Ethical Issues Faced By Coca-Cola

Business ethics is a burning up issue in the current global business arena. Various ethical issues have to be considered highly by companies. Different moral issues relating to Coca-Cola are described below:

Rights, issues, and responsibilities

As a socially responsible company, Coca-Cola has to obey different privileges regarding employees. Coca-Cola's worker/human rights coverage is Healthy work- life balance. This large multinational firm has a labor force of 92, 400 people from diversified culture and countries. They are usually called associates. To ensure associates protection under the law, company has following businesses and programs:

Company has ensured compliance in all its development locations and other workplaces.

Regular training and workshop programs are presented.

Company granted global Workplace Protection under the law Insurance policy in 2007. That is a detailed construction of work environment right.

There is no child labor in virtually any premises of Coca-Cola in everywhere of world.

Coca-Cola joined in the Business Leaders Effort on Human Protection under the law (BLIHR) in 2007. It is a leading band of top 13 multinational corporations to find out various ways for applying individual rights. Company can be an active member of this message board.

Company has a electronic and global school called Coca-Cola School for its associates. It is the first exemplory case of that type of educational opportunity by any business corporation.

Company's 50% non-hourly affiliates are women, 48% managers are also women, 35% non-hourly associates are folks of color in U. S founded operation.

Coca-Cola employs various procedures to resolve or eliminate inter-department conflict. As a global company they have a huge workforce coming from diversified culture. Company uses the Coca-Cola System in its procedure. The main concentrate point is all functions are done local basis. Production, Marketing and other jobs are offered by local subsidiaries under central supervision. Central supervision is performed through Global audit. Global audit is done based on a worldwide standard. Global audit is performed by globally renowned audit companies.

Different departments have different responsibilities. Some of them are discussed in the following passages:

Purchase Department

Company claims that it's the top buyer of sugars, citrus, and coffee. Coca-Cola uses 300 Billion liters of water. Coca-Cola purchases top quality materials because of its production. It offers a global guide for suppliers which guideline is followed totally. Any violation of it may cause elimination of supplier deals.

Sales Department

The duty of sales is to spread to the local businesses or own people. Local subsidiaries or companies are liable for any kind of sales operation. Regardless the global standard must be maintained. Marketing of sales is the best motto of this department.

Production Department

Any violation of any honest issues is totally prohibited in production system. The primary responsibility of creation section is to ensure quality production in an environment friendly manner. Automated production system is adopted in many cases.

The workers are the life blood of the creation system. Their rights are carefully watched by the top management.

Branding Department

Coca-Cola is the most effective brand on earth. It has additionally various other famous brands. Company's brand advertising is done both internationally and locally. Different branding strategies are adopted to keep and improve the brand position.

This branding department is one of the very most advanced Branding departments of the world. It has been maintaining the most notable position of global soda brand around 100 years.

Finance Department

Coca-Cola has a strong finance department. It includes a global audit system which ensures the sound financial condition. The main objective of this department is to use the financial belongings in proper way. Experienced and expert people are recruited because of this task.


Coca-Cola is one of the major global corporations. It really is one of the successful marketers in the world. It really is a well established company. It includes over 500 own brands. It works in virtually all countries of the planet. So it has a smartly designed and flexible online marketing strategy.

Coca-Cola has a online marketing strategy called:

Think- Education is vital to achieve lasting, productive, healthy lifestyle.

Drink- Providing product and offer variety is their determination to consumers.

Move- Physical exercise is essential for health insurance and well-being.

This strategy focuses all aspects of its marketing view and strategies. All its marketing activities including promotional activities, branding, and syndication are done upon this view.

