Coca-Cola’sWater Neutrality Initiative
Coca-Cola’sWater Neutrality Initiative
Organizationsare expected to observe ethical standards and consider the interestsof the stakeholders who are affected directly or indirectly by theiroperations. The present paper provides the analysis of a case studyof Coca-Cola Company that was accused of using a lot of water in itsoperations. The company operates in about 200 nations and water isone of its key resources. The paper will analyze the case study byresponding to five questions as considered below.
Question1: The public issue facing the Coca-Cola and the performanceexpectation gap
Theconcept of “public issue” refers to a matter that is of mutualconcern to more than one stakeholder (Lawrence & Weber, 2014).The major public issue facing the Coca-cola in the case study is thequality as well as the availability of water.
Aperformance gap occurs when the company does contrary or fails tomeet the expectations of the stakeholders who are affected by itsoperations (Lawrence & Weber, 2014). In the case of theCoca-Cola, the performance gap can be attributed to the fact that thecompany depleted water in its Indian bottling operations by divertingthe available sources for its own use. The stakeholders (includingthe Indian activists) expected that the company should observe theconcept of sustainability by ensuring that its operations do not leadto water shortage in the community. They also expected that thecompany could produce safe products. However, these expectationsdiffered from the actual performance of the company.
Question2: The application of strategic radar screens
Theconcept of strategic radar screens outlines the key externalenvironments that all managers should consider when conducting asystematic monitoring. These environments include the competitor,customer, technological, economic, political, social, legal, andgeophysics (Albrecht, 2016). From the case study, the keystakeholders of the company were interested in the issues ofcontamination and scarcity of water, which implies that geophysicscould be the most significant environment. The geophysics environmentinvolves the surroundings (including the natural resources,ecosystem, and susceptibility to natural disasters) of a givencompany. Water is a natural resource, which makes the geophysics oneof the key environments that Coca-Cola should consider.
Question3: The application of the issue management cycle model
Themodel has five major stages, including the identification of theissue, analysis, generation of options, taking the action, andevaluation of performance (Lawrence & Weber, 2014). From the casestudy, Coca-Cola was in the process of implementing the five stages.The company had identified the key public issue the quality as wellas the scarcity of water. The company had conducted an extensiveanalysis and a survey of the water usage in its operations at theglobal level, which is part of the second stage. However, the casestudy failed to provide the list of available alternatives that thecompany considered before making the final decision. The case studyindicates the observation of the fourth step, where the companyselected the implementation of the “water neutrality initiative”.The company also engaged in the last stage by evaluating theperformance of the water neutrality initiative.
Question4: The use of the stakeholder engagement as well as dialogue toenhance response
Theapplication of the concepts of the stakeholder engagement anddialogue can be confirmed by the consultation that the Coca-Cola didwith external as well as the internal parties. Some of the externalparties that the company consulted with include academic experts andthe World Wildlife Fund. Some of the key internal stakeholders whowere engaged in the process of finding the solution include theoperating groups and bottlers. One of the major benefits of engagingboth the internal and external stakeholders is the ability of thecompany to collect evidence that informed the process of formulatingthe Water Neutrality Initiative as the most viable solution.
Question5: The appropriateness of the TCCC’s response
Theappropriateness of the action can be measured by determining thematch between its proposed solutions with the interests of theaffected stakeholders. The Coca-Cola responded appropriately becausethe proposed “Water Neutrality Initiative” would ensure that itreturns water that is equal to the amount that it consumes to thenature and the community. This solution would resolve the issue ofwater scarcity that was raised by the stakeholders. In addition, thecompany proposed the key measures that would help it achieve the goalof neutrality. These measures include a reduction in water used inoperations as well as cleaning, recycling, and making a significantcontribution towards projects that are started to facilitate waterconservation.
Albrecht,K. (2016). The strategic radar model: Scanning the businessenvironment. KarlAlbrecht International.Retrieved September 2, 2016, fromhttp://karlalbrecht.com/articles/pages/strategicradarmodel.htm
Lawrence,A. & Weber, J. (2014). Businessand society: Stakeholders, ethics, public policy (14thed.).New York, NY: McGraw-Hill Education.