Monday, October 26, 2009

Coca-Cola Community Relations - My Coke Rewards!

What Coca-Cola is doing for communities across the country is a continuous campaign that enables communities to become engaged in both the company and their respective communities.
What it is: My Coke Rewards for Schools.
• My Coke Rewards for Schools is a way for parents, friends, and others in the community to support local K-12 schools by donating My Coke Rewards points which can be earned from hundreds of participating Coca-Cola products. Schools can turn donated points into a variety of rewards that support students.
• The coke points can provide local schools with things like athletic equipment, books, classroom supplies and more.
• Schools must register to participate in the program, and any My Coke Rewards member can donate points to registered schools.
• People donate their My Coke Rewards points and empower students to do, learn and discover more every day.

Coca Cola’s focus:
• To provide children with opportunities in school by enabling their communities to literally cash in their cans.
• To better communities and schools where budgets may be tight
• Encourage brand recognition and reputation in communities
• To encourage community involvement and community building

How it relates to Coca-Cola's line of business:
• Part of Coca-Cola's mission statement is “To create value and make a difference.” & “Inspire creativity, passion, optimism and fun”
• Coca-Cola offers this program to any community that is willing to take the initiative. Coca-Cola offers the support and resources but leaves the initiative to the communities.
• For the company, it encourages product consumption.
• Coke Rewards motivates the consumption because of the return consumers and communities are able to benefit from.




How does the program enhance the company’s reputation?
• This program is on-going
• “Let's double up for schools: Help boost your school's balance. We'll match every point donated during October. Together, we can help schools get the equipment, supplies, and books they need even faster.” For every point that a consumer donates to their community, Coca-Cola matches their donation, thus doubling the donation the consumer submits to the My Coke Rewards website.

This is good community relations for Coca-Cola because it is on-going, enables people to become involved in both the Coca-Cola company and their communities, and the benefits that communities experience from this program are visible to both involved communities and those who are interested in participating. I believe that this is not only a great opportunity for communities to interact with Coca-Cola for educational rewards, but also for Coca-Cola to boost their reputation by branding their name on a community relations program. My Coke Rewards, in the most simple sense, enables schools to turn their cans into books, sports equipment, musical instruments, etc.

This public relations is also good because it is ongoing. People are able to participate at any given time and their is no restrictions on who can participate.

Other things that the Coca-Cola company could also do would be provide more community based scholarship funds through the usage of My Coke Rewards. For instance, if a college bound kid was in need of a scholarship perhaps My Coke Rewards could create an incentive program where the rewards points went towards a community based fund which allowed for more scholarships to be awarded in that particular community.

Monday, October 5, 2009

"Environmental Justice: Coca-Cola in India" vs Coca-Cola

In 2003, Coca-Cola India was faced with allegations regarding the unsanitary production of beverages, unnecessary pollution, and physical abuse to unarmed protestors. During the time of allegations, Coca-Cola sales in India dropped 30-40%. Here are the specific allegations Coca-Cola was faced with...

Background information regarding the allegations against the Coca-Cola Enterprises in India (taken from a petition letter to Douglas Daft, the CEO of Coca-Cola):

(i) Allegation that Coca-Cola bottling plants in Plachimada[2] in
Kerala and Mehdiganj[3] in Uttar Pradesh pass on sludge as
fertilizer causing health and environmental damage.

(ii) Allegation that excessive depletion of water table caused by
Coca-Cola bottling operations is resulting in drastically
reduced availability of water for irrigation purposes which is
devastating local communities.[3]

(iii) Allegation that security personnel at Coca-Cola plant at
Mehdiganj used excessive force against unarmed citizens
protesting the damage caused by the manufacturing unit.[4]

(iv) Allegation that Coca-Cola bottled water and drinks manufactured
in New Delhi and Mumbai contained pesticides when tested by
reputed NGO Center for Science and Environment.[1]

A video depicting Coca-Cola's abusive production and distribution practices.

In response, Coca-Cola published this news release, and posted it on their website to make their statement public. In this news release, Coca-Cola addressed the environmental allegations.

What gave Coca-Cola validity in the company's defense was that Coca-Cola took the initiative to get expert opinions in the matter of pollution control and production techniques from scientists and even invited the Indian central government to make a detailed investigation of Coca-Cola's impact on water sources and the environment.

Coca-Cola effectively used the news release to disarm its protestors and find their allegations groundless. It is easy to target a large corporation as a source for environmental problems. Coca-Cola utilized professional and expert observation to prove the allegations false. This could have been a potentially damaging set of allegations against Coca-Cola, and probably still had a negative impact on the company; however, the damage control that was done protected Coca-Cola from allegations that challenge the company's vision and mission. No matter how well Coca-Cola controlled this situation, it still does not stop the Indian people from having false preceptions of Coca-Cola products that are infact damaging to the company image and sales.

In this report, the damages Coca-Cola has faced are noted and there is a brief "fact vs. myth" section where Coca-Cola smashes the false preceptions the Indian people had at the time of the allegations in 2003.

Coca-Cola made the right steps to dispell the myths regarding its negative company image in India. Coca-Cola brought these allegations to experts and the Indian central government and published the findings publically in a news release type statement as well as detailed reports. This has protected and defended the company's image and has enabled the Coca-Cola company to prosper yet again in India after this damaging set of allegations from 2003-2005. More recently, Coca-Cola has been recieving awards in India based on their involvment in preserving the environment in India from public relation campaigns Coca-Cola has set forth.