Market position of the business is quite strong. It divides the whole world into six working groups named Latin America, North America, Pacific, European Union, Eurasia, and Africa. A standard performance in these operating communities is listed below:

Operating Groups

Sales Percentage

Latin America


North America




European Union






Table 1: Sales ratio in several Operating Organizations in 2007

Source: 2007/2008 Sustainability Review

Figure 1: Sales percentage in different Operating Organizations in 2007

Figure 2: Progress in Different Operating Categories in 2007

Coca-Cola is the market leader in almost all of the countries like the U. S. A, Brazil, and New Zealand etc. So that it follows market leader strategies. Its main competitor is PepsiCo. There are numerous local companies who are major competition in case there is itslocal operation.

Coca-Cola uses almost all tools of marketing promotions. Generally it uses mass marketing. Coca-Cola expenditures large amount of money for advertisement and other promotional activities. The amount was $4. 4 billion in 2008. Within this amount $3 billion was limited to advertising. Company followed "Advertising and Marketing to Children Coverage" in 2008. It uses all press to market its products. Different advertising of the business have got huge attractiveness and critics' recognition.


It is not possible for any multinational firm to endure without professional frame of mind. Professionalism is made certain in Coca-Cola by written Code of Carry out. It is a fully professional global organization. And its record of professionalism had been started way back when.

Company keeps highest level of professionalism for improved upon corporate and business culture also. Professionalism is one of the reasons for the success of Coca-Cola.

Information technology

Coca-Cola has a virtual global network. It preserves strong data source of its own. Coca-cola adopts automation in its some functions. As a drink company it can't be fully automated company because its distribution process cannot be fully automated.

Maximum production plant life of company are computerized. Automated development system ensures quality product and reduces wastage. Around 75% of factories are totally automated.

Coca-Cola has websites and links for different purposes. For instance www. governence. thecoca-colacompany. com is a link for knowing of its commercial governance.


For communication purpose, company uses intranet and internet. There can be an formal website of the business. www. thecoca-colacompany. com is the official website of the business.

Anyone can talk to the business through different e-mail addresses and links.

Coca-Cola has factories in different location. Company has established a worldwide communication network for the factories. Continuous posts can be accumulated through this network.

This company has a strong research and development section. Especially its marketing research wing use e-mail addresses and web addresses to gather information and response.

Freedom of action

Freedom of action of all levels of staff is described by code of do. Top level management gets high level of independence in executing any legal activity. Actually most of the aspects of liberty of action are private. It is difficult to gather information on this matter.

Individualism is a major reason for ensuring freedom of action.

In lower level there is certainly less liberty of action. On the other hand there is a high level of freedom of action in top level. Top level management loves highest degree of freedom in action since there is no hard and fast rule.

Censorship on the internet

Many countries practice censorship in many varieties on the internet. For instance China, Iran etc countries practice censorship highly. Censorship may be used for most reasons. Main reasons behind censorships are politics, religious, public, and cultural. Coca-Cola does not face any type of censorship in any country. Coca-Cola's global popularity is the key cause of this.

Coca-Cola itself procedures limited censorship. Different inner accounts, internal procedures, main formulas of productions and some other confidential information aren't shown in internet. It is one common practice. Coca-Cola sustains minimum privacy in case there is internet.

Computers and work

Computer is a component and parcel of modern business. Coca-Cola also uses computer in its procedure. Pcs are an important part of its communication system and it. Computerized development system is implemented in maximum vegetation. All its office buildings are outfitted by high configured pcs. Coca-Cola has collaboration with some major computer producers to provide personal computers and other related machines.

A major part of its complete works is performed through computers. It is not possible for a firm like Coca-Cola to computerize all portions totally. But company does its best to reach up to highest degree of using. There's a intend to use digital machine in root level syndication also.

Unauthorized use of computer systems or any other machines in working hours is totally prohibited. Only public purposes can be served by the business associates through pcs and internet lines of the company.

Company has a very nice insurance policy that company will not use any pirated software or any component of computer.


Coca-Cola is a company of the U. S. A. it was contained in Sept 1919 under the laws and regulations of the condition of Delaware. The business is run by the Company Act 19. Company comes after instructions of the Securities Exchange Act 1934.

