¶ … Coca-Cola faced a number of different ethical issues. The case outlines some of them. The company had faced charges of racial discrimination at many of its plants, in particular relating to the lack of upward mobility for African-Americans at some of the company's southern plants. The company also faced charges of misrepresenting market tests, manipulating earnings, disrupting long-term contractual agreements with some of its distributors. All of these issues affect different stakeholders, but each has the ability to disrupt the company's reputation as an ethical firm. The new management needs to prioritize these issues and address them, while placing the issues in the context of a new philosophy of ethical management.
Of these issues, the manipulation of earnings is the most important. In order to make that determination, we must examine the different issues from the stakeholder perspective to understand the bottom line. The charges of racial discrimination affect a large number of employees, and can impact on the public reputation of the company. However, this issue is largely internal. Many customers are not likely to know about this issue, nor are they likely to care. Few would be surprised that a company based on Georgia is facing charges of racial discrimination. The issue does have potential negative financial consequences in that the plaintiffs are seeking judgment in the amount of $1.5 billion. Further, if they win the case, the door will be open for future similar suits around the world, regardless of merit. This issue, however, is not as catastrophic as some of the other issues, and should be relatively easy to resolve because of its low public profile.
The issues with the test marketing at Burger King really affect the company's reputation with partners. The strength of the Coca-Cola brand quite frankly is more than enough to overcome this. The downside risk is therefore minor and while the errors in judgment...
4. Decision and Defense against Weaknesses The Coca-Cola brand is already a strong one, but the company's involvement in unethical behaviors has negatively affected it. In order to decide upon the most favourable courses of action to be implemented in the direction of brand strengthening, one has to critically analyze the proposed strategies: restatement of the company's traditional brand values will offer an increased perception of the brand, but is likely to
Coca Cola Company is the biggest beverage company in the world. The company faces major competition and the top three competitors include Pepsico, Inc., Nestle S.A. and Dr. Pepper Snapple Group, Inc. The weaknesses of the company encompasses its substantial dependency on carbonates and the adverse perception of coca cola products being filled with high sugar content and therefore deemed unhealthy. The prospects that the company should seize encompasses the
Coca-Cola leads the world's beverage industry with as many as 400 products and has its presence globally in more than 200 countries. In addition to this, Coca-Cola collaborates with some 320 licenses to produce more than 10000 products in 57 countries. Products range from fashion apparel to holiday decorations and even a Coca-Cola Picnic Barbie doll. Every year, licensees sell 50 million licensed Coca-Cola products. Internal Business Environment Core Activities For over 100
products or service of your chosen organization, and two (2) key factors in the organization's external environment that can affect its success. Provide explanation to support the rationale. De Beers is the world's famous diamond company, established in 1888, with proficiency in exploration, mining and marketing of diamonds. More than 20,000 employees make contribution to the communities in which we work. De Beers carries out profitable business which helps the
Company audit occurs when there is need to examine the performance of a big company especially the financial and the accounting records over a given period of time. Professionals such as the certified public accountant always do the auditing. The audit of a company is significant in the verification of accuracy particularly in the accounting records. A company like coca cola will need an audit to help in verifying their
Personal and Organizational Ethics and Values between for-Profit and Not-For-Profit Organizations For-profit and not-for-profit companies often operate very differently from one another. Here this will be shown with a comparison between the American Red Cross (a not-for-profit company) and the Coca-Cola Company (a for-profit company). The background of each one of them will be addressed, and they proposed solutions and recommendations will be discussed. Each company has its problems, whether
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