SR Case Study:

oca Cola IndiaPrepared by:

sma uhamad

Starts with selling 9

beverages/day

1886 - AtlantaLocal soda producer

20th centuryProducts appears

everywhere

2005Largest

company for non-alcoholic beverages &

syrups

1977 withdrawal1992 – Re-

enters India

IndiaProduction

factory since 1950s

Conflict2003Publication issued by Centre for Science & Environment

1. Presence of pesticides in Cola Cola product 2. Water pollution 3. Excessive used of groundwater# Drought in Placimada, Wada & Mehdiganj

Issues forwarded to government of India & been

put for investigation

S W O T Well known

brand & product sells almost in every country in the world

Provide jobs for local people (25k direct & 150k indirect employees

Thums Up & Sprite are top selling brands

Unethicaly conducting business

The way issues been handled had aroused more grievances among local people

India is world’s largest fastest growing population after China

Provides large market for products

Negative image from the issues

40% of sales drop (2 weeks after CSE report released)

Bear for damage & fine (Rupee 216 crore=US$48m)

Shutting down of the bottling plant in Placimada in 2004

1) Growth2) Environment3) Climate

CSR Initiatives by Coca Cola India

4) Community5) Workplace+ Corporate Governance Ethics

1) Growth Council of Applied Economic

Research (India premier economic research institute) reported that the industry has a 2.1 of multiplier effects.

Job opportunities (25 000 direct and indirect employees of > 150 000).

“Parivartan” program (means change towards the better) for enhancing skills among retailers.

• At the end of 2009, the program had trained 30 000 retailers in North India.

2) Environment

a) Water Stewardship

# 2005 Improved water use efficiency by >25%

# Water usage ratio= amount of litre of water used for the production of 1 litre of finished product

b) Recycling Water

Treated water

# Used for utility (e.g. boilers, chillers, landscape irrigation & dust control)

# used for 2ndary purposes (e.g. toilet cleaning, floor washing, etc)

c) Water Replenishment

Initiatives

# End 2009, 500 rainwater harvesting been installed in 20 states

# = 93% groundwater used

d) Drip Irrigation Projects

# Started in 2008. 27 farmers & covering 13.5 hectares of agriculture land

# End 2010, 300 drip system installed in >150 hectares area

Cold Drink Equipment

Solid Waste Management Performance

3) Climate

Registered device name “Energy Management System”

Reduce energy consumption by 35%

Material used are recyclable

E.g. cardboard boxes, gunny bags, & wooden scrap.

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4) Community

Various aids provided like providing bottled drinking water, use delivery vehicles for aid distribution & employee volunteerism

Rehabilitation projects – partnership with NGOs (World Vision India, Plan India & Save the Children) for reconstruction of classroom

Aarogya Health Clinic It is dedicated to the local

community in March 2011 Collaborated with NGO

(Guwahati based NGO) All visiting patients issued

“Aarogya Health Card” & free basic medicine provided

On average, 200 patients visit the clinic every month

5) Workplace Company given attention to abide rules and laws regarding local and international

labor practice. Employees have right to report any violation without fear of retaliation. Every employee is treated fairly, with dignity and respect in Coca Cola.

Well Being Assessment Pegasus Program To provide a customized

health assessment report to each employee & Annual Check Up Policy for all employees

INR35 000 a year to partly sponsor employee sports related expenses, including gymnasium membership & purchase of sports equipment by company

To develop functional experts each year, enhancing skills, to take on future roles within the Coca Cola system

Corporate Governance Ethics

The Code of Business Conduct

Abide to Anti-Bribery Policy. Coca Cola also abide to the U.S.

Foreign Corrupt Practices Act The Company is a signatory to the

United Nations Global Compact, by which it is committed to work against corruption and bribery around the world.

The Code of Business Conduct for Suppliers

effective in February 2008.

Being more involved in actively improving the social

environment

Awareness of changing social values

Economic function

CSR Review Definition • The European Commission is ‘the responsibility of enterprises for their impacts on society’ • “companies acting in accordance with societal demands” (Han, 2010. p.12) In 1971, Committee of Economic Development introduced “Three Concentric Circles”

Outer layer (biggest circle) is also achieved and performed by Coca Cola India.

Second circle of CSR is not fully met by Coca Cola India at the early operation of its plants in India.

Inner circle (economic function) is including growth, products and jobs creation are fulfilled.

• However the situation is slowly changed • The conflicts of water became a catalyst for Coca Cola India to be more proactive in

their CSR activities

Conclusion

Whenever companies do more harm, more good then will be produced. CSR initiatives as a way to compensate corporate social irresponsibility

(water issues). Comprehensives CSR initiatives are implemented by Coca Cola India has

provided better environment to local people.

Lesson to be learnt : Company should be ethically and legally responsible and aware of

environment where they operate their business Avoid any conflicts and also to provide/deliver their philanthropy to

people. CSR is the best way for company to show their concern for environment

that they operate and to those people who are affected by their operation

Thank you