Beruflich Dokumente
Kultur Dokumente
Coca-Cola India
Group No:4
Submitted by:
Abhishek Batra (C011)
MohitGoyal (C025)
Yogesh Kadam (C035)
AyazMahmood(C042)
AnkitaPahwa (C052)
Aparjit Singh (C057)
1 Introduction 3
10 References 15
The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry
into India. The company will be investing another USD 5 Billion till the year 2020. The Coca-
Cola system in India directly employs over 25,000 people including those on contract. The
system has created indirect employment for more than 150,000 people in related industries
through its vast procurement, supply and distribution system.
The Sustainability Framework which Coca-Cola calls Me, We, World is their shared vision
for how they can work together to create social value and make a positive difference for the
consumers and communities served.
Below is the framework mentioned in the sustainability report (2013) and on the website.
Me Together we can promote well-being for the people who enjoy our brands every
day.
We Together we can create a better future for local communities where our
World Together we can create a better future for the finite natural
People: With their products Coca-Cola offers a low or no-calorie beverage option in every
market. They provide transparent nutrition information featuring calories on their packages.
Women play a crucial role in their value chain, through their 5by20 program, they have
economically empowered over 26,000 women (in India alone), and helping them realizes their
entrepreneurship dream. It envisions to empower 5 million women entrepreneur across their
value chain by 2020.Coca-Cola promotes the importance of leading an active healthy lifestyle by
organizing U-15 Football and U-16 Cricket tournaments.
Planet: Water being the most valued natural resource and Coca-Cola having a direct connect
with the use of water have taken up initiatives like Anandana (Coca Cola India Foundation) and
their bottling partners have been undertaking water replenishing projects in different parts of
India trying to improve water efficiency by 25% as compared to 2010. They target to recover and
recycle 50 % of the bottles and cans introduced in the market along with trying to reduce the
carbon footprint of their products by 25% by 2020.
4) Pragati A training and a business start up support initiative to train mom-and pop
kirana retailers to keep pace with changing customer preferences.
The Program received the World CSR award and was featured as a best practice by the
Ministry of Corporate Affairs for empowering women retailers in the distribution value
chain in an environment friendly way.
II) Another way the Coca-Cola integrates CSR with the business model is that it has started
sourcing 25 percent of PET plastic from recycled or renewable material. Also another aspect of
this is that it has improved the packaging material efficiency per litre of product sold by 7
percent as compared to 2013.
Coca-Cola Company has an internally developed tool referred to as the Value Creation Model
(VCM) to help assess the relative value that the sustainability initiatives provide to business and
society. The model supports annual business planning activities by providing a well-defined
framework to quantify the business and social impacts of sustainability initiatives, thus enabling
transparency and cross-functional dialogue to prioritize investments, allocate resources and
assess the benefits from implementing sustainability programs. The VCM tool helps the
leadership identify key impacts across sustainability programs and identify opportunities to build
momentum in areas of strength. It is a component of Coca-Colas web-based Sustainability
Management and Reporting System.
Also the sustainability report has been prepared based on the Global Reporting Initiative (GRI)
G3.1 guidelines which has been assured by external agency M/s DNV Business Assurance India
Private Limited which has provided a provided a GRI application level B+ to the report.
Coca-Cola India directly employs over 25,000 people, while also creating indirect employment
for more than 150,000 Indians in related industries through procurement, supply and
distribution systems. It also provides a source of income for more than 7,000 distributors,
200,000 farmers and 2.2 million retailers. Coca-Cola has also committed to investing USD 5
billion between 2012 and 2020.
Coca-Cola India being one of the largest beverage companies in India, realized that CSR had to
be an integral part of its corporate agenda. According to the company, it was aware of the
environmental, social, and economic impact caused by a business of its scale and therefore it had
decided to implement a wide range of initiatives to improve the quality of life of its customers,
the workforce, and society at large. However, the company came in for severe criticism from
activists and environmental experts who charged it with depleting groundwater resources in the
areas in which its bottling plants were located, thereby affecting the livelihood of poor farmers,
dumping toxic and hazardous waste materials near its bottling facilities, and discharging waste
water into the agricultural lands of farmers. Moreover, its allegedly unethical business practices
in developing countries led to its becoming one of the most boycotted companies in the world.
Environmental responsibility was a key aspect of Coca-Cola India's CSR initiatives. Since Coca-
Cola India was involved in beverage production, its operations affected the environment in many
ways such as through excessive levels of water consumption, wastewater discharge, high energy
consumption, discharge of effluents, and greenhouse gas (GHG) emissions due to the use of
refrigeration, vending machines, air conditioning equipment, etc.
