Coca-Cola Case Study

Good Essays
Module 2
The Coca-Cola Company Struggles with Ethical Crisis

1. 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?
Having a good reputation is the most important factor for any business. A corporation can spend many decades building a good reputation with the use of quality ethical practices. The problem is the reputation can be tarnished quickly by a few lapses in ethical judgment. It is the responsibility of the leaders of an organization to be socially responsible in order to keep the reputation clean and untarnished.
Being socially responsible means the company must make a conscious effort to be environmentally friendly, honest, financially responsible, and avoid sexual and racial issues. If there are any violations involving these topics, it can have an adverse effect on the stakeholders of the company. Investors are more likely to invest in a company with a solid reputation and one that is socially responsible.
Some factors that stakeholders may use to assess corporate reputation are:
Employee retention- if there is a lot of employee turnover, the company may be unstable.
Product quality- if the product or service provided by a company is strong, the company is probably strong as well.
Customer satisfaction- a happy customer will be a customer for life.
Ethical leadership- if the leader is ethical, the rest of the company probably is.
Environmentally responsible- a company must be concerned about the future of the planet and how they are going to impact it.
I believe all of these factors are extremely important to all stakeholders. These are the issues that are talked about in the news and written about companies online. No stakeholder wants to go down with a company like Enron or Arthur Andersen. 2.

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