CSR Case Studies: Coca-Cola 1. Why did Coca-Cola Vietnam chose to work on water projects? Coca Cola is a beverage company, a major consumer of water resources, it uses 2.43 liters of water to produce just 1 liter of beverage which makes it prone to criticism and consumer boycotts so to protects its brand image and defend its vision statement, which said be a responsible citizen, and run its business smoothly it decided to start water program to maintain its operations in Vietnam and build a CSR reputation. 2. What is the risk to Coca-Cola’s reputation in using too much water and producing waste water? As Coca Cola uses too much water, it uses 2.43 liters of water to produce just 1 liter of beverage, and produces …show more content…
In addition, Duyen Thai People’s Committee and local Government health officials are other key stake holders. However, Coca-Cola in Vietnam lacks an employee volunteer component a key stakeholder which should be involve in Vietnam community projects which is the major part of strategy in the other part of the world. 5. What risk is there to Coca-Cola in using its NGO partners as a key means to reach out to local communities? The NGOs running the program on behalf of Coca-Cola do most of the interaction with the local communities and it utilized its NGOs to learn about their specific needs and target assistance where it was most needed. It does not reach out the local communities it-self and primarily focused on the outputs of the programming, such as the number of communities students served and it measures whether the NGO partner meets the timeline, budget targets and amount spent per beneficiary reached. The risk is there that Coca Cola might not be having the true information as it is using NGOs as middle man. The true needs might be ignored and not properly addressed by the NGOs. 6. What can Coca-Cola do to improve its community programming? Coca has developed a comprehensive CSR community programming which covers education, health care and the environment projects. However, in Vietnam a key stakeholder, employee volunteer component, is missing which is important for the improvement of community programming. Further, Coca Cola is
Water is one of the sought after natural resources in the world or even in the galaxy. So you would imagine that it is cherished and not wasted for self-gain. Coca-Cola has been at the top of the list when it comes to complaints for mistreatment of water all over the world. In recent year that company has been sited right here in the United States. In a town in the western district of New York called Tonawanda Coca-Cola had a major issue regarding regulations. On May 11, 2015 it was reported Coke, “will pay $2.75 million in civil penalties, spend approximately $7.9 million to reduce air pollution and enhance air and water quality and spend an additional $1.3 million for environmental projects in the area of Tonawanda, New York.”(Tonawanda,1).
The competiveness between Coca Cola and Pepsi has been staying the number one dominant share worldwide in the soft drink market. For them to expand the company it has had to stay focused on the growth of the share market all over the United States. Coca Cola’s top goal is to increase the market shares in the international area. It has shown that the company has gotten wrapped up in several unethical practices in the business that have become harmful to the corporation. Putting out more benefits quickly which has forced managers to take multiple ethical discrepancies that have been shown all over the news channels.
1. The public issue that the Coca-Cola Company was facing is this case was its impact on its water use in local communities. The company was depleting local water reserves and introducing dangerous levels of pesticides in its products in and around its global plants. I feel that the nonmarket stakeholders were the ones most concerned by this public issue in the beginning. The global leaders (government) understood that the depletion of the world’s water resources could have a profound effect on the world in the near future. The water shortage also had an effect on the rise in food prices, regional conflicts, and disease. This in turn caused concern in another nonmarket group the general public.
In this chapter titled “Crisis Communication” the Coca Cola Company in India was accused of having unsafe levels of pesticide residue in their products. After these accusations Sanjiv Gupta and Pepsi decided to work together to fight what they considered unfair allegations. Sanjiv Gupta and Pepsi came up with a myth/fact article which provided information about the myths and facts surrounding the safety of their product an attempt to earn back the trust of the public. After releasing the myth/fact article their short term goal should be to provide credible evidence that the allegations were in fact not substantiated. Any company can present information and claim it is a fact but consumers are skeptical just as I am so the company needs to demonstrate that their products are safe through further testing and making results available to the public. The long term goal to avoid running into this problem again should be implementing safety inspections of the warehouses where their product is produced and introducing a filtration system that would filter out any harmful substances. This would ensure their drinks are safe from the factory to the shelf.
Coca-Cola’s video wants to inform their American consumers of the fact that for over 125 years, they’ve been bringing people together with their beverages, and now they are bringing people together to fight obesity. They have taken steps to reduce the unhealthier beverage options that were previously available to children in schools. One step that they have taken includes offering water as an alternative to soda and juice, as well as offering low calorie or no calorie diet options.