It has procedure in over 200 countries. Company comes after all rules and regulations of respectable countries where it operate. So it has to follow a whole lot of regulations regarding many countries. It is a company's basic coverage that, company always attempts to check out local laws appropriately.

Company has to comply with varies competition acts, environmental acts, consumers right safeguard acts in various countries. It offers numerous kinds of fees like ecotaxes in many nations.

Coca-Cola agreed upon different international agreement for protecting environment, employees rights etc.

Coca-Cola has cooperation with many lawyers and attorney companies to face legalities. Company has a reputation as a good follower of laws.


Nowadays security is a using issue all over the world. Coca-Cola has individual security approaches for different locations. It varies country to country or talk about to state. It is also a human right to get physical security. It is another important aspect that we have to ensure job security. Coca-Cola has specific guidelines for making sure job security. There are several guidelines, written guidelines of employees' job.

It uses different high scientific tools for security goal. In lots of locations it includes its security forces. In lots of locations it depends upon exterior security company or know-how.


As a global beverage innovator Coca-Cola must do more to ensure perfect honest issues. Different assistance with other small companies can help the business.

Answer to the question no. 2

Country Overview

New Zealand is the next greatest Oceania country. It really is well-known for its natural beauty. Additionally it is a small business friendly country. There are numerous serves to govern business well in this country.

The Legal System

Constitutional Status

Constitutionally New Zealand is a kingdom of the U. K. A Governor Basic represents Queen Elizabeth II in this country. But his role is principally ceremonial. Though Governor Basic has some ability in some special situations, New Zealand is ruled by her own people.

Origins of New Zealand's Law

New Zealand received the English legislations on 14 January 1840. It received own limited legislative electricity in 1865. New Zealand accepted full responsibility of its own beliefs in 1947. Last 20 years New Zealand adopts a lot of things from Australian, U. S. , Canada, and other countries' regulations. Its business related laws are mainly designed based on Australian law.

Privy Council has been the best court up to 2003. Then your separate Supreme Court docket has been proven. There's a value of English decisions in its courts also.


Sources of Law

Two major key sources of New Zealand's laws will be the statuses enacted in parliament and major decisions provided by courts. A couple of three basics of its regulation. They are really parliamentary sovereignty; the guideline of laws; and the parting of electric power. Beside these there is a huge dependency over British isles rules as a earlier British colony.

Its commercial regulations are designed on the basis of Australian, U. S, Canadian laws.

Court Structure

The Supreme Judge is the top courtroom of New Zealand from 2003. Below it, in descending order, are the Court of Appeal, the High Court and the area courts. These are called courts of general jurisdiction. They are the primary courts in their justice system.

The specialist of the Supreme Judge, the Court docket of Appeal, the high Court, and the district courts are defined by function. The High Courtroom has both statutory jurisdiction and common law jurisdiction power.

The region courts are the underlying part courts of the system. Lawbreaker, civil and business related situations are dealt in these courts. There is a statutory roof of limit.

The High Courtroom has a broad general jurisdiction vitality. It hears much more serious jury trials, the more complex civil circumstances, administrative law instances and appeals from the decisions of courts and tribunals (district courts) below it.

Figure 3: Court docket Structure of New Zealand

A case that is set in the area courts can be appealed to the High Court docket, or right to the Courtroom of Appeal where the laws allows it. The Supreme Judge is the ultimate appellate court. Circumstances may only go directly to the Supreme Court docket if the court grants leave to charm.

Beside the overall jurisdiction system there will vary specialist courts and tribunals. Those include the Employment Court, the Environment Court, the Crash Compensation Appeal Expert, the Mori Land Court, the Waitangi Tribunal, Coroners Courts, and the Courts-Martial Charm Authority etc.

Different Forms of Business Permitted to Operate and the Regulations Governing Them

There are mainly three types of businesses in New Zealand. They are really:

Sole-proprietorship businesses

Partnership businesses


Partnership firms are run by the Partnership Function 1908 and companies are run by the Companies Function 1993.

