Business Ethics: An Analysis of Ethical Consumerism at Coca-Cola

This report provides an in-depth analysis of ethical consumerism within Coca-Cola's business practices. It begins with an introduction to ethical consumerism, defining its significance and impact on businesses. The report then reviews Coca-Cola's operations, examining its code of conduct, ethical stances, and historical controversies, including issues related to water usage and environmental impact. An opinion survey conducted among students provides insights into consumer perceptions of Coca-Cola's ethical behavior and its influence on buying decisions. The survey results are presented and analyzed, revealing the importance of ethical considerations in consumer choices. The report concludes with recommendations for Coca-Cola to enhance its ethical standards, such as implementing quality management systems and focusing on sustainable practices. The analysis underscores the growing importance of ethical consumerism and its impact on corporate success.

Ethical Consumerism
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EXECUTIVE SUMMARY
In the present report, the work culture of Coca-Cola has been evaluated in order to
understand the concept of ethical consumerism. It has been identified that the customers are
purchasing products and services according to ethical values provided by company. If any
business firm is not rendering benefits to customers and society then users consider organization
as unethical business practice. In order to improve the ethical values the management of Coca-
Cola can focus on introduction of new policies. Number of technological tools and ethical
standards can be set out to enhance positive aspects and lead business to impressive level of
success.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
ETHICAL CONSUMERISM..........................................................................................................4
COMPANY REVIEW.....................................................................................................................5
OPINION SURVEY........................................................................................................................7
CONCLUSION ...............................................................................................................................9
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Ethical consumerism is a rising phenomenon. In today’s scenario, people have become
friendlier towards the environment. It has been identified that the businesses and customers both
have detailed focus on ethical aspects and helps in development of the positive environment
(Attalla, 2009). It is a type of consumer activism that is based on the concept of dollar voting. It
is significant for business organizations to ensure about ethical products and services in order to
meet the needs of customers.
In order to understand the concept of ethical consumerism the learning will focus on
work culture of Coca-Cola. In this regard, the learning will focus on effective understanding of
ethical consumerism by analysing various factors that are related to the ethical values. It will also
concentrate on the wide range of products and services that Coca-Cola provides to its customers
in order to meet ethical aspects. Values provided while offering products and services will also
be evaluated for better understanding of ethical consumerism. Furthermore, it will also have
evaluation of consumer buying behaviour by conducting a survey. However, recommendation
will also be provided to company in order to improve ethical aspects and values.
ETHICAL CONSUMERISM
Ethics can be defined as the study of morality and standards that determine what is right
and what is wrong. It is concerned with any situation where there is actual or potential harm to
any individual or group from a particular course of action. It has been identified that the business
organizations needs to meet the legal demands and ethical needs of customers in appropriate
manner in order to avoid failure issues (Blili, 2010). With an improved focus on ethical
consumerism the potential customers can be attracted towards business. These kinds of
customers made decisions about product and services on the basis of ethical values that company
is providing to society (Ramanathan, 2012). Ethical service users are also ready to pay more for
premium quality of products and services. In other aspect, any customer who have focus towards
ethical values during decision making process then he or she can be referred as ethical
consumerism.
There are number of products that are fall into ethical categories, customers are more
attracted towards ethical aspects during their purchase. Classification of ethical products that
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belong to different organizations can be as Dilmah’sCeylon, CaféDirect Earl Grey, Clipper
Spearmint tea, Adams Natural Peanut Butter Crunchy, Organic Valley Cheddar, HeinzRice
Cream 99% Fat-free Vanilla, SuzukiIoma Coffee, etc (Wisniesk, 2010). In addition to this, it can
be stated that the ethical product's category includes organic produce, fair trade goods, electricity
from renewable energy, recycled paper and wood. It has been identified that it is significant for
business firms to ensure that the products are services are designed in ethical manner and it
provides long term positive impact on the environment and social aspects (Ellis, 2010). If
services and products are having positive influence on the social development then it can be
categories as ethical sustainable products. For example, companies are more focused towards
introduction of green products in order to promote environmental aspects. It is one of the best
example of ethical products and services in modern era.
Moreover, there are various benefits of ethical consumerism such as it provides a great
support to effective use of natural and scare resources. These kinds of customers only buy
products if product covers ethical aspects. It means completion of this need can also build better
image in the market. It is necessary for organizations to ensure that the efficient use of materials
is considered as critical aspect in operations (Newman, 2011). Durability and low maintenance
aspects are referred as one of most significant aspect in the ethical products. Uses agricultural
waste Energy and Water Conservation also make sure that the ethical factors are properly
maintained within firm. Companies can also focus on adaptation of various renewable energy
equipment because it creates positive impact on organization as well as on society (Healey,
2013).
COMPANY REVIEW
Coca-Cola is considered as one of leading business entity in the food and beverage
industry among all markets in the globe. In addition to this, the organisation operates its business
from America and it focuses mainly on manufacturing beverage operations. It is also referred as
one of the largest soda provided in the international market. It has been noticed that the company
was founded in year 1889 by John Smith Pemberton (Nash, 2015). The code of conduct of the
company is to be honest, follow the rules, and to be socially responsible for its acts. Organisation
is continuously presenting self as an ethical organisation that ensure about social and
environmental aspects. But at the same time company has also faced some legal issues due to
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dual product standards. It has also been identified that the solid waste water is one of most
critical issue that impacts the working of the organisation as well as its brand image. Moreover,
the brand image of the Coca-Cola is also influenced in negative way due to advertising in
schools, etc (Shaw, 2015). The company’s behaviour was not ethical and economical, there were
improper decisions and the human rights were not addressed in its practices.
As per the structured study, it can be said that in the initial days of establishment the
organisation was considered as one of most unethical firm. It is because the entity was using lot
of water that has impacted the environmental conditions in negative manner. Manufacturing
plants were consuming lot of water and impacting environment in form of solid waste water. It
has influenced the working of farmers because the low availability of water sources has
influenced the irrigation of the crops (Eastwood, 2015). It has also affected the brand image in
negative manner. Issue of drinking water supply was also one of the critical issue that has
impacted business in diverse way.
After some time company has realized the facts and understand that the ethical issues and
values need to be considered as one of most significant aspect. In this regard, company has
started using number of technological tools that can improve operational conditions and helps in
maintaining the standards of ethical factors. As improper consideration of ethical values was
impacting the operations and leading firm to various environmental consequences. With the
practices of the corporation, people were unable to meet their basic water needs (Pelsmacker,
2009). Company has also started focusing on legal aspects such as human rights and employee
protection act. It has improved the employee's morale and helped firm in overcome issues
regarding workforce. Facilities provided to employees has also been improved in order to meet
the standards of ethical factors. It has also provided an ability to render an adequate services by
using the latest technological tools.
Company has also invested on development of various systems that can reduce issue of
water and solid waste water (Shiu, 2013). It has helped business firm to have improvement in
services and created a better ethical values in the market. It has also attracted more and more
customers and leads business to impressive level of success. Moreover, management of Coca-
Cola has decided to reduced the consumption of water in its products. Company has also started
focus on techniques such as rain water harvesting. It has created a positive work environment
and improved ethical values provided by customers (Krebber, 2010). Coco-cola has stopped the
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use of pesticides in the ingredients of beverages, it was one of most ethical step taken by the
firm. Organisation has also invested more in corporate social responsibility activities in order to
meet the ethical standards and improve its brand image in the market.
OPINION SURVEY
As per the structured study, it can be interpreted that the Coca-Cola is considered as one
of ethical business firm in modern era. In order to understand these aspects more effectively, I
have conducted a survey in which responses are taken by the students. In this, the sample size is
considered as 10 students in order to gather information about subject.
Do you think Coca-Cola is focused towards ethical work conditions
As per the above pie chart, it can be interpreted that the Coca-Cola is nowadays more
focused towards ethical work conditions. It attracts customers to buy its products and services
which is beneficial for sustainable development of the organisation. Out of respondents the seven
of students think that the Coca-Cola has improved its operational activities in ethical manner. It
has created a better image in the market and made organisation a one of most trusted beverage
firm in international market. On the other side, the rest of three percept that the Coca-Cola is not
having ethical work practice and its operations have negative impact on environmental and social
aspects. It means the company need to improve its work practice and implement ethical
standards effectively in order to enhance its brand image.
Ethical influence of product on environmental and social aspects impacts your buying
behaviour
7
70%
30%
Do you think Coca-Cola is focused towards ethical work
conditions
Yes
NO

