Coke

Coke in Kerala

Coca Cola is one of the worlds most renown MNC’s .The company is associated with a western lifestyle and globalisation in general. Ever since its re-entry into India post liberalisation, it has acted as one of the top foreign investors in the Indian economy.

Violation of CSR principles:-

The Coca Cola plant at Plachimada was alleged to have overused the ground water resources leading to drying up water for the resident population. In addition to these alleged excesses, Coca Cola was accused of supplying poisonous waste in the guise of fertilisers to the local farmers. This was verified by an independent agency on behalf of the BBC. This sludge when disposed off in the open, seeped into the ecosystem and caused mysterious illness’s afflicting the local population. All this resulted in protests that slowly but surely gathered momentum. The local community resorted to picketing the company gates with the help of some supporting environmental groups attracting large scale media attention.

The govt of Kerala ordered the plant at Plachimada to be shut down to safeguard the interests of the local community. These protests snowballed worldwide and became a potentially dangerous situation for Coca Cola’s business even in the US.

The company responded by applying pressure through its lobbies and also by engaging in aggressive PR campaigns. Incidentally the positive social work being done by the company was totally overshadowed by this incident.

This case shows that emerging markets can actively respond and raise their voice against irresponsible behaviour of MNCs. What has to be noted is that the negative publicity and slur against the brand name has repercussions not just in the local market but in the global market environment. MNC’s which seek to exploit the absence of clearly defined laws , or laws that are not implemented properly, must keep in mind that they would be held accountable in the future.

It is always in the interest of the...