IY004 Assignment: Overexploitation and CSR of Coca-Cola in India

This report examines the corporate social responsibility (CSR) of Coca-Cola in India, focusing on the overexploitation and pollution of water sources. The essay highlights the negative impact of Coca-Cola's operations on the environment and local communities, including water waste, farmer suicides, and the presence of harmful substances in their products. It analyzes the company's CSR policies, particularly in relation to water stewardship and environmental awareness. The report provides recommendations for ethical stances and stakeholder obligations, including short-term and long-term shareholder interests, multiple stakeholder obligations, and shaping the society. The essay concludes by emphasizing the importance of CSR activities in improving water waste, environmental measures, and societal development, advocating for sustainable practices and ethical decision-making within the company. The report references various sources to support its arguments and findings.

STUDENT NAME:
STUDENT ID:
TOPIC: CORPORATE SOCIAL RESPONSIBILITY
DATE: 8-05-2019
WORDS: 1435
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Introduction
Corporate social responsibility has gained a positive approach for companies as they
link the concepts of corporate social responsibility with environment awareness. The
phrase that every company should generate its image with the help of CSR concept is
basically true. In the case of Coca-Cola, the company has negatively been recognized
due to its waste water and pollution in the environment (Albright-Hanna 2013). There
are distinctive waste materials that are observed in several parts of the villages in India
at Coca-Cola India. The media and the people have made a huge issue that cannot be
overlooked by the company, thereby CSR is an initiative that the company can take and
build approaches to focus on environmental awareness. There is a downtown in the box
that reveals the structure of the business. The essay highlights the issue that the people
face due to water waste and agriculture problems, the recommendations and the CSR
approach to be implemented by the company.
Problems and issues
Coco-Cola is a highly recognized beverage company that reports the fastest sale of the
beverages and is mostly liked by people all over the world. These are fastest growing
issues that are addressed by the company. These issues impact an adverse effect to
the environment which negatively affects the image of the company. There are several
operations that the company could have focused on while the subjected growth of the
company depends on the Indian market which has shown a major change due to its
growing problem and criticism to the product (Banet-Weiser 2012). This is a firestorm of
criticism that is observed and the outcry of the company in India has several issues in
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terms of water pollution. The vast amount of water is polluted and turns in farming and
virtual deserts which is definitely a cry for the farmers. The suicide rates of farmers in
India have constantly growing, now this would be a major issue if there is no CSR
activity by the company (Brancaccio & Bitker 2013). The residents of the country who
live nearby Coke’s facilities have marched a rally that protests more than 500 farmers. It
is thereby advisable by senior management of India Resource Center to take actions
that best suits the company’s activity in terms of environmental awareness and CSR
activities. There are several factors that should be analyzed in terms of taking strict
actions for the company that does not take environmental issues seriously and harm the
environment and the society. The three communities in India such as Plachimada,
Wada and Mehdiganj face huge issues regarding common groundwater resources to be
polluted in the environment. The other issues that these communities face are pollution
and water shortage that is the main fear of people living in the particular areas.
The other problem is about the health concern of people which is at risk. The Indian
Parliament has considerably banned Pepsi and coke products in terms of the cafeteria.
There should be a logical step that the parliament should take in terms of ban of sales
of coke product in India (The Guardian 2014). The reason is due to the test that ensures
Indian government results. There are private laboratories that have tested the products
of coke. They found that there is high amount of insecticides and pesticides that is really
very harmful for the country. The samples that were tested have showed that there was
presence of toxins in the product with more than 30 times which is not really acceptable
in the country (Killer coke 2018). The company focuses on continuous development
which should be addressed in the CSR activities.
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CSR policy
Corporate social responsibility helps in focusing on vision of the company by societal
welfare activity and builds a major recognition for the companies to ensure wide range
of activities. There are several areas of CSR that tends to focus on protecting welfare
and environment. The concept of CSR is to focus on economic development of the
country and even have economic practices that tends to focus on maximization of profit.
There is a difference in business conduct that focused on communication strategies.
CSR program of Coca Cola is examined with the CSR activities. The main objective of
Colas is sustainability, whereas it is expressed that the company should even focus on
water pollution and environmental awareness (Blanding 2010). There is a major action
that is taken by the company to ensure consumer health which is really an important
factor, water stewardship, packaging, employee development, energy climate and
involvement of suppliers.
The company focuses on consumer health, modern life trends and health awareness
which still needs to focus on with a broadened view of product portfolio. This is the
reason that the company needs more of ethical concern regarding water issues that are
faced in India. The major problems should be addressed by the company in concern
with the guidelines and supported issues of health.
The company still strives to focus on improving the water use and consider water
stewardship. The use of water has then improved by 3.5% which was observed in the
year 2010. Currently the company focuses of effective use of water which it really costs
to make a liter of bottle of Coke to 1.67 liters.
