Unethical Practices in Companies

BY:-Abhishek ChauhanAbhishek SejwalAmit GargAnish KumarAlok Nath Rai

What is Ethics?

“Ethics” can be defined as the critical, structured examination of how we should behave — in particular, how we should constrain the pursuit of self-interest when our actions affect others.

Business ethics:-

“Business Ethics” can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce.

Coca Cola in India/Kala Dera• The Indian government forced Coca-Cola out of the

country in 1977.

• The company returned in 1993

• Kala Dera, A large village in Rajasthan

• Agriculture is the primary source of livelihood.

• Coca-Cola started its bottling operations in Kala Dera in

2000.

Complete Story

• Within a year of operation, the community

started to notice a rapid decline in groundwater

levels.

• For farmers, loss of groundwater translated

directly into loss of income.

• Many organizations and Ngo’ started protest against production plant

• Two panchayat samitis — Amber and Govindgarh — have passed unanimous resolutions demanding closure of the plant.

Relevant area where Coca Cola failed

• Failed to recharge ground water through any means

• Failed to reduce water usage to produce 1 unit of coke. Which is 3 :1.

• Coca Cola’s production is highest in summer season when demand for agriculture also increases

Coca Cola’s response:-

• The company has announced that it has recharged five times the amount of water it has used.

• They started rain water harvesting.

• The Coca-Cola company started operations in 2000 - two years after the Indian government agency had already found it to be "overexploited”

Recommendation

• Transport water from the nearest aquifer that may not be stressed

• Store water from low-stress seasons

• Relocate the plant to a water-surplus area

• Shut down this facility

▫In future • Set up plant where water is in abundance.

• Decrease wastage of water

Conclusion▫ Some MNC’s are eating up the natural resources

of our country just to make profit.

Reference

• http://businessethicsblog.com/2010/03/21/ethics-definition/

• http://www.kractivist.org/india-kaladera-farmers-battle-beverage-giant-coco-cola-coke/

• http://www.indiaresource.org/campaigns/coke/2008/kaladeraunethical.html

• http://www.business-standard.com/article/companies/coke-s-rajasthan-plant-csr-claims-lack-merit-study-114022600387_1.html

• http://www.thehindu.com/news/national/other-states/water-wars-between-farmers-and-beverage-giant-at-kaladera/article5606745.ece