A company must have:

One or even more than one shares

Limited or infinite liability for the obligations

One or even more than one directors

A authorized name

There is an opportunity for the firms to access in to the Australian market under CER. A firm which has property respected at $450, 000 or with a turnover of $1 million has to file financial claims as per companies' act 1993.

Various laws relating with business:

Bills of Exchange Work 1908

Commerce Take action 1986

Companies Function 1993

Partnership Work 1908

Consumer Guarantees Action 1993

Fair Trading Take action 1986

Sale of Goods Function 1908

Financial Orders Reporting Work 1996

Securities Action 1978

Arbitration Action 1996

The Health and Safety in Career Act 1992

Employment Relations Take action 2000

The Resource Management Function 1991 etc.

Dispute Resolution Procedures

Arbitration Take action 1996 and the Disputes Tribunal Work 1988 are mainly followed to solve different disputes in New Zealand. Which circumstances cannot be fixed in disputes tribunals are taken under the Arbitration Function 1996. The disputes tribunals are not formal courts. These courts are going by referees. You can find mainly two methods for dispute resolution. They can be:

Negotiation method

Mediation method

In case of the inability of these two methods arbitration is necessary.

Following disputes can be taken to the disputes tribunals:

Disputes associated with harm of property

Disputes relating to lack of any property

Disputes associated with work completed

Dispute associated with payment of services etc

Following disputes can be taken under the Arbitration act:

Dispute related to debt

Dispute related with taxes

Dispute related with possession of land etc

Laws Associated with Copyrights, Trademarks, Patents, and Designs

Intellectual Property Office of New Zealand (IPONZ) is the regulating authority of Trademarks, Copyrights, Patents, and Designs.


Rights for the copyright are provided in the Copyright Action 1994 in New Zealand which act is combined with the Copyright Regulations 1995. There is also the Copyright (New Technology) Amendment Act 2008.

New Zealand's Copyright related laws and regulations are party assorted various international agreements because of basic laws and regulations. Those international laws and regulations are:

The Arrangement on the Trade-Related Areas of Intellectual Property Protection under the law (the Outings Contract (Annex 1C to the Contract Creating the World Trade Firm (WTO) 1994);

The Berne Convention for the Protection of Literary and Artistic Works 1928 (Rome Function revision);

The Common Copyright Convention 1952.

There is a statutory body called the Copyright Tribunal for copyright related situations. The Tribunal hears disputes relating to the provision of licenses allowing the copying; accomplishing and broadcasting of copyrighted works; and other issues of copyright.


All trademark related issues are dealt by the Trade Markings Act 2002 and the Trade Grades Rules 2003 in New Zealand.

Following purposes are satisfied by this function:

Maintaining Hallmark register.

Registration and supervision of Trademarks.

Providing Trademark form and other applications or report form.

Defining the energy and function of Patents Commissioners.

Charging Brand fees.

When an application for registration of an hallmark is accepted, the application must be promoted in the Journal. Any person who desires to oppose the registration of the brand can oppose to the patents commissioners within three months from the date of advertising in the Journal.


Patents right is conserved in New Zealand by the Patents Take action 1953. There is also the Patents Restrictions 1953. Commissioners of Patents are the governing persons of patents related issues.

Following purposes are served by this work:

Administration of Patents.

Maintaining the patents register.

Providing the patents varieties and other applications and documents forms.

Determining and obtaining patents fees.

Publishing the Patents Office journal.

Registering exercising patent attorneys.

The Hearings Office is the arena where the majority of the quasi-judicial responsibilities of the Commissioner are exercised. IPONZ get involved in proceedings when an opposition to the give of an IP right is filed, whenever a revocation application is manufactured, or when a hearing is requested. A panel of Helper Commissioners (Hearings Officials) gives decisions on concerns referred to the Commissioner for hearing.


The Designs Work 1953 is the key law associated with designs in New Zealand. It is backed by the Designs Rules 1954.

Following purposes are served by the look Act 1953:

Maintaining design register.

Defining the power and function of commissioners of designs.

