The Coca-Cola Company struggles with ethical crises
Delineate the ethical issues and dilemmas the company faced The Coca-Cola Company has faced many ethical issues in the past. In the year 1999 in the month of June, about 30 children in Belgium became ill following the consumption of the company's products. The company recalled the product, however, the problem continued to escalate. All Coca-Cola products were recalled by the Belgian government and this was soon followed by the officials in Luxembourg and Netherlands. The contamination was traced to a poorly processed batch of carbon dioxide. The situation was ruled out to be a health hazard and was judged to be minor. In Poland, a shipment of Bonaqua, a water product was found to be contaminated with mold and in France, 100 people became sick and this led to banning of all Coca-Cola products. The company was slow to respond in all these scenarios. The company tried to run a marketing campaign to regain confidence in their customers and improve sales. However, the campaign was halted by the Belgian government. In 1999, Coca-Cola was extremely aggressive in the French market. This led to denial of approval of Coca-Cola's bid to buy Orangina and the company was also forced to scale back on its acquisition of Cadbury Schweppes. Italy won a lawsuit against Coca-Cola's anticompetitive prices which made the company have to set competitive prices. This was another ethical issue. The company was sued in 1999 for racial
PepsiCo is a huge, multi-billion-dollar company that invests its time and money into creating loveable and lasting products for consumers all over the world. PepsiCo has been on the rise for years and if things continue to prosper like they do know, they should be a lasting company for many more years to continue. PepsiCo relates to their customers and continues to create new and improved products that bring publicity to their company, while still producing the recognizable products that that they are known for.
1. What role does corporate reputation play within organizational performance and social responsibility? Develop a list of factors or characteristics that different stakeholders may use in assessing corporate reputation. Are these factors consistent across stakeholders? Why or why not?
When public health is concerned, ethical conflicts melded with political issues often arise, such as the matter related to the soda ban. On one hand, it can be said that one role of the government is to protect the health of its citizens and ensure their safety. For example, through agencies such as the Food and Drug Administration (FDA), which is responsible for protecting the public’s health by assuring the safety of drugs, biological products, medical devices, and our nation's food supply. If we consider, prevention as protecting the public, certainly the ban of soda by the government could be seen as ethical, as it would be for the common good of the entire community, preventing obesity, diabetes and poor dental health. The government’s
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.
When a child is born, the parents hope that they have a better, and longer life then they did. Yet for the first time in modern US history, “Today’s children are expected to have shorter life expectancies than there parents” (Life Expectancy of U.S. Children Cut Short by Obesity). The somber realization is the result of a several decade long epidemic which threatens to poison future generations and prevent them from living long prosperous lives. The obesity rate in the United States has sky rocketed in the last ten years to a staggering 34.9% of all adults (L. Ogden, Prevalence of Obesity in the United States, 2011-2012). This number is only expected to increase with the current generation of children, as diseases such as type two diabetes, high blood pressure, high cholesterol, and coronary heart disease increase in prevalence (Center of Disease Control and Prevention). The culprit, is what Americans eat. Almost all the food that is accessible by the average American is processed, and therefore contains a ridiculous amount of artificial ingredients such as high fructose corn syrup (Hojjat 86). Many companies such as Coca Cola have been a contributing to the current state of the United states poor health, by advertising to younger ages and relating there product to creating a sense of happiness.
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
Meller, P. (2004). Coke and Europeans Settle Antitrust Case. Retrieved May 05, 2017, from http://query.nytimes.com/gst/fullpage.html?res=9B06E3DA133AF933A15753C1A9629C8B63
The stakeholders are an integral part of the firms like Coca-Cola. The story inside every bottle of Coca-Cola is written in part by the stakeholders, customers, consumers, sellers, bottlers, suppliers, partners, governmental organizations and non-governmental (NGO’s), nonprofit organizations, and many others who have an interest in the business. Its value the opinions and insights of the stakeholders and rely on them to help shape the Coca-Cola sustainability reporting etc.
Pepsi is a world famous carbonated soft drink made by American company PepsiCo. Its distinctive blue packaging makes a huge contrast with its long-time rival’s signature red packing, Coca-Cola. First introduced as 'Brad's Drink' in North Carolina, USA at 1893 before renaming to Pepsi at 1898, Pepsi has always trying to be the dominant brand in soft-drink market while completing with Coca-Cola, known as the Cola War, where the two brands used a series of television advertisements and marketing campaigns trying to get more influence in the soft-drink market among the consumers. Pepsi launched its new commercial advertisement ‘Live For Now Moments Anthem’ in April 2017, as a part of its previously launched Pepsi's first global campaign ‘Live For Now’ in April 2012. The protest-themed advertisement, however, not only was nowhere near Pepsi’s original expectation, but it causes a huge ethical issue, backlash and controversy that made Pepsi took down the advertisement and issue an apology in less than a few days.
Coca-Cola was invented by John Pemberton the Coca-Cola Company began in 1886. With more than 1.9 billion consumers a day, in more than 200 countries, Coca-Cola is dedicated to being the world’s largest beverage company by maintaining and gaining customers. Customer preference is a core value to coke. Coke has dedicated itself to meet the thirst needs of every customer. They engage with their customers at home, restaurants, sporting events. Almost everywhere customers go, they can find a coke product. They build their top line growth and capital efficiency through investment in FIFA World Cup, “Open Happiness” global campaign, and have many worldwide partners, increasing their business nearly 5% every year by creating a diverse customer base.
Coca Cola is a beverage company, a major consumer of water resources, it uses 2.43 liters of water to produce just 1 liter of beverage which makes it prone to criticism and consumer boycotts so to protects its brand image and defend its vision statement, which said be a responsible citizen, and run its business smoothly it decided to start water program to maintain its operations in Vietnam and build a CSR reputation.
In this report, an attempt is made to examine a summary of ethical/professional standards displayed by Coca Cola Company during 1999 crisis in Europe, most especially in Belgium. The first section looked at why coca cola explanations should be considered satisfactory and the second section considered the action and reaction of stakeholders towards the incidence. The third section considered when the issue should have been raised before the escalation.
Currently Coca- Cola has followers on many different social media websites such as Facebook, Twitter, Indeed, You Tube, etc. They use social media sites as a way to interact with their consumers and to make sure that the Coca- Cola brand is seen by as many people as possible (Social Media Principles, n.d.). They keep all consumer’s information private unless terms and conditions for release are approved by the consumer, employees or other affiliates. Coca-Cola has an Ethics and compliance committee that make sure that all newly hired employee receive training on the corporate governance guidelines, businesses code of conduct and the anti-bribery policy. They also have an ethics toll free line or you can contact the through their web site for violators of their policies (Company, 2015).
“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.