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and   how   many   workers   were   coerced   into   extreme   long   working   while   being   heavily   underpaid.        

Since  this  was  one  of  the  first  instances  of  a  company  being  accused  of  violating  both  workers   rights  and  using  underage  workers  it  is  fair  to  assume  that  Nike  did  not  have  an  immediate   standardized  answer  for  the  accusations.  Nevertheless,  Nike  responded  and  denied  that  they   could   not   be   held   responsible   for   how   their   sub-­‐contractors   and   suppliers   treated   their   workers.    

After  the  report  was  released,  the  case  continued  to  emerge  through  the  media  and  received   heavy   focus   at   the   1992   Olympic   games   in   Barcelona,   where   Nike   sponsored   several   of   the   competing   athletes.   Nike   was   portrayed   by   several   mediums   as   an   abusive   and   greedy   company  that  treated  workers  as  expendables  in  the  process  of  increasing  profits.    

By  1994  newspapers  and  magazines  such  as  New  York  Times,  Foreign  Affairs,  Rolling  Stone   and   The   New   Republic   started   to   bring   the   stories   of   Nike’s   abusive   sub-­‐contractors   and   in   1995,  protests  started  in  front  of  Nike’s  flagship  stores.  The  issue  continued  to  surface  until   1998,  when  Nike  started  to  see  the  impact  in  falling  sales  and  realised  they  had  to  change.  

   

4.3.2  Water  pollution  and  pesticides        

Coca-­‐Cola   experienced   two   scandals   in   India   in   2000-­‐2008.   While   the   first   scandal   caused   water   shortages,   over-­‐extraction   of   groundwater   and   water   pollution,   the   second   scandal   addressed   a   more   ethical   concern   of   responsibility   as   an   Indian   NGO   reported   evidence   of   Coca-­‐Cola  products  that  contained  unacceptable  levels  of  pesticides  (Torres  et  al.,  2012).      

In  2000,  Coca-­‐Cola  established  its  production  operations  in  the  community  of  Plachimada  in   Kerala,   in   southern   India   (theguardian.com,   2006).   Soon   after   the   Coca-­‐Cola’s   production   began,  local  people  started  to  claim  that  they  were  experiencing  water  scarcity.  In  2003,  the   government   responded   to   these   claims   by   initiating   proceedings   against   Coca-­‐Cola.   This   resulted  in  a  trial  where  Coca-­‐Cola  was  brought  to  court  and  prohibited  from  over-­‐extracting   groundwater   (righttowater.info).   Despite   the   company’s   own   argument   that   decreasing   rainfall   was   the   main   cause   of   draught   in   the   production   area,   Cola-­‐Cola   suspended   all   its   production  operations  by  2004,  while  they  tried  to  renew  the  licence  to  operate  within  the   community   of   Plachimada   in   Kerala.   Through   a   long   judicial   procedure   and   on-­‐going  

demonstrations,   the   company   finally   succeeded   in   renewing   their   licence   and   resumed   production  in  the  area.  

Unfortunately   in   2006,   short   after   the   company   had   successfully   re-­‐established   their   operations,  the  government  reversed  the  situation,  as  they  banned  manufacturing  and  sale  of   Coca-­‐Cola,  due  to  unsafe  levels  of  pesticides  in  their  beverages  (theguardian.com,  2006).    

While  the  investigation  of  water  pollution  and  over-­‐extraction  of  groundwater  took  place,  an   Indian  NGO  in  2003  published  a  report  providing  evidence  of  high  levels  of  pesticides,  which   led  to  several  campaigns  and  demonstrations  (csr-­‐asia.com).  The  evidence  showed  that  Coca-­‐

Cola   from   India   contained   pesticide   levels   that   exceeded   European   standards.   After   the   evident   was   brought   to   the   Indian   government,   they   introduced   a   series   of   new   and   more   appropriate   standards   for   carbonated   beverage   (theguardian.com,   2006).   Despite   not   living   up   to   the   European   standards,   the   level   of   pesticides   were   still   considered   safe   under   local   standards   (Torres   et   al.,   2012),   but   they   arguably   still   presented   an   ethical   issue.   The   government  therefore  concluded  that  Coca-­‐Cola  did  not  violate  any  national  laws.  Three  years   later,  in  2006,  the  Indian  NGO  published  a  second  report  that  showed  no  measurable  changes   since  the  first  allegations  were  put  forth  (csr-­‐asia.com).      

Finally,  in  2008,  an  independent  investigation,  made  by  The  Energy  and  Resources  Institute,   ended  the  long-­‐standing  allegations  towards  Coca-­‐Cola  as  they  concluded  that  the  company’s   products  were  free  of  pesticides  (indiaresource.org).  Furthermore,  in  2010,  Coca-­‐Cola’s   production  in  India  received  a  fine  of  $47  million  from  the  government  for  damaging  the   water  and  soil  in  Kerala  (nytimes.com,  2010).    

   

4.3.3  Factory  suicides    

One   of   the   more   grotesque   CSR   scandals   involves   Apple’s   suppliers   and   the   suicides   of   14   employees   at   the   Foxconn   factory   in   2010.   The   Chinese   factory   is   the   world’s   largest   contracted  electronics  manufacturer,  which  is  also  contracted  by  electronic  companies  such   as  Sony  and  Dell  (the.telegraph.co.uk).  There  are  over  900.000  workers  at  Foxconn,  of  whom   420,000   work   at   the   Foxconn   Shenzhen   plant,   where   iPhones   and   iPads   are   manufactured.  

