Prepared for: Mr.

Cyril H. Ponnu

Prepared by Group

Mahmood Ezzaddin CGA130003 Chin Soon Hwa Shahab Rezazadeh CGA130060 CGA120159

Suresh Krishnasamy CGA120169

• • • • • • • • • The Coca-Cola Company (TCCC) TCCC crisis in India (2003) Public issue facing The Coca-Cola Company (TCCC) Performance-expectation gap Strategic radar screens model analysis Issue management life cycle process model Stakeholder engagement Conclusion References

Provides 1. Water as the core resources. employee’s sanitation). 70% of revenue ($34 billion) came from outside United States. clean equipment.7 billion serving per day. consumes 82 billion gallon per annum of water. • 40% went to finished beverages and 60% used in manufacturing process (wash bottle.The Coca-Cola’s Company (TCCC) World largest beverage company. • • • • Water consumption in TCCC per day Water usage of 5.7 million people in a day (*150 litre per head per day) .

Source: Center for Science Environment India  Accusation against TCCC’s bottling plant uses too much water.  Court order was issued to soft-drinks maker to list pesticide residues on their label. birth defects.  TCCC’s bottling plant was shut down by local authorities and with reason of causing underground water depletion. .  Pesticide level in soft drinks sold in Indian are significantly higher than permitted by European Union Standard. and severe disruption to immune system. depriving local villagers supplies of drinking and irrigation. damage to nervous and reproductive system.  Grassroots campaign to convince schools and colleges to boycott CocaCola products.TCCC crisis in India (2003)  Center for Science Environment (CSE) accused TCCC’s product contains high levels of pesticide residue and insecticides. High enough to cause cancer.

 Water is the main ingredient in every product and is also a limited natural resource facing unprecedented challenges from over-exploitation. Based on the water is the main component in all aspects of the production. particularly those in the developing world. increasing pollution and poor management.UN World Water Development Report. . . The emerging issue was facing The Coca Cola company is the availability of water. 2004Nearly  Nearly 2005 to the early 2010s. 2003.What was the public issue facing The Coca-Cola Company in this case?  As we enter the Twenty-First Century a global water crisis is threatening the security. stability and environmental sustainability of all nations.” The Coca Cola Company SEC 10-K Report.

charged that Coca-Cola products there contained dangerous levels of pesticide residues.  The company started to take a serious action for the dilemma after was abruptly reminded of the impact of its water use on local communities when the Center for Science and the Environment. . From other Stakeholder ’s perspective such as inhabitants of the around area and other environmental organizations were concern about something different is the impact of the long-term of demand on the water supply and contamination of water runoff. and how did their expectations differ from the company's performance?  From the company's perspective the water plays an essential role of the firm profitability.  The difference in the company performance and stakeholder's expectation created a gap among them that left Coca Cola fighting to save its image.  The company performance was inefficiently to take the right action toward the water crisis since it arose. The expectation of stakeholders is to use a company resources efficiently and to protect consumers from harmful contaminant. a think tank in India.Describe the "performance-expectations gap" found in the case? what were the stakeholders’ concerns.

Strategic Radar Screens model .

2. COMPETITOR ENVIRONMENT: To maintain the business in this industry. Coca. CUSTOMER ENVIRONMENT: Customer comprising of local community will complaint on the shortage of waters.Cola and other drink makers need aware on the necessity of waters and the problem they are facing. ECONOMIC ENVIRONMENT: Ensure various water projects to make the continuous availability of water at a cheaper rates.Strategic Radar Screens model 1. . 3.

Strategic Radar Screens model 4. . Coca-Cola – Reduce. SOCIAL ENVIRONMENT: Need to bring confident in the local community. Recycle and Replenish. 5. National Government involve in the “water shortage” globally. TECHNOLOGY ENVIRONMENT: Waste water treatment plant. efficient methods in reduce water require newer way of bottling the drink. 6. POLITICAL ENVIRONMENT: United Nation.

waste water treatment. 8.soft drink maker to list pesticide residue on their labels. LEGAL ENVIRONMENT: Court rule . Global Issue.Strategic Radar Screens model 7. GEOPHYSICAL ENVIRONMENT: Obvious – natural resources Water shortage. .

Issue Management Life Cycle Process Identify Issue Evaluate Results Analyze Issue Take Action Generate Options .

Bathing is viewed as a sacred act.water carries an almost spiritual meaning to Indians. Impact to TCCC: Enormous fall of revenue and increase damage to Coca-Cola image. Interference to local culture . Water shortage due to excess use of ground water by Coca-Cola's bottling plant. .Issue Management Life Cycle Process Analyze Issue: Serious threat to public health issue by Coca-Cola’s product which contains high level of pesticide contamination. Coca-Cola factory close down. Facing Lawsuit and further compensation.

