The Ethical Issues Coca Cola Needs to Consider

P1 Describe the good issues Coca Cola needs to consider in its operational activities. Your passenger vehicle has asked you to prepare briefing papers to explain the ethical issues the client organisation needs to consider in its operational activities (P1) judgement disdain Ethics Understanding transmission line ethics Business Ethics plays an important role in line of credit today and it foundation be defined as an examination of how nation & institutions should behave in the world of commerce and it Ethics is the study of the moral obligations and the difference between right and wrong.Ethical values the standards that are held and are set by a business or individuals that control their behavior. Business Ethics . Ein truth activity and every profession requires that employees work with the responsibility and must respect non only general, but also the special requirements of master morality. Since ancient times it comes to professional morality or professional ethics , emphasizing such things as professional conscience and responsibility, self-esteem and dignity. Source http//www. ibe. org. uk/index. asp? upid=71&msid=12Individuals and professionals within Coca-Cola must be ethical in the determinations they flummox this include Respect other workers and passenger vehicles, development appropriate behavior Perform job competently Act loyally Act honestly Coca-Cola ethical activities Coca-cola always focuses on making a positively charged contribution to the community. Coca-cola support a lot of charities, force backs to be the beverage indus label leader in energy efficiency and climate protection. likewise they grip try to improve bottling plants to safely return to nature and communities an amount of water equivalent to what they use in their beverages and production.Operational activities Operational activities are day-to-day actions taken by a firm to achieve its primary purpose to simplify that it is what a business actually does. Coca-cola makes soft drinks and beverage products, factories contain machinery and have volume running them, it makes and receives deliveries, people travel to and from the factory. Operational management is very important and that includes controlling how a business works, so that it achieves the aims and objectives which is set by strategic management. Aims and objectives An aim is where the business wants to go in the future, its goals.Objectives give the business a clearly defined target. Plans can then be made to achieve these targets. Without aims and objectives there is no meaning to business, its the aim and objectives that give meaning to subsequent activities of planning, directing, staffing, organising and controlling. Coca-colas aims and objectives are to To refresh the world in mind, body and spirit by providing the best product that they can to the public in order to create client satisfaction and ensure that all employees are working to their highest standards.Coc a-Cola also wants to be the best beverage gross revenue and customer service Company and make sure to never let their high standards of quality fail. To create a value and make a difference everywhere they engage. To inspire moments of optimism by dint of their brands and actions Live Our Values Coca-Colas values serves as a compass for their actions and describe how they behave in the world. Values include leading The courage to shape a better future Collaboration Leverage collective genius Integrity Be real Accountability If it is to be, its up to me fretfulness Committed in heart and mindDiversity As inclusive as our brands Quality What we do, we do well http//www. thecocacolacompany. com/ourcompany/mission_vision_values. html Corporate Responsibility Coca-Cola manages their corporate responsibility through the Public Policy and Corporate reputation council. Coca-cola also have to review Company policies and practices relating to significant public issues of concern to the shareholders. After researching Coca-colas Code of establish I found that Coca-cola said Corporate responsibility is not just good for Coca-Cola, but for the whole world too.Protecting resources, saving energy and encouraging cycle are serious challenges. If we all play our part in meeting them, everybody will benefit. http//www. thecoca-colacompany. com/ourcompany/pdf/COBC_English. pdf Corporate Governance The Coca-Cola Company is committed to sound principles of corporate governance. The identity card is elected by the shareowners to oversee their interest in the long-term wellness and the overall success of the business and its financial strength. The Board serves as the ultimate decision making body of the Company, except for those matters reserved to or shared with the shareowners.The Board selects and oversees the members of senior management, who are charged by the Board with conducting the business of