Coca Cola Social Responsiblity

Coca-Cola’s Corporate Social Responsibility in India

Problem

The primary problem that is recognized in this case study is Coca-Cola’s inability to effectively react to the negative attention from the CSE and NGO’s, which has began deteriorating the strong brand image, and social reputation Coca-Cola once had.

Situation Analysis

In 2003, Coca-Cola was attacked by the Center for Science and Environment (CSE), an activist group in India, for unsafe products, said to contain pesticide residues, which surpassed global standards. The pesticides found were known to cause disease such as cancer, birth defects, and severe disruption of the immune system, among other health conditions. Though Coke was well within the Indian government’s legal limits for pesticide residue, India’s standards were weak making them effectively meaningless.

Coca-Cola tried several strategies to help maintain its consumer base, including price cuts. In 2003, eKO was implemented to educate the public and the government about all the environmental stewardship activities they were doing. In 2007 Coke launched various campaigns and donated millions of dollars to help rebuild the tarnished brand. Coca-Cola had taken many social measures to address the issues faced in India, yet it was often accused of not addressing the issues in reality. NGO’s believed more social measures needed to be taken to properly address the issues faced in India. Coca-Cola’s increasing emphasis on Consumer Social Responsibility and Environmental Management Systems is an important indication that it is beginning to acknowledge that responsibilities extend beyond the basic need to generate sustainable profits.

Major Alternative Actions

Alternative #1 – Differentiate as a leader in social responsibility

Though the united front Coca-Cola had with Pepsi was a successful strategy when the situation first arose, they now need to the take advantage of the opportunity to isolate themselves as leaders in a...