The Coca-Cola Company Struggles with Ethical Crises
Delineate the ethical issues and dilemmas (as found in Chapter 3) the company faced
This history of Coca-Cola is quite interesting. A curious pharmacist by the name of John Pemberton founded this company in 1886. John died long before he could see the success of his creation or the ethical crises that would arise in years to come. Coca- Cola is still said to the most recognized brand name in the world today with reported net worth of 68 .7 billion by the end of 2009 (Ferrell et all, 2011). Over the years, Coca-Cola has faced many ethical issues and dilemmas which has had a negative impact on the reputation of the company. The alleged misconducts of the company affected them in many other ways. Coca-Cola’s decent on the Fortune List, and their removal from the Business ethics magazine that list the top 100 Corporate citizens, was a clear indication of how people felt about Coca-Cola.
Some of the documented accusations included but were not limited to product safety, anti-competitiveness, racial discrimination (Ferrell, Fraedrich, Ferrell, 2011) and a host of other issues.
1999 was a rough year for Coca-Cola. There was one ethical dilemma after another, First Coca-Cola experienced a contamination scare when 30 Belgian children who consumed coke products died as a result of the improper processing of carbon dioxide. Coca Cola tried to regain the trust of the consumers by launching a “Restore” marketing campaign, but too much damage had been done. Belgium stopped the campaign citing possible violation of their antitrust laws. Then there was Competitive issues that plagued Coca-Cola. They tried to expand by branching out in France but were unsuccessful. In that same year Italy filed a suit against them claiming that Coke was using “strong-arm tactics” to push their product by using anti-competitive prices. Even though many of the countries were successful in...