Coca-Cola India's Corporate Social Responsibility Strategy


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

This case is a Runners up in the oikos Global Case Writing Competition 2009 (Corporate Sustainability track), organized by oikos Foundation for Economy and Ecology, University of St. Gallen, Switzerland.

Case Details:

Price:
Case Code : BECG093 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Environmental sustainability / Sustainability management structure/ Sustainability reporting/ Supply chain issues
Case Length : 24 Pages
Period : 2002-2008
Pub Date : 2009
Teaching Note : Available
Organization : Coca-Cola Company
Industry : Consumer Packaged Goods/ Beverages
Countries : India

Abstract:

This case is about Coca-Cola's corporate social responsibility (CSR) initiatives in India. It details the activities taken up by Coca-Cola India's management and employees to contribute to the society and community in which the company operates.

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. The case discusses the likely challenges for Coca-Cola India as it prepares to implement its new CSR strategy in the country.

Issues:

» Analyze the CSR strategy adopted by Coca-Cola India.

» Understand the issues and challenges faced by Coca-Cola with regard to its sustainability initiatives in India.

» Analyze the underlying 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.

Contents:

  Page No.
Introduction 1
Background Note 2
Corporate Social Responsibility Initiatives in India Environmental Responsibility Initiatives 5
The 5 Pillar Growth Strategy 11
Criticisms 11
Coca-Cola India's Response 13
Outlook 15
Exhibits 17

Keywords:

Corporate social responsibility strategy, Environmental responsibility, Economic responsibility, Sustainability, Water sustainability, Water neutral, Water efficiency, 5 pillar growth strategy, Stakeholder tension, Operations, Greenwashing

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