Coca-Cola is one of the largest international beverage companies. It is renowned by its brand name and working in more than 200 countries. Company has different brand under its single name coca –cola and diet coke is one the most renowned brand names PowerAde, Minute Maid, and Dasani water are the other brands. The company has excelled over the last ten years; however, in recent decades the company struggled to meet its financial objectives and has encountered a number of ethical crises (Ferrell, 2011).
Explain why you think Coca-Cola has had one ethical issue after another to resolve over the past decade or so.
Apparently its seems that company is working fine but it has run into numerous difficulties and in short has had ethical issues one after another, even with an international recognition. The company’s problem began at the executive level where many areas of the organization lacked quality leadership that was deficient in handling a series of ethical crises. Company has a bit week leadership and was not strong enough to resolve the ethical issue. Due to this weakness such ethical issues kept arising.. Many board members lost faith in the company and resigned after Coca-cola failed to conquer its challenges.
According to Ferrell (2011) when Doug Ivester became CEO of Coca-Cola, he was groomed for the position by a former CEO, however, his tenure as CEO ended quickly. Ivester was faced with many issues; unfortunately, he was not equipped to handle competition from other competitors, as well as, the ethical disaster his company faced. Apart from Ivester, their were several CEOs’ whose tenure was rocky, and decided to resigned from the company after years of frustration over the company ethical issues. In addition, this has cast doubt on the CEOs’ ability to successfully lead.
Moreover, Coca-Cola has clearly shown that they are not prepared to handle disputes or incidents whenever they occurred, due to slow responses, and failure to...