THE CRISIS OF WATER

Section B

Group 6

Submitted to- Dr Nilanjan Sengupta

BY

SWAPNIL ANAND 21113

Q.1. Who are the main stakeholders of beverage companies such as Coca-Cola
and Nestle in this case? How could one prioritize their stakes and how
legitimate are the different stakes?

The main stakeholders of beverage companies such as Coca-Cola and Nestle in this case are:

 Customers
 Employees
 Investors
 Government
 Local Communities
 Suppliers and Distributors
 NGO’s

Customers

A company's ability to sell its goods and services is determined by the desires and opinions of its
customers. Consumer trends, habits, and desires have a significant impact on brand success.
Customers are treated as high-value stakeholders by these beverage companies. Customers are
the end users of the product who benefit from the drinking products, so any decision made by the
company has a direct impact on them. Customers are the most important stakeholders in such
businesses because they are the ones who buy the product and generate revenue.

Employees

Employees are divided into two groups at the Coca-Cola Company: internal stakehoders and
external stakehoders. When a company's employee buys a product from the same company
where they work, they are considered external stakeholders right away. Furthermore, the best
employees are important because they assist the company in determining whether or not they are
the best employees. Employees also enable the company to conduct surveys on the effects of its
working practises and quality.
Local Communities

Local communities where beverage companies operate will be impacted by the company's
operations.

In this case, any beverage company requires a natural resource, which is water.

The company must obtain water from the area in which it is located.

In the case of Coco-Cola, when they consumed a large amount of ground water, the local
communities were impacted because harvests fell by 80-90 percent, affecting the community's
main source of income and livelihood.

As a result, the company will have a significant impact on the people in any form, whether it is
through decisions or actions, both positive and negative.

Investors

Investors in the beverage company are considered internal stakeholders. As a result, they are
considered the majority stockholders in the company. Coca-Cola and Nestle shareholders, for
example, have a direct stake in the company because everything the company does revolves
around their money. If Coca-Cola and Nestle generate profits and their stock prices rise,
investors will profit. In the end, if the company runs into problems and loses money, the investor
will lose money. As a result, the company's investors have a say in how it makes

decisions and conducts business.

NGO’s

Non-governmental organisations (NGOs) will be present to defend human rights and to advocate
for the betterment of minorities and sufferers. When businesses fail to follow best practises in the
interests of their stakeholders, non-governmental organisations (NGOs) step in to fight the
injustice. When the company was ordered to close by the court because it was consuming a large
amount of ground water on a daily basis in Kerala, NGO's and research institutions protested.
Suppliers and distributors

They are the most important stakeholders because they sell and distribute goods, as well as
generate revenue for the company's ongoing profits. These individuals are directly involved with
the company and are referred to as external and key stakeholders because they strive to provide
high-quality goods, build their reputation and trust in the company by delivering products on
time whenever the quantity is required, and secure future business by maintaining a beneficial
relationship with the company.

Government

They are regarded as external stakeholders, and they are in charge of all ongoing operations,
framework, and, most importantly, the collection of taxes from the company. They also incur
taxes from the people they employ – payroll taxes – and from others who spend money in the
company. They also benefit from the contribution of businesses to the gross domestic product
(GDP).

Using the stakeholder analysis approach, we can prioritise their interests. Identifying and
mapping stakeholder relationships, mapping stakeholder coalitions, assessing the nature of
stakeholder interests, developing a matrix to develop strategies, and prioritising stakeholders are
all part of this approach. The stakeholder approach is a practical method for identifying and
comprehending a wide range of stakeholders' political, social, legal, economic, and moral
concerns.

According to the case study, the civil society, which includes pressure groups, local
communities, and non-governmental organisations, is the company's primary stakeholder. The
stakeholders analysis approach can be used to prioritise the stakes and legitimacy of these
stakeholders.

Every stakeholder is equally important and should be treated equally when it comes to
legitimacy. Let's walk through the steps of stakeholder analysis now.
STEPS

Stakeholder mapping: In this step, the company should assess its stakeholders and consider
how each of them might be affected or affected by the company's policies. They should keep you
informed about the company's strategic decisions and long-term plans.

Stakeholder coalition mapping: Government and non-governmental organisations (NGOs)

could form stakeholder coalitions with local communities. Among others, consumers and the
government. Interest groups and lobbies may band together to combat common foes.

Identifying the nature of each stakeholder's motivation: A company may deal with four
different types of stakeholders:

Supportive and non-supportive employees are those who work for and against the company. In
this case, the company's owners and employers support it, while non-governmental organizations
(NGOs) oppose it.

