Ethical Management of Companies

Ethical Management of Companies

  • Submitted By: anuragwal
  • Date Submitted: 04/21/2010 7:41 PM
  • Category: Business
  • Words: 820
  • Page: 4
  • Views: 480

In the context of ethical management of companies, analyze the behavior of Coca cola .Were they right in what they did or did not do. What ethical frame work did they follow? You can use the seven step model for this.

Are there any larger issues involved in this case? Does business ethics needs to be redefined? If so what would be your recommendations.

ANS: As reason mentioned in the case, company thought of setting up a plant in kerala was chosen based on the satellite survey which had indicated the presence of abundant ground water in the area. Did the company do a feasibility report before setting up a coke plant. According to me, the company knew what were the side effects of using ground water in manufacturing coke. The matter was completely ignored in order to venture into india. It was in ethical in venturing in india despite of knowing the facts. As well the company thought about its own profit margin then thinking about the environment. Any company would have gone ahead with the project as india was a good area for them to excel. Regarding extracting water from the natural source will surely affect. Water shortages, drought etc will surely happen if all the water from the early is utilized. The accusations made against the company were :

• Using more bore wells than permitted in their license: the level of groundwater is said to have dropped from 45 to 100m below the surface

• Discharging polluted waste back into the water supply

• The result for local people was bad smelling and tasting water, rashes and stomach aches.

The seven steps process is a follows:

i. Determine the relevant facts.

ii. identify the ethical issues

iii. Develop alternative for resolving the issue

iv Define the stake holders for each alternative

v Evaluate the ethics for each alternative

vi take stock of the practical constraints

vii Decide on and plan implementation of...

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