POST THE PAST PR DISASTERS FOR COCA COLA & CADBURY – WHICH THEY ENDED UP MANAGING WELL – THE CURRENT TIMES CHURN UP NEWER ISSUES, THE WATER ISSUE AT PALAKKAD BEING ONE OF THEM FOR COKE
Financially Coca-Cola India Inc. had a good year for the year ended 2009-10, but the beginning of this fiscal year hasn’t met that description. And this time, it was not about the time-honoured pesticide issue. Something else has been cooking up over time against the ‘perfect’ brand proposition of Coca-Cola in Palakkad district in the state of Kerala.
Villagers in Palakkad are constantly accusing Coca-Cola for ground water level depletion with its bottling plant there. Earlier, similar such accusations were levelled, which the organization managed through several innovative CSR initiatives for protecting water resources. In April this year, the group launched a project to rejuvenate the 1000 acre Nemam lake in Tamil Nadu in partnership with District Rural Development Agency, which cost $1 million. But matters at Palakkad present a complex situation for Coca-Cola, as the problem started from the selection of a wrong site for the production plant. The plant was located in a drought-prone area and has been susceptible even before Coca-Cola built its plant. Senior officials from Coca-Cola’s head office located in Gurgaon refused to comment on this issue. We spoke to the India Resource Center (IRC) – an international campaigning organization that engages with multinational corporations on such issues, and one which is currently working on the Coca-Cola issue. Amit Srivastava, Coordinator of IRC, points out, “As a company which uses more than 300 billion litres of water annually, Coca-Cola should have known that the addition of a bottling plant would make the already existing water shortages even worse.”
The local people had organised a long drawn out agitation against depletion of water sources and pollution by the company and the company was forced to shut down its plant as a result of a “Stop Production Order” from the Kerala State Pollution Control Board. The projected agricultural loss over here is a humongous Rs.841.6 million and a ground-water rejuvenating project alone won’t help. Ricardo Fort, VP Marketing, Coca-Cola India had earlier shared his views on India with B&E, “We in Coca-Cola India have tried and will keep on trying to spread happiness among all the citizens of this country.” The company maintains that its operations have not caused any damage in Palakkad, even as the Kerala government has asked them to pay compensation charges of $47 million.
Financially Coca-Cola India Inc. had a good year for the year ended 2009-10, but the beginning of this fiscal year hasn’t met that description. And this time, it was not about the time-honoured pesticide issue. Something else has been cooking up over time against the ‘perfect’ brand proposition of Coca-Cola in Palakkad district in the state of Kerala.
Villagers in Palakkad are constantly accusing Coca-Cola for ground water level depletion with its bottling plant there. Earlier, similar such accusations were levelled, which the organization managed through several innovative CSR initiatives for protecting water resources. In April this year, the group launched a project to rejuvenate the 1000 acre Nemam lake in Tamil Nadu in partnership with District Rural Development Agency, which cost $1 million. But matters at Palakkad present a complex situation for Coca-Cola, as the problem started from the selection of a wrong site for the production plant. The plant was located in a drought-prone area and has been susceptible even before Coca-Cola built its plant. Senior officials from Coca-Cola’s head office located in Gurgaon refused to comment on this issue. We spoke to the India Resource Center (IRC) – an international campaigning organization that engages with multinational corporations on such issues, and one which is currently working on the Coca-Cola issue. Amit Srivastava, Coordinator of IRC, points out, “As a company which uses more than 300 billion litres of water annually, Coca-Cola should have known that the addition of a bottling plant would make the already existing water shortages even worse.”
The local people had organised a long drawn out agitation against depletion of water sources and pollution by the company and the company was forced to shut down its plant as a result of a “Stop Production Order” from the Kerala State Pollution Control Board. The projected agricultural loss over here is a humongous Rs.841.6 million and a ground-water rejuvenating project alone won’t help. Ricardo Fort, VP Marketing, Coca-Cola India had earlier shared his views on India with B&E, “We in Coca-Cola India have tried and will keep on trying to spread happiness among all the citizens of this country.” The company maintains that its operations have not caused any damage in Palakkad, even as the Kerala government has asked them to pay compensation charges of $47 million.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
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IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
