Coca Cola’s Ethical Stance and CSR Policies in India

Running Head: CORPARATE SOCIAL RESPONSIBILITY 1
Coca Cola’s Ethical Stance and CSR Policies in India
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CORPARATE SOCIAL RESPONSIBILITY
Coca Cola’s Ethical Stance and CSR Policies in India
Introduction
Coca Cola India is one of the major beverage companies in India. It offers a wide range
of soft drinks that is safe, healthy and high quality. Corporate social responsibility (CSR) refers
to the accountability of an organization or business to promote the vision of not only the
shareholders and investors but also the surrounding community and society at large. The main
objective of the corporate social responsibility is to protect the interests of the workers,
community and the environment both in the present and in the future (Grayson & Hodges, 2017).
It is important to note that the company has employed 25000 people. The corporate social
responsibility concept is for the idea that organizations do not operate as separate and isolated
economic entities but they are part of the society, and they should be responsible for conserving
and protecting the environment. The coca cola company implements the concept of CSR in its
operations to avoid operating on dishonest practices (Crowther & Seifi, 2018). The company
believes in the wealth creation and the maximization of investor’s profits, but it also believes in
the corporate social responsibility and the role of business to the development and prosperity of
the society (Flammer, 2015). However, some of the coca cola plants such as those found in India
have failed to fully implement the CSR practices which have led to public outcry due to water
pollution and overexploitation of groundwater.
General Analysis of Case Study
In India, Coca Cola Company has failed to adhere to all the policies the guide the
corporate social responsibility. One of the most vital responsibilities that the company has been
unable to meet is the conservation of the environment. Failure to observe CSR is evident as the
company has been overexploiting the groundwater resources leaving little to no water for the
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CORPARATE SOCIAL RESPONSIBILITY
community where the company plant is located. There is a public outcry as the Indian farmers
can no longer get water for irrigation since most of the water is pumped into the coca cola plant
reservoirs.
Another challenge is that the wastewater and harmful waste products from the coca cola
plant are inappropriately disposed of posing dangers for residents. The community indicates that
the company indiscriminate dumping of the waste has rendered the scarce water resource not
secure for human consumption. The presence of pesticides and herbicides in the Coca-Cola soft
drink is also another cause of alarm as the Indian private laboratories have found out that the soft
drinks contain up to thirty times more than the allowed level of toxins. However, the same soft
drinks contain safe amounts of toxins in the mother country meaning that the Coca-Cola CSR
has failed in India.
Ethical Theories Specific to the Topic
Utilitarianism
The utilitarianism ethical theory categorizes an action to be either right or wrong. The act
under the method is based on the cost-benefit analysis. Before deciding what action is right to
take, one must consider all of its evil and good consequences (Crane & Matten, 2016). Under the
utilitarianism theory, an action is deemed to be right if it satisfactorily brings about good results
or outcomes compared to an alternative action. On the other hand, an action is said to be wrong if
it results in adverse consequences. Utilitarianism theory does not encourage or discriminate
egoism; instead, it suggests that the actions taken would be wrong if they hurt others to benefit
one party because everyone counts.
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