The Business of Water Analysis
The main stakeholders for Coca-Cola and Nestle would be the parties that would be mostly affected and at stake if the plant was to close down in the case of the passing of the law of closure due to negative effects on the environment. Firstly, the employees of the company and their families would be the most at stake, as they would lose their source of income. And in the case of Coca-Cola it might be that most of the village of Palchimada is working at that plant, hence this would affect the whole social environment in the village.
On the other hand the villagers are also affected negatively as they are losing their water resources if Coca-Cola keeps operating. The second party at stake would be the suppliers of the company from boxes to ingredients and branding materials. Moreover, The shareholders of the company are affected as they would lose money, market share and return on investment, that would also give way for another stakeholder, which is the competition. Lastly, the customers and clients of such companies are also affected, however, companies as such are very big and are able to supply almost anyone around the world, therefore clients are not primarily at stake.
Carroll’s four-part model of corporate social responsibility suggests that CSR includes the economic, legal, ethical, and philanthropic expectations placed on organizations by society at a given point of time. Under CSR pyramid, Nestle comes in the Ethical responsibility that is the third part of the pyramid. These responsibilities oblige the corporation to do what is right, just, and fair which Nestle perfectly abides with as the company never seemed to break any laws and was never involved in any unjust action.
Regarding Nestle water plants, the company claims to be economically responsible by operating its plants in rural or remote areas, in the immediate vicinity of the water sources and in many cases, the company is an important economic base within the local community.i Generally, Nestle claims ethical responsibility. However, in this case it would prove the ethical responsibility if the company gave back to the community it operates in just like Coca-Cola did to prove that is an ethical company. On the top of the pyramid is Philanthropic responsibility, which Nestle seems to be executing very well.
Nestle has created many programs to improve peoples lives. Such as, helping to address micronutrient deficiencies through a process called “nutritional landscaping”. In addition to many more, Nestle also offers a Plan that provides expert training so that farmers can grow coffee more sustainably, as well as practical assistance, including high-quality disease-resistant plantlets.ii
Citizenship is defined as a set of individual rights that are governed by the government. In some cases the failure of governments to fulfill their functions along with the rise in corporate power has led corporations to have a bigger role in society similar to the one of political actors. This is the case, which led to the privatization of water where municipal water companies have been inefficient.
One of the governmental roles was by the US multinational company Bechtel in Bolivia, Which found it challenging to make the company operate efficiently. Hence, a law was passed giving the company monopoly rights over in the ridings they operated in, leading to no free water what so ever. This is a very weak performance on the side of the government and the corporation. Water is a human right, necessary for the survival of human kind and forbidding people to use the water from their wells and even the rain is a foolish and senseless act.