Unethical Practices in Companies

NETHAN.P

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 litres of water everyday from the

ground.• It takes nine litres of clean water to manufacture a litre of Coke.

Kala Dera Case

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

Kala Dera lies in an overexploited groundwater area and access to water has been difficult. Summers are particularly intense in the area, when water shortages are most acute.

Moreover summer months are also when Coca-Cola reaches its peak production.

Coca-Cola bottling plant in Kala Dera continues extracts the most water, making already existing water shortages even worse.

Waterbed got depleted

• 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.

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.

The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition. They claimed to have conducted an environmental study and found the project safe to the village

Company Response

Assessments

The assessment noted that the plant's operations would continue to worsen water situation

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.

Ground water Level : Published by Central Groundwater Board

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

Criminal Negligence

• Coca-Cola is supposed to have conducted an Environmental

Impact assessment.

• Company started its operations even though it found to be

"overexploited 1998.

• Describes itself as a "hydration" company.

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

Rainwater harvesting --- Dilapidated and a Bluff

Some serious concerns about Coca-Cola'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?

• 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

Coca-Cola Threatens Top Indian Photographer with Lawsuit Billboard by: Sharad Haksar

• 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 “the damage to the goodwill and reputation" of Coca-Cola, and also demanded an 'unconditional apology in writing'.

• Mr. Haksar said that he had no intentions of issuing any apology because he

has not committed anything wrong.

Reference

http://www.indiaresource.org/news/2011/1008.html

http://www.polarisinstitute.org/farmers_vs_cocacola_in_water_wars Executive summary of the study on independent third party assessment of Coca-Cola facilities in India, by TERI - The Energy and Resources Institute