Discover a case study of Coca Cola India in which how they turns their corporate social irresponsibility/issue into corporate social responsibility that give benefits to parties around where Coca Cola India operates their factories.

1. Prepared by:
sma uhamad

2. Starts with
selling 9
beverages/day
1886 - Atlanta
Local soda
producer
20th century
Products
appears
everywhere
2005
Largest
company for
non-alcoholic
beverages &
syrups
1977
withdrawal
1992 – Re-
enters India
India
Production
factory since
1950s

3. Conflict
2003
Publication 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

4.  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

5. 1) Growth
2) Environment
3) Climate
CSR Initiatives by Coca Cola
India
4) Community
5) Workplace
+ Corporate Governance
Ethics

6. 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.

7. 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

8. 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.

9. DisasterRelief&Rehabilitation
PrimaryHealthcareClinic
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

10. 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

11. 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.

12. 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

13. 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

14. Thank you