Biocon Project Essay Example

targets regarding water stewardship. However, controversy arose in 2003 when an Indian NGO called the Centre for Science and Environment (CSE) released a report revealing that several PepsiCo and Coca-Cola drinks contained pesticides beyond European standards. The CSE demanded legal enforcement of water standards which led to protests and campaigning against Coke resulting in negative revenue impact. The NGO accused Coke of having unacceptable levels of pesticide in their products while also depleting groundwater resources leading to contamination of water sources. Although investigated by the Indian government, concerns over pesticide presence persisted with some pesticides not conforming to European standards but still acceptable under local regulations meaning no national regulations had been breached. Nevertheless, this caused the Indian government to recognize the need for enforceable criteria for carbonated drinks.Despite accusations for three years by CSE about Coca-Cola beverages containing high levels of pesticide residue (24 times above EU standards), stricter criteria implementation was stalled or obstructed by powerful government interests. In 2008, an independent study conducted by The Energy and Resources Institute confirmed that there were no pesticides in Coca-Cola's water supply; however, the study did not evaluate other components of the final product which may have contained pesticides. Water contamination and over-extraction of groundwater is a concern in India as seen in Plachimada, Kerala where Coke was accused of shortages and pollution due to wastewater discharge leading to polluted groundwater and soil. Public health authorities put up warning signs against consumption. Starting production operations in Plachimada in 2000 resulted in locals accusing Coca-Cola of causing water scarcity leading them to file a lawsuit against it in 2003. In response, the High Court of Kerala

prohibited Coca-Cola from excessively extracting groundwater during the renewal of its operating license in 2004 citing decreased rainfall as a primary cause for drought conditions. Despite ongoing protests, Coca-Cola was able to renew its license and resume operations until 2006 when their products were found with high levels of pesticide content prompting the government of Kerala to ban their production and sale.In 2003, the Centre for Science & Environment (CSE) released a report on Coca-Cola's operations in India. The report caused sales to drop by 40% within two weeks and resulted in an overall decline of around 15% annually compared to prior growth rates which were between 25-30%. This conflict arose from claims made by affected community members about water pollution caused by Coca-Cola's operations. In March 2010, after an investigation was conducted by a committee formed to investigate these claims, Coca-Cola's Indian subsidiary faced recommended fines totaling $47 million for damaging water and soil in Kerala. Although previous controversies in the US and Belgium did not result in loss of consumer trust, this water conflict controversy in India significantly damaged Coca-Cola's reputation as it prioritized profits over public health by denying any wrongdoing instead of addressing concerns about pesticide use and water resource exploitation/pollution. As a result, ten American universities temporarily stopped selling Coca-Cola products on their campuses due to student demonstrations led by two activist groups based out of the US. Following various CSR-related conflicts globally, Coca-Cola began reporting on sustainability by adopting GRI Guidelines but this decision was later overturned by the High Court of India.In 2008, Jeff Seabright recognized the mistake made by Coca-Cola that led to a loss of public

trust and acknowledged the significance of local communities' perceptions. Despite denying most allegations, reputational damage prompted them to take measures in their Corporate Responsibility Review, including statements confirming their integrity and addressing controversies. However, these were ineffective at combating declining sales and increasing losses until Coca-Cola shifted strategies towards damage control measures targeting grievances within Indian communities. Coca-Cola launched numerous community water projects in India that focus on rainwater harvesting by partnering with various organizations such as NGOs and local communities to tackle water scarcity across 17 states within India. Their efforts aim to collect and conserve high-quality rainwater while preventing its evaporation and runoff. In 2008, they established Anandana – a foundation working with local communities and NGOs – under the name Coca-Cola India Foundation while publishing their first environmental performance report for the period between 2004-2007. The company set a goal to become a 'net zero' user of groundwater by returning the water used in their operations via water harvesting.Coca-Cola implemented a proactive Corporate Social Responsibility (CSR) policy globally in response to controversies faced in India. In 2012, the company's Water Stewardship and Replenish Report showed that they achieved full balance between groundwater used for beverage production and replenished back into nature or communities, exceeding global targets set specifically for Indian operations. Coca-Cola initiated a water stewardship program in June of 2007 to reduce their operational water footprint while offsetting the amount consumed during product manufacturing through supporting regionally suitable projects. To enhance overall water efficiency by at least 20% compared to levels from 2004 before reaching the year 2012 was the first objective established; however, only a recorded improvement of about 16%

was reached by then. The second objective aimed to recycle water through wastewater management and return it to the environment by the end of 2010 which was achieved up to 96% by September of 2011. Additionally, another objective was restoring used water via community-based replenish projects that support nature and local communities. Currently, Coca-Cola has a global portfolio of 386 community-based replenish projects where around 35% of utilized water in their final beverage is replenished as of 2011.Coca-Cola undergoes an annual independent assessment of their water initiatives in their water report. This is distinct from their sustainability reports, which are created with the help of American NGO Technology Foundation to promote public-private partnerships. Since teaming up with WWF in 2007, Coca-Cola has been working towards increasing awareness about watersheds and collaborating with local communities globally to improve resource usage. Additionally, they joined CEO Water Mandate in 2007 to aid companies in creating sustainable policies and practices for water conservation as part of a public-private partnership initiative that is publicly disclosed. All and content were preserved during .