the Company. After researching Coca-colas Code of Conduct I found that the responsibility for administering the Code rests with the Ethics & Compliance Committee, with oversight by the Chief Financial Officer, General Counsel and examine Committee of the Board of Directors. The Ethics & Compliance Committee is comprised of senior leaders representing corporate governance functions as well as operations. http//www. thecoca-colacompany. om/ourcompany/pdf/COBC_English. pdf Environment Environment is very important as its the natural world either as a whole or in a particular geographical area. When it comes to Coca-Cola they keep trying to improve themselves and be environmentally friendly. Coca-Cola designed water programs to support healthy watersheds and sustainable programs to balance the water used throughout their production process. Also they use sustainable packaging, energy saving and climate protection. There are many hopeless stories how Coca-Cola had a bad impact on the environment. Negative stories EnvironmentIn 2004 Coca-Cola receptive bottling operations in India Kala Dera village and after factory was opened the community started to notice a rapid decline in groundwater levels and people was thirsting because of Coca-Cola. Coca-Cola has more than 50 bottling plants and six are reported that they are draining water too much, because each bottling plant extracts up to 1. 5m litres of water everyday from the ground and it takes about 9L of bracing water to manufacture a 1L of Coke. Sustainability Sustainability can be defined as maintaining the worlds resources rather than depleting or destroying them.This will ensure business can support human beings activity now and in the future. Coca-Cola is always trying to reduce and optimize the amount of materials and energy used for their packaging, also 85% of their products is delivered in recyclable bottles and cans. Coca-Cola are also trying to reduce their impact and minimize their use of water and their goal is to improve their water efficiency by 20% by 2012. So all in all Coca-Cola is keep trying to stay sustainable as possible, although they have bad stories about depleting water in India. In 2000 Coca-Cola opened a new plant at Plachimada in India and it produced 1. m litres of coke everyday which is almost 11m litres of clean water from the ground everyday. humane rights are the rights and freedoms to which all humans are entitled. Coca-Cola is constantly improving their human rights by respecting their employees and customers and protecting workplace rights. Coca-Cola had a lot of bad stories about human rights. To date, there have been a total of 179 major human rights violations of Coca- Colas workers, including 9 murders. In 2001 Coca-Colas bottling companies had been linked to many controversies.These included the murder of eight union leaders. Violence, abductions and rack of the union members were common practice in Colombia. In Code of Conduct Coca-Cola have said We are continually advancing our understanding of human rights b y engaging with experts in the field and with our peer companies. In 2007, The Coca-Cola Company joined the Business Leaders Initiative on Human Rights (BLIHR), a network of 11 multinational companies focused on identifying practical ways of applying human rights principles within the business context. http//www. thecoca-colacompany. om/ourcompany/pdf/COBC_English. pdf decadency is to be guilty of dishonest practices and impairment of integrity. Corrupt heart and soul getting something by unfair means. Its a major concern for every business and Coca-Cola do have a policy on corruption, although they were convolute in corruption in past such as they underhand dealing and getting contracts not ethically and fairly. Anti-Corruption Partnership As a signer to the United Nations Global Compact, Coca-Cola are actively engaged with other companies and nongovernmental organizations in the fight against corruption.In December 2007, Coca-Cola became a signatory to the World Economic Foru m Partnering Against Corruption Initiative (PACI), making The Coca-Cola Company the first food and beverage company to join approximately 140 other multinational companies in the private sphere of influence fight against corruption http//www. thecoca-colacompany. com/ourcompany/pdf/COBC_English. pdf Trading fairly is market-based approach to empowering fair trade where * Business is carried on in an open manner * Consumers can feel plug that the goods and services that they paying for are going to be of satisfactory quality * Competition is open and fair 005 Pepsi Co had filed a case in the US accusing Coca-Cola of monopolizing the market of fountain dispensed soft drinks in the US. 2005 Coca-Cola agreed to end all its deals with shops and bars in Europe to stock only Coca-Cola. 2005 Coca-Cola were incriminate of poor trade practices in Mexico, because Mexicans were buying