Providing the kinds of designs and other documents' varieties.

Determining and collecting design fees.

Commissioner offer with designs issues in the ability to hear office which office is the principal place for judicial cases of deign. IPONZ get involved in proceedings when a revocation application is made, or whenever a hearing is wanted. A panel of Helper Commissioners (Hearings Officers) provides decisions on issues described the Commissioner for hearing.

IPONZ publishes a number of practice rules that are used as a reference point tool for examiners of designs. They set out procedural and legal concerns relevant to the study of applications of Designs under the Function.


New Zealand uses a smartly designed legal system. Its regulations are business friendly. And it generally does not tolerate any issue associated with consumer right.

Answer to the question no. 3


In the age of globalization free trade is highly advertised. Globalization is very much indeed helpful for huge multinational businesses like Coca-Cola. Different negative and positive effects of globalization over Coca-Cola are as follows:

Positive results:

Expanding globally

Cross ethnical integration

Considering depends upon as an individual market.

Opportunity to make use of different media to promote products

Opportunity to use diversified workforce

Negative effects:

Increasing competition

Threat of new entrance

Management of diversified labor force may be problematic

Low charged competition with many local or regional companies

Figure 4: Model for Sustainable Business Activities and Areas to cope with Globalization

This model has been created for globalization. Different the different parts of the model are talked about below:


The policy associated with employee selection is like that 90% of total labor force is selected locally. It helps to use soundly in more than 200 countries by using local manpower.

Associates will be the life of the business. Company is convinced that associates can only just make the business successful.


Coca-Cola has made a policy to maintain even co-operation with suppliers and stakeholders. They are simply called associates of Coca-Cola. Company has associates all over the world. They are a vital component of its value circuit.


Coca-Cola has made a portfolio of beverages of finest quality. It has a variety of over 2, 600 products. Company's portfolio is one of the widest portfolios of the world. The main reason behind this stock portfolio is to meet consumers' demand.


The coverage relates income with and has a eyesight to maximize the worthiness for the shareholders it is an integral part of commercial governance also. Company does not need to get any profit in any unethical way.


Coca-Cola is a innovator in case of proper water using, friendly to the environment packaging, and minimizing carbon. Preserving environment is the primary duty of the business.

India is a major and a rewarding market for any big company. Once after a time Thumps Up is the market innovator in non-alcoholic drink market in India. But because of globalization and Indian government's revolutionary change in economical policies changed the problem significantly in 1990s. Present circumstance is that thumps Up is accused by Coca-Cola. In case of India, Coca-Cola has got a huge advantages.

Globalization brings a golden possibility to increase market show in the Chinese language market.

Developments in Information, Marketing communications, and Technology

In year 2008 there is an increase in automation near about 8%. Company is trying to automate all possible facilities.

Coca-Cola uses different customized software for different countries. Those may be accumulated locally or internationally.

Coca-Cola has independent MIS department to collect, arrange and disseminate information. It retains a solid and rich information databases of its own

Communication strategies are essential part of development. As a worldwide leading company Coca-Cola has a well-built communication network of its.

Coca-Cola uses internet for different purposes. The state website is www. thecocacolacompany. com. Company provides adverts in internet. Internet is a media of communication also.

Sophisticated technologies are being used by Coca-Cola in development and other businesses. Continuous development in the field of technology is done. Millions of buck is expend for the purpose of development in information, communication, and technology


Culture is one of the most influential factors of the consumer behavior. If the company is fail to understand the culture of any nation or an area it is impossible to survive in to the market. Individuals purchasing decision or taking pattern is mainly depends on individual culture.

Coca-Cola respects the culture of this country where it works. But in some instances it encountered some cultural conflicts and dilemma that have been reducing in later past effectively. The success history of Coke is representing the correct understanding of ethnic pattern of individual countries. Its admiring brand image in almost all the countries also symbolizes it.

