The Coca-Cola Company Struggles with Ethical Crises- A Case Analysis The Coca-Cola Company Struggles with Ethical Crises- A Case Analysis
What role does corporate reputation play within organizational performance and social responsibility? Develop a list of factors or characteristics that different stakeholders may use in assessing corporate reputation. Are these factors consistent across stakeholders? Why or why not? Corporate reputation can be taken as complete inference that its stakeholders carry of an organization. These include both external stakeholders as well as internal ones. This has become a matter of focus for many big organizations as the reputation bring many reimbursements in terms of organization performance. The organization reputation may not be alike to all stake holders and it depends on the way the stakeholders receive familiarity once in touch with the organization. This may rise from direct experience with organization or through some other medium like news channels or talk with friends. Harrison ( n d) states that Stakeholders’ outlook for a company and their associations and interactions with the per se organization and thus the reputation may be impacted by relationship management actions some of which are outlined below pertaining to the Coca Cola case
Direct Impact: Many consumers got ill effects related to health while consuming the product in 1999 in Luxemburg and Netherlands. The coke further took a step back and did not want to come in limelight to discuss the issue openly. The response time was too high for consumers to accept. France was also affected similarly. The contaminated products were also shipped to Poland. This direct impact which reduced reputation of Coca Cola in these countries also brought the sale down.
The African American employees felt that the organization shows bias during performance assessments and related pay rises and promotions in 1995. They filed a case against the company too. Way back they did some eye dressing to avoid this but were not successful in America. The issue of death of eight employees in 2001-2004 in Colombia and the organization reactive attitude to escape from the whole issue shows its reputation in the eyes of its employee who filled a law suit against the company.
The business partners were forced to get extra products billed which they could not sell as demand was not that high in 1999-2000. The products reached their counters and company considered it as ‘Sold’. This gave rise to false financial statement depicting strong position of the organization. In 2006, they started deliveries directly to Wal-Mart through one of its largest associates CCE. The bottom line of its small size distributors came at stack and the issue had to be taken to court. This again brought negative reputation that had trust loss amid the distributors and obviously effecting organization performance and social responsibility of keeping their business profitable.
The indirect impact of people falling ill 1999 in Europe impacted its reputation negatively harming its promotion campaign in city of Belgium where the government Legal processes had considered Coca Cola’s aggressive promotion strategy as unlawful under antitrust law. They lost their market share which impacted organizational performance. They showed a deviation from social responsibility as the antitrust law states.
Environment and Society: The issue of creating pollution and depleting ground water has brought the reputation of the organization down. The Case in India proved the students of University of Michigan to request the officials of the university to all of coke from their premises. This was effect of negative reputation impacting both organizational performance and social responsibility.
Media: The entire case shows that the organization has always tried to keep itself...