May 27, 2014
Code of Ethical Conduct
Several companies have been affected by the ongoing challenges in the global business environment. Many of these challenges can be associated with unethical business practices, failures to adopt technological changes, and tough competition. To combat some of these issues companies create a code of ethical conduct. This document serves as a guide on how to handle different situations that may arise, such as obtaining competitors information and insider trading.
The Coca-Cola Company (Coca-Cola) is known for manufacturing, distributing and selling carbonated soft drinks through restaurants, stores and vending machines in all over the world. Coca-Cola is one of the world’s largest manufacturers and distributors of beverage products. The organization has operations in over 200 countries and selling on average more than 2 billion beverages each day. The company provides beverage items or carbonated soft drink in cans, bottles, and as fountain drinks and sells them to retail stores, restaurants chains and vending machines (The Coca-Cola Company, 2013).
Coca-Cola established an updated Code of Business Conduct in August of 2012. The company reviews its system on regular basis to maintain transparency and accountability in their business practices and accomplished international standards. The code of ethics is the part of Coca-Cola Code of Business Conduct through which the company maintains honesty and integrity in all matters (Pendergrast, 2013). The company expects everyone associated with them to adhere to the guidelines set forth in the code.
Over the years, the company has faced several of the issues contained the code of ethical conduct that has impacted its success. The company has endures intense competition in the global market. Coca-Cola has experienced unethical business practices, stiff competition among businesses and failure to cover technology advancements. Another main issue is related to employees supporting policies such as training activities and improper reuse and recycle of waste or bottles issues impacts on its success in the global market (The Coca-Cola Company, 2013). The company would not have properly supported employees, conflict of interest of stakeholders or customers, lack of cover technology advancements and lack of reuse and recycle of waste or bottles issues found from its document that would impact its success.
Compare and Contrast the Codes of Conduct of Companies
The main competitor of the Coca-Cola is PepsiCo. They also produce and sell carbonated soft drink or other beverage products in the worldwide. The company also faced the three issues related to ethical code of conduct as conflicts of interest of stakeholders, lack of cover technology advancements, lack of reuse and recycle of waste or bottles with its Code of Conduct.
These three issues found from its document related to ethical code of conduct that would impact its success. At the same time, the company would not considered the interest of stakeholders as low focused on the health of customers during manufacturing soft drink or beverage products that is similar code of conduct of both companies (Kawabe, 2013). The both companies deliver similar products in the market, so both are faced similar ethical code of conduct issue related to lack of interest of stakeholders.
The both companies delivered its products in the bottles and cans and lack of recycle and reuse of wastage of them impacts on the environment sustainability aspects that are also same weakness of their business code of conduct. Moreover, high consumptions of carbonated soft drink are negatively impacts on the health of consumer that indicates the both company has not properly concerned the interest of stakeholders.
At the same time, the both companies faced the lack of cover technology advancements issues related to code