International Corporate Social Responsibility in Water Resources

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Bryan Enslein
April 15, 2008
Trans-Boundary Water Resources
Afghanistan, Albania, Algeria, American Samoa, Angola, Antigua & Barbuda, Argentina, Armenia, Aruba, Australia, Austria,
Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize, Benin, Bermuda, Bolivia, Bosnia & Herzegovina,
Botswana, Brazil, British Virgin Islands, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape Verde, Cayman Islands,
Central African Republic, Chad, Chile, China, Colombia, Comoros, Costa Rica, Croatia, Curacao, Cyprus, Czech Republic, Democratic
Republic of Congo, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia,
Ethiopia, Fiji, Finland, France, French Guiana, French Polynesia, Gabon, Georgia, Germany, Ghana, Great Britain, Greece, Grenada,
Guadeloupe, Guam, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Israel,
Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lesotho, Liberia, Lithuania,
Luxembourg, Macau (Macao), Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Mariana Islands, Martinique, Mauritania,
Mauritius, Mayotte, Mexico, Moldova, Mongolia, Montserrat, Morocco, Mozambique, Namibia, Nauru, Nepal, Netherlands, New Caledonia,
New Zealand, Nicaragua, Niger, Nigeria, Northern Ireland, Norway, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru,
Philippines, Poland, Portugal, Puerto Rico, Qatar, Republic of Congo, Republic of Ireland, Republic of Korea, Reunion, Romania, Russia,
Rwanda, Saint Helena, Saint Kitts and Nevis, Saint Lucia, Saint Maarteen, Saint Vincent & the Grenadines, Samoa, Sao Tome & Principe,
Saudi Arabia, Senegal, Serbia & Montenegro, Seychelles, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon Islands, South Africa,
Spain, Sri Lanka, Suriname, Swaziland, Sweden, Switzerland, Taiwan, Tanzania, Thailand, The Gambia, Togo, Tonga, Trinidad &
Tobago, Tunisia, Turkey, Turkmenistan, Turks & Caicos Islands, U.S. Virgin Islands, Uganda, Ukraine, United Arab Emirates, United
States, Uruguay, Uzbekistan, Vanuatu, Venezuela, Vietnam, West Bank-Gaza, Yemen, Zambia, Zimbabwe
1.3 Billion Coke “Beverages” Enjoyed Daily
77 Coke “Beverages” consumed per year
per person
More than 70% of net revenues are
generate outside of North America
Net Operating Revenues: $28.9 billion
In 2004 Coca-Cola used ~
75,000,000,000 gallons of water
1993 TCCC (The Coca-Cola Company)
re-enters the India market with India’s
Liberalization policy
2003 accusations of pesticides and
ground water depletion due to TCCC India
products
National movement against TCCC
products including widespread protests
National Bans Proposed for schools and
public cafeterias
TCCC products contain extremely high level of
pesticides (36 times the legal amount)
Farmers using products as a cheaper substitute
for pesticides on crops
In Mehdiganj, Uttar Pradesh ground water levels
depleted 24 - 40 feet
Plant sludge was dumped into
rivers and onto farmlands
Sharad Haksar
The University of Michigan followed
student led opposition and removed
Coke products from campus
Boycotts and protests over TCCC actions
in India were held all over the United
States and Western World
TCCC was voted down as a sponsor to
Live-8 as a result of public opposition
Killercoke.org
They must permanently shut down the bottling facilities in
Mehdiganj, Kala Dera and Plachimada.
They must compensate the affected community members.
They must recharge the depleted groundwater
They must clean up the contaminated water and soil.
They must ensure that workers laid off as a result of
negligence are retrained and relocated in a more sustainable
industry.
They must admit liability for the long term consequences of
exposure to toxic waste and pesticide laden drinks in India.
“Unthinkable! Undrinkable! Stop Human Rights Violations in Columbia and Environmental Devastation in India” A project of
United Students Against Sweatshops, http://www.studentsagainstsweatshops.org/docs/CokeOrganizingManual.pdf
Decided to bow to pressures and undergo third party
assessment
With the approval of the University of Michigan, hired The
Energy and Resources Institute (TERI) based out of New
Delhi
Meridian Institute hired to be a neutral third part between
TERI and TCCC
Was a 16-month comprehensive report on six bottling
plants in India
“The most comprehensive independent scientific public
assessment of a beverage company ever conducted.” - Jeff
Seabright Vice President, Environment & Water Resources
Two Assessment Levels
◦ Level 1: “An assessment of regulations and
policies related to water resources management”
NA: Not applicable (not mentioned as a condition in the consent)
Two Assessment Levels
◦ Level 1: “An assessment of regulations and
policies related to water resources management”
◦ Level 2: “An assessment of select Coca-Cola plants”
Plant Siting:
◦ Water availability should be assessed from a long-term and
ecosystem point of view
◦ Policy should around sustainable development
◦ Policies need to recognize and respect the existing (formal and
informal) riparian rights
Water Quality
◦ Compliance should meet TCCC standards
Corporate Social Responsibility
◦ The company needs to strengthen its reputation with local
communities by taking local economic, social, and cultural norms
and aspirations into account
Water Conservation
◦ TCCC should try to be net water positive with respect to its own
operations from a watershed perspective
Was Coca – Cola responsible for
holding its factories to a higher
standard than the Indian Government?
Should international law have a hand
in regulating corporations
Over 68 Water Initiative Projects in 40 Countries
Almost $70 million contributed worldwide
Reduce:
◦ Become the most water efficient user in the industry
Recycle:
◦ By 2010 return all the water that we use for manufacturing processes
to the environment at a level that supports aquatic life and agriculture
Replenish
◦ Replenish watersheds with the equivalent amount of water that is used
in all their products
Attempting to reach zero water balance by 2009
Developing a global standard for effluent bacteria
Regional groundwater studies
Creation of the Coca-Cola India Foundation to
aide in water sustainability, $10 million initial
funding
Did TCCC deal with this
situation appropriately and
could have it been avoided
in the first place?
Is Corporate Social
Responsibility a result of
Corporate Social
Irresponsibility?
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www.thecoca-colacompany.com
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www.killercoke.org
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Executive summary of the study on independent third
party assessment of Coca-Cola facilities in India, TERI
Report No. 2006WM21
THE ALLURE OF THE TRANSNATIONAL: Notes on Some
Aspects of the Political Economy of Water in India. AIYER,
ANANTHAKRISHNAN, University of Michigan, Flint.
Cultural Anthropology, Vol. 22, Issue 4, pp. 640–658.
The Coca- Coca 2006 Environmental Report
Corporate responsibility: Has Coke become the new
McDonald's: Drinks firm hit by hunger strike and college
boycotts: Coca-Cola says it is a target because it is the top
brand, Teather, David. GUARDIAN FINANCIAL PAGES; Pg. 29
August 18, 2006
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