For over 126 years, Coca Cola has been operated as world’s largest beverage company together with its subsidiary brands. The United States, as Coca Cola’s international headquarters, has one of the largest populations where Coke is the main beverage for most of the consumers. The purpose of this essay is to determine whether the environmental changes in the United States are beneficial for Coca Cola Company to operate more markets in the future. This essay will explore both the Coca Cola Company as well as the market in the United States. The tools used for this examination include a SWOT analysis of Coca Cola Company and PEST analysis of United States. In addition, we will examine Porter’s 5 forces of the beverage
The crisis that happened at Coca Cola was a very crucial incident. It affected issues such as brand and reputation, and the company has to take action so as not to ruin its image. Coca Cola is a company with a very strong brand name all over the world. An attack like this of the NGO can lead any company to problems. Although the Center for Science and Environment attacked the safety of Coca Cola India 's products, Coke was well within the Indian government 's legal limits for pesticide residue in beverages. The fact is that the country 's standards are weak, so the problem of Sanjiv Gupta and his team is how to rebuild trust. Furtherore, Gupta tries to find ways on how he could contribute on the creation of higher standards for food and
Water is becoming scarcer around the world and increases both in cost and criticism for Coca Cola over the large amounts of water used in production.
“A Coke is a Coke, and no amount of money can get you a better Coke than the one the bum on the corner is drinking. All the Cokes are the same, and all the Cokes are good. Liz Taylor knows it, the President knows it, the bum knows it, and you know it."(Andy Warhol, 1975) Regardless of its corporate reputation, the organizational performance and its social responsibility of Coca-Cola makes it loved around the world. Ever since its creation in 1886 Coca-Cola has been a household brand known globally for generations of families. I have to mention, of all the cases researched this is my least favorite not only because of my childhood love for the product because the ethical issues in one way or another always manage to resolve themselves not before further tainting the reputation Coke worked so hard to obtain. Most times, whether an organization is innocent of an unethical act, it becomes secondary to the suspicion of the original act. Almost as if the court of public opinion has the power to ruin the reputation of an organization based on an unfounded accusation. In spite of my loyalty after having ready the case, I do believe Coca-Cola to be flawed. The contamination scare in Belgium is a great example of a public relations nightmare. The slightest hint of impurity should have pushed Coca Cola into crisis management mode but they were slow to react, citing it a minor issue (Ferrell, Fraedrich, & Ferrell, (2011). It was not until local officials
It has a terrible water use ratio at 2.7:1 meaning for every one litre of product produced 1.7 litres is discarded as waste (Global Encyclopedia, 2014).It has made water access difficult for many by affecting the quality and quantity of local water supplies. As nearly 50% of Kenya’s population doesn’t have access to drinking water, converting fresh water into water that cannot be used is very irresponsible. Also the bottling plants produce noxious liquid effluent that is known to be harmful to the environment. An example is the bottling plant in Embakasi that discharges the effluent directly into the Ngong River that passes by heavily populated areas. This has led to contamination of the waters source thus causing a health effect on the residents as they depend on these water sources. The company has poor hygienic operation conditions. This has greatly affected coca cola’s reputation and has made many of their consumers move away from purchasing their products. For example the Equator bottlers was shut down after samples of sodas from the plant were found to have impurities. This saw many of the workers in this bottling plant go jobless. Lastly, Coca Cola produces a very large amount of beverages which floods the local market and displaces the locally produced goods. The Coca-Cola Company continued to hold the largest market share at 41.9 percent (James, 2012).As a result the local manufacturers such as Masafi juices have less or no
Indeed, involvement in water funds is crucial to Coca-Cola because water makes business possible. Water is the fundamental ingredient in the bulk of their drinks, used
The Coca-Cola Foundation, the philanthropic arm of The Coca-Cola Company, has awarded grants totaling $4 million to 38 organizations across the U.S. and Canada in the fourth quarter of 2010. In line with the Foundation 's commitment to building sustainable communities throughout the U.S. and Canada, this grant funding will help support local initiatives in 11 states, including the District of Columbia and one Canadian province. The grants focus on water conservation, community recycling, active healthy
Who would have known that Coca-Cola debut to the world was all because of a pharmacist? And just a touch of carbonation has truly made it a refreshing and an enjoyable carbonated soft drink. It is within “arms reach of desire” as former CEO Robert Woodruff notes. The Coca-Cola Company ultimately cares about its customers and prides itself into providing good citizenship. One of Coca-Cola’s largest international investors was India, from 1993 up until 2003, Coca-Cola invested more than US$1 billion into the country. In August of 2003, CEO of Coca-Cola India, Sanjiv Gupta came to a standstill where he had to further anticipate his next move for the company. The company faced a crisis where the Center for Science and Environment (CSE) issued a press release affirming that three samples of the 12 cold drink brands sold in and around Delhi containing pesticide residues were of Coca-Cola and PepsiCo brands.
Moreover, Coca-Cola provides funds to fight diseases such as AIDS. Partnership with Global Fund to supply access
Consumers and stakeholders benefit from the efforts initiated by Coca Cola in the area of sustainability. Global consumers benefit because the company showcases a wide variety of beverages in multiple markets. The quality controls in place ensure that the product packaging meets the requirements of consumers. Costs are in line with the market. Stakeholders benefit from the initiatives because the company is taking a responsible approach to manufacture the beverages. Public interest groups are not launching protests against the company for materials used in production of the beverages. The production efforts are managed by ISO standards so there is a reduction in the workers compensation claims against the company.