Coca Cola Business and Society Case Study
1-What was the public issue facing the Coca Cola company in this case? What stakeholders were concerned and how did their expectations differ from the companys performance?
-Public issue: Corporate impact on water quality, availability and access around the world.
-Water is pertinent to Coca Cola because they use 80 billion gallons of water worldwide each year. Because all aspects of the production are dependent on this resource, from the company’s perspective water is the key component of profitability. 2/5 went into finished beverages and the rest went into the manufacturing process: to wash bottles, clean equipment, and provide sanitation for employees. The company used very large quantities of water as part of its operations, and there were concerns that it was operating in a non sustainable manner that was leading to depletion of water, shortage of which was becoming a critical issue across the world. However, Coca-Cola’s extensive use of water adversely impacted the surrounding communities
– The Center for Science and the Environment, a think tank in India, charged that Coca Cola products there contained dangerous levels of pesticide residues.
-Activists in India charged that the company’s bottling plants used too much water depriving local villagers of supplies for drinking and irrigation
– Primary Stakeholders: Coca-Cola, local villagers, non-governmental organizations and India’s government
– Expectations v. Performance:
There were multiple concerns raised by stakeholders such as environment and government bodies, and various organizations that were creating awareness against the company due to the above discussed issues. Their expectation was that the company should be a responsible social entity that is accountable to the community in which it operates, and hence it has to change its ways in a way that stops causing harm to the larger society. Stakeholders expected Coca Cola to use their resources responsibly and to protect consumers from harmful contaminants however, the emergence of pesticide residue in the product along with the depletion of ground water from local villages created a performance-expectation gap, that left Coca Cola fighting to save its image
2. If you applied the strategic radar screens model for this case, which of the eight environments would be most significant and why?
When applying the strategic