as it is largely considered as a fundamental human right .
The limits of the plastics used in packaging and transportation can be
a barrier.
Learnings
• Actions of Companies: In the existing water scarcity and pollution problems, companies such as Coca-Cola
and Nestle play an important role because of their heavy consumption, inefficiency, and wastage of water.
• Building Customer Trust: For businesses like coca cola and nestle, establishing public trust and confidence
in the management of water resources is key to achieving widespread cooperation and growing the business.
• Huge Investment Towards Water Management Practices: Industries with heavy water usage must start
and continue to invest more towards conservation as well as research towards alternative sources of water
and that it will show results, maybe not in the short term, but will show in the long term.
• Maintaining Good Relationships with Stakeholders: The maintenance of good and healthy relationships
with stakeholders such as consumers, governments, suppliers and distributors are very important as they can
make or break these businesses.
• Monitoring on Companies: Local Communities & NGOs tend to monitor the actions of the companies as
they believe these companies are playing with natural resources which can affect not only them but the whole
environment.

THANK YOU