Big Cola rather then products from Coca-Cola because it was cheaper therefore Coca-Cola changed pricing str ategies in Mexico and therefore started threatening the small business owners to stop selling Big Cola.Coca-Cola had few bad stories for not trading fairly in past these includes not letting shops to sell other soft drinks. http//en. wikipedia. org/wiki/Fair_trade Legal and regulatory compliance Legal Compliance is more important than regulatory compliance. The most important statutory areas are * Freedom of cultivation Acts (2000 and 2002) * Data Protection (1998) * Health and Safety * Employment Law * Human Rights (2000) * Animal Welfare Acts And Regulation * Contractual Relationships * Environmental Information regulations 009 Lawsuit was filed in regards to company flavours, of Vitamin Water. Claims say that there is 33 grams of sugar in each bottle of Coca-Cola that is more harmful than the vitamins and other additives. 2008 Coca-Cola were accused in Philippines for an unfair rival case because investigation raided three of cokes warehouses for illegally possessing imported b ottles. 2008 Coca-Cola had to pay $137. 5 million to settle a shareholder lawsuit as they were channel fecundation or artificial inflation. Coca-Cola was charged in a U. S.District Court for the Northern District of Georgia, with forcing some bottlers to purchase hundreds of millions of dollars of unnecessary beverage concentrate to make its sales seem higher. Regulatory compliance is almost as important as legislative compliance. This is an important element in both good management and institutional efficiency. Elements include * Funding * Teaching Quality Assessment * Research Quality * Financial Audit * Risk Management * Disaster Planning and Business retrieval http//www. lilesparker. com/areas-of-practice/regulatory-compliance http//www. thecoca-colacompany. om/ourcompany/pdf/COBC_English. pdf Coca-cola negative stories Working conditions Working conditions can be defined as the conditions in which staff works this can include stress and noise levels, stop of safety or danger or physical environment. Coca-cola has strict working conditions to ensure that their staff is always safe. Working conditions are really important and it includes health and safety standards. Coca-cola has bad stories for its working conditions. To investigate Coca-colas working conditions few undercover students was sent to Coca-colas factory for temporary job during summer.One of the students was beaten by staff members at the agency and student said that he was beaten by staffers at the agency after he demanded pay for his work at Coca-Cola. Coca-cola had even more bad stories relating to summer jobs these can be found in link bellow http//www. chinadaily. com. cn/china/2009-08/20/content_8591019. htm Business Practices Business practices are a method, procedure, process, or rule employed or followed by a company in the pursuit of its objectives. Coca-cola has a lot of business practices and some of them was not been followed in the past.In 2003 Indian NGO, Centre for Science a nd Environment has announced that they found cancer causing chemicals in Coca-Cola. 2007 Coca Colas products that were produced and distributed in the Indian market contained pesticides such as DDT, lindane, malathion and chlorpyrifos which all contribute to cancer and a weakened immune system of the human body. Individual Ethical responsibilities Every ace worker in Coca-colas company must act in accordance with the law it does not matter is it staff member or is it manager all individuals should follow their own ethical principals at all time and be ethical.Conclusion Therefore to conclude this report on ethical business goal and trade practices of Coca Cola, some basic elements that can be adopted by Coca Cola are like Develop worldwide formula of ethics, by these we mean that the statement given by the companys business culture is not true and the company should come up with a proper dissolvent to this problems and should not tolerate any human rights infractions in any of i ts plants, or by any of its subsidiaries.Consider ethical issues in strategic development, while making the strategic the company should consider ethical issue and develop its strategy according to it. Develop periodical ethical impact statements, when they are promoting any of its product they should make an ethical statement with it as it will help them to improve the companys image in the minds of consumer. RecommendationsCoca-Cola Company must ensure that they keep their company always ethical and dont have any bad stories. Although they are doing good job and not getting and bad stories about them lately, but still they should try to make their company even more ethical for people to think that it is a good company that has a good corporate image. Source Coca-cola bad stories http//en. wikipedia. org/wiki/Criticism_of_Coca-Cola