Mixed blessings & marginal – their support for the company's strategy is shaky. Governments,
suppliers, and distributors are a mixed bag, and local communities are on the fringes.

Identifying the power of each stakeholder:

In this section, we evaluate the various powers that each stakeholder has in the company.

Creating a matrix of moral responsibilities for stakeholders

Creating targeted strategies and tactics: planning long-term strategic initiatives

Monitoring shifting coalitions: The Company should keep an eye on any new coalitions forming
among its stakeholders in this step.
Q2. Discuss the potential and the limits of what corporations can ultimately
achieve in the business of water?
The total amount of water on the planet is approximately 1 million KM3. Only about 35 million
KM3 of all freshwater on Earth is contained in rivers and lakes, which are the water sources we
are most familiar with and where the majority of the water we use in our daily lives exists.

Corporations in the water business have a high potential to increase profit and productivity if
they involve all stakeholders in decision-making and provide them with regular updates on the
company's operations.

The main goals that a company can achieve

 Utilize the ability to convert sea eater into drinkable water.

 Providing safe drinking water to inaccessible and sparsely populated areas, such as rural
and underdeveloped areas

 In areas where there is already a water supply, privatisation can improve the quality of
infrastructure and services.
 Increasing the efficiency of the water purification plant in order to produce a large
amount of water in a shorter amount of time, as well as conducting research and
development on this type of machinery and techniques. This will assist in the re-
education of water waste.
 Obtaining the goal of providing everyone with safe drinking water
 Improve wastewater treatment standards while also generating revenue.

There are a variety of other options available to a company.

 Unleash the potential of converting seawater into drinkable water: With warnings
from India's top policymakers and reports of major Indian cities struggling to avoid a
water crisis, there's talk of looking into technologies to harness fresh water. Desalination,
or obtaining freshwater from salt water, is one idea that has been around for a while.
Desalination technology is not a new concept; Chennai, for example, already uses
desalinated water. However, due to the high operating costs, it has a limited application.
We can convert sea water to fresh water by using desalination technology.
 Providing safe drinking water: Inaccessible and sparsely populated areas, such as rural
areas, can benefit from safe drinking water.

 privatization: In areas where there is already a water supply, privatisation can improve
the quality of infrastructure and services.
 water purification: through research and development of machinery and techniques, we
can improve the efficiency of the water purification process, reducing water waste.
 Product advertising: The company can use its reach to raise awareness about safe water
sources, which includes their product.
Limitations
Companies can reduce water stress even more by exerting influence over their suppliers
and their suppliers' suppliers to ensure that their own contributions to water stress are
equally rigorous. There are three key levers to pull: reducing energy consumption and
shifting to renewables, establishing supplier standards, and sending water-expert teams to
assist key suppliers in identifying and implementing efficient water-use solutions.
Reduced energy consumption and a market shift toward renewable energy sources reduce
greenhouse gas emissions while also reducing water withdrawals. Water benefits can be
considered alongside carbon, cost, reliability, and other lenses as the world moves toward
a more decarbonized future. Fossil fuel production and use consume up to four times
more water than renewable energy production. Nike has successfully implemented a
water-supplier initiative dubbed the Minimum Water Program by the company. Teams
collaborate closely with the company's largest materials suppliers and others to ensure
good water practises by assisting their suppliers with their own expertise.

The major drawbacks are: what do I need to know in order to adapt to this new
era?

1. Water is a valuable resource.

Water has long been a checkbox item on the corporate social responsibility to-do list, but
as regulations tighten and water costs rise, it has become an operational issue.

The value of water, according to Martin Stuchtey, director of the McKinsey Center for
Business and Environment, extends beyond the cost of obtaining freshwater and
disposing of effluents. Water transports heat, chemicals, products, and pollutants, and its
worth is determined by what is put into and taken out of it. "If you're not recovering
nutrients and energy from your effluents, you're losing value," he says.
2. Water regulation (or the lack thereof) is a significant challenge.
Water regulations are being pushed by policymakers as scarcity and pollution become
more of a concern. China, for example, has enacted stringent water resource management
regulations that impose strict usage, efficiency, and quality limits. Due to a lack of
transparency, difficulties with enforcement, and differences between local and national
policies, regulations do not always translate into improvements on the ground.

3. Water has the potential to ruin a company's reputation.

According to Hannah Greig, Water Aid's private sector adviser, if companies have water
when communities do not, their reputation is at risk, and they risk losing their so-called
social licence to operate. Despite the ongoing drought in California, Nestle has faced
significant backlash for continuing to bottle water.

