Preview

Discuss the Company’s Reputation (Justified or Not) in Light of the Concept of “Managing Interdependence Around the World.” What Does It Take to Be a “Good Citizen” in Host Countries? How Well Has Coca-Cola Fared in This Regard? What Doe...

Powerful Essays
Open Document
Open Document
2376 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Discuss the Company’s Reputation (Justified or Not) in Light of the Concept of “Managing Interdependence Around the World.” What Does It Take to Be a “Good Citizen” in Host Countries? How Well Has Coca-Cola Fared in This Regard? What Doe...
When discussing company’s reputation in the light of the concept of managing interdependence, first we have to understand what is meant by managing interdependence. Global interdependence is a compelling factor in the global business environment creating demands on international managers to take a positive stance on issues of social responsibility and ethical behavior, economic development in host countries and ecological protection around the world (Deresky H. 2008) .
A multinational corporation (MNC), whom main concern of the business is to make profit, within the confines of the law, in order to produce goods and services and serve its shareholders’ interests (Friedman M. 1962) , are also expected to anticipate and solve social needs of their host country, this is called the corporate social responsibility (CSR) of a MNC. The concept of international social responsibility includes the expectation that the MNCs concern themselves with the social and economic effects of their decision. As mentioned by, Donaldson T. (2005, 6), corporate activity should be motivated in part by a concern for the welfare of some non-owners, and by an underlying commitment to basic principles such as integrity and respect for persons .
Coca-Cola had always believed that they conducted their business with responsibility and ethics. The company’s business practices were aimed at creating value at the marketplace, providing excellent working conditions, protecting the environment, and strengthening the communities in the place of operation. Commitment to quality and a code of business conduct were evolved to ensure good business practices (Coca-Cola Business Practices, 2006) .
However, The Coca-Cola Company (TCCC) has been alleged with business misconducts in Columbia, Mexico and India which has linked the company with several charges against violation of human rights issues, business misconducts and environmental issues. These allegations against TCCC have led to several protest,

You May Also Find These Documents Helpful

  • Better Essays

    Coca-Cola believes in living their values. Their actions describe their behavior in the world. Coca Cola has seven main values that drive their actions and behaviors. The seven values are accountability, collaboration, diversity, integrity, leadership, passion, and quality. Coca-Cola’s leadership shapes to improve their future. Their leaders include the board of directors, operations, and senior functional leadership. Using collaboration produces Coca-Cola’s leverage for collectively working together. Their integrity is to be genuine or honest with their customers. Coca-Cola’s responsibility is to show they are accountable for their actions. They show their…

    • 1060 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Since the late 1990s, Coca-Cola has been embroiled in at least eight significant ethical dilemmas. The first came in June 1999 when Coca-Cola’s products were contaminated. Consumers in Belgium, the Netherlands and Luxembourg became sick after using Coca-Cola products. Coca-Cola mismanaged the problem and downplayed it. Then over 100 people became sick in France and months later in Poland with water contaminated with mold. In each of these events, Coca-Cola did not react in a timely fashion or with the appropriate concern for public health, but eventually conceded that it was their contamination problem.…

    • 1293 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Guns

    • 362 Words
    • 2 Pages

    Host countries expect multinational enterprises to comply with societal and legal expectations and standards. Home countries expect multinational enterprise based within its borders to demonstrate social responsibility.…

    • 362 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Coca Cola prides itself on being the world’s largest manufacturer, distributor and marketer of non-alcoholic beverages worldwide.[6] Although it usually acts as a distributor, it plans to take a more controlling interest in bottling operations in the future.[7] Coca Cola engages in significant marketing expenditures to keep its brand image strong.[8] Coca Cola discusses its four strategies for success: “driving global beverage leadership, accelerating innovation, leveraging balanced geographic portfolio, leading the Coca Cola system for growth.”[9] Some risks and challenges that Coca Cola has to face is adverse health warnings against the company, maintaining superb water quality for its beverages, staying competitive, and being socially responsible.[10]…

    • 711 Words
    • 3 Pages
    Powerful Essays
  • Better Essays

    Starbucks

    • 1215 Words
    • 5 Pages

    Mullerat, R. (2010), International Corporate Social Responsibility: The Role of Corporations in the Economic Order of the 21st Century, The Netherlands: Kluwer Law International…

    • 1215 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Business Ethics Outline

    • 1266 Words
    • 6 Pages

    Crane, A; Matten, D; & Spence, L; (2007) Corporate Social Responsibility: Readings and Cases in a Global Context…

    • 1266 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Coca Cola Case Study

    • 1918 Words
    • 8 Pages

    Firstly, Gupta must understand that Coca Cola has faced several crisis in the past. On February 2003, CSE (Center for Science and Environment), an activist group in India has already brought the issue about Coca-Cola’s Kinley Bottled water which was declared containing pesticides residues, six months before they brought up the same issue about Coca Cola. Since Coca Cola India remained silent about the first issue, the buzz was created and spread, made it even harder to maintain the situation. While in 1997, Coca Cola also had a problem in India. They had to leave India, instead of revealed their formula to government, when Janata Party led India and oblige Coca Cola, and other foreign companies, to dilute their equity stake until 40%, as written under Foreign Exchange Regulation Act (FERA). Any other crisis were happened too on other countries such as in Belgium and Atlanta.…

