D1 KAM Essay

Submitted By KpKapzHotmailCoU
Words: 1794
Pages: 8

Evaluate the impact of a selected business’s ethical behaviour on stakeholders and the business
Introduction
In this assignment, I will be evaluating the impact of Coca Cola’s ethical behaviour on stakeholders and the business. Coca Cola is a multinational and one of the most successful businesses however due to its negative ethical actions. It has portrayed itself, as a ruthless and selfish company, who has also betrayed and taken advantage of helpless people. Coca Cola has acknowledged countries such as in the Asia continent, are not developed and powerful therefore it has targeted specifically these countries in order to gain what Coca Cola lacks. Coca Cola has used all the countries for different purposes for instance India has been targeted in order to gain water to produce Coca Cola drinks and El Salvador for child labour.
Below is a list of countries that Coca Cola has affected and information about the Coca Cola’s ethical behaviour
India
Coca Cola decided to open up a company in India in 1993. However Coca Cola took the advantage of using free water available in India. The problem was many unethical issues were arising that effected majority of people and made their lives more complicated and worse. One of the main issues was Coca Cola was using 52 water-intensive bottling plants in India and also uses 290 billion litres of water worldwide as there is seriously a high demand for coca cola around the world. This had huge and serve impact on local communities and farmers. Farmers were unable to support their families as this issue caused unemployment and farmers didn’t have enough water to grow crops. The second issue was that workers were not treated fairly. They were forced to work for several hours and were paid with very low rate. Furthermore they weren’t given any compensation,people in India who are working for the company ‘Coca Cola’ are not receiving any compensation from the employees for example, in the video we watched this worker who has been injured and he has not been given any compensation for his rights due to injury. They have stopped him from coming to the work place as he always asks for his compensation, however he always gets refused.This is false act because Coca Cola is a worldwide company therefore; they should treat their workers right and ensure they are satisfied where their work. For example, to improve they should have paid compensation for this worker and make sure he is allowed in to work or someone from his family to work for his position.

Colombia
The ethical issues that occurred in Columbia were human rights. Some of the leaders of the union even spared their lives in order to get their rights. Coca Cola treated their workers very unfairly and some of the most curial and horrific incidents occurred. These included being kidnapped, murdered, human abuses, and tortured.
A lawsuit filed in U.S. District Court in Florida accuses the Coca-Cola Company, its Colombian subsidiary and business affiliates of using paramilitary death squads to murder, torture, kidnap and threaten union leaders at the multinational soft drink manufacturer’s Colombian bottling plants. The suit was filed on July 20 by the United Steelworkers of America and the International Labor Rights Fund on behalf of SINALTRAINAL, the Colombian union that represents workers at Coca-Cola’s Colombian bottling plants; the estate of a murdered union leader; and five other unionists who worked for Coca-Cola and were threatened, kidnapped or tortured by paramilitaries. http://en.wikipedia.org/wiki/Criticism_of_Coca-Cola http://colombiajournal.org/colombia73.htm

El Salvador

According to article on killercoke.org it is stated“In 2004 Human Rights Watch exposed the fact that Coca Cola’s sugar cane in El Salvador uses sugar cane harvested by children. Film footage taken in 2007 and aired as part of a nationally televised documentary in the UK confirmed that child labour is rampant”. Later in 2009, a book was published in the United…