The incredible immorality of corporate greed?

 or How Capitalism encourages individuals to be selfish

The next time you enjoy an ice cold coke, try to look beyond the cute Christmassy connotations, get beyond the warm reassuring notion that ‘there’s always coca cola’ and take some time out to discover the not so refreshing truth that lies behind the sickly sweet image of one the most enduring icons of the 21st century. Really discover the ‘real thing’.

It takes 2.72 litres of water to produce 1 litre of coca cola[1]. Now this may sound like a reasonable ratio for such a deliciously sweet beverage, but not if you happen to be a farmer living close by to Coca Cola’s Kaladera plant in Rajasthan, North East India. According to recent independent report, commissioned by coca cola, “[the factory’s] presence in this area would continue to be one of the contributors to a worsening water situation and a source of stress to the communities around,” concluding that the company should find alternative water supplies, relocate or shut down the plant.[2]

The result of coke’s presence in the water depleted region is that local farmers who have lived in the area for decades now have inadequate water supplies to keep their crops watered and there appears to be a clear link between the coca cola Corporation moving into the region and the destruction of the livelihood of the farmers living nearby. Coca Cola, which had an advertising budget of $2.6 billion[3] in 2006, is clearly in a position to compensate these farmers, or relocate to a more water rich area, but chooses not to. Coca Cola’s priority clearly lies in maintaining its sickly sweet image while generating famine and poverty for those living in proximity to its factory.[4][5]

The farmers of Rajasthan have it easy, however, compared to unionised workers at some of Coke’s bottling factories in Colombia. Campaigners have documented a ‘gruesome cycle of murders, kidnappings and torture of union leaders involved in a daily life and death struggle’ at these plants. The bosses at some of Coke’s factories in Colombia have contacts with right wing paramilitary forces, and use violence and intimidation to force unionised labour out of work, and then hire non unionised labour on worse contracts for half the pay. There have been more than 100 recorded disappearances of unionised labour at Coke’s factories.[6]

Now the Coca Cola Corporation is obviously not directly to blame for this, as Colombia is one of the more violent countries on the planet, and this culture of violence and intimidation is widespread. The company is, however, responsible for making the conscious decision to choose to invest in a region well known for such practices, and failing to either pull out or protect its workers.

Now, before you purchase your next coca cola (or related product), pause to reflect, and ask yourself:

  • In areas of water scarcity, should priority of use be given to farmers who have lived there for generations to meet their basic human needs such as for drinking, watering crops and washing, or should priority be given to a multinational to produce a sweet fizzy beverage that has little nutritious value for consumption by the world’s wealthiest nations.
  • Is it acceptable for a company to continue producing in a country where its local managers use violence to kill those members of a work force who have joined a union?

If your answer is no to the above questions, and you don’t like the idea of living in a world of poverty, misery, and violence, then don’t drink coke ever again, because if there is any truth in the notion of there ‘always [being] coca cola’ then there is also a good chance there will always be human misery and environmental disaster in the wake of its production because available evidence suggests that Coke’s profits are more important than basic human rights.

Coke is merely one example of one product produced by one company that harms people and the environment in its productive process. It really is just the red and white tip of one very large, very wealthy, and very powerful corporate iceberg, and that iceberg is unlikely to go into melt down any time soon. There are many other cases where the pursuit of Corporate Self Interest has lead to obvious harm of workers, the environment and local communities.

In addition to the increasingly well documented cases of companies such as Nike being involved in sweat shops labour[7], two other fairly widely known examples are those of Shell in Nigeria failing to clear up pollution of the tribal lands of the Ogoni people caused by it’s oil pipelines leaking[8]; and the Nestle Corporations policy of providing free samples of its baby milk formula to new mothers in developing countries which resulted in their breast milk drying up and their becoming dependent on this formula, having to pay after the first few weeks had been used up.[9]

Many commentators, even mainstream conservatives, have also pointed out that one of the root causes of the credit crunch was the greed and self interest of bankers who lent money to people who they knew could not afford to service the debt it in order to improve their profit margins. This created a massive debt bubble that eventually lead to economic decline and a massive tax payer bail out of financial institutions.[10] [11]

A further, softer, criticism of the morality of the corporate sector can be constructed by taking a critical look at the usefulness of the goods some corporations actually produce. There are dozens of corporations which the technological know how to produce useful products that could improve the lives of millions, but instead they plough their resources into producing goods that will benefit the rich, because selling to the wealthy generates more profit than producing socially useful goods. Pfizer, for example produces Viagra; and Oil corporations have persistently refused to invest in greener technologies all the time there are oil reserves they can tap into.[12]

Probably the most worrying example of extreme Corporate immorality is the recent growth of Corporations such as British Aerospace, Blackwater and Haliburton which derive a significant part of their revenue from providing services to the military sector, in the form of the development of weapons systems, the provision of private security forces (mercenaries), in addition to the provision of more mundane services such as rebuilding infrastructure and providing meals for the armed forces.  We thus have an expanding private sector that increasingly relies on wars such as those in Iraq and Afghanistan for a significant portion of their revenue.[13]

So to summarise so far, if we look at just a few examples of our not so cute and cuddly  corporations we know that, in the course of increasing profits, they deprive communities of the resources they need to survive (Coca Cola), pollute land through which their resources are transported (Shell), encourage dependency on their products (Nestle and Monsanto), choose to sell unnecessary goods to the wealthy rather than use their resources to help the needy (Pfizer, all oil and car corporations), and seam to have little compunction over profiting out of war (Halliburton and BAE).

 


[1] http://www.economist.com/business/displaystory.cfm?story_id=4492835

[2] http://www.thaindian.com/newsportal/business/uk-environment-group-accuses-coke-of-depleting-water-in-rajasthan-2_10013709.html

[3] http://www.thecoca-colacompany.com/contactus/faq/advertising.html

[4] http://uk.youtube.com/watch?v=kqE40Oc1CXo&feature=related

[5] See Mark Thomas’s book (2008) Belching Out the Devil: Global Adventures with Coca-Cola

[6] http://www.killercoke.org/pdf/KCBroch.pdf

[7] http://www.nosweat.org.uk/

[8] http://www.ratical.org/corporations/OgoniFactS.html

[9] http://www.thecorporation.com/ gives details on the documentary ‘The Corporation’.

[10] http://news.bbc.co.uk/1/hi/business/7525724.stm

[11] http://www.mirror.co.uk/news-old/columnists/reade/2008/10/09/make-greedy-bankers-feel-the-pain-of-the-credit-crunch-115875-20787539/

[12] www.monbiot.com ‘The Other Bail-Out, 7th October ‘08

[13] See Naomi Klein’s book (2008) The Shock Doctrine

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3 thoughts on “The incredible immorality of corporate greed?”

  1. For the love of god it’s spelt *COLOMBIA not Columbia. COLOMBIA COLOMBIA COLOMBIA. Couldn’t get past that detail, kinda ruined the whole thing for me.

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