Ethics and Sustainability in Coca Cola Company: Effects on Local Communities and Consumers in Australia

Ethics and sustainability 1
Ethics and sustainability
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Ethics and sustainability 2
Introduction
This report is about Coca Cola Company. It focuses on explaining some of the effects of the
company on the environment and the surrounding communities of Australia. In this report, I
have focused on two main stakeholders which are the consumers and the local communities
of Australia (Rao, 2012). These are the major stakeholders affected by the operations of the
company. Some of the problems experienced include the following: water shortage, toxic
waste distribution, pollution and pesticides distribution (Yu, 2012). The pesticide regulation
and its effects have been highlighted. Several recommendations have been discussed on how
to minimize the unethical practices of the company on the people of Australia.
Background
Coca-Cola Company was invented in the late 1800s by Pemberton in Georgia U.S. It is the
largest company of soft drinks with over one million bottles per day (Petty, 2012). Some of
its products include Fanta, Sprite, and Coca-Cola. It is the most recognized brand in the entire
world. It manages its operations in all the continents of the world. It reaches over 200
countries in the world.
Coca Cola has invested a lot in the Australian market and it is one of its largest investors in
the country’s economic sector. Several people have been employed by this company. This
company has had to face some challenges such as water shortages, population and toxic
waste distribution (Barkay, 2013). This has led to confrontations with the government and the
non-governmental organizations. It also, led to the closure of some factories in Australia.
Effect on Stakeholders
In this context, stakeholders are the people, groups of people or institutions that are directly
or indirectly affected by the operations of the company (Biedenweg, 2013). Here in Australia,
the stakeholders of the coca cola company include the consumers, local communities,
employees, shareholders, suppliers and the government. In my study, I have only highlighted
how this company affects the local communities and the consumers in Australia.
Effect on the Local communities
Just from a point of view, most of the factories owned by Coca cola need a lot of water since
this is a beverage company (Górriz, 2001). Most of the people in need of water have been
disadvantaged due to the water shortages. For instance, out of , 2.8 liters of water, the factory
uses only 1 liter of it is produced as the finished drink. This shows that the company
definitely consumes a lot of water.
Toxic wastes have become a menace in the cities of Australia. This is because of the dumping
of soda bottles from the factories. This has led to pollution of the environment especially soil
and air pollution. Many non-governmental organizations have confronted coca cola over this
issue but it has declined to take the responsibility (Krishna, 2011). They do not at all show
any commitments towards solving the problems. Though Coca cola has hosted many events
in Australia, this shows that their operations are unethical and should be corrected. Therefore,
I recommend that the company takes charge of the situation and try to sort it out.