Csr Case Studies : Coca Cola

CSR CASE STUDIES : COCA COLA

1. Why did Coca-Cola Vietnam chose to work on water projects?

The water quality and availability are keys to Coca-Cola business, and connected to many of the world’s sustainability challenges. The water replenishment projects they work on have benefits beyond their three main objectives of improving safe access to water and sanitation; protecting watersheds; and providing water for productive use. In many cases, projects also help improve local livelihoods; help communities adapt to climate change, which could negatively affect water resources; improve water quality; and enhance biodiversity. Since Coca-Cola is a major consumer of water resources, which has left it open to critism and calls for consumer boycotts in the past in other markets, the Coca Cola management in Vietnam decided that water programming was critical to the sustainability of its Vietnam operations. As such, Coca Cola Vietnam began the Clean Water for Communities project in 2006. Below (Figure 1), is the point of intersection in achieving the maximum impact of sustainability in Coca Cola.

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1. What is the risk to Coca Cola’s reputation in using too much water and producing waste water?

AS Coca Cola is the beverage company, the most important ingredient and the most critical component of their product is water. On average, it takes 2.43 liters of water to produce just 1 liter of beverage. Use of water in large scale has led to attacks on Coca Cola by environmental issues and community activists for depleting water supplies (in some cases destroying rural livelihoods as water tables are lowered and crops cannot be watered) and damaging the environment through wastewater runoff from the manufacturing process.

1. How does Coca Cola community based projects help them promote their business interests?

The Coca Cola Company is the world’s leading beverage company and perhaps the most recognized brand name in the world. In order to sustain and maintain on that, Coca Cola has developed a comprehensive corporate social responsibility (CSR) program including education, health care and the environment. As according to the company publication Relish Report, the motives for replenish the water is for sustainable and suitable communities because it is the foundation of the business and it support to enhance business interests. Further its water stewardship strategy involves plant performance, watershed protection, sustainable communities and helping to raise awareness all things work as a catalyst in promoting business interests.

1. Identify Coca Cola’s stakeholders in Vietnam. What key stakeholder(s) is Coca Cola missing with its community projects in Vietnam?

Coca Cola’s stakeholders in Vietnam are rural communities, environmental activist, international NGOs like World Wild Life Fund, CEFACOM and different local NGOs. In addition, Coca Cola also working with other key stakeholders such as the Duyen Thai People’s Committee and local government health officers. However, Coca Cola in Vietnam lacks an employee volunteer component, a key stakeholder which should be involved in community projects which is the major part of strategy in the other part of the world.