The Coca-Cola Company Struggles with Ethical Crisis

Lisa San
MGMT 366
6/30/13

The Coca-Cola Company is one of the most well known companies in the U.S. and quite possible the world since its origination in the late 1800’s. Coca-Cola’s rapid expansion and innovation have provided ample evidence that the company is here to stay. However, after the death of the companies CEO, Robert Goizueta, the company has faced multiple ethical dilemmas. These problems have had a direct negative impact on Coca-Cola’s financial expansion, corporate culture, business relations, as well as their shareholder. Through thorough examination of past ethical dilemmas, grievance resolution, and utilizing third party consulting, Coca-Cola is on route to regain trust from consumer and business partners. Coca-Cola began to struggle in 1997 shortly after CEO Robert Goizueta passed away and Doug Ivester was appointed CEO after years of training from his mentor, Goizueta. Doug Ivester was a strong leader for the company in terms of financial flow; however, Ivester was not equipped to handle many of the ethical crises that arose. Ivester left the company in 2000 leaving Dough Daft CEO and leaving Daft with a company that was somewhat tarnished after having a relatively perfect record for 100 years. Daft reputation while as CEO was unsound and caused the company to face allegations of racial discrimination with distributors. Daft left Coca-Cola in 2004 and left the CEO position to Neville Isdell. Coca-Cola is one of the most renowned brand name in the world and has a trademark value of about $25 billion. The company has consistently taken actions to draw, satisfy, and maintain customers. For example, during the time of World War II, CEO Robert Woodruff committed to selling Coca-Cola to citizens serving their customers for only five cents a bottle. This bought consumer loyalty at a very