Public Relations Crisis Essay

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In 2006, the Coca-Cola Company survived a serious scandal that emerged in India. In fact, it was one of the greatest scandals in the world of business. The company has more than 50 bottling plants in India and heavily uses the resources of the country. Indian farmers blamed the company for water shortage in India. They were not able to farm properly anymore and they blamed Coca-Cola for constant droughts and water pollution. According to farmers, Coca-Cola was responsible for using dangerous chemicals and, as a result, making water undrinkable and poisoning for people and land.
Consequently, many public organizations and individuals became involved in the scandal. One of them was War or Want, which is an organization that fights poverty in the developing countries. The reports of War or Want showed the areas that were destroyed by the Coca-Cola Company. Those reports covered the issues of the company 's impact and influence on the Indian economic life and welfare. Another organization, National Union of Students proposed to ban and close all the vending machines, selling Coca-Cola. Press coverage regarding the scandal disapproved the company's activities in India. Any news in media was aimed to have adverse effects on the company's image.
This scandal became very important to the public relations profession as everyone blamed the Coca-Cola Company, but the company’s reputation was not hurt by this event. The power of the company was not damaged by the accusation of Indian farmers, although everybody realized that Coca-Cola damaged and destroyed the Indian land.
Instead, the Coca-Cola Company announced that they reduced the usage of water in India by 24%. What is more important is that the company even rendered its advertising activities and boosted its marketing campaign in spite of the opposition of Indian politicians.
The public relations strategy and actions implemented by the Coca-Cola Company were rational and efficient. First of all, they researched the source of the problem and found effective approaches to solve it. Secondly, they implemented new technology of production in India as they installed new harvesting systems. What is really incredible about this strategy is that the company made their Indian customers feel engaged in the process. Coca-Cola made people feel a part of a great change.
All in all, it is very important to understand that everything we say and we do will have an influence on what others think and say about us, and will have an impact on our image later on. Once reputation is hurt, the company's image and the customers' attitude will never be the same again.