    • 1918 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    The company’s unethical behavior started years ago when the secret formula of the Coca-Cola drink was in question. Coca-Cola, the world 's best-selling soft drink, once contained cocaine, and it is still flavored with a non-narcotic extract from the coca, the plant from which cocaine is derived (May,1988). Some people believe that this action by the company had a main reason behind it, which is the case when most unethical behavior occurs. The Coca-Cola Company’s idea of creating customer loyalty was aimed more at addicting the customer to the product over developing a relationship between the customer and the company (Zarate, 2012). By addicting the customers to the soft drink, revenues will have increased dramatically and demand for the product would have always been extraordinary. This was a very unethical behavior on the company’s part due to the fact that people of all ages were drinking the product and the company was producing a product that could have had potential harm to the society. The impact of cocaine on society can be seen in those that use the substance families, communities, and workplaces. As the public began to turn against cocaine, because its adverse effects and addictive properties were discovered, the Coca-Cola Company eventually switched the soft drink’s formula. If the company did not switch the soft drink’s formula it would have impacted the demand of the product, resulting in less sales revenue and would have hindered the growth of the company. By the end of the 1900’s the Coca-Cola soft drink was completely free of cocaine (Harrell,…

    • 4079 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Ethical issues have been a problem for Coca-Cola because the company has lacked quality leadership in many areas of the organization. It seems that the company was not prepared to handle disputes or incidents when they occurred. They were slow to respond in many incidents because they were ill equipped to handle the fall out. They essentially had no crisis management skills. It seems that a company as large as Coke would have already had an ethical compliance committee and a diversity council yet these two all important functions were not created until after a problem was discovered or reported. This demonstrates a clear lack of focus on the part of Coke, the company was so consumed with dominating the global market that it failed to provide adequate leadership to its firm and as a result Coke has been plagued with incident after incident that as hurt the image of the firm as well as its market share.…

    • 1075 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Coke Paper

    • 791 Words
    • 4 Pages

    Coca-Cola’s ethical and legal problems appear to have had an impact on Coca-Colas financial performance, with its stock trading today at the same price it did ten years ago. The various ethical crises have been associated with turnover in top management, departure of key investors, and the loss of reputation. There seems to be no end to these events as major crises continue to develop. A deontological analysis shows that coca-cola is an unethical company that has taken advantage of people and abused certain situations; Coca-Cola Company did not conform to general moral principles. By racially discriminating against their workers, Coca-Cola has violated the non consequentiality perspective that governs the rights of individuals as human beings. (philanthropy.com/article/Handling...Ethical-Dilemmas/52545/)…

    • 791 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Coca Cola is the world largest beverage company at the moment (Food and Beverage Close-Up 2010). Being a large and well known company, They have several responsibilities and obligations to both the society and stakeholders. Social responsibilities means that business should oversee the operations of the economy which fulfill the public expectation (Steiner 1971). Most businesses primary focus is to make profits and staying ahead of their competitiors. However, they need to take into account their responsibility to the other end of the group in the society and stakeholders. The number of consumer who take into account of the company social performance is steadily growing and it is an important aspect for companies to keep this in mind when conducting the nature of their business. This paper will discuss and review about Coca Cola Social performance both in its positive and negative light.…

    • 2117 Words
    • 4 Pages
    Best Essays
  • Powerful Essays

    Inability to meet deadline that required agreeing on a protocol of findings of the commission formed by a set of Universities in the US…

    • 2413 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    The Coca-Cola Company is the world’s largest non-alcoholic beverage company; Coca-Cola is a dominating force in the beverage industry and sets a very high standard of competition. Operating in over 200 countries with over 50,000 employees and more than 800 production and distribution centers. . Research shows that its trademark is recognized by over 94% of the world’s population…

    • 617 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Ethics Assigment

    • 367 Words
    • 2 Pages

    ✓ Answer three (3) questions mentioned in the case study “The Coca-Cola Company Struggles with Ethical Crises. Page 308-316 of the text:…

    • 367 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Ethical Effect to Mns's

    • 2008 Words
    • 9 Pages

    Business entities have adopted globalization in conformity with modern trends. In view of businesses becoming global entities, it is imperative that aspects of business ethics and social responsibility be incorporated into the organizational structures of multinational corporations. Multinational companies are being put on the spotlight over the positive and the negative effects of their activities. Aware of this fact, MNCs are getting involved in activities that are inclined to benefit the society and give them a competitive advantage over local firms. The involvement is gauged using the society laws of interdependence and the laid out human rights and standards of living. This paper explores the social responsibility practices of MNCs when they operate in foreign countries and highlights the extent that their code of conduct mirrors their home country’s ' institutional characteristics in the foreign lands (Amaeshi, 2008). It looks at the globalization aspects of these companies’ activities and their impacts to a country’s culture, belief system, people skills, the impact on employment practices, and the effect on the environmental in the given countries.…

    • 2008 Words
    • 9 Pages
    Powerful Essays

Related Topics