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Coca-Cola Continues Unethical and Dishonest Practices in India -Ravichandra Devadiga

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Page 1: Unethical practices done by coca cola company

Coca-Cola Continues Unethical and Dishonest Practices in India

-Ravichandra Devadiga

Page 2: Unethical practices done by coca cola company

OverviewThe Indian government forced Coca-Cola out

of the country in 1977. The company returned in 1993Each bottling plants extracts up to 1.5m liters

of water everyday from the ground. It takes nine liters of clean water to

manufacture a liter of Coke.In 2000 Coca-Cola opened a plant at

Plachimada, a village in Kerala to produce 1.2m liters of coke every day.

Page 3: Unethical practices done by coca cola company

The conditional license granted by the local Panchayat authorized the use of motorized pumps

But the company drilled more than six wells & illegally installed high-powered electric pumps to extract millions of liters of pure water.

The level of the water table fell from 45 to 150 meters below the surface.

Page 4: Unethical practices done by coca cola company

The company started dumping waste outside causing a serious health hazard.

The court gave Coca-Cola a notice to cease water extraction

The theft of water was not only limited to kerala

Overexploitation of groundwater soon started in Kaladera

Page 5: Unethical practices done by coca cola company

Kala Dera - Thirsting from Coca-ColaKala Dera is a large village outside the city of

Jaipur.Agriculture is the primary source of livelihood. Coca-Cola started its bottling operations in

Kala Dera in 2004, and within a year, the community started to notice a rapid decline in groundwater levels.

Page 6: Unethical practices done by coca cola company

Unusable Well in Kala Dera Showing Depleted Water Level

Page 7: Unethical practices done by coca cola company

For farmers, loss of groundwater translated directly into loss of income.

For many children it meant leaving schools to provide a much needed helping hand in household since the women had additional burdens.

Page 8: Unethical practices done by coca cola company

Community response

The community in Kala Dera organized itself to challenge the Coca-Cola company for the worsening water conditions - through extraction and pollution - and demanded the closure of the Coca-Cola bottling plant.

Page 9: Unethical practices done by coca cola company

Company's ResponseThe company, in usual fashion, denied any

wrongdoing, blaming "outsiders" for the increasing local community opposition

Page 10: Unethical practices done by coca cola company

Stop Using Groundwater in Kala DeraThe assessment noted that the plant's operations

would continue to worsen water situation

Page 11: Unethical practices done by coca cola company

Coca-Cola's Response - Unethical and DishonestCoca-cola took seven month to respond

Coca-cola not respond to the concern

raised

Unethical and dishonest campaign

Chosen to continue the operation

Continued in misery of thousand people

Page 12: Unethical practices done by coca cola company

Coca-Cola should no longer utilize the overexploited groundwater resource in Kala Dera

1. Transport water from the nearest aquifer that may not be stressed

2. Store water from low-stress seasons 3. Relocate the plant to a water-surplus area 4. Shut down this facilityThe community in Kala Dera welcomed the

recommendations and waited for company’s response.

Page 13: Unethical practices done by coca cola company

COKE’S Corporate Social Responsibility - A Scam?

The Coca-Cola steps up its corporate social responsibility announcing to the world that it is a “green and socially responsible company.” --- but was not the case at kala dera

Page 14: Unethical practices done by coca cola company

The company announce its rainwater harvesting initiatives in India

It also announce that the company will become "water neutral" in India by 2009.

Page 15: Unethical practices done by coca cola company

Some serious concerns about Coca-Cola's claims on rainwater harvestingThe company announced that it has recharged five times

the amount of water it has used.

When asked to back it up with numbers, Coca-Cola does not provide any.

Coca-Cola states that they "will install measuring devices that will verify the amount of water recharged."

If they do not have measuring devices installed to verify the amount of water recharged, how can they make a claim of recharging five times the water that they have extracted?

Page 16: Unethical practices done by coca cola company

People across Rajasthan are well known in rainwater harvesting and have been harvesting rainwater long before Coca-Cola started.

Coca-Cola started rainwater harvesting to overcome response to the growing campaigns against its water mismanagement.

Coca-Cola was bluffing people with its rainwater harvesting.

The rainfall in the area is too low, and the amount of rainfalls fluctuates a lot contributing to 30 days of rains every year

80% of those rains come in just two or three days and hence rainwater harvesting is simply not efficient

Page 17: Unethical practices done by coca cola company

Based on their rainwater harvesting initiatives Coca-Cola company has announced that they will become water neutral in India by 2009

Coca- cola will recharge more water than the use from the groundwater resource. ---A BLUFF

Page 18: Unethical practices done by coca cola company

Coca-Cola Threatens Top Indian Photographer with Lawsuit

Billboard by: Sharad Haksar

Page 19: Unethical practices done by coca cola company

In 2005, Coca-Cola's Indian subsidiary, sent a letter to Mr. Haksar threatening him with serious legal actions unless the billboard was replaced 'unconditionally and immediately'.

Coca-Cola would seek Indian Rupees 2 million (US$ 45,000) for "incalculable damage to the goodwill and reputation" of Coca-Cola, and also sought an 'unconditional apology in writing'.

Mr. Haksar said that he had no intentions of issuing any

apology because he has not committed anything wrong.

Page 20: Unethical practices done by coca cola company

THANK YOU