Running head: PUBLIC ISSUES RELATING TO ENVIRONMENT AND TOBACCO
INDUSTRY 1
Public Issues Relating to the Environment and Tobacco Industry
Student’s Name
Institution Affiliation
, PUBLIC ISSUES RELATING TO ENVIRONMENT AND TOBACCO INDUSTRY 2
Public Issues Relating to Environment and Tobacco Industry
Part A: Public Issues Relating to the Environment
(Coca-Cola’s Water Neutrality Initiative)
Question 1: Stakeholders’ Concerns
Stakeholder expectations pertain to opinions, attitudes, and beliefs about what amounts to
reasonable business behavior. A Performance expectation gap occurs when certain
stakeholders have differing opinions, attitudes, or beliefs toward a particular business
behavior or practice. Stakeholder expectations are noteworthy to any organization since they
may have public policy or legislative implications. Every business is vulnerable to engaging
in unethical practice. Public issues can have lasting and damaging effects on the business.
However, the way a company anticipates and responds to public issues determines the state
of the outcomes.
The Coca-Cola Water Neutrality Initiative was developed to respond to a public issue
regarding the impact of the company on water availability, quality, and access across the
world. Water is an essential raw material to Coca-Cola's business. Before the Water
Neutrality Initiative which began in 2007, the organization and its bottlers were using 82
billion gallons of water worldwide every year (Lawrence & Weber, 2014). In 2003,
stakeholders, particularly the local communities in the state of Kerala, India, expressed their
concerns about the implications of the company’s water use. The first concern was that Coca-
Cola products contained dangerous levels of pesticides which compromised the safety of
drinking water and thus endangering lives. The other concern relates to the unsustainable use
of water. Critics cited that the company's bottling plants used a huge amount of water, which
significantly reduced groundwater, and deprived local communities of water for drinking and
irrigation (Lawrence & Weber). The concerns had depressing consequences for the business
since the company was forced to close its bottling plant in Kerala.
INDUSTRY 1
Public Issues Relating to the Environment and Tobacco Industry
Student’s Name
Institution Affiliation
, PUBLIC ISSUES RELATING TO ENVIRONMENT AND TOBACCO INDUSTRY 2
Public Issues Relating to Environment and Tobacco Industry
Part A: Public Issues Relating to the Environment
(Coca-Cola’s Water Neutrality Initiative)
Question 1: Stakeholders’ Concerns
Stakeholder expectations pertain to opinions, attitudes, and beliefs about what amounts to
reasonable business behavior. A Performance expectation gap occurs when certain
stakeholders have differing opinions, attitudes, or beliefs toward a particular business
behavior or practice. Stakeholder expectations are noteworthy to any organization since they
may have public policy or legislative implications. Every business is vulnerable to engaging
in unethical practice. Public issues can have lasting and damaging effects on the business.
However, the way a company anticipates and responds to public issues determines the state
of the outcomes.
The Coca-Cola Water Neutrality Initiative was developed to respond to a public issue
regarding the impact of the company on water availability, quality, and access across the
world. Water is an essential raw material to Coca-Cola's business. Before the Water
Neutrality Initiative which began in 2007, the organization and its bottlers were using 82
billion gallons of water worldwide every year (Lawrence & Weber, 2014). In 2003,
stakeholders, particularly the local communities in the state of Kerala, India, expressed their
concerns about the implications of the company’s water use. The first concern was that Coca-
Cola products contained dangerous levels of pesticides which compromised the safety of
drinking water and thus endangering lives. The other concern relates to the unsustainable use
of water. Critics cited that the company's bottling plants used a huge amount of water, which
significantly reduced groundwater, and deprived local communities of water for drinking and
irrigation (Lawrence & Weber). The concerns had depressing consequences for the business
since the company was forced to close its bottling plant in Kerala.
