Coca-Colahas been boycotted by the consumer from India because the local society hassuffered from droughts.
Walmart has been caught for using child labor infactories in Bangladesh. Apple has been reported on newspapers about thesuicides at Apple’s manufacturer for iPhones and iPads. Whereas, Canonhas given a clear CorporateSocial Responsibility report and has not faced any major scandals yet.
Coca-Colaestablished as a local soda producer in Atlanta, Georgia (United State ofAmerica) to sell small number of beverages each day. After they expanded thecompany internationally, the organization has become the largest manufacturerfor non-alcoholic beverages and syrup. They also have sell their products inalmost every country in the world. Many campaigns are against Coca-Colafor producing a product that has containing unacceptable levels of pesticides,it extracted large amounts of groundwater and had polluted water sources. Thereport about an issued has been received by the Indian NGO Centre for Scienceand Environment(CSE). The report has gained agreat attention from public and media, which make give in an almost immediateeffect on Coca-Cola revenues. The Government took variousinvestigations. However, the tests alsofound the presence of pesticides that failed to meet European standards, butthey were still considered safe under local standards.
The Science and Environment publishedits second test on Coca-Cola drinks, also resulting in a high content ofpesticide residues standards, Science and Environment published this test toprove that nothing had changed. Finally,an independent study undertaken by The Energy and Resources Institute (TERI)ended the long-standing allegations by concluding that the water is free ofpesticides. Coca-Cola was also accused of causing watershortages in the community of Plachimada in Kerala, southern India. Plus, thecompany was also accused of water pollution by discharging wastewater intofields and rivers surrounding its’s plants in the same community.
Groundwaterand soil were polluted to which the Indian public health authorities saw theneed to post signs and hand pumps advising the community that the water wasn’tfit for human consumption. A State Government panel recommendedfining Coca-Cola’s Indian subsidiary because of the damage caused to the waterand soil in Kerala. Also, a special committee in charge of looking into claimsby community members affected by the water pollution was set up. Coca-Cola hadto face were not the only consequence of the conflict but the brand also suffereda great loss of consumer trust and reputation damage in India and abroad. Coca-cola changed their strategy whichinclude damage-control measures that addressed the Indian community’sgrievances.
Unsurprisingly, the most outstanding change of strategy thatconsisted of launching various community water projects in India (i.e.rainwater harvesting project).
its consist mainly of collecting and storingrainwater while preventing its evaporation and runoff for its efficient utilisation and conservation. Coca-Colas Corporate SocialResponsibility policy establishes seven core areas where the company setsitself measurable goals to improve the business sustainability practices. Thecore areas are beverage benefits, active healthy living, the community, energyand climate, sustainable packaging, water stewardship and the workplace. The controversy in India was alearning experience for the company, and that it motivated the company tobecome more proactive about Corporate Social Responsibility policy on a globalscale that focuses on water management by reducing water use • Improving water efficiency• Replenishing water used by offsettingthe litres of water used in finished beverages• Recycling water through wastewatertreatment and returning all water used in manufacturing processes at a levelthat supports aquatic life and agriculture Coca-Cola has the worst conflicts outof the four multinationals companies, they aware of their mistake after thecontroversy had been ongoing for a couple of years.
The problem did not endlocally but globally. Their sell decreased dramatically but the more importantis that they are losing the consumers trust from India and lots of countriesaround the world. The main reason why this conflict has endedreally bad for Coca-Cola lies in its response to the problem. Coca-Cola has deniedall claims and trying to prove its integrity, instead of demonstrating concerntowards the situation, they failed to regain consumers trust. The consumerviewed Coca-Cola as a corporate villain who cared more about profits thanpeople health.
Although they have changed after a while but the problem couldbe handle in a better way if they did not tried to cover their mistake inIndia. Walmart also has to face a lot ofchallenges about their Corporate Social Responsibility but when we compared thefour companies, Walmart handled their issues in the best way. Walmart’s report covers every cornerof Corporate Social Responsibility issues and its called ‘Global ResponsibilityReport’ which covers the three dimensions of ‘People, Planet, Pro t’.
This alsoshow how Walmart becomes successful ‘Sustainability 360 mode has helped Walmartto be the retail leader in the market. Walmart’s financial contributions inkind, such as investments in education, health, commitments to fight hunger,support for local farmers and access to healthier and affordable food, can alsobe found in Walmart’s Global Responsibility Report. Walmart become a role modelcompany on Corporate Social Responsibility. Walmart was using child labor at twofactories in Bangladesh. Children aged 10-14 years old were found to be workingin the factories for less than $50 a month making products of the Walmart forexport to Canada. Nevertheless, Walmart ceased business with the two factoriesimmediately. Referring to Walmart’s policy to cutting ties with suppliers whenviolations occurred.
Despite its effort to inspect all factories, it isdifficult to enforce Walmart’s own corporate code of conduct with thousands ofsubcontractors around the world. Walmart has also committed itself toachieving three goals in its Sustainability Report to use 100% renewableenergy, creating zero waste, and selling products that sustain people and theenvironment. Even though Walmart does not follow the Global ReportingInitiative(GRI) Guidelines, it has measurable targets on audits. in Addition, theyalso require suppliers who produce toys in China to sign up to the ICTI CAREProcess, The Process was created by the international toy industry to achieve asafe and human working environment for toy factory workers worldwide.