Case Synopsis:

Coca Cola entered India during 1970s. Coca Cola was the leading soft drink brand in India until
1977 when it left rather than reveal its formula to the government and reduce its equity stake as
required under the Foreign Exchange Regulation Act (FERA) . After a 16 year, when India open
its market, Coca-Cola returned to India in 1993, through strategi alliance with Parles Exports,
with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling
network.
Coca Cola India being one of the largest beverage companies in India, realized that CSR had to
be an integral part of its corporate agenda. According to the company, it was aware of the
environmental, social, and economic impact caused by a business of its scale and therefore it had
decided to implement a wide range of initiatives to improve the quality of life of its customers,
the workforce, and society at large.
However, the company came in for severe criticism from activists and environmental experts
who charged it with depleting groundwater resources in the areas in which its bottling plants
were located, thereby affecting the livelihood of poor farmers, dumping toxic and hazardous
waste materials near its bottling facilities, and discharging waste water into the agricultural lands
of farmers. Moreover, its allegedly unethical business practices in developing countries led to its
becoming one of the most boycotted companies in the world.
Notwithstanding the criticisms, the company continued to champion various initiatives such as
rainwater harvesting, restoring groundwater resources, going in for sustainable packaging and
recycling, and serving the communities where it operated. Coca-Cola planned to become water
neutral in India by 2009 as part of its global strategy of achieving water neutrality. However,
criticism against the company refused to die down. Critics felt that Coca-Cola was spending
millions of dollars to project a 'green' and 'environment-friendly' image of itself, while failing to
make any change in its operations. They said this was an attempt at greenwashing as Coca-Cola's
business practices in India had tarnished its brand image not only in India but also globally.
Issues:
-

What CSR strategy adopted by Coca-Cola India.

Issues and challenges faced by Coca-Cola connect to its sustainability initiatives in India
The reasons for the growing criticism against Coca-Cola in India and explore ways in
which the company can address this issue
Understand the concept of greenwashing and discuss and debate whether Coca-Cola is
serious about its water sustainability initiatives

Analysis
CSR policy that done by Coca Cola especially Coca Cola India is Defensive Strategy because
they accept their responsibility to the environment but also fight the critics from NGO and

society. They doing CSR appointed to what society protest about their business operation. Coca
Cola also opened exclusive website www.cokefacts.org that contains Myth and Fact Statement
about Coca Cola, to blur consumer and society opinion about violance that doing by Coca Cola
India.
The abuse of Coca Cola operation in India became global concern with international support for
the International Campaign to Hold Coca-Cola Accountable, where over 500 activists from
around the world packed the workshop on the campaign at the World Social Forum in Porto
Alegre, Brazil on January 29, 2005.
In Coca Cola Annual Report and Sustainable Review from 2007 to 2010 Coca Cola Company
always mention about India in Water Stewardship even make exclusive environment report for
India in 2008 2009 in company website. This action prove indirectly that there are violance to
water sustainability in India and as defensive action toward criticism. What Coca Cola India
doing was spending millions of dollars to project a 'green' and 'environment-friendly' image of
itself, while failing to make any change in its operations.
List of NGO (India Resource Center) criticism versus Coca Cola policy to fight citicism
Water Scarcity
- Communities living around Coca-Cola
bottling plants in India are facing severe
water shortages directly as a result of Coca
Colas over extraction of groundwater
Pollution of Land and Water
- Groundwater
and
soil
has
been
contaminated as a direct result of CocaCola's practices
Pesticide in drink
- Distributing toxic waste to farmers and
selling contaminated drinks in India and
have been tested by numerous agencies,
including the Government of India
Illegal acts
- The company has illegally occupied about
15,000 sq ft. of land belonging to the
village in panchayat of Mehdiganj

