coca cola casestudy
DESCRIPTION
FMCGTRANSCRIPT
Coca-Colas Water Sustainability Initiatives
Case Details
Case Code BECG090
Case Length 23 Pages
Period 2004-2008
Pub Date 2009
Teaching Note Not Available
Organization The Coca-Cola Company
Industry FMCG
Countries Global
Abstract
This case is about the global water sustainability initiatives undertaken by The Coca-Cola Company
(Coca-Cola) It details the activities undertaken by Coca-Colas management and employees to contribute
to the benefit of the society and community in which the company operated by pledging to return all the
water it used in its operations back to the environment On June 5 2007 Coca-Cola and the World
Wildlife Fund (WWF) launched a global project that focused on water conservation
Coca-Cola being one of the largest beverage companies in the world had water sustainability initiatives
as an integral part of its corporate agenda since water was an important element for the company to run
its business
According to the company it was aware of the environmental 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 the society at large
While Coca-Colas water sustainability initiatives earned accolades from its collaboration partners it came
in for severe criticism from activists and environmental experts for allegedly depleting groundwater
resources in India The company was also accused of dumping toxic and hazardous waste materials near
its bottling facilities and discharging wastewater into the agricultural lands of farmers Moreover Coca-
Cola was one of the most boycotted companies in the world for its alleged unethical business practices in
developing countries
Notwithstanding the criticisms the company championed various water sustainability initiatives such as
rainwater harvesting restoring groundwater resources efficient water resource management watershed
protection community water initiatives and global awareness and action initiatives for educating the
underserved communities the significance of water The company was also criticized for spending millions
of dollars to project a green and environment-friendly image while failing to take care of the basics to
operate its business in an ethical manner The critics felt that this was an attempt at greenwashing as
Coca-Colas business practices in India had tarnished its brand image while its sales had taken a beating
However the company intended to become a water neutral company by 2010
Issues
raquo Understand the issues and challenges faced by Coca-Cola with regard to its global environmental
responsibility initiatives
raquo Understand the concept of sustainability and its relevance in todays businesses
raquo Understand the need for a vision policy and governance structure in order to achieve the goals of
sustainability management
raquo Understand how environmentally and socially responsible behavior leads to sustainable business
performance
raquo Develop a framework to measure sustainability initiatives
raquo Determine how a companys stand on social and environmental issues can contribute to enhancing its
corporate image
raquo Understand the reactions of consumers environmental experts and critics to Coca-Colas water
sustainability initiatives
Contents
Page No
Introduction 1
Background Note 2
Coca-Colas Environmental Issues 4
Coca-Cola amp Water 5
Coca-Colas Water Stewardship Strategy 7
Criticisms 10
Coca-Colas Response 12
Looking Ahead 14
Exhibits 16
Keywords
Corporate social responsibility Environmental Protection Environmental responsibility Water
sustainability Water stewardship strategy Water resource management Wastewater treatment
Sustainable development Rainwater harvesting Public relations Brand image Greenwashing Product
mix Competitive advantage Advertising Franchise The Coca-Cola Company Coca-Cola India The
Energy and Resource Institute Water and Development Alliance Center for Science and Environment
Introduction
On March 26 2008 US-based leading beverage company The Coca-Cola Company (Coca-Cola)
received the US Agency for International Developments4 (USAID) 2007 Alliance of the Year award for its
water sustainability initiatives in developing countries worldwide The award recognizes public-private
partnerships for their outstanding contribution to global challenges
Since 2004 Coca-Cola had been accused by several governmental organizations and activists of
creating environmental problems in several countries by depleting groundwater tables In 2005 the
company used 290 billion liters of water to produce its beverages
Around 40 percent of the water was consumed in making beverages and the remaining 60 percent was
used in the supply chain and in the production of ingredients like sugar and corn5
In 2005 Coca-Cola entered into an alliance with USAID to address global water management problems
These initiatives were funded by Coca-Cola and the Water and Development Alliance6(WADA)
Coca-Cola in association with USAID and WADA addressed critical water issues across the world
However the beverage company was criticized for depleting groundwater that was an important resource
