For this assignment, select a company from the following list: Adelphia Communic
ID: 429636 • Letter: F
Question
For this assignment, select a company from the following list:
Adelphia Communications Corporation
Arthur Andersen LLP
Coca-Cola
Countrywide Financial
Galleon Group
Global Crossing Ltd.
ImClone Systems Inc.
Microsoft
Monsanto
Nike
Tyco International
WorldCom
If you would prefer to complete this assignment using another company that has experienced an ethical crisis but is not included in the list of suggested companies, you must first obtain approval from your instructor.
Research the business and the ethical crisis the company has faced. Write a background summary report of 1,000 to 1,500 words. Your report should accomplish the following:
1.Summarize relevant information regarding the business and its history.
2. Summarize the crisis. What stakeholders were involved? What actions did they take? What were the results of those actions?
3. Explain the legal and ethical issues surrounding the crisis.
4. Include a minimum of four academic citations.
Explanation / Answer
1.Summarize relevant information regarding the business and its history.
Type
Cola
Manufacturer
The Coca-Cola Company
Country of origin
United States
Introduced
1886
Color
Caramel E-150d
Flavor
Cola
Variants
Related products
Pepsi
Irn-Bru
RC Cola
Afri-Cola
Postobón
Inca Kola
Kola Real
Website
www.coca-cola.com
Coca cola known to every one because of their taste , quality , Standards since last more than 100 years.Coca-Cola history began in 1886 when the interest of an Atlanta pharmacist, Dr. John S. Pemberton, led him to make a characteristic taste soft drink that might be sold at soda fountains. He shaped a flavored syrup, took it to his region pharmacy, where it was varied with sparkling water and deemed “brilliant” by those who sampled it. Dr. Pemberton’s colleague and bookkeeper, Frank M. Robinson, is qualified with identification the beverage “CocaCola” as well as conniving the brand name, dissimilar characters, still used today.
The first portion of CocaCola were sold for 5 cents per glass.. Today’s statistics are reached upto 1.9 billion globally per day. Dr. Pemberton sold share of his business to various parties, with the majority of business to Atlanta businessman, Asa G. Candler. Under Mr. Candler’s leadership Coca Cola expanded their business beyond Atlanata.
There is drastic change in the present bottles & previous bottles. The old bottles were having lack of packaging consistency. The new bottles have created a new brand in market beyond their taste.
The initial promotional hard work in CocaCola history were executed through voucher endorsing without charge samples of the beverage. With this innovativeness in free sample they promoted coca cola through news papers & through pharmacies. In 1980 the coca cola promoted brand through computer animation. In year 2009 Coca Cola launched the open happiness concept ,where they tried to find out how people happiness can be achieved through selling of Coca Cola.
Coca Cola corporate office located at Atlanta, GA, United States of America with manufacturing facilities all over world.
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2. Summarize the crisis. What stakeholders were involved? What actions did they take? What were the results of those actions?
Belgian crisis :
The public relation issues involved in Coca-Cola's Belgian crisis. :The issue associated in Belgian was savior .All the Products were recalled on the ground of that they were not hygenic. In that time it was affected on good will of coca cola .For time being coca coal was banned from Belgian market.
UK crises :
The coca cola faced the ethical crises in UK. They fail to follow the ethical rules & regulations of UK government. The system or process they were following was not following the regulations of UK.
India Crises :
The Indian crises was very danger. Authorities directly trapped the cock with pesticide content. The Issue of Pesticide residue in India became very serious .Supreme court warned to Coca Cola for giving proof that they are following all the standards which are set by governments. Because of this issues they loose their good will from Indian Market.
US & India difference in quality :
Coca cola was deliberating making the difference in taste of coke in India & US. Because the US governments are having very strict control on soft drink compare to India .They were taken undue advantage.
Product safety issues :
Most of the countries are claiming that Coca cola product is not safety from health point of view.
Stake holders involved :
Actions Taken by Coca Cola for above crises :
Results of these actions :
1) They came back with their quality
2) Maintained again same good will
3) Customer satisfaction is increased
4) Strong image of the brand in front of other competition.
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Q.no 3 Explain the legal and ethical issues surrounding the crisis.
Ethical & Legal issues surrounding the crises :
Ethical issues :
Usage of water : Coca Cola needs huge water. In India they have started this first factory where there is problem of water. Study revels that for 1 lit.coke 9 lit water is required .All that area were facing a problem of water shortage. so this was totally unethical.
Unethical & dishonest campaigning :
Company uses very unethical practice of promoting the product .What they are showing & what is the reality is very different. All the promotions are just only focusing on how the sale can be increased but not think about human health.
Misery of thousand of people :
Because of the pesticide & other quality issues people very disappointed about the coca cola.Coca cola is not declaring their process , so its suspicious in the mind of customer what process they are following .
Usage of Soda :
Coka cola uses a soda which is major ingredient in product. Now this soda is dangerous for human health. On the issues of this soda case if labors are coming together then they are denying these labors.
Legal Issues of Coca Cola :
As Coca cola caught in so many issues like quality , product safety , taste, environmental standards etc.So they are facing so many case on local jurisdiction of a respective countries. That legal issues consist of coverage of human health , environmental affection , revenue or taxation matters etc
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4. Include a minimum of four academic citations.
http://www.slideshare.net/nethanp/unethical-business-by-cocacola
http://www.coca-colaindia.com/
https://www.hindustancoca-cola.com/contact_us.aspx
https://en.wikipedia.org/wiki/Coca-Cola
Type
Cola
Manufacturer
The Coca-Cola Company
Country of origin
United States
Introduced
1886
Color
Caramel E-150d
Flavor
Cola
Variants
- New Coke/"Coca-Cola II" (Discontinued)
- Diet Coke
- Caffeine-Free Coca-Cola
- Diet Coke Caffeine-Free
- Coca-Cola Zero
- Coca-Cola Cherry
- Coca-Cola with Lemon (Discontinued)
- Coca-Cola Vanilla
- Coca-Cola with Lime
- Coca-Cola Raspberry (Discontinued)
- Coca-Cola Black Cherry Vanilla (Discontinued)
- Coca-Cola Blk (Discontinued)
- Coca-Cola Citra
- Coca-Cola Orange
- Coca-Cola Life
Related products
Pepsi
Irn-Bru
RC Cola
Afri-Cola
Postobón
Inca Kola
Kola Real
Website
www.coca-cola.com
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