The Coca-Cola
Company Struggles with Ethical issues

Dr. Albrani

University

BUS 508

July 20, 2012

Delineate the ethical issues and dilemmas the company faced.

The following is a series of alleged misconduct and questionable behavior affecting Coca-Cola stakeholders. The first ethical issue or dilemma the company faced is the contamination scare which is perhaps the most damaging of Coca-Cola cries- and the situation that every company dreads-began in June 1999, when about thirty Belgian children became ill after consuming Coca-Cola products. Although the company recalled the product, the company eventually determined that the illnesses were the result of a poorly processed batch of carbon dioxide. Questions about Coca-Cola’s market dominance started government inquiries into its market tactics. Because most European countries have very strict antitrust laws, all firms must pay close attrition to market share and position when considering joint ventures, mergers, and acquisitions. During the summer of 1999, Coca-Cola became very aggressive in the French market. As a result, the French government responded by refusing to approve Coca-Cola’s bid to purchase Orangina, a French beverage company. French authorities also forced Coca-Cola to scale back its acquisition of Cadbury Schweppes, another beverage maker. Moreover, Italy successfully won a court case against Coca-Cola over anticompetitive prices in 1999, prompting the European Commission to launch a full-scale probe of the company’s competitive practices. PepsiCo and Virgin accused Coca-Cola of using rebates and discounts to crowed their products off shelves, thereby gaining greater market share. Coca-Cola’s strong-arm tactics proved to be in violation of European laws and once again demonstrated the company’s lack of awareness of European culture and laws.