Coca-Cola started it business in 1886 in Atlanta, Georgia. Dr. John Stith Pemberton was a local pharmacist who made the syrup that was teamed with soda water and sold at a local pharmacy. By 1920 the company started expanding internationally. They first sold their products in Canada and the Caribbean, then moved into Asia, Europe, South America, and the Soviet Union. In 2005 it was pronounced the largest manufacturer and distributor or non-alcoholic beverages in the world. In 2007 they launched a CSR campaign called "Live Positively." The campaign established seven core areas where the company sets itself measurable goals to improve the business's sustainability practices. The core areas are: beverage benefits, active healthy living, the community, energy and climate, sustainable packaging, water stewardship, and the workplace. They also formed a partnership with the World Wildlife Fund (WWF) and became a member of the CEO Water Mandate. Water became the company's more important concerns. Every year Coca-Cola publishes a report called 'The Coca-Cola Company Annual Report' that comprises the company's activities in that year. The reports describe their initiatives in water preservation and community development. Since 2011 they also publish a report every 2 years called 'The Coca-Cola Company Sustainability Review' that are verified by a third party, the FIRA Sustainability Ltd which gives Coca-Cola moderate reliability of the information too. Against these efforts, Coca-Cola had several conflicts and veracity of their efforts were questioned. In 2003 the Indian NGO Centre for Science and Environment (CSE) published a report that provided evidence of the presence of pesticides in a sample of a dozen Coca-Cola and PepsiCo beverages sold in India. The a level of pesticides found was exceeding European standards. The report gained large publicity and media attention.

The Indian government started an investigation as well and carried out their own tests. The tests did show pesticides in the water, however the amount did not fail European standards. Therefore the conclusion was, that Coca-Cola did not violate any national laws. Coca-Cola denied the accusations as well as accusations related to having over-exploited and polluted water resources.

 

Questions: 

1. How might Coca-Cola's CSR efforts affect its reputation and bottom line?

2. What are the key issues that Coca-Cola is facing by deciding to deny the allegations?

3. Describe whether Coca-Cola violated any of the NCA Credo policies? Provide examples.

4. How should have Coca-Cola use strategic communication to effectively deal with the problem?