COLA CONUNDRUM

COCA-COLA’S HISTORY Coca cola was concocted by pharmacist John Pemberton and was first

introduced as a health tonic in Atlanta , Georgia in 1885. The company makes an annual profit of approximately US$15 billion and has

a huge marketing budget of US$2million per annum.

The company operates almost in all countries of world selling as many as 12,500 drinks every second.

COCA-COLA IN INDIA Coca-cola ,the world’s largest selling soft drink

manufacturer, Refused to

reveal its secret formula of coca-cola, When new janata government

ordered to do the same in 1977. On its return in 1993, It took over ownership of the

nation’s top soft-drink

brands, It bought out for Rs 3500 million a cluntch of popular soft drinks

including Thums up, Gold spot, Limca , Citra and Maaza from parle’s

chauhan brothers . Which enabled them to get 66% market share.

Coca cola claim of ethical business

CODE OF BUSINESS CONDUCT: This code serve as guide to company`s action, advancing and protecting core values of Honesty, Integrity, Diversity, Quality, Respect, Responsibility and Accountability.

ENVIRONMENT POLICY: It promises to operate company`s facilities taking into account all applicable environment safely and health rule.

Supplier Guiding PrinciplesThe Company expects supplier to follow the following

principles:

Built on the Compliance of Perfection: Company claims that it is built on trust.

Good corporate citizenship for long term business success.

Share value as foundation of relationship.

Fair employment practice with employees with a commitment to human right, at workplace.

Continued…

Better communication with employees in local language and posted in a accessible place.

Provide better working environment within the organization.

Safe workplace with policies and practice in place.

Employ labour under legal working age and protection from unlawful abuse or harassment.

Compensate fair wages and benefits to employees.

The company expects suppliers to conduct business in a way that protect and preserve the environment.

Quality and promises

Keeping high quality promise in marketplace is their long term business objective.

Coca cola is a brand of refreshment because of-i. The symbol of qualityii. Customer and consumer satisfactioniii. A responsible citizen of the world

Company promises to provide consistently attractive return to the owners and to their business.

Supplier Guiding Principle

Built On The Compliance Of Perfection

Relationhips Built On Good Corporate Citizenship

Shared Values, the foundation of R’ship

Workplace Practices

Communication

Unethical Practices by Coca Cola

Several complaints against company`s operations and its business:

Lack of transparency and Accountability: The company is not listed on stock exchange. Unlisting enables

flexibility to company to hide their unethical decisions and wrong practices.

De-listing kills competition and hides true picture of unethical practices such as manufacturing cost or pricing policies.

Company can escape the inspection of the investors, analyst and the media

Continued…

Lack of Marketing Ethicsthe company accused of adopting unethical marketing practices such as

Offering products/services against the interest of society.

Discrimination in pricing

Making tall claims in advertising

Misleading sales promotion

Targeting inappropriate audience like children.

Unhealthy Practice The company had provoked a no. of boycotts and protests as a result of

its perceived low health and hygiene standards and adverse impact on the environment.

The contamination by high level of cadmium, lead and chromium found in effluent sludge of 8 out of 16 bottling plants was much more in excess to the acceptable central pollution control board(CPCB) standards.

The company has been the subject of allegation such as monopolistic practices and racist employment practice.

Continued…

Unhealthy nature of Colas FDA in Mumbai has advised school to ban the sale of colas, and

also prevent any advertisement of aerated drinks in their premises.

FDA commissioner Ramesh Kumar warms that soft drinks cause obesity and tooth decay, besides posing other health risk due to presence of chemical, such as Landane, a confirmed cancer causing chemical, Malathion, DDT and Chlorpyrifos

American Epidemiologist reported that colas are associated with bone mineral density loss and their consumption may increase osteoporosis risk in older women.

Continued…

Continued…Practices inimical to Stakeholder Interest

The company was challenged on 20-04-2006 at Shareholders Meeting for misleading them as the company was not disclosing full extent of liabilities incurred in India.

The company had unsustainable relationship with water, especially in developing countries like India and Columbia.

University of Michigan has suspended business with the company in Dec 2005 because of unfair environment practices and human rights in India and Columbia.

Continued…

A Speaking tour to hold coca cola accountable was held from 4 to 19 April,2005 through public events on the East coast highlighting its crime against humanity, particularly in India and Columbia.

From 1993,the company has been accused of a series of unethical practices in India. Several NGOs launched anti-coca cola campaign in India.

Excessive Water Usage In India many states protested that coca-coal Is using

thrice of water used in production of a litre of cola. It is been reported that farmers are facing acute shortage of water causing crop failure. activists alleged that states like uttar Pradesh, kerala, rajasthan, Maharashtra are facing severe shortage of water around establishment of coke bottling plants.

Continued…

In 1998,coca-cola`s bottling plant was set up at Plachimada, Kerala. Local villages been complaining of depleting water level for their cultivation

Company dumped waste sludge on land of local farmer claiming it as useful fertilizer. Research found that it contain toxic chemicals including lead and cadmium.

On 15-01-2005,over 1000 people took part in blockading the entrance of the plant to shut down permanently.

The day also marked 1000`th day anniversary of permanent dharna(vigil) in front of factory gate.

The plant remained shut down over a year due to intense community pressure.

kerala

Continued…In other states almost the scene was same. there was

one major issue linked with every state and that was shortage of water for irrigation process as water level drops to a significant amount.

States like Uttar pradesh (mehdiganj ), Maharashtra (kudus village) etc. had similar issues.

Continued…

Pesticide controversy (2003-2006) According to CSE (Center for Science Environment)

coca-coal contain toxins including lindane, DDT, Malathian, chloropyrophys etc. Pesticide can results into cancer and breaking down of immune sys.

Coca-coal have continued selling soft drink in India even it was banned by government of India.

About 57 Samples were collected from 25 bottling plants from 12 different states. And was fund that drinks were containing 24 times highr amount of pesticides that of allowed.

Defenses claimed Coca-Cola angrily denied allegations that their products

manufactured in India contained toxin levels far above the norms permitted in the developed world. David Cox, Coke's Hong Kong-based communications director for Asia, accused Sunita narain, CSE's director, of “branjdacking " — using Coke's brand name to draw attention to her campaign against pesticides. Narain defended CSE's actions by describing them as a natural follow-up to a previous study it did on bottled water.

Coca-coal claimed that their soft drink is safe in every aspect and upto Indian standards.

There are other food stuffs in market which contain much higer level of pesticide .

In the end they managed to have “clean chit” from TERI (the Energy and resource Institute)

conclusionEvery coin have two faces and results or conclusion can

be drawn from both aspects it’s pretty much depend on which side you chose to present your answer. -Ve Aspects

Huge loss of fuel.Tons of solid waste.Unnecessary use of water causing depletion of

potable water.Pollution caused by its plants.Unnecessary product.Health issue.

Continued…+Ve Aspects

Providing sufficient amount of taxes.Foreign investment (FDI).Employment opportunity.Standers of living is increasing.Consumer satisfaction.

Presented by: team VII

ATUL KUMAR SINGH-178

S LALSIVA RAJU-138RAJKUMAR-158NAVITA-182CHARVI-181PUNEET GOSAIN-183