The   plant   consists   of   15   factories,   including   a   hospital,   a   grocery   store,   restaurants,   a   bank,   and  dormitories  (the.telegraph.co.uk).  Furthermore,  the  plant  offers  free  access  to  swimming   pools,  tennis  courts,  and  500  LED  screens  which  beam  out  exercise  programmes  across  the  

site.   There   are   also   company   clubs   that   organise   and   offer   activities   like   chess,   mountain   climbing,  fishing,  or  calligraphy.  From  the  outside,  it  would  seem  that  Foxconn  takes  care  of   their  employees  and  has  invested  in  their  workforce.  However,  it  has  been  documented,  that   the  working  conditions  for  the  majority  of  the  workers  are  both  terrible  and  inhumane.    

 

Back  in  2006,  local  press  in  China  had  already  reported  their  concerns  for  violations  of  the   excessively  long  working  hours,  which  took  place  at  the  Shenzhen  plant  under  the  supervision   of  Taiwanese  superiors  (Torres  et  al.,  2012).  In  May  2010  multiple  media  sources  were  able  to   report   on   several   incidents   of   suicide   at   Foxconn   (the.telegraph.co.uk).   During   undercover   investigations,  evidence  was  gathered  by  filming  an  iPhone  6  production  line,  which  showed   violations   of   labour   and   human   rights   and   that   Apple’s   promises   of   protecting   their   employees  were  routinely  broken  (bbc.com).  The  employees’  rights  were  violated  through  the   conditions  set  by  Apple’s  Supplier  Code.  Workers  were  working  up  to  70  hours  per  week,  ten   hours  above  the  agreed  maximum  hours.  They  were  denied  days  off  and  sometimes  forced  to   work  up  to  18  days  in  a  row,  and  they  were  not  allowed  to  interact  with  each  other  during   work.   Workers   that   violated   the   rules   were   penalized   with   a   fine   or   psychically   punished   (bbc.com).    

Despite   the   comfortable   facilities   surrounding   the   employees,   none   of   the   workers   had   the   time  to  enjoy  them.  The  stressful  working  conditions  resulted  in  exhausted  employees  who   regularly  fell  asleep  during  shifts  and  workers  who  continued  to  twitch  their  hands  during  the   night  because  their  minds  where  never  able  to  relax.  Furthermore,  instead  of  addressing  the   stress-­‐contributing  factors,  the  factory  started  to  implement  safety  precautions,  such  as  nets   between   the   dormitories   that   should   prevent   more   employees   committing   suicide   (the.telegraph.co.uk).            

   

4.3.4  Dieselgate    

After   several   years   of   promoting   “Clean   Diesel”   as   an   alternative   to   hybrid   and   electric   vehicles,   Volkswagen   was   on   September   18th,   2015,   accused   by   the   US   Environmental   Protection   Agency   (EPA)   of   having   fitted   almost   500.000   cars   with   ”defeated   software”  

(Chicago   Tribune,   2016).   This   software   enabled   the   cars   to   cheat   on   emission   tests   by   activating   a   nitrogen   oxide   trap   that   drastically   reduced   emissions   when   they   were   being  

tested.   Thus,   when   not   being   tested,   the   software   would   disable   the   trap   to   improve   performance  and  fuel  economy,  but  emit  almost  40  times  the  US  permitted  levels  of  nitrogen   oxides.  

Only  four  days  later,  on  September  22nd,  Volkswagen  admitted  to  having  equipped  11  million   cars   worldwide   with   the   “defeated   software”   and   the   CEO,   Martin   Wintercorn   publicly   apologized.   On   the   23rd,   Martin   Wintercorn   resigned   and   took   responsibility   for   the  

“irregularities”   found   by   the   EPA,   but   insist   he   was   “not   aware   of   any   wrongdoing   on   [his]  

part”  (Kollewe,  2015).    

In  the  following  days,  a  series  of  investigations  were  launched  in  both  the  US  and  Europe  and   Volkswagen   claimed   that   a   small   group   of   engineers   were   responsible   for   the   cheating   software.   They   were   reportedly   suspended.   Furthermore,   Volkswagen   announced   to   recall   more  than  8  million  cars  across  Europe  and  set  aside  €  6.5  billion  to  deal  with  the  costs  of  the   scandal.  

 

Looking  at  the  different  scandals,  they  differ  from  each  other  in  more  than  one  way.  First  of   all,  the  time  in  which  they  occurred  and  thus  what  people  expected  from  companies  at  that   time.  Secondly,  the  area  of  which  the  company  has  been  caught  greenwashing  is  different  and   finally  how  the  company  has  greenwashed.    

The   Nike   case   occurred   in   a   time   when   corporate   CSR   had   not   yet   become   mandatory   and   people   had   not   nearly   the   same   knowledge   about   corporate   supply   chains   and   business   models  than  they  do  today.  Therefore,  the  ethical  consumer  segment  described  above  had  not   yet   been   established.   Since   Nike   CSR   was   not   an   established   corporate   concept   yet,   Nike’s   scandal   cannot   technically   be   characterised   as   greenwashing   as   they   did   not   lie   about   their   actions.   However,   Nike   had   still   failed   to   live   up   to   the   ethical   standards   regarding   the   exploitation  of  child  labour.  

 

In   Coca-­‐Cola’s   case,   it   is   difficult   to   pinpoint   society’s   expectations   regarding   ethical   standards,  but  Coca-­‐Cola  had  already  experienced  similar  problems  on  a  smaller  scale  in  both   the  US  and  Belgium  before  the  incident  in  India.  Thus,  it  would  be  expected  that  they  were   aware   of   consumers’   demand   for   non-­‐contaminated   products.   Unlike   Nike,   Coca-­‐Cola   had   already   addressed   their   own   responsibility   in   relation   to   their   operations   and   it   was   these