Living on the Coke side of thirst: The Coca-Cola Company and responsibility for water shortage in India

Abstract

Making soft drinks requires fresh water – lots of it, and not only for the bottled content but more for the industrial production process. Water sourcing has become a critical issue for The Coca-Cola Company, the world’s leading beverage manufacturer, particularly for its India subsidiary. Coca-Cola India has come under intense criticism for competing for ground water with agriculture and household use in water-deprived regions. For some ten years, its bottling plants have been accused of stealing water from surrounding villages. Evidence suggests the company has indeed been somewhat responsible for water shortages, and Indian courts have held the firm liable, even going so far as closing a plant and demanding millions of dollars in compensation for damages. Not only Coca-Cola India but also its parent, The Coca-Cola Company based in Atlanta, have recognized the water issue as a major social and environmental CSR challenge with the potential to harm the international reputation and the international brand. Coca-Cola has been investing in innovative technology to reduce its water use and is engaging in community outreach campaign to repair and im-prove its stakeholder relations. The article outlines the water dilemma and analyzes the firms’ global and local responses