Ethical Issue at Rostov Company

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Ethical Issue at Rostov Company The Rostov Company is a well-recognized beverage corporation that has the possibility to do well in Russia and internationally. However, the company has experienced ethical issues, which led to some stockholders to lose confidence. While the company has engaged in philanthropic contributions to Russian educational and communal programs, they also were the focus of European governments due to large-scale pollution, and Rostov’s slow responses, in 1999. The result was loss of foreign government support. Belgium, for example, prohibited a marketing campaign for Rostov’s new products. Moreover, Rostov infringed on many European business when they did business in France and Italy, leading to a further loss of enthusiasm for the company among stockholders. Ethical change, Deficiency, or Conflict Rostov faced scrutiny for seemingly unethical errors. For example, Rostov made an exclusive deal with school districts across Russia. These school districts would receive money from Rostov as well as residual payments; in return, they would allow Rostov to install up to four vending machines in their high schools, three vending machines in their middle schools and only one in elementary schools. However, this became a source of controversy when studies argued that these vending machines were unhealthy to students. When legislation was put into place, Rostov removed the vending machines. Organizational Leadership Rostov Company has overcome adversity by establishing a core of well-trained and well-rounded leadership throughout the organization. The ‘Rostov system’ focused on the company, the bottlers, and the customers, which has helped make it one of the leading beverage companies in Russia. Rostov currently has a portfolio of more than five hundred beverage products, so the bottlers play a critical role in product distribution. Rostov
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