Coca Cola And Ethical Crises

Coca–Cola a leading manufacturer, distributor and marketer of soft drink products. Coca–Cola was not always the sugary syrup soft drink most people know today. As a matter of fact, before 1886 Coca-Cola was made with alcohol and cocaine. Concocted by Dr. John Pemberton a pharmacist in Atlanta Georgia Coca-Cola was originally named Pemberton’s French Wine Coca. Dr. Pemberton marketed the drink as a cure all for mental and physical disorders and was sold from a soda fountain at his local drug store. A step ahead of prohibition, Dr. Pemberton replace the wine in his formula with a sugary syrup. The cocaine portion of Coca-Cola was removed before 1914 when cocaine was deemed illegal in the United States of America. Coca-Cola as we know today still contains coca but the narcotic portion of cocaine, it is removed. Today, Coca-Cola has expanded to over 200+ countries. From concerts to sport venues to local restaurants you are more than likely to come across a Coca-Cola product, Coca-Cola has had such an impact on society that it is given credit for how we portray Santa Clause today. Other credits should also be given to Coca-Cola like an increase in diabetes and other diseases.

In the recent years, most business organizations have adopted various strategies that have enhanced the social performance in the society. Corporate social responsibility plays a fundamental role in improving the relationship between a business and the local community (Taylor, 2010). Social performance of a business can ensure that it builds the good reputation among the customers thus improving the sales of the firm. This paper examines the social performance of Apple incorporation and the impact of corporate social responsibility on the multinational business organization.

A corporation’s reputation will weigh heavily on the overall performance of the company as the various stakeholders will interact or transact purchases from the company base on their reputation. Essentially the reputation will determine the flow of business for the company. Customers and/or clients will prefer a company with a positive reputation and will likely remain loyal to the company. The company will also have a competitive advantage with a positive

Corporate social responsibility for the authors of the mentioned article is a “form of management that is defined by the ethical relationship and transparency of the company with all the stakeholders with whom it has a relationship as well as with the establishment of corporate goals that are compatible with the sustainable development of society, preserving environmental and cultural resources for future generations, respecting diversity and promoting the reduction of social problems” (Milton de Sousa Filho, Soares Outtes Wanderley, Pasa Gomez, & Farache, 2010). Based on this understanding of CSR Milton de Filho, et al. concluded that a competitive advantage can be derived from social responsibility and has following positive consequences for the firm:

When reading the letter from the chief Executive Officer Muhtar Kent the content of the letter was optimistic and upbeat. Also, the CEO references to the company as global thirst quenching corporation that do not take the size for granted, this helps the reader understand Coca-Cola modesty. Likewise, the CEO added Targeted disciplined investments for the future of the company that will help the company to expand and grow. Furthermore, increasing revenue, profit and growth by building the brand Coca-Cola. Furthermore, Simplifying and streamlining operations of the company enabling to standardize the operation around the world.

In 2000, Coca-Cola falsified results during a marketing research of frozen Coke at several Burger King restaurants (Day, 2003). Employees of Coca-Cola engaged in this questionable conduct in the expectations of increasing business at Burger King and convincing them

Did you at least get paid for sneak-advertising Coca Cola? I don't understand how this disgusting company is still allowed to advertizise at big sport events all over the world, when it should have been long since closed down by US government or UN for the systematic killing of union leaders in Columbia. However, the Rubel has to be kept rolling and the economy has to grow exponentially till all eternity. Who cares that our natural recources are depletable? Cosequently this will never happen. "To you immortals of tomorrow I predict today and here: Even before the next millenia begins, is the only God that everyone serves, the insatible greed" - Graf Krolock, Die unstillbare Gier (Tanz der Vampire, 1997). Awesome Musical btw. You should go and

In doing things better the next time and in accordance to campaign assessments, organizations are safeguarding their reputations. Reputation is a core asset of an organization and creates barriers to competitive threats (Schreiber, 2011). Established reputations hinder competitive mobility and deliver returns to organizations because they are difficult to emulate (Schreiber, 2011). A solid reputation evokes that the products and/or services offered by the organization are of higher quality (Carmeli & Tisler, 2005) and that the firm is

Coca-Cola is one of the companies in the world with the largest supply chain and distribution system. This identity is facilitated by the company's large global presence. The large distribution channel enables the corporation to distribute over one million products across the world every day. In this case, the operations of the company are facilitated by over 100,000 workers across the world. It also implies that the firm has relationships with second and third parties such as suppliers of raw materials, wholesalers, and distributors. Apparently, Coca-Cola products are sold even at the small kiosk outlets. Therefore, Coca-Cola’s large and successful corporation stature makes it susceptible to various ethical issues. The existence of potential ethical issues is underpinned by the fact that the company interacts with a lot of business elements, most of which are heavily regulated in most countries. Additionally, the company’s tradition of successful business venture and the focus on expanding their product portfolio exposes them to various ethical risks. In this case, this paper examines the pertinent issues related Coca-Cola’s dispute against POM Wonderful.

In a fiercely competitive economy, good social reputations are companies’ biggest asset. Copious recent research established direct correlations between companies’ social responsibility and consumer purchasing behaviours.

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

Their report show consistent with the hypothesis that a positive reputation as an employer has value to a firm. The positive excess return to such firms indicates that attaining a good employer ranking can be viewed as a positive managerial action. The announcement could be providing the market information and assurance about managerial skills. A good reputation should allow a firm to attract talented employees and reduce employee turnover. The excess returns for our

There are several factors that a company must have to prosper and sustain and one of them is maintaining reputation (Haywood, 2005). Haywood claims that reputation is gradually perceived as a company’s asset and good reputation

“A Coke is a Coke, and no amount of money can get you a better Coke than the one the bum on the corner is drinking. All the Cokes are the same, and all the Cokes are good. Liz Taylor knows it, the President knows it, the bum knows it, and you know it."(Andy Warhol, 1975) Regardless of its corporate reputation, the organizational performance and its social responsibility of Coca-Cola makes it loved around the world. Ever since its creation in 1886 Coca-Cola has been a household brand known globally for generations of families. I have to mention, of all the cases researched this is my least favorite not only because of my childhood love for the product because the ethical issues in one way or another always manage to resolve themselves not before further tainting the reputation Coke worked so hard to obtain. Most times, whether an organization is innocent of an unethical act, it becomes secondary to the suspicion of the original act. Almost as if the court of public opinion has the power to ruin the reputation of an organization based on an unfounded accusation. In spite of my loyalty after having ready the case, I do believe Coca-Cola to be flawed. The contamination scare in Belgium is a great example of a public relations nightmare. The slightest hint of impurity should have pushed Coca Cola into crisis management mode but they were slow to react, citing it a minor issue (Ferrell, Fraedrich, & Ferrell, (2011). It was not until local officials

Coca-Cola is a big recognized brand that produces many products than just soda drinks. With all the money and brand recognition the company possesses, there are possibilities for the company to past the scandals and keep up in the business market, like we have discovered the company has invested money to cover illicit activities. However, it is very important for the company to act ethically and respond to the scandals that the company has been accused. If Coca-Cola responds morally correct, it will shows the customers that the company cares about social responsibility, but if the company does not act fast and ethically, it exists the possibilities that the company’s sales keep declining.