PA502 Final paper. Water Efficiency Initiative at Coca-Cola

Water Efficiency Initiative at Coca-Cola
Name of Student
Institutional Affiliations
Water Efficiency Initiative at Coca-Cola
Introduction
This report focuses on the evaluation of the water efficiency initiative formulated and being implemented by Coca-Cola. The report presents the initiative, and the principles that underlie the approach taken to this initiative. Further, it present a critical analysis of who is involved in the water efficiency initiative and the effectiveness of their role, what is working and what is missing in the approach, my role in my current capacity, and what and how I can influence the process, others working at my level, and others working at other levels within the organization. This report concludes by providing recommendations, based on the literature reviewed, which will enhance the success of the water efficiency initiative being implemented by Coca-Cola.
The primary interest of this study is conducting further research on the causes of water inefficiencies within the company, and initiatives that it can take to address the issue. The research will also present the principles that underlie the approach taken to this initiative and a critical analysis of who is involved in the water efficiency initiative and the effectiveness of their role, what is working and what is missing in the approach, my role in my current capacity, and what and how I can influence the process, others working at my level, and others working at other levels within the organization. This report concludes by providing recommendations, based on the literature reviewed, which will enhance the success of the water efficiency initiative being implemented by Coca-Cola.
The methodology that is used to achieve the primary aim of the study in this case is document analysis. The researcher looked for company reports from the company on how it has been addressing the issue and highlights on the causes of the issue. Articles from renowned newspapers and periodicals will also be used to provide information on cases where consumers have raised concerns over the company’s water inefficiency and the measures the company took. This information will be reviewed to address the research and help compile the final report.
Research Question
How can Coca Cola address the ethical issues it is facing?
Research Objectives
The primary objective of this study is to assess the ethical issues that Coca Cola is facing. It will also assess the approaches that have been implemented to address the issue, and thus assess which of the approaches have been effective. Finally, it recommends measures that can be used to address the ethical issues that the company is facing.
Description of the Initiative
Coca-Cola has had faced controversies and criticisms from surrounding community due to its high water consumption rate. It has also been accused of causing water shortages due to overconsumption, thus constraining the available water resources (Banks, 2016). This has led to a negative perception from the public, deeming its CSR ineffective. As a result, the company has formulated various policies and strategies aimed at solving the issue. One of such has been to improve the efficiency of their water consumption. The goal of the initiative is to improve the company’s water efficiency in manufacturing operations by 25% by 2020, with 2010 being their baseline.
The company has made significant progress in this initiative. For instance, it improved its water efficiency by 2% in 2016, signaling that it is on track. It has also registered an overall improvement of 13% since 2010, and 27% since 2004 when the management began reporting the company’s efficiency as a global system (Yamada, 2017). This progress is illustrated using the following graphs.


Quality Principles that underlie the Approach taken to this Initiative
There are various approaches and principles that have enabled Coca-Cola to achieve the progress it has achieved so far in terms of water efficiency. One of such key drivers is reducing water use in its manufacturing processes (Brownlee & Elias, 2017). Over the past few years the company has made significant investments in new technologies, which have enabled it to switch to new operating procedures that reduce water use in its manufacturing operations. This has played a crucial role as it has also enabled the management to understand where water is used in the processes, and where they have opportunities to improve the same.
Water footprinting has also played a key role in enhancing water efficiency. This is an approach that is applied in assessing the total volume of water that the company uses in producing a product. It has enabled the operations team to extend their view on how they could use water across their manufacturing processes as well as supply chain (Torkornoo & Dzigbede, 2017). The company has also conducted research which has established that 80% of its total water footprint of its products is from the agricultural ingredients in the supply chain. This information has also enabled it to better understand the implications that such footprints have on its business, and approaches that could be implemented to reduce the impacts.
Coca-Cola has also worked in partnership with The Nature Conservancy to explore the utility and practical application of the water footprint approach to understand its water use through the value chain. It also used this self-evaluation approach to identify the impacts of such water use and the associated response actions (Brownlee, Dmytriyev, & Elias 2017). During this approach, the company conducted a study of its various products and ingredients such as a Coca-Cola® in a 0.5-l PET bottle manufactured in the Netherlands, beet sugar that is supplied to the company’s bottling plants in Europe, and orange juice that is produced for consumers in the North American markets. The findings were then used to establish ways of reducing water consumption in the process to enhance efficiency.
Coca-Cola has also implemented a Systems Approach. Water stewardship, at the company, goes beyond just a conceptual commitment; it has been deeply grounded in the manner in which business is done in the company (Brownlee, Dmytriyev, & Elias 2017). For instance, a few years ago the company initiated a process aimed at creating a water risk management across its system. Eventually, the system has been fully embedded as a standard operating procedure. It is also notable that the company has ensured that sustainable water practices have been adopted across its distributors, plants, suppliers, as well as bottling partners at the global level (Brownlee, Dmytriyev, & Elias 2017). This is challenging, but it has been possible due to the company’s syncing its water sustainable practices with the set standard operating procedures across the firm’s entire system.
Critical Analysis
Who is involved in the initiative and the effectiveness of their role?
Coordination of the water efficiency approach has been tasked with Mark Tercek, the CEO of the Nature Conserve. He has been involved in identifying strategies that could be implemented to achieve the goal, and then overseeing their implementation (Afeni, 2017). The success of the initiative so far is largely due to the efficiency of Mark Tercek, and the approaches he implements towards the same.
One of the approaches that Mark considers effective for Coca-Cola to achieve water efficiency is collaboration. This has become crucial to the company’s results. He approaches different companies and initiates collaboration with them (Afeni, 2017). So far, the company has collaborated with partners across the Golden Triangle of business, civil society, and the government on WASH programs, advocating water policy, as well as ecosystem protection.
This has enabled the company to adopt the approach of a commitment to engage with various stakeholders on its programs, performance, as well as water issues affecting all users. Stakeholder engagement takes place at different levels, as well as both formal and informal settings across the entire system of the company. This helps in informing its decision-making as well as promoting continuous improvement and progress towards the company’s 2020 water efficiency goals (Moni, Aziz, & Malek, 2017). The company also collaborates with other private and public sector companies so as to achieve greater results as well as benchmarking its work and disclosure. In 2007, Mark led Coca-Cola into being among the very first companies that committed to the CEO Water Mandate; this is a unique public-private initiative that aims at assisting companies in realizing their development, disclosure, and implementation of policies and practices aimed at enhancing water sustainability (Moni, Aziz, & Malek, 2017). Companies such as Coca-Cola that endorse the initiative are usually required to report their progress on an annual basis against a set of standard principles. As such, Mark, the CEO, ensures that effective policies and approaches are formulated at Coca-Cola so as to meet the principles set by the initiative. In the past couple of years, it has been noted that the company has registered continuous improvement. This is an indicator of the CEO’s performance in the position.
Mark’s effectiveness in the position is also evident in the manner in which he guides the organization to think within as well as beyond the fence line (Ferrell & Fraedrich, 2015). On top of the efforts that the company pursues for ensuring effective water stewardship initiatives within its corporate system, Mark has led the company in looking beyond the fence line so as to amplify their impact. For instance, on March 22, 2016 during the World Water Day, Coca-Cola announced its commitment at the White House Water Summit, as it sought to establish 10 corporate partnerships by 2017. These partnerships have enabled its progress towards its 2020 goals.
What is working and what is missing in the approach
What is working?
The initiative has registered massive progress and a lot has been achieved since it was initiated. One of such is that the company has conducted 386 c...