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Chapter 28 - Corporate Social Responsibility and Water Management in India

Steve May

Synopsis

This case study considers the opportunities and challenges of corporate social responsibility (CSR) through a water management program in India developed by a major, multi-national beverage maker and distributor. Access to clean, safe water is perhaps the major economic and health issue facing developing countries such as India. At the same time, corporations view such countries as emerging markets for their products and services. In this particular case, the company faced various allegations of water contamination and overutilization that damaged rural communities near its plants. In response to the charges, the company instituted a range of CSR initiatives that focused on the environment, in general, and water resources, specifically. It did so by collaborating with environmental NGOs, local and national government, and a reputable, international auditing firm.

Keywords: Corporate Social Responsibility, Organizational Ethics, Stakeholders, Water Management, Sustainability

Key Takeaways and Take a Stand Form

Key Takeaways

After reading and analyzing this case, students will understand the following:

  1. Some of the historic distinctions between types of organizations are less clear as the boundaries between for-profit and not-for-profit organizations have increasingly blurred, with a greater focus on value-driven enterprises.
  2. It is important to understand not only the “internal” dynamics of organizations but also the broader implications of the business-society relationship, particularly from systems and critical perspectives.
  3. Corporate social responsibility programs include a range of initiatives, including philanthropy, employee volunteerism, cause-related marketing, and community-based initiatives.
  4. Increasingly, businesses are taking into account the triple bottom (economic, social, and environmental) not only in how they report their activities but also in terms of their day-to-day operations, as in strategic corporate social responsibility.
  5. Cultural differences across post-industrial and emerging economies raise challenging questions regarding organizational ethics.
  6. In order to successfully solve some of today’s most important problems, businesses must move beyond stakeholder management to stakeholder engagement.

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