ATENEO DE NAGA UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

DEPARTMENT OF ALLIED BUSINESS COURSES

FINAL EXAMINATION ETPE001 – FRANCHISING

1 SEMESTER, S.Y. 2020-2021
st INSTRUCTOR: PAMELA BARKER

Name________ARVIN KIM A. LLAMERA______________Section__BKN1__Score________=_______

50
Good luck!

Project: Ethics and Sustainability Practices Critique Paper

Instruction: Students will be choosing a franchise case to critique by identifying two (2) ethical issues or
positive or questionable environmental sustainability practices. After which, students must propose ways to
reduce the environmental footprint in the Philippines of that franchise system. Work must be posted on their
ePortfolio.

Rubric

Criteria for Grading: Weight Value: Student’s Score:

• Quality of critique paper 20pts
• Well-explained proposal 10pts
• Citation of sources 10pts
• Compliance with the format 10pts
TOTAL: 50pts

NOTE:

• Franchise case can be in local or international setting.

• The Cambridge dictionary defines environmental footprint as:
“the effect that a person, company, activity, etc. has on the environment, for example the amount
of natural resources that they use and the amount of harmful gases that they produce”
• Cite your sources.
• Post your finished output in your ePortfolio.

GUIDE:

I.Franchise Case:
___________________________________________________________________________

Source:
II. Two (2) Ethical issues or positive or questionable environmental sustainability practices:

1)__________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
 2)__________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
III. Propose ways to reduce the environmental footprint in the Philippines of that franchise
system: (atleast 2 each)
1)__________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

• ______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
• ______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

2)__________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

• ______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
• ______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

Ad Majorem Dei Gloriam!

I. Franchise Case:
The Coca-Cola Company environmental issues. The Coca-Cola Company licenses its
franchisees to sell and distribute the end product using the franchisor's trademark, trade name,
and logo. The company has been accused of violating environmental protection laws, excessive
water usage, and harming public access to drinking and irrigation water caused by the company’s
production of carbonated beverages. Coca-Cola keeps distribution costs low by tapping local
water sources, a practice it has continued since the company’s early success at Atlanta-area soda
fountains in the late 1800s (MacDonald, 2018).

II. Two (2) Ethical issues or positive or questionable environmental sustainability practices:

1. Coca-Cola Bottling plants exercise water usage creating scarcity. The Palachimada
village is located in the northern part of Kerala in India. It is a very dry area where agricultural
production is dependent on access to groundwater and irrigation. The Coca-cola company was
able to set up a massive bottling plant that produces soft drinks in 2000. The production volumes
were not disclosed but the Kerala State Pollution Control Board (KSCPB) gave the company
permission to produce 561,000 liters of soft drinks per day and experts estimated that the total
water consumption needed would be three or four times this figure (Bijoy, 2006). Soon after its
first production, accusations regarding pollution and water depletion were leveled against the
company. The first reactions came from villagers who noticed that the quality of their drinking
water deteriorated, and later came also allegations that the general level of the groundwater
was sinking. There were also complaints that the company’s waste sludge which was produced
by the plant and was distributed to the local farmers as fertilizers, was proved to be toxic, which
pollutes the agricultural lands. (Berglund & Helander, 2015). A similar case was reported in the
indigenous town of San Felipe Ecatapec in southern Mexico, where A Coca-Cola bottling plant
drains wells dry, forcing residents to buy bottled water, or walk for two hours to fetch drinking
water (Agerholm, 2017).
 2. Coca-Cola produces 3m tonnes of plastic packaging a year (Farmbrough, 2019),
and named worst plastic polluter for 3 consecutive years. According to research by Changing
Markets Foundation, Coca-Cola remains the biggest plastic polluter in the world, with a plastic
footprint of 2.9 million tonnes per year (Embury-Dennis, 2020). The company’s branding was
discovered on 13,834 pieces of plastic at 51 of the 55 sites surveyed — more than the combined
total of Nestlé (8,633) and PepsiCo (5,155), which were the second and third-worst polluters

III. Propose ways to reduce the environmental footprint in the Philippines of that franchise
system: (at least 2 each)

1. Excessive water usage in Manufacturing. Given that water is acutely stressed and
increasingly threatened, especially as global demand rises due to growing populations, economic
development, and the impacts of climate change, it is important to reduce the amount of water
used in Coca-Cola bottling franchises. Below are the proposed ways to reduce water scarcity in
Coca-Cola production.

a. Although the Philippines is a tropical country, we still have challenges in

freshwater scarcity. Freshwater is a key ingredient in manufacturing the non-alcoholic beverages
by the Coca-Cola Company. It is also essential to its suppliers to grow the agricultural products
used as ingredients for their products. The company needs to increase its investment in its water
management system and technology to effectively and efficiently use the water, reducing its
waste, as well as reusing processed water. The company should also focus on its wastewater
treatment system outside its manufacturing facilities to help its community with the scarcity of
freshwater.
b. Freshwater is essential to the Coca-Cola company’s suppliers to grow the
agricultural products used in their beverages. The company should implement programs
supporting agricultural improvements and community participation. Investing in infrastructures
for watershed development, irrigations, and community sanitation program will greatly reduce
water scarcity.