4. Water management requires collaboration across sectors.

As California's crippling drought enters its fourth year, competition for water is heating
up. Agriculture, which uses the most water in the state, has been exempt from some of
the mandatory water cuts, causing outrage in other industries and among the general
public. According to Stuchtey, sectors must collaborate to better manage water. "It's
possible that a handshake between agriculture and industry could lead to a better solution.
If industrial grey water isn't too contaminated, it could be an interesting agricultural
input. We need to work across sectors to better manage water in a circular and effective
manner."

5. The water economy must transition to a circular economy.

Water is currently moving through the system, becoming increasingly polluted until it
can no longer be used. Water, on the other hand, must be viewed as part of a circular
economy, in which it retains its value after each use and eventually returns to the system.
"We need a completely new mindset of not contaminating water in the first place,"
Stuchtey says. We need to treat it like a durable and keep it in closed loops; or we need to
treat it like a consumable but return it in a way that makes it cheap or beneficial to reuse."

6. Businesses must look beyond their walls.

Outside of their own operations, businesses are increasingly expected to address water
management. Diageo recently set a goal to increase its water efficiency by 50% by 2020,
compared to a 2007 baseline, and to ensure that 100% of wastewater generated by its
operations is safely returned to the environment.
Last year, Coca-Cola partnered with the United States Department of Agriculture to help
restore and protect damaged watersheds across the country. While some activist’s worry
that deals like this could lead to conflicts of interest, others argue that big businesses must
participate in sustainability efforts. "A single business could be the most water-efficient
in the world," Greig says, "but that doesn't matter because it's part of a larger
hydrological cycle with other water users, competing demands, and different impacts."

ORGANIZATIONS DEVOTED TO RESOLVING THE WATER ISSUE

The Global Water Initiative (GWI) aims to improve farmers' access to water in order to
promote global food security and sustainable agricultural production. The GWI, which is
funded by the Howard G. Buffet Foundation, works with governments (both local and
national), donors, NGOs, farmers, and research institutions in Central America, East
Africa, and West Africa to develop strengthened water governance systems and
innovative irrigation schemes.
The Global Water Alliance (GWA), formerly known as the Philadelphia Global Water
Initiative, is a non-governmental organization (NGO) network dedicated to achieving the
United Nations' goal of improved access to water, sanitation, and hygiene. The GWA has
been a regional knowledge hub for water, hygiene, and sanitation since its inception in
2006. The GWA began incorporating the UN SDGs into its strategic planning in 2014.

Global Women's Water Initiative (GWWI) : Women in East Africa are trained as
water technicians, educators, and entrepreneurs through the Global Women's Water
Initiative (GWWI). Women learn how to build water storage, irrigation, and sanitation
facilities using local products through the GWWI's training programme. In addition, the
women learn to make and sell soap, shampoo, and reusable sanitary pads. They can train
people to address the water issues that affect their communities as educators (e.g.,
hygiene, water-borne diseases, drought, etc.). As a result, women in East Africa can
improve their access to water and improve their families' and communities' lives.

CORPORATE RESPONSIBILITY AND WATER WHAT CAN BUSINESSES DO?

Organizations must place a greater emphasis on addressing the global water crisis and
minimizing their impact on themselves and the planet as the world embraces the
importance of environmental sustainability.

ORGANIZATIONS DEVOTED TO RESOLVING THE WATER ISSUE

The Global Water Initiative (GWI) aims to improve farmers' access to water in order to
promote global food security and sustainable agricultural production. The GWI, which is
funded by the Howard G. Buffet Foundation, works with governments (both local and
national), donors, NGOs, farmers, and research institutions in Central America, East
Africa, and West Africa to develop strengthened water governance systems and
innovative irrigation schemes.

The Global Water Alliance (GWA), formerly known as the Philadelphia Global Water
Initiative, is a non-governmental organization (NGO) network dedicated to achieving the
 United Nations' goal of improved access to water, sanitation, and hygiene. The GWA has
been a regional knowledge hub for water, hygiene, and sanitation since its inception in
2006. The GWA began incorporating the UN SDGs into its strategic planning in 2014.

Women in East Africa are trained as water technicians, educators, and entrepreneurs
through the Global Women's Water Initiative (GWWI). Women learn how to build water
storage, irrigation, and sanitation facilities using local products through the GWWI's
training programme. In addition, the women learn to make and sell soap, shampoo, and
reusable sanitary pads. They can train people to address the water issues that affect their
communities as educators (e.g., hygiene, water-borne diseases, drought, etc.). As a result,
women in East Africa can improve their access to water and improve their families' and
communities' lives.