Case Study: the Coca-Cola Company Struggles with Ethical Crises

The Coca-Cola Company Struggles with Ethical Crises Coca Cola has been a leading competitor in the beverage industry and has the world’s top leading soft drinks, including Coke, Diet Coke, Fanta and Sprite. It also sells other brands such as Powerade, Minute Maid and Dansani. Coca Cola has the largest distribution system in the world. This company has demonstrated a strong market orientation, making strategic decisions and taking actions to attract, satisfy and retain customers. With changes in top management over the life of this company, Coca Cola leadership seemed to lack the ability to handle a series of ethical crises.
Coca Cola’s ethical and legal problems have caused its stock to remain at the same price for the last ten years. The company has had issues with a contamination scare with consumers becoming ill after the consumption of the product in different countries. There has been issues internally with discrimination suits against the company by the African American employees, market research has been contaminated, sabotage within the company, and attempts to inflate earnings; all of which negatively affected the company. . Coca Cola has had one ethical issue after another over at least the last ten years. Investors, employees, customers, interest groups, the legal system, and the community often determine whether a specific action is right or wrong or ethical or unethical. With each of these determinants, they are the foundation of a strong ethical business. The ethical issues with Coca Cola are a result of inconsistent leadership.
Coca Cola leaders did not execute strong ethical habits which resulted in a long chain of unethical practices. 2. Based on Enron’s downfall, I don’t think that Coca-Cola will have the same outcome. Enron’s downfall was a result from top management hoarding money for their personal gain. I feel with those unethical acts performed by Enron for strictly for the personal gain of the individuals involved. Coca-Cola’s issues appeared to be the direct reflection of poor management and ethical skills, specifically top management. . Coca-Cola should start with the top management and re-evaluate the ethical foundation. First, the company needs to understand the individual factors, organizational factors, ethical intensity and opportunity to determine the intentions and evaluations of the business. The leadership influences the ethical decisions performed by the business as a whole. Also Coca Cola needs to address and resolve any lingering ethical dilemmas going forward and work to continuously build a strong ethical foundation.