Corporate Social Responsibility Initiatives in India Essay

1. Company Background †¢ Coke – A sweet carbonated drink containing caramel and other flavoring components †¢ Invented in 1886 by Dr. J.S. Pemberton †¢ Contained extracts of Coca leaves and Kola nuts †¢ Business sold in 1888 to business men †¢ Candler acquired competitors and promoted Coca-Cola → Rapid sales increase since 1895 †¢ In 1894 J.A. Biedenharn invented selling the prepared drink in bottles 2. Company Background (continued)†¢ In 1919 a group of investors bought Coca Cola for around $25 million†¢ Robert Woodruff turned the company into what it is now:†¢ One of the worlds most recognized brands and a MNE with huge profits†¢ 1993, Coca Cola entered India through a strategic alliance with Parle Exports †¢ By now, it offers a portfolio of world class quality beverages, extending through over 400 brands 3. SWOT Analysis Strenghts†¢ Strong brand-name†¢ Global distribution system†¢ High-profile global presence†¢ Low cost of operation†¢ Broad-based bottling strategy†¢ High market share 4. SWOT Analysis Strenghts Weaknesses†¢ Strong brand-name †¢ Carbonates market is in decline†¢ Global distribution system †¢ Existing distribution system is less efficient for non-carbonates†¢ High-profile global presence †¢ Health care issues†¢ Low cost of operation†¢ Broad-based bottling strategy†¢ High market share 5. SWOT Analysis Strenghts Weaknesses †¢ Strong brand-name †¢ Carbonates market is in decline†¢ Global distribution system †¢ Existing distribution system is less efficient for non-carbonates†¢ High-profile global presence †¢ Health care issues†¢ Low cost of operation†¢ Broad-based bottling strategy†¢ High market shareOpportunities†¢ Expansion†¢ Use distribution strengths†¢ Large domestic market (India)†¢ Increasing average income in India 6. SWOT Analysis Strenghts Weaknesses†¢ Strong brand-name †¢ Carbonates market is in decline†¢ Global distribution system †¢ Existing distribution system is less efficient for non-carbonates†¢ High-profile global presence †¢ Health care issues†¢ Low cost of operation†¢ Broad-based bottling strategy†¢ High market share ThreatsOpportunities †¢ Competition from health drinks†¢ Expansion †¢ Competition from Pepsi†¢ Use distribution strengths †¢ Boycott in the Middle-East†¢ Large domestic market (India) †¢ Government regulations on Increasing average income in India production (license)†¢ 7. Coca-Cola India CSR Initiatives Focus on Environment Responsibility 8. WaterMethods†¢ Watershed Protection Community Watershed Partnership (CWP) (2005)†¢ Rainwater Harvesting Projects Kaladera plant in Rajasthan (2006) †¢ Educating Jal Tarang (a part of World Water Day) (2007) â€Å"Think Green, Go Green† Campaign (2007) Film (2007) 9. Water (continued)Achievements1. Reduced water consumption by 35% between 1999 to 20061. Reached zero water balance (2009)1. Returned all water in manufacturing processes (2010)2. Improved the livelihoods of Bottom of the Pyramid populations (BOP) (poor farmers) 10. WaterGoal: Reduce the emission of GHGs (especially HFCs and CO2) Methods 1. eKOfreshment Cooler Program (2000) 1. Converted old equipment to HFC-free fridges (2006) 2. Installed over 8500 units of HFC-free equipment (2007) 3. esKO Project (2007) 4. Enhanced energy efficiency 5. Developed Energy Management System (EMS) (2006) 11. Energy New Coke: Isdell wants to reduce Coca-Colas carbon footprint. – E. Neville Isdell, CEO 12. Energy (continued)Achievements 1. GHGs emission reduces by 75% (2006) 2. Reduced energy consumption by 640 million kilowatt-hours, which equals to 3 million metric tons 3. Increased the energy efficiency of equipment by 40 to 50% 13. FuelCoca-Cola had local operations for production, bottling, and delivery in each country of operation. Take Taiwan for example: SWIRE Coca-Cola Taiwan LTD. and its factories are in No.46, Singbang RD., Taoyuan County. 14. Packaging + Recycling †¢ Focus on 3R (Reduction, Recovery, Reuse) †¢ PET Recycling Project in Mumbai (2005) †¢ â€Å"Abhiyan – The Movement†, a film on PET recycling Methods †¢ e3 Program †¢ Redesigned trademarked bottles †¢ Invested millions of dollars on collecting and recovering packaging materials used for beverages 15. Packaging + Recycling (continued)Achievements 1. Raised the income of about 100 PET crusaders by 50% 1. Recycled nearly 80% of the PET waste (2006) 2. Redesigning of bottles saved 89000 metric tons of glass (2006) 3. Most of the packaging material was 100% recyclable 16. Depletion of Water Table Coca-Cola India depleted groundwater tables and overexploited the groundwater reserves, leaving the local communities with no access to drinking water and water for farming which was their primary source of income! 