Ethical Issues
Ethical Issue at Coca-Cola
Ethics in Management – PHL/323
Derrek Choy
12/21/2009
Ethical Issue at Coca-Cola
The Coca-Cola Bottling Company is a well-recognized brand and they have a chance to do extremely well in different aspects of business performance. However, this drink giant has experienced thoughtless ethical troubles with its affiliation amid their stakeholders. Although they engage in philanthropic contributions to learning and neighborhood programs, several stakeholders began losing confidence in the legendary bottling company.
Europeans’ and government organizations’ confidence went astray with Coca-Cola once they observed the slow response to beverage pollution occurrences in 1999. Belgium even prohibited a marketing campaign for new products. Competitive problems, plus a harmful image following the contamination incidents, encouraged European’s distrustful mind-set. Countless business methods in France and Italy infringed on European’s regular business practices along with traditions, therefore supporting the patrons’ lack of enthusiasm in the company.
In 2002, the company defrauded the fast-food chain Burger King by hampering the marketing research results of a frozen drink dispensed through Burger King. Coca-cola had to repay damages in the millions to Burger King and this occurrence lowered shareholders’ outlook. They also committed accounting fraud through inflating sales figures by forcing more products through distribution channels, or channel stuffing.
Ethical change, Deficiency, or Conflict
The Coca-Cola Company made different errors in dealing with the problems that surfaced over the last decade. During the Belgium crisis, their lack of disclosure ultimately hurt the credibility of Coca-Cola. Coca-Cola was aware of the contamination a week before people began to complain of illness, and when confronted by the press, Coca-Cola denied resposiblity for the contamination. They also denied the actual
Ethics in Management – PHL/323
Derrek Choy
12/21/2009
Ethical Issue at Coca-Cola
The Coca-Cola Bottling Company is a well-recognized brand and they have a chance to do extremely well in different aspects of business performance. However, this drink giant has experienced thoughtless ethical troubles with its affiliation amid their stakeholders. Although they engage in philanthropic contributions to learning and neighborhood programs, several stakeholders began losing confidence in the legendary bottling company.
Europeans’ and government organizations’ confidence went astray with Coca-Cola once they observed the slow response to beverage pollution occurrences in 1999. Belgium even prohibited a marketing campaign for new products. Competitive problems, plus a harmful image following the contamination incidents, encouraged European’s distrustful mind-set. Countless business methods in France and Italy infringed on European’s regular business practices along with traditions, therefore supporting the patrons’ lack of enthusiasm in the company.
In 2002, the company defrauded the fast-food chain Burger King by hampering the marketing research results of a frozen drink dispensed through Burger King. Coca-cola had to repay damages in the millions to Burger King and this occurrence lowered shareholders’ outlook. They also committed accounting fraud through inflating sales figures by forcing more products through distribution channels, or channel stuffing.
Ethical change, Deficiency, or Conflict
The Coca-Cola Company made different errors in dealing with the problems that surfaced over the last decade. During the Belgium crisis, their lack of disclosure ultimately hurt the credibility of Coca-Cola. Coca-Cola was aware of the contamination a week before people began to complain of illness, and when confronted by the press, Coca-Cola denied resposiblity for the contamination. They also denied the actual