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Recommendations
Ethical stances
The ethical stances that the business considers have basically to be carried out by the
corporate social responsibility (Johnson 2003).
The first stance that the company should focus is look after the shareholders with short
term needs to be fulfilled effectively. This strategy will allow companies to gain and
maximize short term profits of the company. Coke should take this strategy to work on
effective needs of shareholders that addresses accountable situation which will benefit
the company and the people. Corporate social responsibility tends to affect the business
ethics while focusing on company and shareholders interest (Brei & Böhm 2011).
The second stance that can be taken is for the interest of shareholders for long term
purpose. For long term interest of the company, this is an ethical situation that ensures
long run behavior of people (Barnea & Rubin 2010). While focusing on colas brand, the
company cheats the people as the products like Coca-Cola harm the people with
insecticides and pesticides and toxins with 30 times more than required. The short term
profit may increase at this time but the long term profits will be decreased due to the
issues that people face. Thereby, CSR policies of water management and
environmental awareness should be focused by the company. There are several
instances where the long term profit of the shareholders impact the CSR activities.
The third stance is about multiple stakeholder obligations which is noted in the CSR
policies of the company. Coco-cola should focus on multiple stakeholder obligation as a
major importance provided to several stakeholders. This is a widened approach that
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affects the shareholders and stakeholders. Everyone in the company should be
accountable and should be responsible for effective management and environmental
protection as per their duties (Pedrini & Ferri 2011). There are customers, suppliers,
general population and government who are affected due to intense decisions of the
company. Thereby, the importance to the multiple stakeholders must be provided when
making critical decisions about the company.
The fourth stance I about shaping the society which is really important for several
companies to attain their position in the market. There are several companies who tend
to focus on societal benefits which is really a good decision. Coca-cola should focus on
development of the society and community. The way people think is adversely important
and should be focused by the company. To shape the society for better results is the
ultimate goal of the company (Barlow 2010).
There can be many companies that look good and green from outside but there is no
proper information about the societal welfare activity that it provides to the people and
the public in charge (Ghosh 2010).
Conclusion
The essay focuses on Coca-cola company and its issues that are basically regarding
the water pollution and water waste in several communities in India. The use of water is
excessive while producing a bottle of coke. It is like 1.67 liters of water is used to make
one bottle of coke. The CSR activities for improving water waste and considering
development of the country and society are listed above in order to take effective steps
for societal development and making effective decisions regarding the company profit
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and long term goals. The CSR activities that are measured focus on several instances
and goals that the company should really take into notice while working on
environmental measures and awareness. The water stewardship program enhanced the
level of water sustainable business by the company. The program is organized to
achieve the targets of efficient water use, replenishment, managing wastewater and
mitigating risk.
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References
Albright-Hanna, A, 2013, The Coke ad that could destroy all other products, especially
coke. Upworthy. Retrieved from http://www.upworthy.com/the-cokead-that-could-
destroy-all-other-products-especially-coke
Barlow, M, 2010, The growing movement to protect the global water commons. Brown
Journal of World Affairs, vol. 17, no. 1, pp.181-196.
Brancaccio, D, & Bitker, J, 2013, Coca-Cola CEO Muhtar Kent on water, obesity.
Retrieved from http://www.marketplace.org/topics/business/coca-cola-ceomuhtar-kent-
water-obesity
Brei, V, & Böhm, S, 2011, Corporate social responsibility as cultural meaning
management: A critique of the marketing of 'ethical' bottled water. Business Ethics: A
European Review, vol. 20, no. 3, pp. 233-252.
Blanding, M. 2010, The Coke machine: The dirty truth behind the world's favorite soft
drink. Avery.
Banet-Weiser, S, 2012, Authentic™: The politics of ambivalence in a brand culture.
NYU Press.
Barnea, A., & Rubin, A, 2010, Corporate social responsibility as a conflict between
shareholders. Journal of Business Ethics, 97, 71-86
Ghosh, B, 2010, Looking through Coca-Cola: Global icons and the popular. Public
Culture, vol. 22, no. 2, pp. 332-368.
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Johnson, H.H, 2003, Does it pays to be good? Social responsibility and financial
performance, Business Horizon, (Dec./Nov.), pp. 34-40
Killer coke, 2018, Tell Coca-cola to STOP the VIOLENCE, Retrieved May 7, 2019, from
http://killercoke.org/
Pedrini, M, & Ferri, M L, 2011, Implementing corporate social responsibility: An
exploratory study of strategy integration and CSR officers’ duty. Economia Aziendale
Online, vol. 2, no. 2, pp. 175-187.
The Guardian, 2014, Indian officials order Coca-Cola plant to close for using too much
water, Retrieved from http://www.theguardian.com/environment/2014/jun/18/indian-
officals-coca-colaplant-water-mehdiganj
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