Case study: Coca cola in India
Working Paper
Corporate Social Responsibility Does Not Avert the
Tragedy of the Commons -Case Study: Coca-Cola India
Aneel Karnani
Stephen M. Ross School of Business
The University of Michigan
E-mail: akarnani@umich.edu
Ross School of Business Working Paper Series
February 2014
This paper will be published in Economics, Management, and Financial Markets, forthcoming. Keywords: corporate social responsibility; tragedy of the commons; common-pool resource; environmental sustainability.
I would like to thank Coca-Cola India, and especially Praveen Agarwal, General
Manager, Public Affairs & Communication; and India Resource Center, and especially
Amit Srivastava, for their help and cooperation. I alone take responsibility for views expressed in this paper.
UNIVERSITY OF MICHIGAN
Corporate Social Responsibility Does Not Avert the
Tragedy of the Commons -Case Study: Coca-Cola India
Abstract
'Tragedy of the commons' is a powerful concept to analyze a variety of problems related to environmental sustainability. The commons problem can be solved if individuals behave altruistically. In the business context, this article studies the proposition that corporate social responsibility (CSR) can avert the tragedy of the commons by examining one case study in depth: Coca-Cola's bottling operations in Rajasthan, India. In spite of choosing a context favorable to the proposition, the results indicate that CSR does not avert the tragedy of the commons. To address the major environmental challenges, it is essential to develop regulatory regimes with appropriate incentives and ability to enforce sanctions. Keywords: corporate social responsibility; tragedy of the commons; common-pool resource; environmental sustainability.
2
In one of the most cited scientific articles ever written, Garrett Hardin outlined 'the tragedy of the commons,' a powerful metaphor that the users of a commons are caught in an inevitable process that leads to the destruction of the very resource on
Corporate Social Responsibility Does Not Avert the
Tragedy of the Commons -Case Study: Coca-Cola India
Aneel Karnani
Stephen M. Ross School of Business
The University of Michigan
E-mail: akarnani@umich.edu
Ross School of Business Working Paper Series
February 2014
This paper will be published in Economics, Management, and Financial Markets, forthcoming. Keywords: corporate social responsibility; tragedy of the commons; common-pool resource; environmental sustainability.
I would like to thank Coca-Cola India, and especially Praveen Agarwal, General
Manager, Public Affairs & Communication; and India Resource Center, and especially
Amit Srivastava, for their help and cooperation. I alone take responsibility for views expressed in this paper.
UNIVERSITY OF MICHIGAN
Corporate Social Responsibility Does Not Avert the
Tragedy of the Commons -Case Study: Coca-Cola India
Abstract
'Tragedy of the commons' is a powerful concept to analyze a variety of problems related to environmental sustainability. The commons problem can be solved if individuals behave altruistically. In the business context, this article studies the proposition that corporate social responsibility (CSR) can avert the tragedy of the commons by examining one case study in depth: Coca-Cola's bottling operations in Rajasthan, India. In spite of choosing a context favorable to the proposition, the results indicate that CSR does not avert the tragedy of the commons. To address the major environmental challenges, it is essential to develop regulatory regimes with appropriate incentives and ability to enforce sanctions. Keywords: corporate social responsibility; tragedy of the commons; common-pool resource; environmental sustainability.
2
In one of the most cited scientific articles ever written, Garrett Hardin outlined 'the tragedy of the commons,' a powerful metaphor that the users of a commons are caught in an inevitable process that leads to the destruction of the very resource on