The coca cola company struggles with ethical crisis case study. The Coca Cola Company Struggles With Ethical Crises Case Study Solution and Analysis of Harvard Case Studies 2022-10-31
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The Coca-Cola company, one of the largest and most well-known corporations in the world, has faced numerous ethical crises over the years. These crises have ranged from allegations of environmental pollution and exploitation of workers, to charges of unhealthy and misleading marketing practices.
One notable ethical crisis that the Coca-Cola company faced was in the early 2000s, when it was accused of draining and polluting water sources in India. Local communities in the region claimed that Coca-Cola's bottling plants were extracting large amounts of water from the area, which was causing water shortages and depleting local water sources. In addition, the company was accused of releasing waste and chemicals from its bottling plants into local waterways, causing environmental damage and health problems for local residents.
In response to these accusations, the Coca-Cola company initially denied any wrongdoing and claimed that it was operating in accordance with local regulations. However, as the evidence against the company mounted, it eventually conceded that it had made some mistakes and vowed to improve its environmental practices. The company also set up a panel of independent experts to review its operations and make recommendations for improvement.
Another ethical crisis that the Coca-Cola company has faced involves allegations of exploitation of workers at its bottling plants around the world. There have been numerous reports of workers at Coca-Cola bottling plants being subjected to low wages, long hours, and dangerous working conditions. In addition, the company has been accused of using child labor at some of its facilities.
In response to these accusations, the Coca-Cola company has implemented various initiatives to improve working conditions and labor practices at its bottling plants. This includes establishing a code of conduct for its suppliers, setting up a hotline for employees to report any violations, and partnering with organizations such as the International Labor Organization to improve labor practices.
Finally, the Coca-Cola company has also faced criticism for its marketing practices, which have been accused of being unhealthy and misleading. For example, the company has been criticized for marketing sugary drinks to children and for making misleading claims about the health benefits of its products.
In response to these criticisms, the Coca-Cola company has made efforts to improve its marketing practices and to offer a wider range of healthier options. This includes introducing lower-calorie and sugar-free versions of its drinks and promoting active lifestyles through its marketing campaigns.
Overall, the Coca-Cola company has faced numerous ethical crises over the years and has taken steps to address these issues and improve its practices. While the company still faces ongoing challenges and criticism, it has demonstrated a willingness to listen to concerns and make changes in order to operate more ethically and sustainably.
Case Study: the Coca
However they took several days to respond to the crises which they considered minor and not a health hazard. In addition, they should have had a plan in case such a situation developed, so they could swing into action immediately and do damage control instead of causing more damage. Their integrity is to be genuine or honest with their customers. Ethical, employees and workplace, financial performance, leadership, management, social responsibility, customer focus, quality, reliability, and emotional appeal. The case outlines some of them.
The Coca Cola Company struggles with Ethical Crises
. The major cause of these problems occurred in Columbia where there were unfortunate deaths of Coca-Cola workers as well as forty-eight who went into hiding and another sixty-five who received death threats. . However in the past Coca-Cola has had bad publicity, as they tried to prevent trade union membership are some countries, the outcome of this is likely to lower staff moral and decrease productivity. The Coca Cola Company has faced many ethical issues but the most significant was related to the safety of the products they were offering the public. . When one firm in a channel structure suffers, all the firms in the supply chain suffer in some way as well.
The business environment is characterized by the need for a business to operate profitably while adopting practices, which are environmentally sustainable and ethical. . Neville Isdell, the new president of Coke is currently working to improve their reputation cause by some of the problems presented next. The repeated incidents caused the investors to lose confidence in the company and its management Ethics Resource Center 2010. .
Ethical concerns Just like any manufacturing company, coca-cola has had a number of ethical challenges, especially on their manufacturing and package practices. They wanted to create a merger with themselves and Orangina, a French company, but their overaggressive style turned off the other companies in the deal, which became a problem. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even after all of these problems presents, the customers in Europe said that they still feel like coke would behave correctly during these times of crises. If there was need to change existing working logistics, it should have been within the governing antitrust laws.
It seems that since they are taking these precautions to prevent further problems in the future, the European nations, in addition to the United States will be more trusting of Coke in their decisions in the future. This forced the company to react immediately by recalling its Belgian-based products to enable them to conduct tests to confirm the source of the illnesses Jennings, 2011. STEP 9: Selection Of Alternatives For The Coca Cola Company Struggles With Ethical Crises Case Solution: It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Even after all of these problems were presented, the customers in Europe said that they still feel like coke would behave correctly during these times of crisis. Coca-Cola has entered in the Indian market in the year 1970 and it is regarded as the first multinational soft drink company in India. Coca-Cola continues to earn numerous awards including Responsible CEO of the year 2010 , most socially responsible company 2008 , Worlds most accountable Company 2007 , and top 50 most admired companies 2010.
. When they tried to expand the delivery of Powerade directly to Wal-Mart warehouses all over the US, fifty-four of their bottlers filed lawsuits. France supposedly had about one hundred people become sick due to mold in the products they consumed. Coca-Cola is one of the Ethical Issues Coca-Cola has faced several major ethical issues in the last decade or so, both internal and external in Did Coca-Cola react too slowly to the contamination scare in Europe? Trouble with Distributors Coca-Cola also faced serious issues with their distributors beginning in 2006. The contamination scare resulted in weakened customer loyalty and loss of market share for coke especially in the Europe.
Case Study: Analysis of the Ethical Behavior of Coca Cola
Coca-Cola was very smart when they went about setting up these different funds for students. Coca-Cola is extremely active in all aspects of society and environmental issues. Europe has strict antitrust laws, and the company violated them, which showed that even though they were a global company, they did not understand the business practices of other countries, and that made them look bad yet again. With these new changes, Pepsi has 60% of the U. Coca-Cola had three employees get arrested in 2006 for fraudulently and unlawfully stealing and selling trade secrets from Coca-Cola. STEP 10: Evaluation Of Alternatives For The Coca Cola Company Struggles With Ethical Crises Case Solution: If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly.
The seven values are accountability, collaboration, diversity, integrity, leadership, passion, and quality. And the buyer power is low if there are lesser options of alternatives and switching. While considering mergers and acquisition, the company's marketing tactics came under scrutiny due to the strict antitrust laws in the European countries. They have had many programs over the years, which include a scholarship program that has given out over 22 million dollars in grants. Their actions describe their behavior in the world. Coca-Cola, the world 's best-selling soft drink, once contained cocaine, and it is still flavored with a non-narcotic extract from the coca, the plant from which cocaine is derived May,1988.
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A US study shows that there are ten main components of corporate reputation used in reputation measurement systems. Even though Coca-Cola settled the accusation, the Securities and Exchange Commission concluded that channel stuffing did occur. To safeguard against allegations of racial discrimination the company should have been transparent in its human resources and should have put in place measures against any employees discriminating against others. Coca-Cola also has a commitment to helping the local aspect by collaborating with different groups and organizations to help with many local and health issues. Problems with Unions and Coke Trade Secrets Amongst other international problems faced by Coca-Cola, they ran into trouble related to labor unions as well. The primary function of supply chain management is to link the various business functions in coca-cola company and other processes in the business.