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The Business of Water

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THE BUSINESS OF WATER
CORPORATE GOVERNANCE AND BUSINESS ETHICS

CASE STUDY ANALYSIS

SUBMITTED BY:
PRIYA BHATTER

Who are the main stakeholders of beverage companies such as Cocoa Cola and Nestle in this case? How would you prioritize their stake and how legitimate are the different stakes?

Consider the following stakeholders for beverage companies such as Nestle and Cocoa Cola in terms of legitimacy and importance of the stakes held.
Shareholders and Board of Directors: These are directly interested in the profitability of the company and will be impacted by any decision that the company makes. While their stakes are legitimate and must be prioritized in terms of company profitability and decisions, their claims on water resources are not legitimate since water is a public resource and no private company and be allowed to appropriate public resources for their profit
Citizens and Local Communities: These communities are directly impacted by the decisions of the beverage companies. While their stakes do not come first in order of priority their claims on water resources are the most legitimate. Decisions taken by beverage companies such as the use of exhaustible acquihires by Nestle or the depletion of groundwater resources by Cocoa Cola directly impact them, and must be taken into considerations while making corporate decisions.
Government and Regulatory Bodies: Governments (especially in developing economies) are invested in these companies since they earn tax revenues from these organizations (Cocoa Cola contributes $1 Billion USD over a period of 4 years in India are important stakeholders. Their claims are also legitimate because they are responsible for controlling people’s access to water resources and the protection of a country’s public good and natural resource
NGO’s and Lobbyists: They have actively worked for the rights of the citizens and

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