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US University Forces Coke to Yield on Plants in India
by S Rajagopalan
Hindustan Times
April 13, 2006
Washington: Coca-Cola has agreed to a third-party probe into the controversial
water-management practices at its Indian plants. The immediate gain
for the soft-drinks giant: it has won back its $1.4 million annual
contract with the University of Michigan.
But student activists who campaigned for the termination of the arrangement
are unhappy at the university’s "premature" action.
They argue that the probe will not be independent, alleging that the
Indian entity which Coke has proposed to design the investigation
is a beneficiary of its corporate sponsorship. Notwithstanding the
reputation of the entity — The Energy and Resources Institute (TERI)
— student groups, notably the India Resource Centre, have voiced serious
reservations over the move.
They have been battling Coke for "creating severe water shortages
around bottling plants in India and selling drinks with extremely
high levels of pesticides".
The University of Michigan, however, is satisfied with Coke agreeing
to a third-party probe into allegations over its operations in India
and Colombia, where it faces severe criticism over its labour practices.
"The university is satisfied that the independent review processes
you’ve outlined meet our prerequisite to resume purchasing Coca-Cola
products," CFO Timothy P Slottow wrote to the company on Tuesday.
University spokeswoman Julie A Peterson said: "We want to move the
investigation forward rather than simply cut (Coke) off."
In recent months, getting back the Michigan contract had been a key
pursuit for Coke — Michigan is one of the bigger American universities
with over 50,000 students in three campuses.
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