Coca Cola Struggles with Ethics

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Case Study 4 - The Coca-Cola Company Struggles with Ethical Crises Case #11 January 5, 2014 1) The corporate role in any company builds the foundation of how a company succeeds and, also, how the public views them. Their organizational performance is based on how the company is run and what ethical structure they have in place. Their social responsibility runs parallel with their organizational performance. If a company is not successful within themselves they cannot be successful within society. The first thing a stakeholder will assess is the culture of the corporation. This involves identifying the mission, values and norms of the company. This information can typically be found in corporate documents or on company’s…show more content…
Any chance of losing a consumer’s trust should be avoided at all costs. Once trust is lost it is a long road back to regaining it. Coca-Cola needs to learn from these past mistakes and not let them happen again. Claims of discrimination have also haunted them. In 1999 a large group of African American employees accused the company of discriminating in areas of pay, promotion and performance evaluation. Although they strongly denied the allegations, the lawsuit caused a lot of unrest within the company. Out of this Coca Cola created a diversity council which is something they should have had to begin with. It is always better for a company to be proactive rather than reactive. Coca Cola has also been plagued with a mixture of competition issues with claims of “dirty” marketing tactics as well as non-compliance with laws with other countries. They have had to deal with accusation s of channel stuffing, a method used to get rid of surplus stock at the end of a quarter to cause the appearance of increased sales. I think that Coca-cola has learned a lot from their ethical crisis but has a ways to go. To be proactive, they have made local education and community improvement program a top priority. They also offer grants to various colleges both local and abroad. Recycling has become a priority to them also. Chair Neville Isdell received the
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