Case Study 1

CASE STUDY-1

INTRODUCTION TO COCA COLA CO.

It is the world's largest beverage company, largest manufacturer, distributor and marketer of non-alcoholic beverages ,based in US.

The Company was bought in 1892. It currently offers nearly 400 brands in over

200 countries or territories and serves 1.5 billion servings each day.

The Coca-Cola Company is headquartered in Atlanta, Georgia.

Its current president and CEO is Muhtar Kent

POPULAR BRANDS

FRESCA

MINUTE MAID

PRODUCTS

DIET COKE

CHERRY

COKE

COCA COLA ORANGE

VANILLA COKE

REVENUE According to the 2005 Annual Report,

the company sells beverage products in more than 195 countries.

The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day,

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

37% in the United States 43% in Mexico, Brazil, Japan and China 20% spread throughout the rest of the

world

SUMMARY OF CASE STYDY-1

• Unusual uses:- contain phosphoric acid of pH value 2.5 midway of vinegar and gastric acid.

• Use of coke for cleaning blood on highways and also as a anti rust substances.

• Dissolve tooth overnight.• IRON OXIDE------------- IRON PHOSPHATE• (phosphoric acid)• Reduces calcium intake, leads to

osteoporosis.

CONTINUE…. High fructose corn syrup:- due to hike in

price of sugar(G+F),coke has been made with high fructose syrup(diabetes and osteoporosis) and corn syrup(corn from genetically altered plants).

Middle east and U.S foreign policy:-due to disapproval of US policy in Israel, coca cola is less popular in Arab countries, Middle-East is the only region in world, where coca cola is not the no.1 soft drink.

CONTINUE… Coca cola in India:-uses 5l of water to

make 1l of coke. so water extracted on unsustainable rate, damaging local supply and force farmers to relocate.

In 2003, CSE proves that aerated water produced contain toxins(malathion,DDT etc).

CSE also found 36 times the level of pesticide residue in coca cola but in US no such residues found in the same product.

CONTINUE….

Columbia and International boycott:- In 2003,Columbian trade union SINALTRAINAL called an international boycott of coca cola products because of kidnapping, and brutal murder of workers in coca cola bottling plants by paramilitaries who were allegedly acting on behalf of coca cola co. in order to drive down the wages of worker in Columbia.

Q. IS COCA COLA DOING ITS BUSINESS ETHICALLY?

ANS-Before we comment on the ethical/unethical practices of coca cola co.,let us understand the term BUSINESS ETHICS.

It is the difference between right and wrong and choosing to do what is right. The phrase 'business ethics' can be used to describe the actions of individuals within an organization, as well as the organization as a whole to maintain a high sense of values and conduct honest and fair practices with the public.

CONTINUE…. Looking at the definition business ethics,

we can conclude that the coca cola co. has not been doing its business ethically.

The above statement can be proved or validated by throwing lights on the following facts:-

Ingredients of coca cola Unusual uses of coca cola Health hazards Controversies with different countries

INGREDIENTS OF COCA COLA

(28 g) caffeine citrate (85 g) citric acid

(2.5pH)Phosphoric acidCarbonated water

(30 ml) vanilla extract (950 ml) lime juice

(16 g) flavoring (14 kg) sugar

(120 ml)fluid extract of coca (decocainized flavor essence of the coca leaf)

(3.9 l) water caramel sufficient

UNUSUAL FACTS ABOUT COCA COLA

1. In many states (USA) the highway patrol carries two gallons of coke in the truck to remove blood from the highway after a car accident. (Phosphoric acid)

2. To clean a toilet.

3. The citric acid in Coke removes stains.

4. To remove rust spots from chrome car bumpers.

5. To clean corrosion from car battery terminals: 6. To loosen a rusted bolt.

CONTINUE…. 7. To remove grease from clothes: Empty a can of coke

into a load of greasy clothes, add detergent, and run through a regular cycle.

8. Its phosphoric acid can dissolve rust and grease and was used by the steel industry to clean products.

9. The active ingredient in Coke is phosphoric acid. Its

pH is 2.8. Phosphoric acid also leaches calcium from bones and is a major contributor to the rising increase in osteoporosis.

10. To carry Coca-Cola syrup (the concentrate) the commercial truck must use the Hazardous material place cards reserved for Highly corrosive materials.

HEALTH HAZARDS The phosphoric acid present in soft drink competes with the

hydrochloric acid of the stomach and affects its functions. When the stomach becomes ineffective, food remains

undigested causing indigestion , gassiness or bloating.

Kidneys are less able to excrete phosphoric acid when it is in excess. Thus, there is extra work for the kidneys and can

lead to kidney disorders.

Soft drinks remove Calcium from the body, causing an excess amount of Calcium that tends to be deposited in the kidney, resulting in kidney stones. Over time, bones can

become fragile and more susceptible to fractures. Acidic blood affects the action of glutathione, which is an

antioxidant enzyme.

Phosphoric acid, present in carbonated drinks de-oxidizes blood. . In human body, it removes Ca²+ and Mg²+ ion from

bones causing osteoporosis.

CONTROVERSIES OF COCA COLA

The Coca-Cola Co. has been involved in a number of controversies related to its relationship with human rights violations and other unethical practices.

A number of lawsuits have been issued in relation to its allegedly monopolistic and discriminatory practices, some of which have been dismissed, some of which have caused The Coca-Cola Company to change its business practices, and some of which have been settled out of court. There had been criticisms regarding the Coca-Cola Company's in relation to the:

Middle East and U.S. foreign policy. Columbia trade union boycott. India –boycott-environmental issues.

COLUMBIA-TRADE UNION BOYCOTT

In 2003,Columbian trade union SINALTRAINAL called an international boycott of coca cola products because of kidnapping, and brutal murder of workers in coca cola bottling plants by paramilitaries who were allegedly acting on behalf of coca cola co. in order to drive down the wages of worker in Columbia. The product has been given the name ”KILLER COKE”.

On 11th April 2006, the university of Michigan agreed to purchase the product of coca cola co. saying that ,it was satisfied with the plans for two investigation into the company’s labor and environmental practices in Columbia and India respectively.

INDIA-BOYCOTT COCA COLA-ENVIROMENTAL ISSUES.

KALADERA ISSUE“Kaladera” is a village outskirt of

Jaipur city of big agricultural land, residing poor farmers.

Coca cola put up his bottling plant in that location, extracting water

for its production at an unsustainable rate, damaging the

local supply and torturing and forcing local farmers to relocate.It made the deep bore well of

kaladera toxic, making the water inedible to drink.

CONTINUE….

PESTICIDE IN COCA COLAIn 2003, the CSE, a non-governmental organization in Delhi, said aerated water produced by soft drink manufacturers

India, contain toxins like- lindane, malathion,DDT,etc.which can lead to cancers and break down immunity.

CSE also found that Indian produced coca cola has 36times the level of pesticide

residues but the same products in US has found no such residues. And thus it was

boycotted in India.