Table of Content

Executive Summary 2

Introduction 3

Coca-Cola Straining Water Resources in India 4

Coca-Cola Racial discrimination 5

Conclusion 6

Reference 7
Executive Summary

No matter the enterprise or with the management business, as long as the human
composition of the operating activities, there will be a moral problem. If there is no
ethics in business management, it is difficult to succeed in business itself. The
establishment of business ethics will reflect the concept of business and social ethics
attention. (Bailey, 2018)

This report will discuss the ethical issues that Coca-Cola has faced.
Introduction

The Coca - Cola Company was founded in 1892, is the world's largest
beverage Company, is also soft drinks market pioneer. Through the largest
distribution system in the world, it sells over 200 countries and territories. Accounts
for 48% of the world's soft drink market, with a brand value of $73 billion.
(McWilliams, 2018)

Coca-Cola has 160 beverage brands in 200 countries, including soda, sports
drinks, juice, tea and coffee. In the United States, Coca-Cola is number one, with
more than 40% market share.

Coca-Cola was born in Atlanta, Georgia, in 1886. The local pharmacist (Dr
John Smith Pemberton) there developed a caramel- colored liquid, then he took a can
of this kind of research and development of new products to Jacobs' pharmacy in the
streets. The caramel-colored liquid was accidentally mixed with carbonated water to
produce this new beverage. Then Jacob's pharmacy buys it for five cents a cup.
Pemberton's partner and bookkeeper, Frank Robinson, invented the name Coca-Cola.
Letters that have been written in the same way since then.

Now, Coca-Cola has been operating for 126 years, and the entire corporation
has 139,600 employees, selling 1.6 billion bottles of drink in over 200 countries every
day.

Increasing market share is one of coke's most important goals. Coca-Cola's

strategy has been through the early 19th century to late-stage, through international
mergers, large market share, manufacturing leisure foods and overall performance to
increase market share. (Essays, UK., November 2013)
Coca-Cola Straining Water Resources in India

Coca-Cola has been criticized in India for being accused of product safety. But
the real reason the local people are angry is the water shortages and pollution caused
by the production of Coca-Cola. The problem is not just a production crisis of a
product, but it's likely to destroy the responsible corporate image that the firm has
created for centuries.

India's science and environmental center says there is a severe water crisis in a
village near the Coca-Cola factory in India. Because the Coca-Cola factory needed a
large amount of groundwater production to drink, which caused the local water to fail.
The Coca-Cola factory did not properly dispose of chemical waste, burying chemical
waste and polluting the soil, affecting crops. It takes almost four liters of water to
produce a liter of coke, which turns about 75 percent of the water into heavily
polluted waste water, which then continues to pollute other clean water sources and
land. Not only that, India's two Coca-Cola factories consume tens of millions of
gallons of water a day without paying for it. (Levitt, 2009)

Coke executives denied the accusations with "no authoritative evidence." Indians
were so upset by this argument that some people protested to the Coca-Cola factory
and forced the local village council to stop granting the factory license. The case
eventually reached the Supreme Court, and the factory was ordered closed. There are
a lot of similar stories in India

The water treatment technology and equipment used in India's Coca-Cola factory
is not as good as Europe, and it's rather rudimentary. Coca-Cola has shown that in
India, production management matches the European Union and the United States,
but the opposite is true. 34% of Europe's Coca-Cola factories are sophisticated and
expensive filtration technologies, and factories in India don't have a single factory that
has this high-end technology. (Slater & Terhune, 2003)

This brings to mind whether Coca-Cola uses different facilities in different

countries to save money and cost.
Coca-Cola Racial discrimination

Most of the images in Coca Cola's advertisements will bring the meaning of
harmony and sharing, but behind them there is another thing. Dozens of African-
American employees at Coca-Cola, who have been unfairly treated for the long term,
have filed a lawsuit against Coca-Cola.

16 African and Hispanic employees have accused two of the factories in the
United States, because of their work in the racist cesspools. According to the
plaintiffs, minorities are often stigmatized and humiliated. They also say they are
often assigned to unpopular jobs, such as clearing ditches, and face punishment and
retaliation for filing complaints. One of the plaintiffs also complained that racism was
evident when the white foreman wore a confederate flag to work at the factory. (the
confederacy was made up of 11 southern states that allowed black slavery during the
American civil war from 1861-1865.)

In the case of discrimination, a spokesman for Coca-Cola said that the firm
would not tolerate any discrimination and would take it seriously and look at it. But
the workers' representative lawyer pointed out that the Coca-Cola company doesn't
attach importance to this matter, on the other hand also ironic these employees with
ingratitude.

However, the Coca-Cola company is not the first time involved in scandals of
racial discrimination. In 1999, several African American workers sued for unfair
treatment of their pay, opportunities for advancement and job evaluation. This has led
to negative global coverage for Coca-Cola. Coke was willing to settle for $192.5
million at the time and donated to the Coca-Cola fund to support community
initiatives. It was also the largest settlement in the United States in the history of
racial discrimination. Although consumes a lot of time, but this approach has achieved
results. (Greenwald, 2012)
Conclusion

As a multinational company, Coca Cola should have higher requirements on

all the big and small things of the company. Coca Cola should apply the same
standards in different markets, because it can establish the excellent corporate culture
and business ethics of a multinational company in people's mind.

Coca-Cola should also face all the criticism and its own management
deficiencies with the right mindset. Companies should be good at learning lessons and
improving management to motivate employees to find problems. Instead of turning
the pressure of a management problem into an abuse of power by superiors to
pressure lower level employees.

Coca-Cola can develop ethics training courses, and to strengthen internal

ethics. Managers should give priority to professional ethics training, because only
with such culture at the top of the company can employees be infected to have a
professional ethics culture.

With the development of economy, globalization is a trend of making up

lessons and resisting, which is an infinite business opportunity for enterprises, but also
increases the competition among enterprises. If an enterprise wants to survive in the
fierce competition, in addition to its own economic strength, the support of the public
is also very important.

So, Coca-Cola is creating its own interests while also taking on social
responsibility. Corporate social responsibility is an intangible asset, which can't be
seen immediately, but it's a necessary foundation for a business to think long-term. In
the process of operation, the company must make clear its mission and set up a correct
value for the company. Consciously assume social responsibility and do not harm the
interests of consumers for the company's profits.
Reference
Bailey, S. (2018). Why is ethics important to business?. Retrieved from
https://blogs.accaglobal.com/2014/11/25/why-is-ethics-important-to-business/

Essays, UK. (November 2013). The Coca-Cola Company Struggles with Ethical Crises.
Retrieved from https://www.ukessays.com/essays/business/the-coca-cola-company-
struggles-with-ethical-crises-business-essay.php?vref=1

Greenwald, J. (2012). Coca-Cola Unit Sued for Alleged Racial Discrimination - Workforce.
Retrieved from https://www.workforce.com/2012/03/20/coca-cola-unit-sued-for-alleged-racial-
discrimination/

Levitt, T. (2009). Coca-Cola just part of India’s water ‘free-for-all’. Retrieved from
https://theecologist.org/2009/dec/04/coca-cola-just-part-indias-water-free-all

McWilliams, J. (2018). Coca-Cola No. 3 on Most Valuable Brands Ranking. Retrieved from
https://www.coca-colacompany.com/stories/coca-cola-no-3-on-most-valuable-brands-ranking

Slater, J., & Terhune, C. (2003). Coke, Pepsi Still Face Issues in India. Retrieved from
https://www.wsj.com/articles/SB10615643591098100