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The Coca-Cola Company is the largest non-alcoholic beverage company in the world, selling over a billion bottles/cans per day in more than 200 countries across the world. It is one of the world's most loved and most valued brands. At the same time, it has its share of controversies, both regarding the health-related aspects pertaining to its products and also its business practices. In this case study, we look at Coca-Cola's operations in India, and how the company is trying to keep up a `clean' image in the face of several difficulties. While pesticide residues in the colas marred the image of the company some years ago, it was soon followed by a series of allegations about excessive water extraction, and water and soil pollution at several of its bottling units. While refuting and defending itself against these allegations, the company has taken up several environmental and community-based corporate social investment projects across the country, particularly those related to water conservation, rainwater harvesting, etc. However, critics argue that all these initiatives of the company are just a `greenwash' to cover-up its wrongdoings and project a good image of itself.
Coca-Cola India's website proudly proclaims that it has won the prestigious Golden Peacock Environmental Management Award (GPEMA) during the years 2002 to 2005 for the company-owned bottling plants at Baddi, Ameenpur, Dasna, and Kaladera (near Jaipur) respectively. These awards are given by the World Environment Foundation, a not-for-profit organization registered in India and the UK. Some of the criteria on which this award is given are: energy and water use, wastewater discharge, compliance with government regulations, and positive impact on the local community. Detractors, however, point to the fact that Coca-Cola is one of the major sponsors of the World Environment Foundation and an award from the Foundation is just an attempt to build a responsible image.
Students of several universities and colleges in the US, Canada and the UK have from time to time taken up campaigns against the Coca-Cola Company in view of its business practices in India, and also voted to keep out Coca-Cola from their campuses. Following student protests, the University of Michigan, suspended its business relationship with Coca-Cola in January 2006. The condition for resumption of the business was that its operations in India be assessed by an `independent, third party.' Once again, in a travesty of justice, University of Michigan accepted Coca-Cola's suggestion to appoint the Energy and Resources Institute of India (TERI) as the independent agency. Coca-Cola resumed its sales in the University of Michigan in April 2006. However, Coca-Cola is reportedly one of the sponsors of TERI. In 2001, TERI had named Coca-Cola as one of the most responsible companies in India. In 2003, it had organized the Earth Day with the support of Coca-Cola. Indian groups campaigning against Coca-Cola rejected TERI as the independent agency. Thereafter, one more organization—The Meridian Institute, was invited to join the investigation, but TERI continues to be the lead evaluator.
At the annual shareholders meeting of the Coca-Cola Company, held in April 2007, William C Wardlaw III, grandson of one of the earliest investors in Coca-Cola and a major individual shareowner, had introduced a resolution asking for a report on the potential environmental and public health damage from Coca-Cola's plants in India. Wardlaw is reported to have said, "My family and I are still hoping Coca-Cola will become much more responsive to environmental and human rights issues. All of us would be the beneficiaries, including of course Coca-Cola shareholders. At this moment of utmost crisis, it is time for all of us to make a supreme effort to figure out how to truly do `the right thing' and then to commit to following through." |