to the local communities in developing countries
Coca-Cola was also criticized for distributing what was alleged to be improperly treated sludge containing
toxic carcinogens and heavy metals like cadmium and lead as fertilizer to farmers in India
On June 5 2007 Coca-Cola and the World Wildlife Fund7 (WWF) launched a global project that focused
on water conservation
Coca-Cola aimed to return to the environment all the water that it consumed in beverage production and
become water neutral by 2010
This it proposed to do by focusing on three core areas - reduction recycling and replenishment
Excerpts
Background Note
The Coca-Cola drink popularly referred to as Coke is a kind of cola a sweet carbonated drink
containing caramel and other flavoring agents It was invented by Dr John Smith Pemberton (Pemberton)
on May 8 1886 at Atlanta Georgia in USA The beverage was named Coca-Cola because at that time it
contained extracts of Coca leaves and Kola nuts Frank M Robinson (Robinson) Pembertons book-
keeper and partner who came up with the name for the drink suggested that it be spelt Coca-Cola rather
than Coca-Kola because he thought the two Cs would look better while advertising Robinson designed
the now world famous Coca-Cola trademark as well
Coca-Colas Environmental Issues
Coca-Cola was accused of draining the underground water table and of releasing improperly treated
industrial effluents in less developed countries The company was hit hardest in India The focal point of
the environmental accusations in India was the Coca-Cola plant located in the southern state of Kerala
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Criticisms
Some analysts felt that the initiatives adopted by Coca-Cola were the need of the hour and such private
sector expertise and interests could make real contributions to sustainable development They felt that
the company had set an example for other organizations to follow
While its water sustainability initiatives earned Coca-Cola accolades from its collaboration partners and
certain quarters it failed largely to impress its critics Despite several efforts by the company it continued
to face criticisms from several quarters
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Exhibits
Exhibit I Importance of Water to Coca-Cola
Exhibit II Selected Financials of Coca-Cola 2003-2007
Exhibit III Coca-Colas Initiatives in Other Countries
Exhibit IV Coca-Colas Global Water Sustainability Goals
Exhibit V Rainwater Harvesting Projects in India
Exhibit VI List of Awards and Recognition
underserved communities the significance of water The company was also criticized for spending millions
of dollars to project a green and environment-friendly image while failing to take care of the basics to
operate its business in an ethical manner The critics felt that this was an attempt at greenwashing as
Coca-Colas business practices in India had tarnished its brand image while its sales had taken a beating
However the company intended to become a water neutral company by 2010
Issues
raquo Understand the issues and challenges faced by Coca-Cola with regard to its global environmental
responsibility initiatives
raquo Understand the concept of sustainability and its relevance in todays businesses
raquo Understand the need for a vision policy and governance structure in order to achieve the goals of
sustainability management
raquo Understand how environmentally and socially responsible behavior leads to sustainable business
performance
raquo Develop a framework to measure sustainability initiatives
raquo Determine how a companys stand on social and environmental issues can contribute to enhancing its
corporate image
raquo Understand the reactions of consumers environmental experts and critics to Coca-Colas water
sustainability initiatives
Contents
Page No
Introduction 1
Background Note 2
Coca-Colas Environmental Issues 4
Coca-Cola amp Water 5
Coca-Colas Water Stewardship Strategy 7
Criticisms 10
Coca-Colas Response 12
Looking Ahead 14
Exhibits 16
Keywords
Corporate social responsibility Environmental Protection Environmental responsibility Water
sustainability Water stewardship strategy Water resource management Wastewater treatment
Sustainable development Rainwater harvesting Public relations Brand image Greenwashing Product
mix Competitive advantage Advertising Franchise The Coca-Cola Company Coca-Cola India The
Energy and Resource Institute Water and Development Alliance Center for Science and Environment
Introduction
On March 26 2008 US-based leading beverage company The Coca-Cola Company (Coca-Cola)
received the US Agency for International Developments4 (USAID) 2007 Alliance of the Year award for its
water sustainability initiatives in developing countries worldwide The award recognizes public-private
partnerships for their outstanding contribution to global challenges
Since 2004 Coca-Cola had been accused by several governmental organizations and activists of
creating environmental problems in several countries by depleting groundwater tables In 2005 the
company used 290 billion liters of water to produce its beverages