2. Coca-Cola plastic bottle footprint. The firm, which is one of the biggest producers
of plastic waste, has pledged to recycle as many plastic bottles as it uses by 2030. But
environmental campaigners argue many Coke bottles would still go uncollected and end up in
landfills (Thomas, 2020). The company offered aluminum and glass packaging, however,
producing these alternatives generate more carbon footprint than producing PET plastics. Coca-
Cola also introduced Plantbottle packaging, which they claim is the world’s first fully recyclable
PET plastic bottle made partially from plants (Company, n.d.). However, many environmental
campaigners argue that Plantbottles are still plastic, and recyclable does not mean it was
recycled. Below are my proposed ways to reduce the plastic bottle footprint for the Coca-Cola
Company.

a. Coca-Cola is one of the most recognizable brands in the world, and an

industry leader both in product sales and marketing. The company has been successful in making
human connections and creating a branded experience through its marketing strategies. The
Coca-Cola Company recently unveils its prototype of Paper bottles, partnering with Danish
startup Paboco to develop a 100% Paper bottle, however it may still take years before it is
commercially used. If the company does not have any viable alternatives yet, I propose to use
their marketing advantage to increase environmental awareness and behavioral change to their
consumers. I believe the Coca-Cola company can only do much, and it needs the help of its
consumers to protect the environment and reduce plastic waste.
 b. The Coca-Cola Company is aware of its packaging wastes, and for
decades, they have implemented different initiatives to help reduce its environmental footprint
They designed new plastic bottles and cans that are already 100% recyclable, including caps and
labels. They also reduced plastics use by doing things like reducing plastic per bottle. In 2018,
they introduced the first range of bottles made from 100% recycled materials- all single serve
mount franklin still water. Today. 24% of the plastic they use for bottles are now recycled plastics
and still increasing through the years. My proposal is to initiate a corporate and consumer
collaboration, where the company can provide incentives to people who will return the Coca-
Cola bottles to designated facilities for recycling. This will help the company to play a positive
role in recovering the bottles that were put on the market. They should also increase their
investment in plastic recycling infrastructure close to its bottling plants to further drive the
environmental awareness to its consumers.

.
Works Cited
Agerholm, H. (2017, September). Independent. Retrieved from Coca-Cola sucking wells dry in indigenous
Mexican town - forcing residents to buy bottled water:
https://www.independent.co.uk/news/world/americas/coca-cola-mexico-wells-dry-bottled-
water-sucking-san-felipe-ecatepec-chiapas-a7953026.html

Berglund , H., & Helander, S. (2015). The Popular Struggle against Coca-Cola in Plachimada, Kerala.
Journal of Developing Societies 31, 281–303.

Company, T. C.-C. (n.d.). What is plantbottle packaging? Retrieved from The Coca-Cola Company:
https://www.coca-colacompany.com/faqs/what-is-plantbottle-packaging

Embury-Dennis, T. (2020, December). Independent. Retrieved from Coca-Cola named world’s worst
plastic polluter for third straight year: https://www.independent.co.uk/environment/coca-cola-
plastic-pollution-nestle-pepsico-b1767370.html

Farmbrough, H. (2019). Forbes. Retrieved from Coca-Cola Reveals It Produces 3m Tonnes Of Plastic
Packaging A Year In Ground-Breaking Report:
https://www.forbes.com/sites/heatherfarmbrough/2019/03/15/coca-cola-reveals-it-produces-
3m-tonnes-of-plastic-packaging-a-year-in-ground-breaking-report/?sh=59be9bc8670f

MacDonald, C. (2018, May). COKE CLAIMS TO GIVE BACK AS MUCH WATER AS IT USES. AN
INVESTIGATION SHOWS IT ISN’T EVEN CLOSE. Retrieved from The Verge:
https://www.theverge.com/2018/5/31/17377964/coca-cola-water-sustainability-recycling-
controversy-investigation

Thomas, D. (2020, January). BBC News. Retrieved from Davos 2020: People still want plastic bottles, says
Coca-Cola: https://www.bbc.com/news/business-51197463