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Business Ethics: Coca Cola
The concept of business ethics refers to the philosophical method in which an
organization acts to attain what is considered to be morally upright. The directions determined
are used in ascertaining the course of action as well as the business that is designated as right.
Business ethics amalgamates various profit oriented dimensions with non-monetary concerns.
The idea of business ethics was developed after the Social Responsibility Movement that came
out in 1960. This movement came out as a result of the concerns raised over the ecosystem and
consumerism.
Coca Cola and some of its bottling partners signed what came to be known as the United
Nations Global Compact in 2006 to contribute to the responsibility of preserving the principles
set out in the compact (Le, Jiang and Sandor, pp.37). The principles in question include the
preservation of human rights, fair labor practices, environmental conservation, and the fight
against corruption at the company. Coca Cola therefore protects its workers and those of its
bottling partners from violation of their rights. The company has set mechanisms that support
labor practices that are within the acceptable standards. The company responds to environmental
challenges in its ads campaigns.
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Coca Cola goes beyond just creating a safe working environment; it builds a fair and
ethical relationship between the two main stakeholders. These stakeholders are the employers
and employees at the company (Vrontis and Sharp, pp. 297). An ethical relationship goes as far
as improving the satisfaction of workers and the image the company gives to outsiders. This also
includes highlighting the concerns that are borne by the workers. The challenge of worker
protection comes in when dealing with workers in locations that labor laws have little impact
such as Colombia (Le, Jiang and Sandor, pp. 40). The company has the power to use the Alien
Tort Claim Act and Torture Victims Protection Act in fulfilling its agenda to the workers.
Workers in countries like Colombia have a lot of sensitivity on the possibility of excessive force
being used along paramilitary activities that include propaganda and assassinations. The Coca
Cola company in the United States and other national branches can come together to protect the
rights of workers and increase the bargaining power.
Coca Cola Company provides the shareholders with the information they need in the
correct way. The information is relayed concerning the company to allow for true and fair
assessment and enable them to make decisions on how to make further investments.
Shareholders need constant and full information on how the company works and operates
(Vrontis and Sharp, pp. 295). They also need to demonstrate how the business has experienced
growth. The returns on the investments made by the company are supposed to be provided fairly.
The increase in dividends for the company is from 0.80 for every share to 1.24 for every share
shows the competence of the company and its ability in experiencing growth (Le, Jiang and
Sandor, pp. 39).
Coca Cola companies abroad are needed to make their subsidiaries to comply with the
designated laws and policies of companies abroad. The laws that change for Coca Cola from
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country to country are Human Rights and Labor laws. Countries that are signatory to
conventions of international law and the United Nations are required to observe the laws that
govern them in their countries of operation.
Business ethics guides a business in operating in a manner that is considered to be
morally upright. Business ethics is a union of two objectives of the company which are to
address profit concerns and handle non-monetary issues. Coca Cola’s business ethics is also
observed through fair worker practices that encourage more work.
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Works Cited
Le, Alex, et al. "Business Ethics: The Coca-Cola Company." Journal of Philosophy 1.1 (2017):
35-45.
Vrontis, Dementris and Iain Sharp. "The Strategic Positioning of Coca Cola in their Global
Marketing Operation." The Marketing Review (2014): 289-309.

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