UNETHICAL PRACTICES BY COCA COLA AND PEPSI
This report is being submitted to DR. Muhammad Khalili, Professor of business ethics, University of Wollongong in Dubai. The topic of the report is unethical issues of coca cola in comparison with Pepsi. Purpose of the Report:
In today’s competitive world, many organizations are practicing unethical practices to increase their productivity and profit without caring for the consequences of their actions. In order to stay ahead of their competitors many organization overlook the moral and ethical aspects of their actions and their main focus remains on increasing profit and getting competitive advantage. Furthermore, if when we consider our company coca cola, on the basis of its involvement in unethical practices, coca cola has been involved in many unethical practices like child labor and use of pesticides in their beverages over the years. This report will evaluate the unethical practices by coca cola and will suggest coca cola to improve their behavior as for as ethical practices are concern. PREVIEW:
This report starts with the introduction of the chosen company (coca cola) and then it goes to several unethical practices, the company is involved in. then the company is compared with their arch rival and competitors Pepsi and then the report is concluded with the conclusion and recommendations. HISTORY OF COCA COLA:
Coca cola was established by john Pemberton. The story of coca cola is very interesting. John Pemberton stimulated caramel colored liquid and took it to a pharmacy and added carbonated water in it, and the sample was very appreciated by the people who tasted it. After watching the response of the people the pharmacy put the drink on sale for five cents. They named the drink as coca cola and they were able to sell only 9 glasses of coca cola per day in early days of coca cola.(coca-cola.com,2010) In 1891 a businessmen Griggs Candler bought coca cola rights for just $2300. Candler was the first president of coca cola. Candler was a very successful businessman due to his innovation and marketing skills. He knew that there was a very good scope for the beverage industry in United States. He started promoting coca cola by giving away free samples and advertising it in many different ways. By 1895 Candler had built beverage plants in Chicago, Los Angeles and Dallas. By that time soda drinks got huge reputation in United States. .(coca-cola.com,2010) In 1899 Benjeman Thomas and Joseph whitehead bought rights from Candler to Bottle and sell coca cola. As the drink got reputation with the passage of time many new competitors came in the market, basically copying the coca cola idea. Coca cola responded this thread by introducing unique bottle shapes, just to differentiate their product from the competitors. Coca cola then went international by introducing its product in Canada, France, Cuba, and some other countries.(coca-cola.com,2010) Robert Woodruff’s father bought Coca cola from Candler in 1919. Woodruff is considered to be the main person behind the success of coca cola. He introduced coca cola to the word by taking coca cola to the Amsterdam Olympics with the US team. He introduced Six-pack and open top cooler, to make the drink available to the customer in home or outside. This was a great innovation done by Woodruff. This gave Coca cola a huge opening in the market and gave the company a huge success. .(coca-cola.com,2010) In 1941 when the United States entered into the World War, Woodruff introduced announced that soldiers can buy coca cola for just 5 cents. Coca cola was quite liked in those areas and when the war finished coca cola was already established in those areas. Coca Cola then got global; they had their plants all around the world .(coca-cola.com,2010) After a success story of 70 years coca cola decided that it’s the time to diversify their product and introduce something new. This led them to the introduction of...
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