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CocaCola Ethical vs unethical

Date post: 12-Apr-2015
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A presentation highlighting the ethical practices and unethical issues of CocaCola India
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Ethical and Unethical Practices of Presented by: Rahul Nitone (23) Atul Palve (24) Devyani Pawar (27) Asad Shaikh (30) Dishita Surve (37) Firdos Shaikh (43)
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Page 1: CocaCola Ethical vs unethical

Ethical and Unethical Practices of

Presented by: Rahul Nitone (23) Atul Palve (24)Devyani Pawar (27)Asad Shaikh (30)Dishita Surve (37)Firdos Shaikh (43)

Page 2: CocaCola Ethical vs unethical

COMPANY PROFILEMade a re-entry into India in 1993 after opting to leave operations in 1977 due to issues with Foreign Exchange Regulation Act.

For Rs 3500 million bought out popular brands Thumps Up, Goldspot, Citra, Mazaa & Limca from Parle’s Chauhan brothers there-by giving a straight-forward 66% percent share on re-entry.

Indian operations include 25 wholly company-owned bottling plants and another 24 franchisee owned bottling operations.

Directly employees more than 6000 people, and indirectly generates employement for more than 1,25,000 people from its vast procurement, supply and distribution opearations.

Page 3: CocaCola Ethical vs unethical

Company’s Ethical business

Code of business ethics: core values of Honesty, Integrity, Quality, Respect, Responsibilty and Accountability.

The scope of conduct extends to employees, officers as well as company directors.

Recognizing that there are differences in customs, traditions and economic conditions that affect business practices, the company believes that shared-values must serve as the foundation for relationships among employees, suppliers.

Page 4: CocaCola Ethical vs unethical

Enviornmental PolicyCoca-Cola India will carry out their operations in ways that protect, preserve and enhance the enviornment.

The Policy promises to operate the company’s facilities taking into account all applicable enviornment safety and health rules.

It would be policy of the company to conserve water, energy and fuel resources by finding ways of reducing and improving usage.

The company would promote the collection of used PET bottles through awareness programmes.

The company would also ensure that all operations are eco-management system and ISO 14001 compliant.

Page 5: CocaCola Ethical vs unethical

Suppliers Guiding Principles Built on the compliance of perfection

Workplace practices

Communication

Work environment

Health & safety

Wages & benefits

Page 6: CocaCola Ethical vs unethical

Consumers across the globe choose coke brand of refreshment more than a billion times everyday because coca-cola is

The symbol of quality Customer & consumer satisfaction A Responbile citizen of the world

Business Objectives and policies

Page 7: CocaCola Ethical vs unethical

GPEMA in the recognition of its world class environment practices

TCCQS covering SLP, product quality, packaging quality, PCI customer satisfaction

Environment Foundation Award

Page 8: CocaCola Ethical vs unethical

Lack of transparency and accountability Clause 49: Listing on stock exchange

Integrity, transparency, full disclosure of financial and

non-financial information .

Unethical Practices

Unhealthy nature of colas

Cause obesity and tooth decay

Page 9: CocaCola Ethical vs unethical

Lack of ethics in marketing

Offering products or services against the interest of society

Discriminating in pricing

Tall claims in advertising

Targeting in appropriate audience

Unhealthy Practices

Monopolistic and Racist employment practices

Page 10: CocaCola Ethical vs unethical

CSE tested aerated waters produced by Coco Cola & concluded to contain toxins

Pesticides which results into Cancer & breakdown of immune system

CSE found 30 times level of pesticide residues than what is permitted under EU regulations

Ms Sunita (Director CSE) was accused for Brandjacking by David Cox (Commn Director – Coke Asia)

JPC a committee set by govt found that water which constitutes for 86% to 92% has no standards for MRL’s

Ministry of Health entrusted the task of evolving suitable in PFA to CCFS

Pesticide Controversy

Page 11: CocaCola Ethical vs unethical

Challenged at shareholders meeting

Misleading public on water issues

Speaking tour action against coca-cola

Coca cola challenged on human rights abused

Practices Inimical to stakeholders Interest

Page 12: CocaCola Ethical vs unethical

Foreign objects found

Excessive water usage

Low compensation paid

Kerala Utter pradesh Tamilnadu Rajastan Maharashtra

Exploiting the ground water Consumption of water

Page 13: CocaCola Ethical vs unethical

Uses 3 times as much water to produce a liter of coke.

It is said that those who don't learn from the mistakes of the past are destined to repeat them.

It seems that the Coca-Cola has not learnt any lessons from Plachimada - a village in the state of Kerala in India where the community-led campaign has shut down its plant since March 2004.

The manner is which the Coca-Cola company has decided to deal with another community-led campaign in India - in the village of Kala Dera in the state of Rajasthan - is indicative of the arrogance and impunity of the company that has landed it in trouble before.

Excessive Water Usage

Page 14: CocaCola Ethical vs unethical

Kala Dera - Thirsting from Coca-Cola Unusable Well in Kala Dera Showing Depleted Water Level.

Forced Assessment Validates Community Concerns.

Stop Using Groundwater in Kala Dera.

Farmer in Kala Dera Shows Increased Electric Bill from Pumping Water from Depleted Groundwater

Kala Dera

Page 15: CocaCola Ethical vs unethical

Coca-Cola's Response - Unethical and Dishonest

Continued Misery in the Face of CertaintyCriminal Negligence or Straight Incompetence?Misrepresenting Facts

Corporate Social Responsibility - A Scam?

Rainwater Harvesting - Dilapidated and a Bluff

Coca-Cola Sign - "Kala Dera - A Dream" Next to Dilapidated Rainwater Recharge Shafts

Page 16: CocaCola Ethical vs unethical

Company’s Defence Coca-Cola India and the other major soft drink giant refuted CSE’s study as unscientific and biased.

Claim that insecticide levels in other foodstuffs are higher.

T.E.R.I. has found the plants in compliance with applicable with Indian enviornemental regulatory norms.

‘Being targeted’.

Page 17: CocaCola Ethical vs unethical

Critical IssuesPesticides issue

Solid Waste/ Water Issue

Dual Product Standards

Action TakenImproved business practices & reduced water usage by 34%.

Rainwater harvesting

Solid waste disposal sites set-up

Carbon filtration and purification

Close monitoring of ingredients

Page 18: CocaCola Ethical vs unethical

ConclusionCoca-Cola applied discriminatory approaches.

Consumer's well-being that has to matter.

Company continued advertising.

The question that remains at the end of the day is how a multinational market leader that is aware of quality standards ends up producing products unfit for human consumptions? This is quite unethical.

Going forward it is responsibility of Coca Cola in India to stick to the ideals it promises in its corporate communications and ensure that the promise of quality and adherence of standards is achieved.

Page 19: CocaCola Ethical vs unethical

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