17. Depletion of Water Table (continued)Data collected by the government agency the Ground WaterBoard showed that groundwater level had dropped in the firsts even years of the company‟s operation. †¢ A sharp drop in groundwater levels in Mehdiganj near the city of Varanasi. †¢ Groundwater levels in Kala Dera have continued spiraling downwards. 18. Depletion of Water Table (continued) One report, in the daily newspaper Mathrubhumi, described local women having to travel five kilometers to obtain drinkable water, during which time soft drinks would come out of the Coca-Cola plant by the truckload. 19. Depletion of Water Table (continued) â€Å"Coca-Cola sucks India dry.† 20. Supplied Sludge to Farmersas Fertilizer Coca-Cola had seized land from farmers and discharged hazardous material and sludge in the areas surrounding its plants in India. In a â€Å"goodwill gesture†, Coca-Cola was distributing the solid waste from its bottling plants to farmers in the area as fertilizer!! 21. Supplied Sludge to Farmersas Fertilizer (continued) The Central Pollution Control Board of India found in 2003 that sludge from Coca-Cola‟s Uttar Pradesh factory in Mehdiganj was contaminated with high levels of cadmium (up to 86mg/kg), lead (up to 538mg/kg), and chromium (up to 134mg/kg), effectively making the solid waste toxic . 22. Supplied Sludge to Farmers as Fertilizer (continued)Cadmium is a Lead iscarcinogen particularly and can dangerous to children and the accumulate in results of the kidneys, exposure can be with repeated fatal. Even at low exposure levels it can possibly cause mentalcausing retardation and kidney failure. severe anaemia. 23. Supplied Sludge to Farmers as Fertilizer (continued)When confronted by BBC reporters†¦ â€Å"Its good for the farmers because most of them are poor.† Coca-Colas Vice-President 24. Supplied Sludge to Farmers as Fertilizer (continued)When confronted by BBC reporters†¦ â€Å"Its good for the farmers because most of them are poor.† The Coca-Cola company was ordered to stop the practice by the government Coca-Colas Vice-President authorities immediately. 25. Supplied Sludge to Farmers as Fertilizer (continued) The bottling facilities at Kala Dera also reported that the groundwater contained pesticides. 26. Liquid waste from the Coca-Cola bottling plant at Balia 27. Banner at >Coca-Cola Museum Major Protest Demands Coca-Cola Shut Down Plant March 31, 2008. 28. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org 29. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org Overexploitation of the groundwater reserves Study by National Geophysical Research Institute disapproved these allegations Decreased rainfall by 60% was the cause 30. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org Overexploitation of the groundwater reserves Study by National Geophysical Research Institute disapproved these allegations Decreased rainfall by 60% was the cause Release of untreated water by the factory Wastewater management technology is among the most advanced in the world 31. Coca-Cola India’s Response Coca-Cola India’s response to the allegations www.cokefacts.org Overexploitation of the groundwater reserves Study by National Geophysical Research Institute disapproved these allegations Decreased rainfall by 60% was the cause Release of untreated water by the factory Wastewater management technology is among the most advanced in the world Supplied sludge to farmers as fertilizer Sludge is not harmful to the environment 32. AnalysisOf Coca-Cola India’s ResponseCoca Cola was attacked by different institutions 33. AnalysisOf Coca-Cola India’s ResponseCoca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen 34. AnalysisOf Coca-Cola India’s ResponseCoca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen Coca Cola’s plan: Attack credibility Refuting the allegations and calling them baseless Aggressively stressing their innocence hoping to resolve the issues 35. AnalysisOf Coca-Cola India’s ResponseCoca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen Coca Cola’s plan: Attack credibility Refuting the allegations and calling them baseless Aggressively stressing their innocence hoping to resolve the issues Problem: NGOs are very powerful! NGOs have higher credibility in the eyes of the general public 36. AnalysisOf Coca-Cola India’s ResponseCoca Cola was attacked by different institutions Coca Cola had to face image problems in the Indian and American market Consumers would lose trust in the company Loss