.Issue Management Life Cycle Process Generate Options Comprehensive study to survey global operations to assess its water management practices and impacts. Humanitarian organization (CARE) and various academic experts. Discussion with coca-coca’s bottler to reach consensus in water conservation project. Consult World Wildlife Fund (WWF). Nature Conservancy.

such as river conservation. ” Implement Reduce.Issue Management Life Cycle Process Take Actions TCCC committed to achieve goal of water neutrality. “To safely returns to nature and communities an amount of water equal to what we use in all our beverages and their production. Participate in various water conservation projects. and efficient irrigation. Reuse. . Carry out waste water treatment before discharge into river. and Replenish concept to reduce water usage and increase operation efficiency. rainwater collection. by year 2020.

. Source: The Coca-Cola Company 13% reduction of “ water ratio ” (the number of gallons of water used per gallon of product produced) 39% of TCCC facilities were using recycle water.Issue Management Life Cycle Process Evaluate Results TCCC moved to measure and publicly share their water neutrality achievement. 29% of water used in finished product were replenished through community water projects.

community groups and so on . existing customer . suppliers.Stakeholder Engagement Stakeholder engagement is an organization’s efforts to understand and involve stakeholders and their concern in its activities and decision-making process. . such as employees . It is the relationship between organization(business) and stakeholders. Stakeholders can be any group or individual who can be affected by or can affect company or its activities .

4) Interactive : this stage is the most effective way that the companies would like to promote their relationships with stakeholders and enhance the mutual respect and confidence and take advice from their stakeholders. They make decision incorrect their own without consultation or dialogue with their stakeholders. 3)Proactive: proactive corporations are willing to anticipate stakeholders concern and they have specific department to make relationships and communicate with stakeholders such as public affairs . consumer affairs and so on. the company do not pay attention to stakeholders concern.This relationship develop gradually through four stages : 1)Inactive : In this stage . . 2)Reactive: They will take action when they feel that they have to do and they should defend.

The Nature conservancy. they found out 3 ways : 1)reduce 2) recycle 3)replenish to accomplish their goal for storing the water and reducing the loss of water. •They participated into different water conversation project like river conservation . rain water collection and efficient irrigation.How TCCC use stakeholder engagement : TCCC started to consult with their stakeholders and share their idea with them such as world wild life fund. . the humanitarian organization care and the other experts to collaborate with them about this emerging issue and took their advice. •After that .

• Reduced its water ratio by 13% and 39% of their facilities had used recycled water and 23% of water which used for production had been replenished through the community water project. • HCCC could be more successful in shaping that impact their significant advantages. creative innovative solutions and could again improve their reputation in the market . •HCCC get sufficient information about society’s expectations and demands. It reduced the risk of litigation. they could enhance their productivity and efficiency and sustainability. • Make a better and correct decision regarding this issue and they can be part of solution. Furthermore . .Benefit of stakeholder engagement : •Coca cola company had active dialogue and conversation with stakeholders that it help companies to anticipate environmental issues. bringing high level expertise.

such as:–Reduced its water ratio.Conclusion  TCCC responded appropriately for the water issue.  Eventually TCCC didn't evade of their responsibilities toward the consumers and communities. Their reaction to resolve the issue depicted how they are really care for their consumers and the societies which they operate in and to prevent from spreading sickness among the people particular young generation who are the most beverage consumers. –Partnerships with governments and nonprofit organizations –Water treatment.  They paid attention to outside of the company issues and look at this problem as their problem and attempted to communicate and consult with their stakeholders. Restore watersheds and Irrigation Improvement. –Facilities were using recycled water. . and made a lot of efforts to resolve this emerging issue through commitment on water neutrality initiative activities.

Buchholtz.cocacolacompany. Retrieved from . 2008. 2012. Business and Society: Ethics. Ethics.REFERENCES  Anne T. Carroll and Ann K.  Coca-Cola 2011/2012 Sustainability  The benefits of a stakeholder engagement plan: a Gap Inc.future500. Retrieved from http://www. Business and Society: Stakeholders. Retrieved from http://communica. and Stakeholder Management. McGraw-Hill. 8th Edition. case  Hard Truths about Soft Drinks. 2013. Sustainability.cseindia. Public Policy. 2011. 2003.  Archie B. Retrieved from http://www.  Benefits of Stakeholder Engagement . CENGAGE Learning. Lawrence and James Weber. 14th Edition.