Approaches to Ethical Decision Making Related to the Coca Cola Company - Report Example

Ethics and Behaviour Analysis] By Insert Your Name Presented to Instructor’s Name, Course Institution Name, Location Date Due Introduction As a multinational beverage corporation coupling as a manufacturer, retailer, and marketer of non-alcoholic beverage concentrates and syrups, the Coca Cola Company boasts of offering over 500 brands successful in its 200 international territories. Its distribution system is franchise based starting at its North America Anchor bottler to various bottlers distributed throughout its 200 international market territories. Furthermore, it is among the top five blue chip corporations listed on the NYSE, DJIA, S&P 500 Index, and the famous Russell 1000 Growth Stock index (Mark, May 12, 2006:56). The company has had to fight off criticism raised and sustained by consumer watchdog agencies and consumer groups in relation to possible health effects caused by its products currently being distributed worldwide. For this report, I seek to draw my insight on issues relating to TCCC’s corporate governance guidelines from my experience as a Coca Cola brand distributor in London, U.K for the last six years. The aim of this essay is to describe, explain, and justify ethical decision-making and behaviour, and to demonstrate knowledge of one or more of the main theoretical approaches to ethical decision making related to the Coca Cola Company the U.K’s market segment. Discussion The Coca Cola Company is based in Atlanta, Georgia in the U.S. The company offers a wide range of beverages to over 1.6 billion persons daily in over 200 countries worldwide. Though enjoying success in the United States, Mexico, India, Japan, Brazil, and the People’s Republic of China, the company faces massive criticism in the U.K and its neighbouring countries due to possible health-risks that its products are claimed pose to users (Mark, May 12, 2006: 59). The allegations have slightly affected its product sales in the United Kingdom and the U.S. As from December 14, 2008, the Coca Cola Company started using the Global Reporting Initiative public domain as a way of providing standards against which its performance in the U.K market segment could be judged. Moreover, the standards set sought to introduce a regular means of reporting to increase accountability and transparency within the organization as well as gain public trust. To establish the GRI framework at TCCC, a committee of 14 financial analysts and 10 marketing executives were appointed by the management team to set guidelines of what the GRI framework should contain (The Coca-Cola Company, 2011:1). The guidelines were aimed at enhancing reporting standards at both the environmental and the financial level. As outlined by the set standards, the Coca Cola Company leadership team is expected to provide senior level management and leadership for the Coca Cola Great Britain as well as for related Coca Cola enterprises in the U.K. To be appointed as a member of the management team, one must have operational expertise managing social issues as well as adequate experience in managing multinational corporations. Their responsibility is to manage all economic, social, and environmental risks associated with carrying out business in the U.K beverage industry. Lastly, they are supposed to ensure that the enterprise complies with all the relevant rules and legislations set out by the U.K government regarding the sale of carbonated products in the U.K market segment. As for investors and distributors, the company expects them to a bid by the terms of agreement outlined in the contract to ensure the company operations run smoothly. Moreover, the contracts are to be reviewed every year to ensure that only distributors who meet the set guidelines in their contracts continue doing business with the organisation (The Coca-Cola Company, 2011:3). In such a competitive Beverage industry in the U.K, the company hopes to attract more consumers through indirect marketing spearheaded by the distributors. The Global Reporting Initiative assists companies such the Coca Cola Company to report on sustainability performance as a way of managing their impact on their developments. Furthermore, it allowed the Coca Cola Company to improve on its sustainable development outcomes, as it was able to track, measure, and improve their previous performance standards. It is much easier for the board of directors to manage an issue that can be quantified in measurable values hence GRI assisted the management team to solve internal issues effectively (Taylor, 2010:175). In addition, it offers a free flow of information throughout the organizations managerial framework resulting in better management of time and money spent on sustainable developments initiated by the company to further its goals. It gives an organisation an opportunity to collect, analyse and report filtered reports to the public controlling the type of messages they want delivered to their shareholders, investors, and other business stakeholders. Sustainability reports issued by the company on yearly basis have assisted to promote transparency and accountability within the organisation as well as gain public support in all their projects. Moreover, it gives the public and the shareholders an opportunity to track down the performance of the organisation since they can access the information from a public domain or portal. Lastly, information released into the public domain by the organisation allows public agencies to track the company’s environmental performance as well as labour conditions in their respective factories in the U.K. Pressure sustained by the pubic in relation to health risks posed by coca cola products has prompted the company to re-analyse their products to meet the set standards for the U.K beverage industry. Stakeholder Inclusiveness Sustainability reports issued by the Coca Cola Company assist external observers and the media to monitor activities of the organisation closely. This gives a preview of the level of involvement of the shareholders in company matters as well as promotes transparency and accountability to the public (The Coca-Cola Company, 2011:4). It is intriguing how sustainability reports can transform the mode of sharing information between the management team and its shareholders. As outline in the 2009/2010 sustainability report issued by the Coca Cola Company, shareholders participation in company affairs rose from 10% in 2008 to 18.5% by the end of the 2009/2010 fiscal year. Environmental Reporting Environmental reports published by the Coca Cola Company are aimed at elevating the standards of environment conservation for a better future. Using the GRI Indicator protocol set, the Coca Cola Company created a solid criterion for monitoring their performance indicators in the field of energy transmission, biodiversity, and emissions. So far, the company has reduced its industrial emissions by over 20% as compared to other competitors such as Pepsi who have only managed to reduce their emissions by 15% since the launch of G3 standards