The Coca-Cola Company relies heavily on natural resources — water, which is its main ingredient to produce coke. Therefore, handling well the water is fundamental for the corporation to extract water in a sustainable way. The system of water management is to provide and recycle all the water throughout manufacturing. Using ethical theory to exam the water treatment whether it is ethical.
The Deontological Theory also called as non-consequentialist theory, it focuses on the will of people when they take an action instead of the consequences. From the analysis, to figure out the intention that Coca-Cola runs the program of sustainable water usage and see if it is goodwill or acting out of inclination.
Most of the countries stimulate foreign direct investment by offering to attract subsidies and water supply at a cheap price which are especially attractive to Coca-Cola in order to extract more water to produce their products. For example, Kerala’s government provided 15% funds to support Coca-Cola Company to invest the industries of coke production and water management system in the rural area (Madhu, 2010). Through treating water, it purifies the cheap tap water into safe and clean water which use in the production of coca cola and become the bottled water that sells at a high price to earn a good profit. What’s more, Coca-Cola found out the possible useful groundwater which had not yet been exploited (Madhu, 2010). By providing techniques to unearth the unexploited water, the company gained the right to extracting a great amount of water at the lowest price for their merchandises making.
To examine the Kantian theory of the first categorical imperative, the regulation reminds people’s behaviors, which must be obeyed constantly by everyone in all situations and universally appropriate. Coca-Cola has the code of building the sustainability of the environment. However, its intention is to extract more water to earn more market share by building the water supervision scheme, which is consistently depriving more and more resources of water of the earth. Then it broke the code of keeping the environment sustainable. If everyone violates the company code, it might not be universally appropriate which it is contradictory.
After all, Coca-Cola is doing well in managing water environmentally friendly. However, it is doing it because it can bring merits to the corporation. It means to act out of inclination which is unethical under Deontological Theory.
Management Policies at Coca-Cola
Based on the water management policies at Coca Cola, Coca Cola established a lot of policies in water management in order to protect the water resource to solve the shortage and perform their corporate social responsibility as we mentioned before. At first deontological theory focusing on the motivation of the company to regard as water management which is unethical. For closer examination, utilitarianism more focusing on the outcome to determined as ethical in water management policies.
Utilitarianism is an ethical theory which is decided the right and wrong by focusing on the outcomes. Utilitarianism determined as the people getting benefit more than the people getting suffer by the action, it can be called as morally right. Using utilitarianism point of view to analyse the water management policies, the number of people benefit more than the number of people suffer which is a majority of people can getting the benefits from the water management policies.
For benefits perspective, Coca-Cola Company corporates with the government to promote and implementing strategy which can be sustainable and community engagement to overcome the problem of the water resource. At the same time, government consociation with Coca Cola can increase the popularity of people support which can build positive reputation towards the outsider in order to people think that government would like to solve and help the citizen to solve the problem which they are facing. Take an example of Rajasthan, the government offered fifty percent subsidy and coca cola offered nearly ninety percent subsidy to people who lived in Rajasthan to proceed the water management policies together.
Water management can let the community become more sustainable and increase the living quality. Because sanitation facilities make it impossible for local people to drink clean water. Coca Cola educated the people on the importance of water and water needed to be protected by everyone in order to spread out the message in the world and teach the people of saving water. Coca-Cola corporates with Jaipur Municipal to clean and open all water inlets which can let nature inflow of the water.
At the same time, water management policies increased the working opportunity in a community because coca cola would like to repair the water well and infrastructure which need more human resources in order to increase working opportunity. Water management bringing benefits to agriculture, before the water management policies, coca cola damaged most of the local community and the water left of hygienic. After establishing water management policies, coca cola bears their social responsibility to improve the quality of water and agriculture. Coca Cola leased two fams in 2004 to show the impact of drip irrigation. Also, teach the importance of drip irrigation and provide turnkey solutions to farms such as utilization of subsidy. Coca Cola provides the fund to farmers to adopted drip irrigation. The importance of water management policies can ensure the levels of clean water to create a safe environment and product to everyone.
For suffer perspective, even the water management policies have the benefits side of different perspective but also have the suffer from the community. The sewage after processing, even though the sewage become clean water but also will outflow the contaminant and chemical in the community which affect the health of people who live in the community.
In conclusion, Water management policies at coca cola is a double edge which has a positive and negative side. Based on the Utilitarianism, the greater people getting benefits more than a number of people getting suffer affected by the policies which mean morally right. The government, community, and agriculture gaining the benefits instead of a few people getting suffer. In Utilitarianism point of view, water management policies at coca cola are ethical.
From the standpoint of investors, Coca Cola is a company that worth to invest.
Investors are not only focused on the profit immediately. As the stakeholders, they also concern about how the company does with sustainable development issue and also the sustainability of environmental, social and economic perspectives. In other words which means that they wish to maintain the ability of future generation to fulfill their needs. For instance, social welfare and environmental protection. First, CCI did a good job in environmental protection. CCI continue focusing on energy efficiency and reducing emission rates in order to reduce the negative impact on the environment. Apart from above, CCI also aware of the risk that comes from climate change on the sustainability of energy, water resources, and agricultural products. Coca Cola did a great job in sustainable development so as to attract investors who concern about the future of the earth.
In addition, CCI did a good job of protecting workers’ right. The company aim to provide a safe and fair working environment for employees and also implementing programs that support personal development. They believe company success is dependent on employees. The company adopts Workplace Rights policy which is divided into 8 main areas. Moreover, CCI does not discriminate the employee because of the issue. For instance, religion, sex, race, and physical disability. Under this situation, the company can reduce opportunities for strikes, protests, etc. On the other hand, maintain good workplace and workers’ right can reduce the incidence of social paradox. A stable company is definitely worth to invest from the standpoint of investors.
Coca-Cola maintains a superior balance sheet in terms of cash and debt, enabling it to better guard against difficult times and future investments. For example, more cash makes Coca-Cola more profitable in product innovation. Reducing debt means paying lower interest to higher cash flows, which can serve as a catalyst for future dividend growth and capital gains. It can attract some investors to cooperate with them.
Reputation and Scope to Get Bigger
Currently, Coca-Cola is the world’s largest soft drinks company, selling its 500 branded product portfolios in more than 200 countries. While more than 1/5 of Coca-Cola’s revenue comes from the US market, its growth possibilities in the North American market are already quite saturated. However, as more and more health-conscious American customers, the company’s expansion into newer products opens up several new avenues for the company to grow at home.
Coca-Cola revenue from international markets continues to grow, this clearly shows that the company’s global market still has great opportunities.
Since its inception in 1886, The Coca-Cola Company has built a strong legacy of giving back. In 1984, The Coca-Cola Foundation was formally launched at the global philanthropic arm of The Coca-Cola Company.
The Coca-Cola Company commitment is to give back 1 percent of its annual operating income. They do that through their own donations and by providing financial support to The Coca-Cola Foundation which, in turn, extends charitable grants guided by its three core priorities: women, water and community well-being. The Coca-Cola Company did a great job in charities or community projects so that it can attract some investor to support their programme.