Around 40 percent of the water was consumed in making beverages and the remaining 60 percent was
used in the supply chain and in the production of ingredients like sugar and corn5
In 2005 Coca-Cola entered into an alliance with USAID to address global water management problems
These initiatives were funded by Coca-Cola and the Water and Development Alliance6(WADA)
Coca-Cola in association with USAID and WADA addressed critical water issues across the world
However the beverage company was criticized for depleting groundwater that was an important resource
to the local communities in developing countries
Coca-Cola was also criticized for distributing what was alleged to be improperly treated sludge containing
toxic carcinogens and heavy metals like cadmium and lead as fertilizer to farmers in India
On June 5 2007 Coca-Cola and the World Wildlife Fund7 (WWF) launched a global project that focused
on water conservation
Coca-Cola aimed to return to the environment all the water that it consumed in beverage production and
become water neutral by 2010
This it proposed to do by focusing on three core areas - reduction recycling and replenishment
Excerpts
Background Note
The Coca-Cola drink popularly referred to as Coke is a kind of cola a sweet carbonated drink
containing caramel and other flavoring agents It was invented by Dr John Smith Pemberton (Pemberton)
on May 8 1886 at Atlanta Georgia in USA The beverage was named Coca-Cola because at that time it
contained extracts of Coca leaves and Kola nuts Frank M Robinson (Robinson) Pembertons book-
keeper and partner who came up with the name for the drink suggested that it be spelt Coca-Cola rather
than Coca-Kola because he thought the two Cs would look better while advertising Robinson designed
the now world famous Coca-Cola trademark as well
Coca-Colas Environmental Issues
Coca-Cola was accused of draining the underground water table and of releasing improperly treated
industrial effluents in less developed countries The company was hit hardest in India The focal point of
the environmental accusations in India was the Coca-Cola plant located in the southern state of Kerala
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Criticisms
Some analysts felt that the initiatives adopted by Coca-Cola were the need of the hour and such private
sector expertise and interests could make real contributions to sustainable development They felt that
the company had set an example for other organizations to follow
While its water sustainability initiatives earned Coca-Cola accolades from its collaboration partners and
certain quarters it failed largely to impress its critics Despite several efforts by the company it continued
to face criticisms from several quarters
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Exhibits
Exhibit I Importance of Water to Coca-Cola
Exhibit II Selected Financials of Coca-Cola 2003-2007
Exhibit III Coca-Colas Initiatives in Other Countries
Exhibit IV Coca-Colas Global Water Sustainability Goals
Exhibit V Rainwater Harvesting Projects in India
Exhibit VI List of Awards and Recognition
Keywords
Corporate social responsibility Environmental Protection Environmental responsibility Water
sustainability Water stewardship strategy Water resource management Wastewater treatment
Sustainable development Rainwater harvesting Public relations Brand image Greenwashing Product
mix Competitive advantage Advertising Franchise The Coca-Cola Company Coca-Cola India The
Energy and Resource Institute Water and Development Alliance Center for Science and Environment
Introduction
On March 26 2008 US-based leading beverage company The Coca-Cola Company (Coca-Cola)
received the US Agency for International Developments4 (USAID) 2007 Alliance of the Year award for its
water sustainability initiatives in developing countries worldwide The award recognizes public-private
partnerships for their outstanding contribution to global challenges
Since 2004 Coca-Cola had been accused by several governmental organizations and activists of
creating environmental problems in several countries by depleting groundwater tables In 2005 the
company used 290 billion liters of water to produce its beverages
Around 40 percent of the water was consumed in making beverages and the remaining 60 percent was
used in the supply chain and in the production of ingredients like sugar and corn5
In 2005 Coca-Cola entered into an alliance with USAID to address global water management problems
These initiatives were funded by Coca-Cola and the Water and Development Alliance6(WADA)
Coca-Cola in association with USAID and WADA addressed critical water issues across the world
However the beverage company was criticized for depleting groundwater that was an important resource
to the local communities in developing countries
Coca-Cola was also criticized for distributing what was alleged to be improperly treated sludge containing
toxic carcinogens and heavy metals like cadmium and lead as fertilizer to farmers in India
On June 5 2007 Coca-Cola and the World Wildlife Fund7 (WWF) launched a global project that focused