in 2006 (The Coca-Cola Company, 2011: 2). As a distributor of Coca cola products in U.K, I have been part of initiatives aimed at conserving the environment more so indigenous plantations in the U.K. This initiative is a joint venture in association with conservancy agencies working in U.K. Sustainability reports uploaded to the public domain allows the public to relate to the social side of the company. Coca Cola is a company that upholds clients respect and dignity whenever carrying out their businesses. It is evident when considering some of the efforts the management team has implemented to assure customers of obtaining satisfaction whenever they purchase a product manufactured by the Company (Taylor, 2010:178). Moreover, it recognises that customers are the most important resources to the company and they deserve only the best products at an affordable. Therefore, the organisation disseminates relevant information to the public to assist them make the most appropriate dietary choices whilst purchasing beverages produced by the company. It is a way of taking social responsibility over what consumers need to drink rather that what they wish to drink. Through sustainability reports, the company educates its product consumers on the most appropriate way of using them for ultimate satisfaction. As part of the company’s social responsibility, they ensure that the welfare of the employees is well taken care of to motivate them to work efficiently to satisfy the needs of their consumers around the world. Investors doing business with the Coca Cola Company feel more confident in their choice of investment whenever they read of reports indicating consumer satisfaction levels in Coca Cola products. It is unwise for the management team to deny employees, shareholders, and investors vital information relating to organisational processes as it leads to disoriented public results (Mark, May 12, 2006:4). The Coca Cola Company IT department has developed a data-sharing database that will enable employees, shareholders, and investors to view information relating to company’s activities regarding environmental matters more so those supporting conservancy efforts in the U.K. In summary, sustainability reports have assisted the company to highlight keys achievements it has made for the public read and get educated on new initiatives put forth by the organisation. It is impressive how social reporting can expand the scope of issues covered when analysing a company’s performance. This system offers a broader perspective to issues that financial reporting fails to account for. By submitting annual sustainability reports, the company has been able to monitor its own activities via responses collected from issues posted in the public domain. It is a way of observing the overall communication flow in the managerial framework to ascertain the relevance of the business enterprise as a legal entity responsible of its actions (Taylor, 2010:175). The standards established as the acceptable code of conduct for the management team, investors, and employees have assisted to streamline company’s operations. The standards set by the management team over what type of information to release to the public has enabled them to harness the interest of potential customers to create products that meet their individual needs. Performance goals set for each employee via the establishment of social reporting programs, give the management team a criterion by which to judge employee’s contribution to the company. Furthermore, the standards set form the foundation of developing strategic training programs aimed at equipping the employees with relevant skills to perform their duties more efficiently (Mark, May 12, 2006:3). The GRI is a platform through which the Coca Cola Company collects important feedback from their product end-users to streamline their production processes. The success currently being enjoyed by the Coca Cola Company in social reporting can be attributed to quick responses to matters raised by consumers of their products via the public domain that is open to all. When comparing the performance of the Coca cola Company to other beverage manufacturers in the U.K in terms accountability to the society, the Coca Cola Company has by far fulfilled its social responsibility by offering useful information about their products to its customers. Even though social reporting is not a mandatory requirement for Beverage manufacturers and distributors in the U.K, it offers unbiased feedback to issues affecting consumers as well as educates them on new developments initiated by the organisation to improve the quality of the products. The Coca Cola Company releases annual reports on all social and environmental activities carryout throughout the fiscal year as a way of keeping the public in the know of what projects the organisation has been working on (The Coca-Cola Company, 2011:2). GRI gave the Coca Cola Company an opportunity to counter competition from PepsiCo by broadening their social network through consumer integration processes aimed at raising public awareness of its products. This led to it forming a solid customer base in the U.K that has enabled it to diversify its beverage products to meet their needs. It is an intricate cycle of dependency triggered upon by the need of making profit on the part of the organisation and fulfilling the needs of beverage consumers in the United Kingdom and its neighbouring territories. PepsiCo enjoys quite a large market share estimated to be close to 45% of all daily beverage servings in the U.K. Therefore, Coca Cola utilises the GRI platform to try to market its products by seeming environmentally friendly than their rival competitors. Completed conservancy projects attract environmentally conscious beverage consumers as they view purchasing a product manufactured by TCCC as promoting their conservation efforts in the U.K. It in turn results to high sales revenue for the organisation that have drastically increased their annual profit margin. Conclusion In summary, the Coca Cola Company has managed to stay ahead of its competitors by creating an interactive social marketing network with its loyal consumers through GRI. Though it suffers immense criticism on health risks posed by its coke brand, the company has managed standardise its concentrate levels in all its brands to avert this claim. Furthermore, it is much easier for the board of directors to manage an issue that can be quantified in measurable values hence GRI assisted the management team to solve internal issues effectively. Lastly, information released into the public domain by the organisation allows public agencies to track the company’s environmental performance as well as labour conditions in their respective factories in the U.K. Reference List Mark, E. (May 12, 2006). Global Reporting Initiative (GRI). Australian Management Journal , 46-69. Taylor, R. (2010). Third Sector Research. London: Springer. TheCocaColaCompany. (2011). Sustainability. Retrieved September 24, 2011, from GRI Index: http://www.thecoca-colacompany.com/citizenship/gri_index.html Read More

