1. College : SNJB’s COE, Chandwad.
Class : MBA 1st year.
Guidance By : Hon. Prof. Mr. U. S. Kasar
Sir.
Company : The Coca-Cola Company.
Presenters : Gaziyani Md. Hasnain
Rahul O. Bhandari
Khushbu Mutha
Abu Swaleh
Bhagyashree Mankar
2. Scam Overview
• The Indian government forced Coca-Cola
out of the country in 1977.
• The company returned in 1993
• Each bottling plants extracts up to 1.5m liters
of water everyday from the ground.
• It takes nine liters of clean water to
manufacture a liter of Coke.
• In 2000 Coca-Cola opened a plant at
Plachimada, a village in Kerala to produce
1.2m liters of coke every day.
3. • The conditional license granted by the local
Panchayat authorized the use of motorized
pumps
• But the company drilled more than six wells &
illegally installed high-powered electric pumps
to extract millions of liters of pure water.
• The level of the water table fell from 45 to 150
meters below the surface.
4. • The company started dumping waste outside
causing a serious health hazard.
• The court gave Coca-Cola a notice to cease
water extraction
• The theft of water was not only limited to kerala
• Overexploitation of groundwater soon started in
Kaladera
5. Kala Dera - Thirsting from Coca-Cola
• Kala Dera is a large village outside the city of
Jaipur.
• Agriculture is the primary source of livelihood.
• Coca-Cola started its bottling operations in
Kala Dera in 2004, and within a year, the
community started to notice a rapid decline in
groundwater levels.
7. • For farmers, loss of groundwater translated
directly into loss of income.
• For many children it meant leaving schools
to provide a much needed helping hand in
household since the women had additional
burdens.
8. Community response
The community in Kala Dera organized itself to
challenge the Coca-Cola company for the
worsening water conditions - through extraction
and pollution - and demanded the closure of the
Coca-Cola bottling plant.
9. Company's Response
The company, in usual fashion, denied any
wrongdoing, blaming "outsiders" for the
increasing local community opposition
10. The assessment noted that the plant's
operations would continue to worsen water
situation
Stop Using Groundwater in Kala Dera
11. Coca-Cola's Response Unethical and Dishonest
• Coca-cola took seven month to respond
• Coca-cola not respond to the concern raised
• Unethical and dishonest campaign
• Chosen to continue the operation
• Continued in misery of thousand people
12. Coca-Cola should no longer utilize the
overexploited groundwater resource in Kala Dera
1. Transport water from the nearest aquifer
that may not be stressed
2. Store water from low-stress seasons
3. Relocate the plant to a water-surplus area
4. Shut down this facility
The community in Kala Dera welcomed the
recommendations and waited for company’s
response.
13. COKE’S Corporate Social Responsibility - A Scam?
The Coca-Cola steps up its corporate social responsibility
announcing to the world that it is a “green and socially
responsible company.” --- but was not the case at kala
dera
14. • The company announce its rainwater
harvesting initiatives in India
• It also announce that the company will
become "water neutral" in India by 2009.
15. Some serious concerns about CocaCola's claims on rainwater harvesting
• The company announced that it has recharged five
times the amount of water it has used.
• When asked to back it up with numbers, Coca-Cola
does not provide any.
• Coca-Cola states that they "will install measuring
devices that will verify the amount of water
recharged."
• If they do not have measuring devices installed to
verify the amount of water recharged, how can they
make a claim of recharging five times the water that
they have extracted?
16. • People across Rajasthan are well known in rainwater
harvesting and have been harvesting rainwater long before
Coca-Cola started.
• Coca-Cola started rainwater harvesting to overcome
response to the growing campaigns against its water
mismanagement.
• Coca-Cola was bluffing people with its rainwater
harvesting.
• The rainfall in the area is too low, and the amount of
rainfalls fluctuates a lot contributing to 30 days of rains
every year
• 80% of those rains come in just two or three days and hence
rainwater harvesting is simply not efficient
17. • Based on their rainwater harvesting initiatives
Coca-Cola company has announced that they will
become water neutral in India by 2009
• Coca- cola will recharge more water than the use
from the groundwater resource. ---A BLUFF
19. • In 2005, Coca-Cola's Indian subsidiary, sent
a letter to Mr. Haksar threatening him with
serious legal actions unless the billboard was
replaced 'unconditionally and immediately'.
• Coca-Cola would seek Indian Rupees 2
million (US$ 45,000) for "incalculable
damage to the goodwill and reputation" of
Coca-Cola, and also sought an 'unconditional
apology in writing'.
• Mr. Haksar said that he had no intentions of
issuing any apology because he has not
committed anything wrong.
