Ethical Issues in Business: Ackerman vs. Coca Cola
Coca Cola was brought under scrutiny and to court by Ackerman, filing in the United States District Court in the Eastern District of New York {Ackerman v. The Coca-
Cola Company and Energy Brands Inc. (d/b/a Glaceau), Case No. 09-cv-0395) (Brison, 2012). The suit compiles a class action suit from the states of New York, New Jersey, and California. Thirteen allegations are identified with three dismissed. We will be discussing the issue at hand, what the basis of the suit is and ground rules, ethical issues, how Coca Cola’s leadership conduct affected the company, and the changes needed.
The history of Coca Cola dates back to the 1886 when an Atlanta pharmacist named of Dr. John S. Pemberton discovered that by mixing sweet syrup with carbonated water an eccentric taste was produced. In 1886 Coca-Cola started as a five cent drink in a neighborhood pharmacy and today has become a household name for millions. With the increasing push for health, coke, and other carbonated soft-drink manufacturers have experienced a 2.1% volume decline in one year alone. In an effort to prevent decreasing soda sales, Coca-Cola decided to manufacture Vitaminwater. The success of this product was largely because of the marketing power of the organization and the products health claims. For example they listed that this product will provide “optimal functioning of the immune system,” and that Vitaminwater “is specially formulated to provide 50% of the many important vitamins you need every day" (Brison, p 195, 2012). According to Brison, “In 2009, Coca-Cola was named in a class action lawsuit, Ackerman v. The Coca-Cola Company based on Fraud/Misrepresentation, Unfair Business Practices, False Advertising, and Breach of Express and Implied Warranties” (Brison, p 195, 2012). This lawsuit implies that Coca-Cola misrepresented the product by