The guidelines were aimed at enhancing reporting standards at both the environmental and the financial level. As outlined by the set standards, the Coca Cola Company leadership team is expected to provide senior level management and leadership for the Coca Cola Great Britain as well as for related Coca Cola enterprises in the U.K. To be appointed as a member of the management team, one must have operational expertise managing social issues as well as adequate experience in managing multinational corporations.

Their responsibility is to manage all economic, social, and environmental risks associated with carrying out business in the U.K beverage industry. Lastly, they are supposed to ensure that the enterprise complies with all the relevant rules and legislations set out by the U.K government regarding the sale of carbonated products in the U.K market segment. As for investors and distributors, the company expects them to a bid by the terms of agreement outlined in the contract to ensure the company operations run smoothly.

Moreover, the contracts are to be reviewed every year to ensure that only distributors who meet the set guidelines in their contracts continue doing business with the organisation (The Coca-Cola Company, 2011:3). In such a competitive Beverage industry in the U.K, the company hopes to attract more consumers through indirect marketing spearheaded by the distributors. The Global Reporting Initiative assists companies such the Coca Cola Company to report on sustainability performance as a way of managing their impact on their developments.

Furthermore, it allowed the Coca Cola Company to improve on its sustainable development outcomes, as it was able to track, measure, and improve their previous performance standards. It is much easier for the board of directors to manage an issue that can be quantified in measurable values hence GRI assisted the management team to solve internal issues effectively (Taylor, 2010:175). In addition, it offers a free flow of information throughout the organizations managerial framework resulting in better management of time and money spent on sustainable developments initiated by the company to further its goals.

It gives an organisation an opportunity to collect, analyse and report filtered reports to the public controlling the type of messages they want delivered to their shareholders, investors, and other business stakeholders. Sustainability reports issued by the company on yearly basis have assisted to promote transparency and accountability within the organisation as well as gain public support in all their projects. Moreover, it gives the public and the shareholders an opportunity to track down the performance of the organisation since they can access the information from a public domain or portal.

Lastly, information released into the public domain by the organisation allows public agencies to track the company’s environmental performance as well as labour conditions in their respective factories in the U.K. Pressure sustained by the pubic in relation to health risks posed by coca cola products has prompted the company to re-analyse their products to meet the set standards for the U.K beverage industry. Stakeholder Inclusiveness Sustainability reports issued by the Coca Cola Company assist external observers and the media to monitor activities of the organisation closely.

This gives a preview of the level of involvement of the shareholders in company matters as well as promotes transparency and accountability to the public (The Coca-Cola Company, 2011:4). It is intriguing how sustainability reports can transform the mode of sharing information between the management team and its shareholders. As outline in the 2009/2010 sustainability report issued by the Coca Cola Company, shareholders participation in company affairs rose from 10% in 2008 to 18.5% by the end of the 2009/2010 fiscal year.

Environmental Reporting Environmental reports published by the Coca Cola Company are aimed at elevating the standards of environment conservation for a better future.

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