Write about ethics and corporate social responsibility in Case of Coca-Cola

Answer to Question: COMMERCE 7016OL Corporate Social Responsibility And Ethics


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This report seeks to provide an understanding of the concepts of corporate responsibility, sustainable development and ethical business practices.

The Coca-Cola case will be highlighted, along with its unprofessional business practices, that were heavily criticized by the public for its business operations.

The report will also detail the ethical violations that Coca-Cola has committed.

Coca-Cola has provided significant initiatives to help rebuild its image.

Coca-Cola Criticism & Corporate Social ResponsibilityCSR And Sustainability Development

Corporate social responsibilities (CSR) encourages businesses to be aware of the impacts of their own business on the environment and other stakeholders.

It says that businesses have a moral obligation to contribute to the development and well-being of society.

Organisations can also use sustainable development to address the current generation’s demands without having any adverse effects on the future.

This ensures that future generations will have enough resources (Dobson 2007, 2007).

CSR evaluates past practices but sustainable development looks to the future. CSR focuses on what the organisation did in the last year, while sustainable development plans for the future.

Both have a connection. CSR is effective when an organization adopts sustainable practices. This will ensure that society and the environment are helped (Moon, 2007).

Coca-Cola uses unethical business practices

Coca-Cola has become one of the most well-known companies in the world.

But, Coca-Cola is more than just a well-known global MNC. It also remains in the limelight for its controversial business practices.

It has come under fire for its business practices, which have negatively impacted society, individuals, as well as the environment.

Coca-Cola’s unethical business practices include operations that lead to water shortages within India’s villages.

Plachimada (Palakkad) was the location of a Coca-Cola facility in 1999.

After two years, complaints from local communities about water shortages and water pollution arose.

2003 saw protests against Coca-Cola because of extreme water shortages and dry wells caused by over-exploitation (, n.d.).

This was one example of unethical behavior by the company that harmed the livelihoods of many rural villagers who had been completely dependent on agriculture (Indiaresource.n.d.).

Violation Of Ethical Theory For Utilitarianism

The company does not follow the ethical theory of utilitarianism.

According to this theory, an individual engages in tat activity that benefits the most people rather than doing such activities which are self-directed that only benefits them or the company (Hursthouse (2013)).

The cheesiness of Coca-Cola was self-absorbed, which meant that it only generated revenue. However, hundreds of people are affected and lose their livelihoods.

Reasons why companies are increasingly addressing their social and ecological impacts

Companies must be aware of all the potential environmental and social effects that their business operations may have on the environment.

Kazmin (2015). The Government and other organisations are imposing heavy charges on companies and restricting their ability to continue operating (Kazmin).

Societies also exempt companies from activities that cause harm to the environment and society. Brand image is damaged which can have an adverse effect on sales.

Coca Cola and the other MNCs are addressing their social and environmental impacts.

Many companies have launched initiatives to address social and environmental issues as a result of their business operations.

Coca-Cola has made major efforts to change its negative image. It piloted a water recovery system that highly relies on the reuse-and-recovery approach.

Coca-Cola also has other initiatives, including the establishment of rain water harvesting system in India to help reduce water shortages.


The report concludes that it is time for companies to put emphasis on business ethics and watch their business practices.

It is possible to see that Coca-Cola, one of the largest MNCs, has engaged in many unethical business activities, including water shortage and exploitation environmental resources.

It also violated the ethical principles because of it.

It can be seen that the common ahs recognized the potential consequences of unethical practices in business and has taken various initiatives to recuperate them. These actions can help the organisation rebuild its image and customer base.

Refer toCsrwire, 2012.

Coca-Cola Pilots New Water Recovery System. It also wins the IWA Award.

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Environment citizenship: towards sustainable growth. Sustainable development, 15(5), pp.276-285.Hursthouse, R., 2013. Normative virtue ethics. ETHICA, 645.


Accessed 4th May 2017. Accessed from:, A., 2015.

Coca-Cola forces India to abandon its bottling plant plans.

Accessed on May 4, 2017. Accessed from:

Lindgreen A. and Swaen V. 2010.

Corporate social responsibility.

International Journal of Management Reviews (12(1)), pp.1-7.Moon, J., 2007.

The contribution to sustainable development of corporate social responsibility. Sustainable development, 15(5), pp.296-306.Righttowater, n.d. Case against Coca-Cola Kerala State: India.

Accessed May 4, 2017. Accessed from:

Srikant P., Struggle For ‘Blue Gold’ In Plachimada. Kerala.

SHARING THE BLUE GOLD. p.71.Waronwant, 2007.


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