Business Ethics Of Coca Cola Company


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Business Ethics Of Coca Cola Company

Coca-Cola has the most valuable brand name on earth. As one of the most prominent companies worldwide, it has a significant opportunity to excel in all business performance sizes Ferrell, Fraedrich Ferrell, 2008. However, as proven in cases like this research, Coke has a whole lot on its plate as the largest brand name in the world. Honest issues throughout different facets of the company, and with multiple authority changes in the last ten years, Coke has some catching up to do. The company has been involved with racial discrimination, misrepresenting market checks, manipulating earnings, and disrupting long-term contractual plans with vendors. Neville Isdell, the new chief executive of Coke, is currently working to improve their reputation caused by a few of the problems provided next. However, this review intends to look at the impact ethics has had on the business's reputation and income.

Definition of key concepts

These days, the business enterprise world has truly gone global, which has intensified the ethics question. To build a truly great, global business, business leaders need to look at a global standard of honest methods. Business ethics is a branch of applied ethics that handles the relationship of what's good and right running a business. This means that people who work in business life should think about how their monetary decisions affect other folks, the environment, or the modern culture on the whole, not only in the home country but also in the host country. On the other palm, global business consists of orders that are devised and carried out across national edges to satisfy the objectives of people, companies, and organizations. These trades undertake various forms, which are generally interrelated. An example is Coca-Cola. This is a carbonated soda sell in stores, restaurants, and vending machines and very tasty and popular in nearly every country. Coca-Cola is a producer, distributor, and marketer of non-alcoholic drinks.


Historical perspective

Coca-Cola is the world's most significant beverage company that runs the largest circulation system on the planet. This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. The marketing strategy for Coca-Cola promotes products from four out of the five states of the art soft drinks to earn sales, such as Coke, Diet Coke, Fanta, and Sprite. This process builds strong customer associations, allowing these lenders to be identified and satisfied. With that said, customers will be more inclined to help Coca-Cola produce and develop.

"Pepsi and Coca-Cola, between them, hold the dominant show of the world market" (soft drink market 2008). Even though Coca-Cola produces and provides big over the United States, they had to construct their global soft drink market by selling to customers internationally for the business to expand and grow. For example, both companies extended to focus on international markets focusing on traditional soft drinks, new-age beverages and expanding into the snack-food businesses. With these new changes, Pepsi has 60% of the U. S. Snack-food market while Coca-Cola contributes 85% of its sales outside of the United States. According to the later Roberto Goizueta " Coca-Cola used to be an American company with a big international business. Now we have been a sizable international company with a sizable American business" (Ferrell, 2008).

Increasing market show is one of the essential goals for a company such as Coca-Cola and Pepsi. Tournaments between other soft drink companies, phony market share records, and other business conduct can cause certain hurdles if the top-selling companies allow them. However, Coca-Cola 's strategy, from the early and late 1800s, of obtaining goals like international mergers, big market shares, snack food development, and overall performance allowed those to strive then and continue to do well today. Today, most of the coke sales are dispersed throughout the world in the 2004 Annual Record, "Coca Cola possessed gallon sales distributed as follows: 28% in America, 26% in Mexico, Brazil, Japan and China and 46% in spread across the world" (Coca-cola, 2007). This means that Coca-Cola makes 70% of its income from other countries. Coca-Cola must remain vigilant to keep their brand untarnished, and their moral issues to a minimum; their brand is their main key to success.

Business ethics of Coca-Cola Company

Coca-Cola Company has been solving a lot of honest issues for decades. It has led to the slowing of its business activities and lack of profits due to reduced market facilities. These issues have afflicted the company greatly by creating a lack of reputation and poor economic performance.

The company has been accused of creating pollution in the surroundings. Villages in India accused the company of using up local groundwater to lead to normal water problems in the future. The residents claimed that the business also emitted other pollution styles such as land and polluting of the environment. The company was ordered to close the service by the pollution control plank of Kerala, India (Pride, Hughes & Kapoor, 2010).

Another ethical concern was in Belgium, where school children became ill after Coca-Cola's products in 1999. The business considered this a minor issue that resulted in withdrawing the business's products from Belgium. The business sold the restricted cans to Africa, and no damage was reported. The multimedia learned about selling restricted cans to Africa and reported it to the general public. Consumers received this information with a lot of bitterness, arguing it was not human for them to sell contaminated products to Africa. They considered this to become racial discrimination, plus they withdrew their stocks from the company. The company lost 50% of its value of shares (Kidd, 2007). The company's brand deteriorated as consumers argued that it can make up 10 % of the merchandise while the brand made 90% of the product. The business lost its brand by advertising contaminated cans to Africa.


Coca-Cola Company has been experiencing moral crises scheduled to lack control skills, poor monetary performance, insufficient company by employees, and competitive malpractices. The business has been attempting to resolve these issues by engaging in community development and forming public relations exercises. The business has promised customers of better and quality products and services.

The company cannot end up being the next Enron since it controls its crises by aiming to regain customer trust and improve on the merchandise and services. The business is still rated as the best top-quality company on earth despite the honest issues. Its brand image is enough to assist the business through the problems.

The company should try and regain its reputation by providing quality goods and services. It should assure its stakeholders on showing the true and good financial position of the business. They should not take part in competitive malpractices that would lower their level of fame. The company should set stringent rules and techniques that will guide executives' and employees' activities to prevent honest problems in the future.

Originally published Dec 24, 2018, updated Feb 20, 2021

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