Download Ethics Case: Coca-Cola in India

Ethics Case: Coca-Cola in India
Go to the following link. http://www.bized.co.uk/educators/1619/business/external/activity/ethics.htm Read ‘The Story’ and the ‘Related
Website for Research,’ and answer the following questions.
1. Outline the ethical issues surrounding Coca-Cola operations in India. (3)

Using large amounts of the area’s water

Disposing of toxic sludge to local farmers

The drinks contain higher levels of pesticides than is healthy
2. How honest are the claims that Coca-Cola is making? Explain. (2 pts)

Claim 1: the shortage in the water is due to the lack of rains in the region.
Dishonest: So desperate have the nearest villagers become for water since
their wells dried up that Coca-Cola sends water tankers round every morning
to supply minimum needs. The company denies the shortages have anything
to do with its use of up to 1m litres of water a day from the underground
aquifer that used to keep the wells topped up. AND Sunil Gupta, vicepresident of Coca-Cola India, says Coca-Cola undertook an environmental
impact assessment before building the plant, but has declined to make one
available.

Claim 2: Following the cleaning of the bottles, a waste sludge is produced
that Coca-Cola have been disposing of on the land of local farmers, claiming
it was a useful fertiliser. Dishonest: samples of the sludge were analysed by
scientists at Exeter University in the south-west of England and found to
contain toxic chemicals including lead and cadmium - both of which can be
harmful to humans - and further suggested that there was little or no benefit of
the sludge as a fertiliser. Recent tests by the local state laboratories find that
the levels of toxic chemicals are within safety levels but that it should not be
used as a fertiliser.
3. How reliable are the claims made by those who oppose Coca-Cola's
activities? Explain.

Claim 1: Local farmers are claiming that their livelihood has been destroyed
since the building of the plant and that the number of people working on the
land has dropped considerably because they cannot survive. Reliable: due to
CC using substantial amounts of water

Claim 2: Fertilizer is harmful Reliable: proven by scientists
4. What conflicts arise between the responsibilities that Coca-Cola has to the
environment and the local community, and to its shareholders, suppliers and
employees? (2 pts)

Responsibility to the environment and community is to protect the
environment and not sacrifice the health and safety of the community.

Responsibility to shareholders, suppliers, and employees is to maximize
profit.

The conflict exists because it is difficult to satisfy both of these needs at the
same time.
5. How much pressure would local council officials be under to give Coca-Cola a
clean bill of health, as some would suggest? (1 pt)

They’d be under a huge amount of pressure because they employ so many
people, and they pump money into the local economy. Big businesses often
carry a lot of power with them!