Coca Cola Struggles with Ethical Dilemma

Abstract

Business ethics are extremely important for an organization to run successfully and have a positive impact on the society and community in which it is operating. Ethics has been defined as “study and philosophy of human conduct with an emphasis in determining the right and wrong” (Ferrell et.al, 2010). According to a a survey conducted by Ethical Resource Center which included around 3000 employees for gathering important data, many organizations face ethical crisis in their operation and it is more prevalent in large organizations with more than 500 employees at an average. Around 77 percent of upper level management employees reported the misconduct while in non management employees the percentage was as low as 48 percent (Ferrell et.al, 2010). This papers aims to analyze the case study of Coca Cola for identifying ethical dilemmas involved, how the company responded to the issues and whether its approach and reponse was the best possible solution and reaction to the problem.

Table of Contents

Abstract2

Introudction4

Discussion4

Conclusion7

Coca Cola Case Study

Introudction

An etical dilemma occurs when an organization or its people are faced with selection one option from two highly undesireable alternatives. The basic reason for occurrence of such issues is the difference between the moral values or ethics and actual organization goals. A personal failure of character is also one of the major reasons behind arising of such problems. Such ethical dilemmas mostly occurs in two situations when it has a deep impact on the profitability of the company or on the stakeholder (Fernando, 2009).

Coca Cola is one of the market leaders when it comes to the beverages and soft drink industry. Though it is one of the most well known brand but it has been reported to face many financial crisis and ethical issues in the last ten years. Many of the top management employees and investors namely Ivester and Doug Daft left the company which has a negative impact on company's repuatation and profitability with its stock prices still stuck to where it was ten years ago. We will discuss the types of ethical issues faced by the company and its response to those issues in detail.

Discussion

Delineate the ethical issues and dilemmas the company faced.

The major ethical issue that the company faced was related to the sale of hazardous product which was harmful for the health of consumers. This incident took place in Belgium, when Coca Cola was accused of selling poorly processed batch of carbondioxide which made around 30 Belgian children ill. This was a contamination scare incident which took place in June 1999 (Scribd). This was related to the production and sale of hazardous product and harming customer confidence.

The next major problem in terms of ethical dilemmas was faced by the company when it faced competitive issue at industrial level in trying to undertake unfair means and practices of increasing its market share and dominance. European countries have very strict antitrust laws against unethical business practices of market share and positioning. Coca Cola's approach in the French market was ...