on water conservation
Coca-Cola aimed to return to the environment all the water that it consumed in beverage production and
become water neutral by 2010
This it proposed to do by focusing on three core areas - reduction recycling and replenishment
Excerpts
Background Note
The Coca-Cola drink popularly referred to as Coke is a kind of cola a sweet carbonated drink
containing caramel and other flavoring agents It was invented by Dr John Smith Pemberton (Pemberton)
on May 8 1886 at Atlanta Georgia in USA The beverage was named Coca-Cola because at that time it
contained extracts of Coca leaves and Kola nuts Frank M Robinson (Robinson) Pembertons book-
keeper and partner who came up with the name for the drink suggested that it be spelt Coca-Cola rather
than Coca-Kola because he thought the two Cs would look better while advertising Robinson designed
the now world famous Coca-Cola trademark as well
Coca-Colas Environmental Issues
Coca-Cola was accused of draining the underground water table and of releasing improperly treated
industrial effluents in less developed countries The company was hit hardest in India The focal point of
the environmental accusations in India was the Coca-Cola plant located in the southern state of Kerala
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Criticisms
Some analysts felt that the initiatives adopted by Coca-Cola were the need of the hour and such private
sector expertise and interests could make real contributions to sustainable development They felt that
the company had set an example for other organizations to follow
While its water sustainability initiatives earned Coca-Cola accolades from its collaboration partners and
certain quarters it failed largely to impress its critics Despite several efforts by the company it continued
to face criticisms from several quarters
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Exhibits
Exhibit I Importance of Water to Coca-Cola
Exhibit II Selected Financials of Coca-Cola 2003-2007
Exhibit III Coca-Colas Initiatives in Other Countries
Exhibit IV Coca-Colas Global Water Sustainability Goals
Exhibit V Rainwater Harvesting Projects in India
Exhibit VI List of Awards and Recognition
on May 8 1886 at Atlanta Georgia in USA The beverage was named Coca-Cola because at that time it
contained extracts of Coca leaves and Kola nuts Frank M Robinson (Robinson) Pembertons book-
keeper and partner who came up with the name for the drink suggested that it be spelt Coca-Cola rather
than Coca-Kola because he thought the two Cs would look better while advertising Robinson designed
the now world famous Coca-Cola trademark as well
Coca-Colas Environmental Issues
Coca-Cola was accused of draining the underground water table and of releasing improperly treated
industrial effluents in less developed countries The company was hit hardest in India The focal point of
the environmental accusations in India was the Coca-Cola plant located in the southern state of Kerala
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Coca-Cola amp Water
In 2002 Coca-Cola initiated its water sustainability initiatives to provide local communities residing in the
areas near its bottling plants with access to potable water Since the company was facing several issues
related to its environmental sustainability in India it launched several rainwater harvesting projects in
India in June 2002
The company received support from several non-governmental organizations (NGOs) central
groundwater authorities state groundwater boards and welfare associations
Criticisms
Some analysts felt that the initiatives adopted by Coca-Cola were the need of the hour and such private
sector expertise and interests could make real contributions to sustainable development They felt that
the company had set an example for other organizations to follow
While its water sustainability initiatives earned Coca-Cola accolades from its collaboration partners and
certain quarters it failed largely to impress its critics Despite several efforts by the company it continued
to face criticisms from several quarters
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Exhibits
Exhibit I Importance of Water to Coca-Cola
Exhibit II Selected Financials of Coca-Cola 2003-2007
Exhibit III Coca-Colas Initiatives in Other Countries
Exhibit IV Coca-Colas Global Water Sustainability Goals
Exhibit V Rainwater Harvesting Projects in India
Exhibit VI List of Awards and Recognition
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Coca-Colas Response
Coca-Cola opened an exclusive website wwwcokefactsorg which addressed the allegations related to
India and other countries Also the company issued an official statement rebutting the charges against its
bottling plant at Plachimada
Exhibits
Exhibit I Importance of Water to Coca-Cola
Exhibit II Selected Financials of Coca-Cola 2003-2007
Exhibit III Coca-Colas Initiatives in Other Countries
Exhibit IV Coca-Colas Global Water Sustainability Goals
Exhibit V Rainwater Harvesting Projects in India
Exhibit VI List of Awards and Recognition