Ethical Considerations of Coca-Cola Company - Good Grades Homework Tutors

Table of Contents

Introduction
Discussion
Conclusion
References

Introduction

Coca-Cola is one of the most famous companies in the international market. The brand has consistently demonstrated a strong focus on the market and decision-making to satisfy its customers. Almost in all restaurants worldwide, customer encounters Coca-Cola drinks, such as Sprite and Fanta. Moreover, Coca-Cola promoted itself almost in all countries, increasing brand recognition and loyalty (Ferrell et al., 2009). Indeed, the company has faced specific issues concerning ethical considerations. It is vital to scrutinize why Coca-Cola has had multiple ethical problems over the last decade and what the company can do to recover its reputation and resolve problematic considerations.

Discussion

Over the last decade, Coca-Cola has had to withstand severe ethical crises. The company strived to complete its financial goals and could not manage specific significant issues, such as racial discrimination scandals and financial manipulation. In 2020, some sources promoted the idea of Coca-Cola being anti-white (The Indian Express, 2021). Moreover, it is stated that Coca-Cola violated contracts with stakeholders in the 2000-s, which led to the companys vulnerability, as one of the stakeholders decided to leave the company. In addition, the history of Coca-Colas competition with PepsiCo made Coca-Cola more assailable, as companies started to rival personally, accusing each other of financial fraud and inappropriate behavior.

At the beginning of the 21st century, a chain of adverse events connected to customers poisoning with carbon dioxide happened. The expertise documented the crucial manufacturing mistake; Coca-Cola had to reveal the truth and comment on the situation. Apart from the poisoning scandal, the company faced the issue with the Belgium market, where Coca-Cola was accused of illegally strengthening its market share (Ferrell et al., 2009). In addition, the recent incident with Cristiano Ronaldo at Euro 2020 press conference made Coca-Cola suffer significant financial losses. Ronaldo replaced Coca-Cola with pure drinking water; his gesture made Coca-Colas shares fall (IndiaTimes, 2021). It is vital to remember that Coca-Cola is the official sponsor of the Union of European Football Associations, and the incident directly influences the image of Coca-Cola as a sponsor.

One of the analysts claimed that Coca-Cola could repeat the fate of Enron, which collapsed several years ago. Today, it becomes possible to see that Enron failed to resolve ethical questions such as financial fraud and hiding debts from investors (Silverstein, 2019). Moreover, weak organization and corporate culture led Enron to collapse, ending its heyday. The collapse of Coca-Cola is probably impossible, as its organizational culture and brand image are too strong to fail the whole corporation. Although COVID-19 influenced the entire supply chain of Coca-Cola, undermining its usual manufacturing and distribution, the company took certain actions to provide supply chain continuity (Westfall, 2020). The company attempts to recover the chain of supply and distribution and, at the same time, tries to treat its workers properly. Coca-Cola is famous for its ability to resolve problems quickly; indeed, it might be painful for its brand image.

Furthermore, some rival companies claimed that Coca-Colas promotion strategies were excessively aggressive, leading to other companies vulnerability and displacement in the market. It probably happened due to worldwide recognition of Coca-Cola by customers, and, being in a restaurant or cafÃ©, they choose a famous drink instead of an unknown one. The obesity crisis in China influenced global Coca-Colas funding, even though the companys message is to promote a healthy and active lifestyle (Boseley, 2019). One more incident is currently taking place: bloggers on YouTube accuse Coca-Cola of producing acid water. A recent scandal with Dasani water, manufactured by Coca-Cola, undermined the companys reputation, demonstrating the acidity of Dasani and its harmful influence on the human organism (Demond, 2020). Currently, Coca-Cola has not presented its official answer to this issue.

Coca-Cola had to manage multiple ethical considerations at once. Probably, the company had to withstand numerous problems because of its largeness: people were expecting excellent work inside and outside Coca-Cola; indeed, tracking all stages of manufacturing and promotion might be difficult. Coca-Cola is a giant company that provides millions of people with workplaces. It can be complicated to properly monitor the activity of manufacturers, distributors, PR managers, and other workers. In addition, over the last decade, there has been a tendency to pay extreme attention to ethical considerations. Many famous companies face the problem of discrimination and improper treatment in the 21st century and have to manage these issues. Therefore, it might be suitable to claim that Coca-Cola is not the single company that has to deal with ethical issues.

Conclusion

Overall, there are several ways in which the company can recover and avoid crucial mistakes. Coca-Cola should stop rivaling aggressively with other companies and control its brand image better to mend its reputation and prevent future dilemmas with stakeholders. Additively, the company can provide intermediaries with specific contracts, ensuring both sides have satisfactory terms. Clarity and transparency are issues that might raise stakeholders trust. For instance, Enron hid debts from investors, leading to a colossal collapse. Thus, one of the recommendations for Coca-Cola is to implement a transparent system of financial tracking for investors and intermediaries. Additively, Coca-Cola might pay more attention to building a more robust organizational culture to prevent its collapse.