Question

Name a business and ethical crisis faced by the Coca Cola Company and how the stakeholders were involved or what actions did they take?

Answer 1

Name a business and ethical crisis faced by the Coca Cola Company and how the stakeholders were involved or what actions did they take?

• Few children fell ill in Belgium in 1999 after drinking a product with the Coca-Cola brand on it.
• Coca Cola recalled that product from Belgium
• But soon after, every item Coca-Cola made was pulled off the shelves in every store.
• This caused a loss of reputation, which, in turn, made people lose respect for the company and investors started selling their stocks in Coca-Cola
• After Coca-Cola found the root of the problem, that being a bad batch of carbon dioxide, they made an announcement regarding the situation.
• But in the meantime, media made the image of Coca Cola worse than ever
• During this crisis, Coca-Cola started to run into different problems with their marketing in European countries with anti-trust laws
• Coca cola even considered merger with a French company called Orangina
• Involvement of Stakeholders-
  • Media worsened the condition and further tarnished the Coca Cola's image
  • Customers stopped buying the Coca Cola products fearing side effects
  • Employees were uncertain about their jobs
  • Shareholders were selling their shares in anticipation that Coca Cola will fall