This paper discusses the case, Coca-Cola’s Water Neutrality Initiative, found in Lawrence and Weber (2011), describing the growing public issue that the Coca-Cola Company (TCCC) faced in the 2000s. TCCC was criticized for its excessive use of water and the ever-growing problem of water shortage throughout the world. With water being an essential part of TCCC’s business, this paper will review the steps taken by the company to reassess its usage of water. It will review the strategic radar screens model discussed by Lawrence and Weber (2011) as well as Albrecht (n.d.).
The issue management life cycle process model in which issues are analyzed, options created and implemented, and the ultimate evaluation of results will also be discussed based on the TCCC case. It will review the concept of stakeholder engagement and stakeholder dialogue and the company’s utilization of these business tactics. For further insight into TCCC itself, this paper will reference an article by Staff (2012) from the company’s own website highlighting the company’s ongoing stakeholder engagement. When TCCC was faced with the public issue of water shortage and pesticide residue, proper steps were taken to assure company stakeholders that their concerns were heard and efforts put forth to resolve what could have otherwise been a major setback for the company.
The Term Paper on Bottled Water Issues
The most important issue is the health impact not only for humans, but for watersheds. Bottled water companies pump 75 gallons per minute in some places (Hopey). Bottling companies take water from different areas that sometimes need the water for municipal uses. For example in the small town, Bakersville, the bottling company in Somerset County wants to come in and bottle up the water from Laurel ...
Coca-Cola’s water conservation Project and the Influence of Stakeholder Engagement
In the case of Coca-Cola’s Water Neutrality Initiative found in Lawrence and Weber (2011), TCCC was presented with a major public issue in 2003 when India activists pointed a finger at the company, accusing it of causing water shortage among many of the communities in which factories are located as well as having high levels of pesticide residue in Coca-Cola products. Using approximately 80 billion gallons of water worldwide per year, saying that water is essential for TCCC business is an understatement. During this time, world leaders were also voicing concern for water supply due to the increased consumption that continues to multiply and the legitimate fear of even more critical shortages around the world in years to come. Then in 2004, a Coca-Cola bottling plant was shut down in Kerala, followed by court issued requirements for soft-drink makers on pesticides, and then further efforts in the United States to boycott Coca-Cola products (Lawrence and Weber, 2011).
At this point, it was vital for TCCC to begin focusing in on stakeholder engagement in order to prevent any further problems or controversies to arise on this issue.
There are a number of stakeholders that are concerned in this case, both primary and secondary. Primary stakeholders, or those that are directly engaged with TCCC, include the customer due to the pesticide issue, famers with water shortages who produce goods used in Coca-Cola products, employees that worked at the plant that was shut down and stockholders concerned about the growing accusations against the company. Secondary stakeholders, or those indirectly affected, include other farmers who suffer from water shortage, environmentalists and citizens concerned for natural resources and the quality of life in the 200 plus countries where TCCC manufacturers and bottlers are located (Lawrence and Weber, 2011).
The expectations of the stakeholders differed from the company’s performance in many ways. Stakeholders expected to have greater regard for water conservation and cleanliness for the sake of people as well as the environment. There were a great number of public issues that had been brought to light that TCCC had an obligation to make right if they wished to rid their company name of ill reports.
The Term Paper on Coca Cola Supply Chain
... obesity issue, Coca-Cola Zero, Coca-Cola Diet and beverages with low or no calorie are available in the market. The company would ... strategic fit and recommendations with respect to The Coca Cola Company (TCCC) supply chain management of the beverage product Coke ... waters. Some of the brands that TCCC offers includes Sprite, Fanta, Diet Coke, Honest Tea, Simple Orange and many more (Coca-Cola ...
The Strategic Radar Screens Model is designed for companies to track important developments outside of its immediate view. The model includes eight environments which need continuous tracking in order to prevent a sudden outburst of negative public issues such as in the case of TCCC. The Geophysical Environment should be the company’s primary focus. The lack of awareness or concern for the people and environments that Coca-Cola facilities are located among caused a great deal of chaos for the company. Since an essential piece of the company’s sole production is water, it is vital that TCCC stays aware of its impact and dependence on this natural resource (Lawrence and Weber, 2011).
Although the Geophysical Environment is critical for TCCC to continue to monitor closely, it is important that the company does not neglect the other seven environments. In Albrecht 2012, he described “connecting the dots” between the groups; they are divided in order to ease the process for companies to allow for a more strategic overview.
He goes further to say that although it is important to have the categories clearly divided, “the real value is ultimately in putting them back together” (Albrecht, n.d.).
The Issue Management Life Cycle Process Model demonstrates the act of continuously taking care of issues as they surface rather than waiting for a larger problem to develop. It is a rather simplistic model where an issue is identified then analyzed, options are created and actions made, ending with an evaluation of the results. In the case of TCCC, this model can be used to see the progression of the company’s actions. The issue was identified as overuse of water in areas where shortage is, or is becoming, a serious problem. TCCC started a water stewardship initiative that took action by reaching out to stakeholders for advice on how to handle the problem and possible solutions. A comprehensive study was performed on the manufacturing process and a web-based system was created to allow bottling facilities to communicate best practice for water conservation. Goals were created and vows made to do better for the environment and for the greater good.
The Essay on Shares and Joint Stock Companies in the New Economic Model
Introduction Good morning, dear colleagues. I’m glad to see everyone here. Thank you for your coming. Let me start by introducing myself. My name is Elena Torlopova. I’m a freshman of the State University of the Ministry of Finance of the Russian Federation. I study at the department of the international economic relations. My aim for today’s presentation is to give you information about Shares ...
TCCC joined different water conservation projects and donated a great deal of money to the World Wildlife Fund. The final remarks from Coca Cola’s CEO can be interpreted as an evaluation of results; he points out that an organization must focus on the relevant issues and make sure that everyone is on board, from employees to shareholders, in order for success (Lawrence and Weber, 2011).
TCCC responded appropriately to the issue at hand by reaching out to its stakeholders and engaging them in face to face dialogue to identify areas of opportunity in the manufacturing process and recommendations on ways to conserve from an environmentalist perspective.
The company had motivation and the clear organizational capacity to fix the problem before there was greater loss of business (Lawrence and Weber, 2011).
On the company’s website, it prefaces ongoing stakeholder engagements by summarizing the importance of such relationships. TCCC is proud to declare continuous use of stakeholder engagement and dialogue, stating that it “enables [the company] to identify and address potential issues proactively and collaboratively” (Staff, 2012).
TCCC worked together with its stakeholders to make the necessary changes that were identified and went a step further by partnering with and funding secondary stakeholders to further exemplify the company’s determination to right its wrong (Lawrence and Weber, 2011).
References
Albrecht, K. (n.d.).
The strategic radar model: Scanning the business environment. Retrieved from http://www.karlalbrecht.com/articles/pages/strategicradarmodel.htm Lawrence, A. T., Weber, J. (2011).
Business and society: Stakeholders, eithics, public policy (Thirteenth ed.).
New York, NY: The McGraw-Hill Companies, Inc. Staff, J. (2012).
Stakeholder engagement. Retrieved from Coca-Cola Journey: http://www.coca-colacompany.com/our-company/stakeholder-engagement
