COMMERCE 7016OL Corporate Social Responsibility And Ethics

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Question:

Table of Contents

Write about Ethics and Corporate Social Responsibility in the Case of Coca-Cola

Answer:

Introduction

This report will help you understand concepts such as corporate social responsibility, sustainable growth, and ethical business operation.

The Coca-Cola case will be highlighted, along with its unprofessional business practices, which led to harsh criticisms of its business operations.

It will also show which ethical theories were violated due to the unethical Coca-Cola practices.

Some significant initiatives were taken by the company to rebuild its image.

Coca-Cola Criticism And Corporate Social Responsibility

Corporate social responsibility (CSR), a strategy that encourages companies to recognize the effects of their business on the environment, society and stakeholders, is called corporate social responsibility.

It is the responsibility of business organisations to support the society and engage in activities that help develop the society (Lindgreen, Swaen 2010).

Sustainable development is another way that organisations try to meet current needs while not having any negative effects on future generations.

It is a way to ensure that there are enough resources for the future generations.

CSR is an evaluation of past practices, but sustainable development looks at the future. It focuses on what strategies will be used and plans for the future to achieve desired results, such as reduced waste, building brands, and safe environmental practices.

However, there is a link between them. An organisation that adopts sustainable practices will help the environment and society, which will lead to more effective CSR practices (Moon 2007).

Coca-Cola engages in unethical business practices

Coca-Cola is the world’s most well-known company.

Coca-Cola is not only a well-respected multinational MNC, but it also remains in the spotlight for its controversial business practices.

The company’s business practices have come under fire. They are detrimental to society, individuals, and the environment.

Coca-Cola’s unethical business practices included operations that result in severe water shortages in India’s rural areas and villages (Srikant. n.d.).

Plachimada, Palakkad District of Kerala was home to a Coca-Cola factory in 1999 (Righttowater.com, n.d.).

Within two years, the local communities began to complain about water scarcity and pollution.

In 2003, protests were made against Coca-Cola due to extreme water shortages and the drying of wells as a result of over-exploitation of grout water by the company. (Righttowater.n.d.).

This was one the most unethical business practices that the company used to ruin the lives and occupations of many villages who were totally dependent on agriculture for their livelihood (Indiaresource.n.d.).

Violation Of The Ethical Theory On Utilitarianism

The company has violated the ethical theory that utilitarianism.

This theory states that an individual does tat to benefit as many people as possible, and not only to the benefit of themselves or their organization (Hursthouse 2013).

This is contrary to the belief that Coca-Cola’s cheesiness practice was self-absorbed. They were only created for revenue generation, despite the fact that hundreds are suffering from it and losing their livelihoods, occupations, and basic rights to safe and un-polluted drinking water (Waronwant 2007, 2007).

Here are some reasons why companies are taking a more active role in addressing their social and environmental impacts

It is important that companies carefully consider the impact of their business operations on the environment and society.

High charges are being imposed by government and other organisations that restrict their ability to operate (Kazmin (2015)).

Indulging activities that negatively impact the environment and society is a major offense. The society also bans them from promoting the brand image, which has a direct impact on sales.

Coca Cola and Other MNCs Deal With Their Environmental And Social Impacts

Companies have used numerous initiatives to address the social and environment impacts of business operations.

Coca-Cola has taken many steps to overcome its unethical image. They have piloted an innovative water recycling system that focuses on reuse and recovery.

Coca-Cola has also established rain water harvesting systems across India in an effort to combat water shortage.

Conclusion

It is evident from this report that it is high time for organisations to pay attention and monitor their business practices.

It can be seen that large multinational corporations like Coca-Cola have also engaged in unethical business practices. These include water shortages and exploitation of environment resources.

This has led to it violating the ethical theories.

However, the conclusion is that the common good has recognized the effects of unethical business practices. The organization now has several actions to recover the losses. This can help it rebuild its brand image as well as customer base.

References

Coca-Cola Pilots a New Water Recovery System and Wins the IWA Award.

Accessed May 4, 2017.

The pursuit of sustainable development through environmental citizenship.

Indiaresource. n.d. Campaign for Coca-Cola Accountability.

Accessed May 4, 2017.

Coca-Cola is forced to abandon India’s plans for a bottling plant.

Accessed May 4, 2017.

Lindgreen A. and Swaen V. (2010)

Corporate social responsibility.

International Journal of Management Reviews, 12(1) pp. 1-7.

Corporate social responsibility and sustainable development: The contribution of corporations.

Accessed on May 4, 2017.

Srikant P. Struggle for “blue gold” in Plachimada. Kerala.

SHARING BLUES GOLD, p.71.

COCA-COLA – DRINKING THE WHOLE WORLD DRY.

Accessed April 4, 2017,

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