of reputation as a socially responsible corporate citizen Coca Cola’s plan: Attack credibility Refuting the allegations and calling them baseless Aggressively stressing their innocence hoping to resolve the issues Problem: NGOs are very powerful! NGOs have higher credibility in the eyes of the general public Mistake Acting to fast by attacking and underestimating NGOs power 37. How Coca-Cola India should have respondedThinking and analyzing alternatives 38. How Coca-Cola India should have respondedThinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs 39. How Coca-Cola India should have respondedThinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs Alternative 2: Ignore Ignore the allegations and wait till the buzz goes away 40. How Coca-Cola India should have respondedThinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs Alternative 2: Ignore Ignore the allegations and wait till the buzz goes away Alternative 3: PR Campaign A PR campaign that informs the American public about Coca Cola‟s efforts as responsible corporate citizen 41. How Coca-Cola India should have respondedThinking and analyzing alternatives Alternative 1: Collaboration instead of attack Coca Cola should have collaborated with the NGOs Alternative 2: Ignore Ignore the allegations and wait till the buzz goes away Alternative 3: PR Campaign A PR campaign that informs the American public about Coca Cola‟s efforts as responsible corporate citizen 42. The Plan Solution: Collaboration with NGO and PR Campaign Goal Regain trust and loyalty of customerCapabilities needed > Coca Cola and NGO have to collaborateActions > NGO has to correct their mistakes publicly > NGO has to issue an apology to Coca Cola 43. The Plan Solution: Collaboration with NGO and PR Campaign Goal Rebuild and repair Goal the Coca Cola Regain trust brand name and loyalty of customer Capabilities needed > A PR team which will planCapabilities needed and lead the campaign > Coca Cola and NGO have to collaborate Actions > Organize promotional activitiesActions (including charity work) > NGO has to correct their mistakes publicly > Hand out free drinks, coupons, vouchers at public events > NGO has to issue an apology to > Broadcast TV advertisements which Coca Cola show the good side of the company 44. The Plan Solution: Collaboration with NGO and PR Campaign Goal Rebuild and repair Goal the Coca Cola Regain trust brand name and loyalty of customer Capabilities needed > A PR team which will planCapabilities needed and lead the campaign > Coca Cola and NGO have to collaborate Actions > Organize promotional activitiesActions (including charity work) > NGO has to correct their mistakes publicly > Hand out free drinks, coupons, vouchers at public events > NGO has to issue an apology to > Broadcast TV advertisements which Coca Cola show the good side of the company 45. What is Greenwashing? â€Å"Coca-Cola attempts to manufacture a green image of itself that it clearly is not, as their practice in India shows. We call this „Greenwashing.‟ † – Amit Srivastava 46. Examples of Greenwashing †¢ In 2009, European McDonald’s changed the color of their logos from yellow and red to yellow and green to demonstrate its concern for â€Å"being green.† 47. Examples of Greenwashing †¢ In 2009, European McDonald’s changed the color of their logos from yellow and red to yellow and green to demonstrate its concern for â€Å"being green.† †¢ Comcast, a cable service company, has the slogan of â€Å"Paper LESS is MORE† but it uses large amounts of paper for direct marketing. 48. Examples of Greenwashing †¢ In 2009, European McDonald’s changed the color of their logos from yellow and red to yellow and green to demonstrate its concern for â€Å"being green.† †¢ Comcast, a cable service company, has the slogan of â€Å"Paper LESS is MORE† but it uses large amounts of paper for direct marketing. †¢ The Poland Spring’s bottles is touted as â€Å"A little natural does a lot of good†, although 80% of its beverage containers go to the landfill. 49. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ 50. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We have implemented many environmental protective initiatives since 2000! 51. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We have implemented many environmental Those are not enough protective initiatives even to make up for the since 2000! pollution you‟ve made in India! 52. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We voluntarily initiated The Energy and Resource Institute (TERI) to conduct a survey on ourselves! And the survey shows we‟re doing well! 53. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We voluntarily initiated The Energy and Resource Institute (TERI) to conduct a survey on ourselves! And the survey shows we‟re doing well! The reliability of the survey is questionable! 54. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We’ve invested US$20million for our water conservation project! 55. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ That‟s just 1 percent of We’ve invested Coca Cola‟s annual US$20million for our water advertising budget! conservation project! 56. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We’ve built a lot of rain harvesting sites since 2006 to recharge ground water! 57. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We’ve built a lot of rain harvesting sites since That‟s nothing special. Rain 2006 to recharge harvesting has already ground water! been a common practice in India. 58. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We’ve won many awards for our CSR(Corporation Social Responsibility) initiatives! 59. Is Coca Cola Greenwashing?Coca Cola is not Greenwashing Coca Cola is Green washing because†¦ because†¦ We’ve won many awards for our CSR(Corporation Conferment of awards may Social Responsibility) not be objective. It can be initiatives! manipulated! 60. Is Coca Cola Greenwashing?2000 2007†¢ Coca-Cola India launched an eKOfreshment cooler that used Coca-Cola India launched a rooftop rainwater harvesting technologies to helped it curb its emission of GHGs initiative at Varanasi, expecting to recharge more than (greenhouse gases) 4,900 cubic meters of groundwater.2005 Coca-Cola India launched oa rainwater harvesting project†¢ Coca-Cola India initiated a PET recycling project in Mumbai. at Greater Kailash, in New Delhi, which aimed to recharge around 4 million liters of water every year.2006 Coca-Cola India establishment 10 rainwater harvesting †¢ In 2006, the company completed a rainwater recharge projects in different schools of Jamshedpur city. initiative at its Kaladera plant in Rajasthan. As part of the Coca Cola announced a three-year, US$ 20 million project, the company built around 110 recharge shafts that partnership with the World Wildlife Fund63 (WWF) on collected rainwater. water conservation†¢ Coca-Cola India called, ‘Abhiyan — The Movement’. The film Coca-Cola India organized a program, â€Å"Think Green, Go focused on the need for and significance of recycling PET Green† that focused on environment education. bottles. 2008 †¢ By the end of 2006, Coca-Cola India had established PET The Hindustan Coca-Cola Beverages Pvt. Ltd (Coca-Cola recycling projects at over 100 locations in India and built a India), was awarded the Golden Peacock award4 for capacity to collect and recycle nearly 80 percent of the waste Corporate Social Responsibility (CSR) for the several generated from the PET. community initiatives it had taken and its efforts toward†¢ Coca-Cola started an initiative called e3 to redesign its conservation of water. trademarked bottle, saving 89,000 metric tons of glass in 2006 at a global level. Most of the packaging material used by Coca- Cola India becomes 100 percent recyclable.†¢ Coco Cola developed an Energy Management System (EMS) that curbed energy consumption by 35 percent. †¢ Coca Cola launched an initiative called Project esKO, which aimed to reduce Coca-Cola’s carbon footprint at a global level by improving its driving and manufacturing operation to curb its carbon dioxide emissions by 10,000 metric tons every year. 61. ConclusionSo, is Coca Cola seriously doing something to fulfill its social responsibility? 62. ConclusionSo, is Coca Cola seriously doing something to fulfill its social responsibility? Yes, but not enough! 63. Summary †¢ Focus on Environmental Responsibilities †¢ Several initiatives concerning water, energy, fuel, and packaging and recycling †¢ Although, they attracted criticism †¢ Coca Cola responded to the critics Conclusion: Coca Cola is doing something to fulfill its social responsibility, but not enough! 64. Summary (continued)Obstructionist Defensive Accommodative Proactive approach approach approach approachLow social responsibility Social responsibility High social responsibility 65. Summary (continued)Obstructionist Defensive Accommodative Proactive approach approach approach approachLow social responsibility Social responsibility High social responsibility 66. Summary (continued)Obstructionist Defensive Accommodative Proactive approach approach approach approachLow social responsibility Social responsibility High social responsibility 67. Thank you for listening! Questions?