HRM 522-Ethics and Advocacy for HR Professionals
Since the late nineteenth century Coca-Cola has been a successful company. Coco-Cola went to war with its competitor PepsiCo throughout the 1990s as Coca-Cola expanded its market overseas. Its overseas sales increased to the point where over 85 percent of its sales came from outside of the United States (Ferrell, Fraedrich and Ferrell, 2011). As a consequence, the Coca-Cola brand and trademark is the most recognized in the world and worth an estimated $25 billion. Yet, by 2000 Coca-Cola failed to make Fortune’s list of most admired American companies because in part of its serious ethics violations like charges of racial …show more content…
Coca-Cola has begun to take necessary measures toward improving its image. The leadership managed much different than other companies that had ethical issues (i.e. Enron) and the company focused more on the financial aspect of the company while other areas of the company crumbled. Even though, Enron was the biggest business scandals of all time, and Coca-Cola displayed a leadership that is entrenched in helping the company maintain its global position, and its employees have shown strong interest in success. The company resolved its ethical issues and recovered from those issues.
Determine what steps Coca-Cola should have taken to prevent the issues you identified from arising in the first place.
Three steps Coca-Cola should take to restore its reputation are the removal of racial discrimination in the organization, producing good quality products free from all contamination and a management team that follow rules, regulation and laws of the country. Although Coca-Cola center its reputation mostly on the global impact of the company name, to restore its reputation and eliminate future ethical dilemmas with stakeholders, the leadership issue has to change along with poor