COCA-COLA COMPANY

The Coca-Cola Company Struggles with Ethical Crises”



The Coca-Cola Company Struggles with Ethical Crises”

The Coca - Cola Company struggles with Ethical Crises

Coca-cola has the most valuable brand name in the world and, one of the most visible companies worldwide, has a tremendous opportunity to excel in all dimensions of business performance. However, over the last ten years, the firm has struggled to reach its financial objectives and has been associated with a number of ethical crises.

Many issues were facing Doug Ivester when he took over the reins at Coca-Cola in 1997. Ivester was heralded for his ability to handle the financial flows and details of the soft drink giant. Former CEO Robert Goizueta had carefully groomed Ivester for the top position that he assumed in October 1997 after Goizueta's untimely death. However, Ivester seemed to lack leadership in handling a series of ethical crises, causing some to doubt the “Big Red's” reputation and its prospects for the future.

Coca-Cola's Reputation

Coca-Cola is the most-recognized trademark and brand name in the world today with a trademark value estimated to be about $25 billion. The company has always demonstrated a strong market orientation, making strategic decisions and taking actions to attract, satisfy, and retain customers. During World War II, for example, company president Robert Woodruff committed to selling Coke to members of the armed services for just a nickel a bottle. As one analyst said later, “Customer loyalty never came cheaper.” This philosophy helped make Coke a truly global brand, with its trademark brands and colors recognizable on cans, bottles and advertisements around the world. The advance Coca-Cola products into almost every country in the world demonstrated the company's international market orientation and improved its ability to gain brand recognition. These efforts contributed to the company's strong reputation.

Social Responsibility Focus

Coca-Cola has made local education and community improvement programs a top priority for its philanthropic initiatives. Coca-Cola foundations “support the promise of a better life for people and their communities.” For example, Coca-Cola is involved in a program called “Education on wheels” in Singapore where history is brought to life in an interactive discovery adventure for children. In an interactive classroom bus, children are engaged and initiatives in a three hour drama specially written for the program. It challenges creativity and initiatives while enhancing communication skills as children discover new insights into life in the city.

Coca-Cola also offers grants to various colleges and universities in more than half of the United States, as well as numerous international grants. In addition to grants, Coca-Cola provides scholarships to more than 170 colleges, and this number is expected to grow to 287 over the next four years. It includes 30 tribal colleges belonging to the American Indian College Fund. Coca-Cola is also involved with the Hispanic Scholarship Fund.

The company recognizes its responsibilities on a global scale and continues to take action to uphold this responsibility such as taking steps not to harm the environment while acquiring goods and setting up ...