Coca Cola
Contents
Coca Cola in India
Background
Environmental Impact
Plachimada, Kerala and Kaladera on the outskirts of Jaipur are two communities that have fell economically, socially, politically and most arguably environmentally, victim to the power of Coca Cola. The clearly visible physical effect on the environment Coca Cola has cast over such communities is devastating; once fertile, farming communities with lush, moist land now resembles a dry, sandy desert. This is the most obvious environmental impact Coca Cola has had on many Indian communities and is a direct result of a decrease in groundwater resources which many claim Coca Cola exploits [1]. A second environmental impact Coca Cola has had on its host communities, is that the little water the locals do manage to salvage is found to be contaminated by the waste Coca Cola pour out of their bottling plants continuously [2]. Thirdly, Coca Cola have been found to deposit contaminated waste onto land surrounding the plant and also issue it to local farmers as fertilisers [3]. All of these issues will be discussed with reference to Coca Colas environmental policies and the impact it has had on the two communities of Plachimada and Kaladera.
Coca Cola implement a single environmental policy known as ‘eKo’. This is implemented in all of their plants throughout the world including those found in India [4]. In theory, it allows them to make environmentally friendly business decisions, but in practice this does not seem to be the case. As stated on their website, Coca Cola’s prime environmental considerations followed in business decisions are;
• Environmental due diligence before acquiring land
• Environmental impact assessment before commencing operations
• Ground water and environmental surveys before selecting sites
• Diligent compliance with all regulatory environmental requirements
• Ban on purchase of refrigeration equipment containing CFCs
• Installation of Effluent treatment plant at each manufacturing locations
• Separate collection and treatment domestic and industrial effluent as per company or local standard
• Separate discharge of industrial, domestic and storm water to prevent storm water pollution [5]
If Coca Cola did take all of these factors into consideration when making business decisions e.g. like where to set up a bottling plant, it would appear the environment of such communities would not be put at risk and indeed if there was a chance it would, they would either not locate there or propose ways of eliminating the potential problems. However, it appears to be that in a considerable number of communities where Cola have bottling plants none of these considerations have been accounted for. This is indeed the situation in Plachimada and Kaladera.
According to Coca Cola, they survey the ground water and environment before selecting the site (as per consideration three above). Plachimada is in the heart of Kerala’s water belt. Its ground water reserves had apparently showed up on satellite surveys done by the company’s prospectors [6] so it is no surprise Coca Cola selected this as a site for one of their bottling plants. Indeed, according to Cockburn (2005), the site selected was set between two large reservoirs and ten meters south of an irrigation canal. Coca Cola therefore did do a survey of the ground water and with the considerable volume available made the decision to locate there possibly with the intention to exploit the reserves. It has been reported that within six months of the commencement of operations at the plant the villagers witnessed a considerable drop in the level of water available to them [7]. This led the locals to conclude that Coca Cola was exploiting the groundwater reserves and ‘taking’ what wasn’t theirs [8]. The situation was also mirrored in Kaladera in the villages surrounding the bottling plant were villagers, social activists and civil rights groups took to the streets to demand the closure of the plant because they claimed Coca Cola was depriving them of water [9].
The effect of the decrease in water on the land in both areas is devastating. Both areas were once farming communities and now resemble virtual deserts [10] due to the lack of water available for the land. Cockburn (2005) reports how farmers in Plachimada, prior to Cokes arrival, could farm eight acres of rice paddy but now with no water for the paddy this is not possible. This therefore illustrates that the soil is drying out and becoming infertile. The traditionally fertile region of Kaladera is experiencing much the same; this region is known for growing groundnut, wheat and mustard, but these crops rely on rainwater-groundwater combined and since the ground water level is sinking, so too is the number of crops grown as when the water was closer to the surface, there was greater moistness which meant better quality of crops and more of them
[11]. As a result, an increasing amount of land in both areas lies fallow for want of water. Coca Cola have the facilities to use 1,100 cubic meters of water per day to use in their factories [12], over time, this could result in the villagers having virtually no water for the land and the ground water table falling even further, subsequently reducing the quality of the land even further.
The little water that is salvaged in these communities has often been found to be contaminated [13]. It is reported that Coca Cola has been indiscriminately discharging its waste water into the fields surrounding its plant and sometimes into the rivers, this has resulted in the ground water and soil being polluted [14]. Indeed in Kerala, the Kerala State Pollution Control Board (KSPCB), found hazardous levels of cadmium in water samples taken from two wells close to the bottling plant [15].By polluting the rivers, much of the aquatic life would die and habitats surrounding the rivers would be destroyed. Furthermore people who drink from the rivers and wells would be affected, possibly fatally. The contaminated soil combined with the decreasing ground water levels would most certainly result in crops dieing. It can be argued Coca Cola most definitely did not consider their ‘prime environmental’ factors when following through on this decision as this action has and is having a detrimental affect on the environment of Plachimada and Kaladera and many more Indian communities.
