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Organizational Ethical Practices of Coca Cola

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Organizational Ethics

Organizational ethics are the guidelines, processes, and values of choosing the right action while confronting a difficult or controversial situation. In a broader term, it is defined as how the organization conducts itself and its operations towards the inner and outer stakeholders, including workforces, customers, creditors, financiers, and managers (Kelchner, 2017).

 Organizational Ethical Practices of Coca Cola

Benefits of Ethical Practices

Ethics and ethical practices have become more significant for businesses and communities because of the advent of social media, which have the power to expose any issues that were ignored by previous generations. Apart from making the organization pro-active in their business and social practices, ethics benefit organizations on many levels, such as

Forms a Positive Corporate Culture

Organizations that employ their resources to create strategies and process which promote ethical actions create a positive corporate culture (Ortega‐Parra, 2013). The moral of the team is improved when the workers sense protected against reprisal based on their beliefs. The corporate policies that ethical aid practices are

  • Anti-discriminatory rules
  • Open-door policies
  • Equal Opportunity

Through the implementation of such policies, the workers feel worthy about being at works, and the environment of the organization becomes progressive, which breeds loyalty and productivity.

Enhance Customer Confidence

In today’s global and connective world, an organization can quickly lose its clients and business opportunities. Customer loyalty and retention is only possible when an organization practices ethical principles, starting from an honest advertisement to complete the sale process (McCrory, 2017). Along with business operations ethics, customer service ethics are also crucial for retention. Customer service ethics are instilled through developing consistent policies and continues employee training.

Reduction in Financial Liability

Lawsuits have become the highest financial liability for organizations. Today no organization is freed from dissatisfied customers and workers who claim for discernment. Ethical policies about harassment and accusations that are consistently being followed by the organization save them from massive lawsuits or financial claims.

Offer Long Term Gains

Organizations that instill ethical values and policies. Experience profits that are sustainable for an extended period. The proper procedure allows the organization to achieve high performance by attracting and retaining superior workforce, customers, and investors (Collins, 2009).

Secure the Society

Ethical practices safeguard the interest of the organization and protect the part of the society the organization operates in. Ethics creates a sense of social responsibility within the organization, which laws fail to develop and help protect the community and environment.

Ethical Practices of Coca Cola

Coca-Cola is the largest beverage globally that serves almost 1 billion products to customers all over the world. The company is known for building sturdy customer relationships through its ethical practices, which has, in turn, allowed Coca Cola to thrive and survive in high beverage competitive market. The company has been appreciated for its strong brand position, which it has attained through loyal customers spread worldwide.

Being the market leader in the beverage industry, the company has experienced a lot of pressure regarding the ethical issues such as ethnic discernment, falsification of market test, and interruption in contracts with the distributors. However, its sound policies and its commitment to societal and environmental issues have helped overcome these challenges. Some of the well-known proper policies implemented by Coca-Cola recently are

Eco-friendly Equipment

Coca-Cola recognizes its responsibility towards the environment and has taken several steps to prevent harm to it. The installation of eco-friendly manufacturing equipment is one such big step. Furthermore, the company’s neutral water policy also indicates its commitment to the betterment of the Earth’s environment.

Improving Communities

Although the company is a beverage manufactures and supplier, being an ethical organization, it recognizes the significance of community development. Coca Cola has initiated various educational programs directed to improve the communities (Barkay, 2013). Thee education support program of Coca-Cola has given approximately over $22 million as grants.

Coca Cola Ethical Issues

Coca Cola has not always been the most ethical company; it experienced various ethical issues in the past. Some of the most renowned moral problem faced by the company was

  • Racial Discrimination:
  • Market test falsification
  • Channel Stuffing
  • Distributor problems.
  • Union Issues

Ethical Recovery

Recently, Coca-Cola has been awarded Pollard Award for innovation in Business ethics as the company has incorporated ethics officers in each of their business unit, which ensures ethical practices ad fulfill its stakeholders’ expectations. Furthermore, the company has upgraded its vision to preserve and protect natural resources by working towards the safeguard of seven watersheds.

To avoid past ethical issue such as racial discrimination, Coca Cola has implemented Equal Opportunity, Affirmative Action Policy Statement, and Policy against Harassment, Discrimination, and Retaliation as part of its long term policy. The policy is implemented, so every employee can interact ethically and professionally, and create a work environment that mirrors equal employment, free of discrimination, and harassment.

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