1) Coca-Cola in their sustainability report has specified that it believes that all foods and
beverages have a place in a sensible, balanced diet that is combined with regular physical
activity. Obesity is a serious and complex problem caused by many factors, including too
little exercise, consuming too many calories, lifestyle, genetics, environmental, and other
factors. Coca-Cola is committed to enable consumers make informed choice, as well as
promoting the importance of leading an active, healthy lifestyle. It organizes national
10 | C o c a - C o l a C S R R e p o r t
If the company were truly serious about being socially responsible, it would stop the
mining of groundwater in Kala Dera because the companys selfish use of water to
generate profits for its shareholders is leading to a tragedy of the commons, the
complete destruction of the groundwater resources in Kala Dera.
In Plachimada plant also Coca Cola extracted about 2 million litres of ground water every
day and releasing toxic waste thus making water unfit for drinking and cooking. Adding
to this controversy was the advertisement that Coca-Cola came up with in which the
famous actor Amir Khan when asked for cold drinking water by certain women is shown
drawing out Coca-Cola bottles out of the well instead of water.
As a reactive strategy to these issue Coca-Cola has started Anandana- Coca Cola India
Foundation to undertake water replenishing projects in different parts of India trying to
improve water efficiency by 25% as compared to 2010.This had a double impact, it
supported the livelihood of the people living around the area and it served as a resource
for its beverages (About 85% of Coca-Cola is water as claimed by the company and also
the packaged water Kinley).
11 | C o c a - C o l a C S R R e p o r t
Images aptly depicting the situation Coca-Colas ground water usage situation:
12 | C o c a - C o l a C S R R e p o r t
5) The Indian Parliament has banned the sale of Coke and Pepsi products in its cafeteria,"
The ban came as a result of tests by the Indian government and private laboratories which
found high concentrations of pesticides and insecticides in the colas, making them unfit
for consumption. According to Amit Srivastava of Indian Resource Centre, Some
samples tested showed the presence of these toxins to be more than 30 times the standard
allowed by the European Union. If Coca Cola as it claims was really concerned for the
Health and Nutrition of people then why did its samples tested contained harmful and
banned pesticides and insecticides, this is matter of concern.
6) Coca-Cola India made a hat-trick by bagging the coveted Golden Peacock Award third
year in a row for CSR. Of the four Golden Peacock Global Awards for Corporate Social
Responsibility given at Lisbon in Portugal, Coca-Cola India once bagged a special
commendation for its contribution in India towards its efforts in community development.
But the controversy lies in the fact that the Golden Peacock Award is presented by the
World Environmental Foundation for whom Coca-Cola is the sponsor.
1) Of the various CSR theories the Keith Davis- Enlightened Self Interest theory is aptly
applicable to the various sustainability initiatives undertaken by Coca-Cola India.
Enlightened self-interest recognizes that a company's prime purpose is to make profits,
but that this goal can be achieved by fulfilling its social and environmental
responsibilities. Coca-Cola has recognized that profit making along with responsible
development is for the betterment of the companys future. All the initiatives Anandana,
5by20 (Parivartan, Pragati, ekO-Cooler, Unnati) etc. will help the company sustain and
grow in future while also fulfilling the social and environmental responsibilities.
2) Stakeholders Theory is also applicable here. The residents and local communities who
live near the bottling plants are Dependent Stakeholders. They are the most affected ones
due to scarcity of ground water caused by bottling plants in their areas. The water is not
fit for consumption and cooking. There are large protests in some areas. Due to these
large protests company has started replenishing water under Anandana. Customers are
demanding stakeholders. Company need to meet their changing needs. With the need of
healthy lifestyle, Coca Cola has introduced low calories beverages in their products.
13 | C o c a - C o l a C S R R e p o r t
References:
https://www.coca-colaindia.com/wp-
content/themes/73002/includes/pdf/sustainabilityReports/Sustainability_Report_dec_14.pdf
2) Reference links:
http://business.mapsofindia.com/food-industry/beverage/#sthash.odndC3uD.dpuf
http://www.indiaresource.org/campaigns/coke/2013/mehdiganjfact.html
http://www.righttowater.info/rights-in-practice/legal-approach-case-studies/case-against-coca-
cola-kerala-state-india/
http://www.indiaresource.org/news/2014/1012.html
http://killercoke.org/crimes_india.php
http://www.ritimo.org/The-Plachimada-Struggle-against-Coca-Cola-in-Southern-India
http://www.indiaresource.org/
http://www.indiaresource.org/news/2015/1014.html
3) Video Reference:
14 | C o c a - C o l a C S R R e p o r t