Coca Cola held commission meeting in

Chicago on July 7th, 2005 between
university administrators and Coca-Cola
company officials to develop a plan for
third-party, independent investigations of
the concerns that have been raised
regarding conditions at the Coca-Cola
bottling plants in Colombia and India, but
no representative from India and Colombia
Coca-cola rainwater harvesting became
priority after Coca-Cola's water abuses
spread around India
Coca-Cola Company partnership with the
World Wildlife Fund (WWF) attempt to
deflect attention away from the real crises
that the company creates in India
Coca-Cola and Pepsi launched independent
campaigns to reassure the public, taking
out full-page newspaper advertisements
and directing consumers to their corporate
Web sites to review test results and safety
protocol in greater detail

Recommendation
1. Communicate openly with key stakeholder, including the public, the media, employees,
franchisees, the trade/channel, state and national government, and suppliers
2. Collaborate with the CSE (The Center for Science and Environment), to recognize what
is Coca Cola lack CSR practice and get information how to improve it
3. Coca Cola India CSR use the same standard of The Coca Cola Company CSR in UK and
US
4. Create more diverse Corporate Responsibility, not just focus in water stewardship
5. Build relationship with government that give opportunity to communicate all the benefits
and investments you provide to the economy.

Exhibit 1. Coca Cola Myths and Facts

Coca Cola Myths and Facts
Myth
Coca-Cola products in India contain pesticide residues that are above EU
norms.
Fact
Throughout all of our operations in India, stringent quality monitoring takes
place covering both the source water we use as well as our finished product. We
test for traces of pesticide in groundwater to the level of parts per billion. This
is equivalent to one drop in a billion drops. For comparisons sake, this would
also be equivalent to measuring one second in 32 years, or less than one person
in the entire population in
India. These tests require specialized equipment at accredited labs to have
accurate results. Even at these stringent miniscule levels we are well within the
internationally
accepted safety norms.
Myth
Coca-Cola products sold in India are "toxic" and unfit for human consumption.
Fact
There is no contamination or toxicity in our beverage brands. Our high-quality
beverages are and have always been - safe and refreshing. In over 200
countries across the globe, more than a billion times every day, consumers
choose our brands for refreshment because Coca-Cola is a symbol of quality.
Myth
Coca-Cola has dual standards in the production of its products, one high
standard for western countries, another for India.
Fact
The soft drinks manufactured in India conform to the same high standards of
quality as in the USA and Europe. Through our globally accepted and validated
manufacturing processes and Quality Management systems, we ensure that our
state-of-the-art manufacturing facilities are equipped to provide the consumer
the highest quality beverage each time. We stringently test our soft drinks in
India at independent, accredited and world-class laboratories both locally and
internationally.

Myth
Fact

Myth
Fact

Myth
Fact

Myth
Fact

In India the soft drinks industry is virtually unregulated

There are no standards for soft drinks in the US, the EU, or India. In India,
water used
for beverage manufacture must conform to drinking water standards. The water
used by Coca-Cola conforms to both BIS and EU standards for drinking water
and our production protocols ensure this through a focus on process control and
testing of the
water used in our manufacturing process and the final product quality
Coca-Cola has put out results for Kinley water only and not for their soft
drinks.
The results of product tests conducted by TNO Nutrition and Food Research
Laboratory in the Netherlands is conclusive and is available on The Science
Behind Our Quality web page.
International companies like Coca-Cola are colonizing India.
The Coca-Cola business in India is a local business. Our beverages in India are
produced locally, we employ thousands of Indian citizens, our product range
and marketing reflect Indian tastes and lifestyles, and we are deeply involved in
the life of
the local communities in which we operate. The Coca-Cola business system
directly employs approximately 10,000 local people in India. In addition,
independent studies
have documented that, by providing opportunities for local enterprises, the
Coca-Cola
business also generates a significant employment multiplier effect. In India,
we indirectly create employment for more than 125,000 people in related
industries through our vast procurement, supply and distribution system.
Farmers in India are using Coca-Cola and other soft drinks as pesticides by
spraying them on their crops.
Soft drinks do not act in a similar way to pesticides when applied to the ground
or crops. There is no scientific basis for this and the use of soft drinks for this
purpose would be totally ineffective. In India, as in the rest of the world, our
products are world class and safe and the treated water used to make our
beverages there meets the highest international standards.