Coca cola ehtical issue

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Coca cola ehtical issue

Donald L Sewell Running head: The three most prominent issues arising were as follows: The intention of the review of the before mentioned crises is to illustrate the bias in determining how to quantify what is or is not an ethical decision. Analysis of the Ethical Behavior 3 Coca-Cola is a prominent organization and recognized worldwide.

The brand Coca-Cola was established in the late s and now is the most valuable brand in the world. Coca-Cola is a beverage manufacturer which operates worldwide. The beverage maker provides a range of soft- drinks, water, and juices all of which operate under various brands.

Coca-Cola based out of Atlanta, Georgia provides their products through intermediaries, independent bottlers, distributors and wholesalers while maintaining strict control over ingredients, formulas, packaging and overall operational guidance of products. Through the organizations vast operations and controls it has generated an enterprise value in excess of billion dollars.

Coca cola ehtical issue

However, success often leads to compromise and as Coca-Cola has seen over the past decade comprising values lead to questionable decisions, irrespective of a prescribed ethics.

Frameworks designed to create guidelines or a set of rules to follow in making ethical decisions vacillate; however, in most cases organization establish codes of conduct or code of ethics.

The principle behind the formation of a code of ethics is unilateral in nature as it holds all employees and leaders accountable to a set standard. Coca-Cola as an organization formerly operated under what is known as egoism. Stemming from egoism is the notion of rational self- interest that is an underlying theme of capitalism.

While, Coca-Cola possessed a standard code of conduct over the last decade; nevertheless, their code of conduct was usurped as leaders of the organization followed egoism.

As a result, Coca-Cola faced at least three crises of ethics. The utilization of channel stuffing occurring from mid years of s to Coca-Cola was able to inflate earnings thus misleading investors as to the true financial position of the organization.

However, leaders of the organization at that time were looking out for the preservation and self-interest of the organization. From the year to the Coca-Cola was accused of misrepresenting earning yet again. The complaint by the institutional investors alleged that certain material facts concerning Coca-Cola and the condition of its business and financial results were misrepresented and omitted from various public statements purportedly made by the defendants, causing the price of Coke stock to be inflated artificially Weber, Clearly the leaders followed the framework of egoism as a rationale for their decidedly perceived unethical behavior.

The leaders of the organization viewed that channel stuffing and manipulation of financial document were desirable as it met their needs to receive bonus compensations along with the organizations need to show earnings. Egoism fails; Coca-Cola is taken to court by investors and fined by the SEC for securities violations, in the end the leaders thought process and utilization of egoism ran counter Analysis of the Ethical Behavior 5 to their interests or perhaps not.

In the short term, the appearance is Coca-Cola failed to serve their self-interest, but the long-term perspective tells a much different story. Problems with Distributors InCoca-Cola once again faced problems of an ethical nature. Fifty-four of its U.

Considering egoism, when a leader is faced with making a business decision they ultimately side on self-interest as a basis for right or wrong again. As a result, Coca-Cola finds their way back into court for breach of contract. The lawsuit settled for an undisclosed amount of financial compensation along with a restructuring of the territorial agreements.

The new agreements, settled in the lawsuit, would permit Coca-Cola using CCE to fulfill warehouse orders. However, Coca-Cola must comply with a new set of standards that outlined particular situations by which CCE could deliver to warehouses.

While being litigated is a negative consequence, the notable positive consequence is Coca-Cola gained roughly a seven percent increase in market share; as a result. Even in a free market economy, a well-known economist such as Adam Smith warn of the threat monopolies would have on the economy.Coca-Cola, which is under fire this week for allegedly misleading people about obesity, is also funding a separate pro-soda campaign aimed directly at children.

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 in the month of June, about 30 children in Belgium became ill following the consumption of .

Ethical Issues in Coca-Cola Company Coca-Cola is the world biggest soft drink manufacturing company with outlets in more than two hundred countries. The company operates the largest distribution network in the world and it is estimated that more than 1 billion company’s product are . The Coca-Cola Company Struggles with Ethical Crises.

Coca-Cola History. Coca-Cola is the world's largest beverage company that operates the largest distribution system in the world.

This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. Although Coca-Cola center its reputation mostly on the global impact of the company name, to restore its reputation and eliminate future ethical dilemmas with stakeholders, the leadership issue has to change along with poor financial performance, adoption of good ethical competitive strategy for the company and low turnover in top management.

Another ethical issue that has existed throughout Coca-Cola's business is is the abuse of workers' right, water privilages and worker discrimination. Coca-Cola faced a lawsuit in because fifteen hundred African American employees sued Coca-Cola for racial discrimination.

Coca-Cola's misleading anti-obesity campaign also targets kids | MSNBC