Corporate Culture

It has a specialist corporate and business culture. Different factors like diversity, professionalism, global image, strong brand image etc. are constantly forcing to keep up corporate image. Commercial culture of Coca-Cola consists of following issues:

Workforce Diversity

Maintaining corporate and business professionalism

Performing corporate cultural responsibility

Corporate Governance

Corporate governance handles the maintaining of a standard in operation for the betterment of stakeholders especially for the buyers. Coca-Cola maintains close relation using its traders and other stakeholders. All price very sensitive information is disclosed to the shareholders. Regular communication is done with investors. There are independent committees for monitoring commercial governance.


Coca-Cola is the most effective beverage company in its parent country the U. S. A. it comes with an influential power running a business related insurance policy making in the U. S. A.

Company has great important business vitality in many other countries also. In some Latin American countries; in North American countries like Mexico; in many African countries Coca-Cola is a powerful brand. Coca-Cola may impact government of those countries running a business policy making.

But in highly constrained economy (communistic market) like China, Cuba, the corporation has no or less influential power. Being China is the most growing market of Coca-Cola, company cannot get any extra facilities in decision making.

Political unrest hampers the business enterprise of the company in some countries like Afghanistan.

This global company is a solid investor of the world market. As market leader in almost all of the countries in this globe it gets various trade facilities.


Fortunately Coca-Cola is company of such a country which is one of the best democratic nations, the U. S. A. The politics condition of this country is secure. It is a good advantage for the business. Now the Democratic Get together is in ability.

Because it runs in over 200 countries so the politics condition is not same in all countries. In lots of countries the politics condition is very much unstable. Sometime it sometimes appears that he political power is not advantageous for the country. Different global political issues also a significant factor. There are lots of circumstances where company confronted strong opposition. In enough time of Cold Battle it was quite typical scenario.

Coca-Cola runs its business in all types of current economic climate. This is the era of free trade. An extremely small portion of world economy is fixed. So it is easy for Coca-Cola to broaden and operate its business. But it is also true that this free trade is also a hazard because it increases the competition.

There is a tremendous change in the market condition. There's a huge development in China and European European countries. For global monetary crisis there might be a negative development altogether as like the U. S. A. But the dramatic development in Chinese and Western European market taken care of the positive growth.


This drink tycoon must follow the laws of different kinds in a variety of countries where it works.

The production, distribution, and deal of some its products are under the Federal government Food, Drug, and Cosmetic Function; the Federal Trade Commission Function; the Lanham Action; state consumer security laws; federal, status, and local work place health and security laws; various federal government, condition, and local environmental safeguard laws; and some other federal, point out, and local regulations.

Company must follow competition regulations, environment related laws, consumer right regulations, commercial laws and regulations, food and drink related laws and regulations etc. in many countries. Some bottlers of Coca-Cola resource non-refillable containers. Company is needed to pay eco-taxes or fees to government of the U. S. A and some other countries in case there is those non-refillable pots.


Coca-Cola has huge customers worldwide. Customers' choice is different in different region. Company obeys consumers' choice most. So it follows consumer marketing. For this reason, company has long product line. It prepares so various kinds of non-alcoholic beverage. For example there are different versions of Coke like Diet Coke, Cherry Coke, Coca-Cola Zero, and Diet Coke with Lime etc.

It sells improved drinking water brands like Smart-water in THE UNITED STATES. Matte Leao Organic and natural beverages are sold in Brazil. Various tea-flavored beverages, sports drinks, and fruit beverages are sold in the U. S. A. it sells different light drinks in Southern Asian market. Consumers' preferences are highly respected.

A large part of consumers is brand devoted to the Coca-Cola's brands. People find confidence of quality in its products. Consumers also get products as they need. Coca-Cola is a company which is very much able to browse the brain of potential consumers. Therefore there is a large difference of market share between Coca-Cola and other beverage companies. But company will not think anytime that its work is over. They try to try hard to meet their consumers in different ways.


All these factors should be carefully evaluated by the company. Though the company has encountered all the factors successfully, constant monitoring and research are needed.

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