Furthermore, Coca Cola have been accused of dumping contaminated waste or ‘toxic sludge’ on surrounding land and also issuing it to farmers as a fertiliser [16]. The KSPCB carried out tests on the sludge and stated there were dangerous levels of cadmium in it. Following this, another report done at Exeter University in England found not only high levels of cadmium but also high levels of lead in the sludge [17]. This sludge therefore contaminated the land even further and was also, on occasion, dumped on the banks of the irrigation canal, subsequently polluting the water. The farmers who used it as a fertiliser later found all of their crops, which were supposed to be nourished, dead and the soil completely contaminated [18]. This would therefore render the soil unfit to grow more crops. The action of dumping contaminated waste on surrounding land and the banks of the irrigation canal is totally irresponsible and shows no consideration for the negative impact this could have on the environment of the area. Supplying it to farmers as fertiliser is extremely dangerous as it could not only destroy the crops and soil but also enter the food chain, again causing illness to the villagers. Once again, it can be suggested Coca Cola did not assess the impact their actions would have on the environment.
It can be concluded that thus far, Coca Cola have had a negative impact on the environment of its host communities in India, particularly in Plachimada and Kaladera through exploiting the ground water resources, polluting the groundwater and soil and also by dumping contaminated waste on the land.
Social Impact
Coca Cola’s practices have had serious social impacts particularly on the community who live in Plachimida in the Kerala region of India. These include health problems and considerable damage to the livelihoods of this community. Coca Cola claim that they not only function in ways that will be beneficial to their company but act in ways that will also be beneficial to the health and livelihoods of local people as according to Coca Cola they seek to “improve the quality of life, and foster good will in communities".[19] However evidence suggests that Coca Cola’s are not fulfilling this promise as Coca Cola’s practices in Kerala seem to have had devastating social impacts on the lives of the communities located near to Coca Cola’s factories.
The main complaint made against Coca Cola is that they are depleting much needed ground water in Kerala to use in their factories. This has meant that many people are unable to draw enough water from their wells which has had obvious social impacts particularly for women in Kerala who are forced to travel on foot to collect water. They must then carry back heavy jugs of water as according to A Cockburn “women in Plachimada have to walk a 4-kilometer round trip to get drinkable water, toting the big vessels on hip or head�
[20] with this water not lasting long as it must be used for drinking, cooking and washing. The journey can therefore often take all day as available water can be so far away therefore it can leave women in Kerala feeling exhausted especially as they are not able to drink a sufficient amount of water during the journey as it is needed for the whole family.
It is not only the lack of water that is having social impacts on the effected communities as it is also the quality of the water that is effecting people’s lives. The poor quality of water has had consequences on people’s health therefore they are forced to travel to get clean water. It has been claimed by the communities in Kerala that the water that remains in their wells has a horrible taste and has a hard consistency which means that no one can drink it or even use it to cook with. It has been that reported that people have experienced illnesses due to drinking the water “as while the water used to be fine to drink, now what is left at the bottom of the well gives them sever stomach pains and headaches� [21] which shows that Coca Cola’s practices may have polluted the water which has led to these health problems.
It is not only polluted water that has effected people’s health as Coca Cola gave many farmers sludge claiming that it would be good for their land. However all this sludge did was cause illness and infections as according to A Cockburn “aside from stinking so badly it made old folk and children sick, people coming in contact with it got rashes and kindred infections and the crops which it was supposed to nourish died.� [22]. Whereas as Coca Cola claimed this sludge was safe and would be a useful fertiliser lab tests on the sludge found it had high levels of cadmium which is particularly harmful to pregnant women.
The water appears to be of such a poor quality in certain parts of Kerala that people have been unable to use it for cooking as when rice is cooked it becomes hard and therefore difficult to eat. In the past families where able to save food by cooking rice in the morning and leaving some for the rest of the day. However this is no longer possible as using this water to cook the rice has made it inedible after a few hours. This has meant that families have to spend more money on food then they used to as they can no longer cook rice that will last all day and many families are unable to do afford this. This could have serious consequences for people’s health as they may suffer malnutrition if they cannot afford to buy more food.
People have also been unable to wash with the water as it has been reported that it results in health problems. According to A Cockburn “ to wash in it was to get skin rashes, a burning feel on the skin. It left their hair greasy and sticky�
[23] which shows how the polluted water is having serious consequences for people’s health. Furthermore in a developing country such as India where diseases spread rapidly it is vital that communities have clean water to wash in so this can be avoided.
Coca Colas practices have also effected the livelihoods of many farmers in Kerala as they do not have enough water to irrigate their land properly. Farmers has always been able cope with the fact that the area had low rainfall but since Coca Cola began to take the already limited water supply “crops have failed and jobbing agricultural labourers have been forced further a field to look for employment�
[24].
The lack of water has therefore led to farmers being unable to sell their produce or use it to feed their own families. This could lead to farmers being put out of business as they will have no source of income. This is also a long term problem as it may take some time before crops begin to grow again during this time farmers will be forced to look for a source of income elsewhere
19.http://www2.cocacola.com/ourcompany/pdf/2004_citizenship_report.pdf
20.http://www.counterpunch.org/cockburn04162005.html
21.http://www.christian-aid.org.uk/indepth/0401csr/csr_casestudy3india.pdf
22.http://www.counterpunch.org/cockburn04162005.html
23.http://www.counterpunch.org/cockburn04162005.html
24.http://www.christian-aid.org.uk/indepth/0401csr/csr_casestudy3india.pdf
