Coca-Cola’s Water Neutrality Initiative Essay

“Citizen Coke: The Making of Coca-Cola Capitalism” by Bartow J. Elmore tells a story of how Coca- Cola have changed its industry as well as the globe by utilizing natural resources. To start on his journey about Coca-Cola, Elmore questions the success of the company behind selling Coke, a low-priced mixture of “sugar, water, and caffeine, packed in glass, plastic, or aluminum” (Elmore 8). Elmore discovers that even though advertising plays an essential key in selling products, Coca-Cola is mostly profitable from outsourcing the supply (Elmore 9). Besides explaining his research on the Coca-Cola capitalism, Elmore also emphasizes on the ecological evidences that support it, which make this book an environmental history of Coca-Cola capitalism (Elmore 14).

In Peter Gleick’s “Selling Bottled Water: The Modern Medicine Show” and Cynthia Barnett’s “Business in a Bottle”, bottled water is argued to be an excessive commodity falsely advertised as healthier and more beneficial than tap water to society and the environment. Both authors discuss that bottled water is actually equivalent in quality to tap water and in some cases even more hazardous to the human body. Public water itself is a less expensive resource that is more accessible to the masses. However, due to fraudulent companies focused on profit and the lack of effective oversight, people are deterred from realizing that there does not need to be an alternative to municipal water. Gleick

Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.

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).

Americans buy at least nine billion of plastic water bottle every year; this translates to millions of dollars spent on a commodity that is readily available in their homes (Lewis, page 1). The only reason that can justify this senseless behaviour is that Americans have been duped by the assertions of advertisers and marketers. According to Gleick, a good advertiser has the ability to make us buy something we may not need. These corporations spend many funds to denigrate public water supplies while flaunting their products.

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.

PepsiCo is one of the world’s leading food and beverage companies with products being sold in over two hundred countries and territories around the world. PepsiCo began in 1965 when Pepsi-Cola merged with Frito-Lay and now distributes twenty-two brands of products that include Pepsi, Lays, Tropicana and Quaker. This paper will provide information about PepsiCo’s dedication to environmental, human and talent sustainability while increasing revenue by reducing essential production costs such as water use and packaging materials.

Introduction: Fiji Water developed a simple product that has come to be a symbol of high class and support for the environment. Bottled water is a luxury product which the Fiji company claims is made with “sustainable practices.” When one takes a closer look at the company and its product though, it is hard to come to the conclusion that they are indeed ahead of the curve on sustainability. Bottled water is surrounded by controversy, its sustainability firmly in question. Notably in 2008 Fiji Water was blasted by the public and their growing knowledge of the carbon impact that the production of bottled water was having on the environment. In countries like the United Stats, United Kingdom and other developing countries, Fiji Water was directly targeted for its “water insanity” due to the fact that the bottled water produced was shipped from South Pacific islands to its main markets thousands of miles away. Shortly thereafter, Fiji Water tried to right its wrongs by coming up with a environmental sounding tagline that was quickly deemed as greenwashing by environmental groups. Even the Fiji government was against the brand, seizing hundreds of containers of bottled water on grounds that the company was engaging in transfer price manipulation. After heavy taxes were imposed and layoffs ensued, Fiji Water intensified its PR activities and

PepsiCo’s biggest area of struggle is within the environmental realm. Although the company has stated to be water conscience, not all water usage is being

Sustainable and Adaptable Operations: Employees working in the bottled water industry should know the consequences of their actions when operating a specific resource, and how they should work efficiently and engage in sustaining that improvement, which will increase return on investment on the long-run. Adaptability is another major key for sustainability in resources, in order to stay up to date with consumer demands and the market on a global scale, the company must install the latest technology for its plants and equipment, avoiding the risk of lagging behind and allowing entry of other competitors.

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.

“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

The media would have you believe that bottled water is healthier than normal tap water, but is this true? There is a lot of conflicting information, I would like to clear up that confusion and give you some clarity on the truth. There has been some speculation that the extraction of water for the production of bottled water may be contributing to the drought in California. Below is a map from Mother Jones. They created this illustration using the location of bottled water companies such as Dasani, Aquafina, Crystal Geyser, and Arrowhead. They overlaid that data on the current U.S. Drought Monitor, the measurement of the drought all over the country.

According to Coca-Cola website, Coke is considered to be the biggest best-selling soft drinks and recognisable brand in the world. This company consist of 20 billion dollar brands; this includes Sprite, Fanta, Diet Coke, Coca-Cola, PowerAde, Minute Maid and Vitamin water. In this report an attempt will be made outlining on how Coca-Cola generates money and the importance of micro and macro environmental factors in an organisation.

Life springs up around water sources. It is no coincidence that some of the greatest civilizations have been build need fertile bodies of water. Known life relies on water to sustain that life. So it is no surprise when a debate arose in 2013 around comments made by Nestlé Chairman Peter Brabeck regarding privatization of water and the fundamental human right to survive from dehydration and illness from non-portal water consumption. Although the context of Brabeck’s comment was taken out of context, issues surrounding the access companies like Nestlé have been given to bottle their water when people do not have access to clean water and droughts are threatening crop production. Adding a price tag is not the answer. The market, both these companies and their consumers have a major role to play in the management of water; a role that requires a change in mindset of privilege many citizen of the United States, and other countries that do not see the direct effects that serious clean water issue have on people that do not have it.