Policies and Practices of Employee Engagement in Multinational Cooperation – A Case
Study of Hindustan Coca-Cola Beverages Pvt. Ltd.
The Hindustan Coca-Cola Beverages Pvt. Ltd. company developed with roots firmly
planted in local communities in India. This heritage favors the firm today as consumers
prefer brands that recognize local identity and markets, and company growth is
anchored on the solid relationships between Coca-Cola bottlers, customers and
communities.[1]
The Hindustan Coca-Cola company has 7,000 local employees, 500 managers, over
60 manufacturing locations, 44 bottling operations and 29 contract packers. The
company’s thrust of thinking and acting local has resulted in 37% and 24% growth rates
in rural and urban India respectively. The Coca-cola values that employees are
expected to uphold include leadership and initiative in driving the team, innovation in
the continuous striving for progress and thinking and acting like owners at all levels.[2]
The Coca-Cola Company’s Workplace Rights Policy derived from international human
rights standards ensures that all employees are valued and inspired to be the best they
can be. Coca-Cola respects the employees’ right to form and join a labor union without
fear of reprisal and is committed to constructive dialogue and bargaining with its
representatives. The company forbids the use of all forms of forced labor and follows
minimum age laws including the disallowing of child labor and of persons under 18
years of age to work under hazardous conditions. The firm is committed to equal
opportunity and maintenance of workplaces that are free from discrimination based on
race, sex, color, national or social origin, religion, age, disability, sexual orientation,
and political opinion. The criteria for acceptance into the company are skills,
performance and experience. Company compensation is based on industry and local
labor market rates, and complies with applicable work hours and benefits laws. Coca-
Cola is likewise committed to providing a safe, healthy and secure workplace for
employees.[3]
Hindustan Coca-Cola is committed to engaging with stakeholders in communities in
which it operates to address business-related issues within its sphere of influence
because such matters are best dealt with at the local level. It also believes in initiating
measures that will create economic opportunity and goodwill in these communities.
Employees are also encouraged to communicate with local Management, Human
Resources, Legal Department or Strategic Security with regards to any company-
related questions, issues, conflicts or violations.[4]
Coca-Cola improves the quality of life in the communities it operates in by addressing
water, climate change and waste management issues. It also employed The Coca-Cola
Africa Foundation to fight the spread of HIV/AIDS in partnership with other groups, and
pushed for higher education as a vehicle for individual and community development.
The company believes that for every direct job it provided for its 7,000 employees, 30-
40 more were generated in the supply chain. Hindustan Coca-Cola’s Corporate Social
Responsibility (CSR) initiatives include environmental surveys and impact assessment
before acquiring land and starting operations, compliance with environmental
regulations, providing of waste water treatment facilities at bottling plants and
conserving energy.[5]
India reportedly has the fastest-growing market for Coca-Cola in all of the 200 countries
where it is sold. However, issues have been raised on the adverse environmental
impacts of Coca-Cola’s operations in the country in 2004. It is claimed that its
production practices are siphoning huge amounts of public groundwater and causing
water shortage and turning farming land into virtual deserts. The company’s
indiscriminate dumping of waste water has reportedly also polluted the scarce ground
water that remains.[6]
Coca-Cola has responded to the issues by constructive engagement with an Ethical and
Environmental Committee, wherein dialogue will be maintained on issues in question,
shareholders will be briefed on developments and guidelines will be prepared on the
company’s next contract. Coca-Cola has since been proactive in providing new
information, consulting on crucial areas of work and negotiating on solutions.[7]
[1] Anuradha Nayak, “Hindustan Coca-Cola Beverages Private Limited – An Internship Report”, Scribd.,
pdf, April 2007, <http://www.scribd.com/doc/21878345/Hindustan-Coca-cola-Beverages-Private-Limited>
[accessed 9 June 2011]
[2] ibid
[3] “Corporate Governance”, Coca-Cola India, 2008, <http://www.coca-colaindia.com/aboutus/aboutus_cgovernance_hrs.aspx> [accessed 9 June 2011]
[4] ibid
[5] Jennifer Kaye, “Coca-Cola India”, Tuck School of Business at Dartmouth, pdf, 2004, <http://mba.tuck.dartmouth.edu/pdf/2004-1-0085.pdf> [accessed 9 June 2011]
[6] “Coke’s Crimes in India”, KillerCoke.org, 2010, <http://killercoke.org/crimes_india.php>
[accessed 9 June 2011]
[7] “Frequently Asked Questions About Coca-Cola”, nus services limited, pdf, 14 January 2008,
<http://www.nus.org.uk/PageFiles/491/CocaCola_FAQs.pdf> [accessed 9 June 2011]
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