A Case Study on Unethical Business Practices

Topics: Water, Water cycle, The Coca-Cola Company Pages: 8 (2045 words) Published: February 17, 2011

|Coca-Cola Continues Unethical and Dishonest Practices in India | |Company Must Follow Recommendations of Company Funded Study: | |Shut Down Kala Dera Bottling Plant | | | |India Resource Centre | |September 12, 2008 | |San Francisco: It is said that those who don't learn from the mistakes of the past are destined to repeat them. | |It seems that the Coca-Cola has not learnt any lessons from Plachimada - a village in the state of Kerala in India where the | |community-led campaign has shut down its plant since March 2004. | |The manner is which the Coca-Cola company has decided to deal with another community-led campaign in India - in the village of Kala | |Dera in the state of Rajasthan - is indicative of the arrogance and impunity of the company that has landed it in trouble before. | |And Coca-Cola in India is in for a rude awakening, again. | |Kala Dera - Thirsting from Coca-Cola | |Kala Dera is a large village outside the city of Jaipur where agriculture is the primary source of livelihood. Coca-Cola started its | |bottling operations in Kala Dera in 2000, and within a year, the community started to notice a rapid decline in groundwater levels. | | | |For farmers, loss of groundwater translated directly into loss of income. For women, it meant having to walk an additional 5 to 6 | |kilometers just to fetch water to meet the basic daily needs of the family. For many children in Kala Dera, it meant leaving schools | |to provide a much needed helping hand doing household chores since the women had additional burdens. | |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. | |The company, in usual fashion, denied any wrongdoing, blaming "outsiders" for the increasing local community opposition. | |Forced Assessment Validates Community Concerns | |The community of Kala Dera, as well as the villages of Plachimada and Mehdiganj in India that are opposing Coca-Cola bottling plants,| |have enjoyed significant international support. And most notable in lending support have been college and university students across | |the globe, and in particular, the US, UK and Canada - some of Coca-Cola's larger markets. | |One of the successful campaigns was at the prestigious University of Michigan in the US, which, after a sustained student-led | |campaign in which the India Resource Centre represented the India issues, placed the Coca-Cola company on probation on January 1, | |2006. The university also mandated that Coca-Cola agree to an independent assessment of its operations in India if it ever wanted to | |do...
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