According to evaluation of pie chart, the ethical aspect's consideration have great impact
on the environmental and social factors. It also influences the buying behaviour of the customers,
it means company must ensure about ethical values. Out of ten respondents the five have said
they are agreed that influence of product on environmental and social aspects impacts your
buying behaviour. In addition to this, it can also be interpreted that the two of students has said
that they are not sure about the ethical values so that can not decide its influence on their buying
behaviour. Rest of three are not in the support of the statement. It clearly indicates that the
ethical standards are need to considered as critical factor because it influences the customer
buying behaviour.
Factor impacts your buying behaviour
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30%
20% 20%
10%
20%
Influence of product on environmental and social aspects
impacts your buying behaviour
Strongly agree
Agree
Neutral
Disagree
Strong Disagree

As per the assessment of pie chart, it can be interpreted that the most of the respondents
has said that the ethics in operational activities of firm also attracts them to purchase a product
and services of organisation. It means the management of Coca-Cola needs to focus on
improvement of ethical values in its operational activities. In addition to this, it can be said that
the two of respondents percept that pricing is one of critical aspect that influences their buying
behaviour. Moreover, the other two has stated that quality is one of most significant factor that
means the company needs to improve quality of products.
CONCLUSION
As per the above study, it can be concluded that the customers are nowadays more
attracted towards ethical values. It means it is necessary for management of Coca-Cola to have
improved focus on ethical standards so that goals and objectives can be accomplished in most
desired form. In addition to this, it has been identified that with an improved focus on ethical
consumerism the potential customers can be attracted towards business. These kinds of
customers made decisions about product and services on the basis of ethical values that company
is providing to society.
RECOMMENDATION
According to above analysis it can be stated that there are number of ways that can
be adopted by business firm in order to create better ethical values. With an implementation of
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22%
22% 44%
11%
Which factor impacts your buying behaviour
Price
Quality
Ethics in operation
All of Above

quality standards like TQM and Six Sigma the management of Coca-Cola can render ethical
values in appropriate manner. It is also significant for company to establish the standards of
corporate governance and ethics as it will also help in meeting objectives. Organisation can also
provide training and development to its employees that can boost ethical environment within
organisation. For example, the conferences on ethical issues and its impact can create better
awareness among workforce and motivate them to follow standards.
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REFERENCES
Books and Journals
Attalla, A., 2009. The myth of the ethical consumer – do ethics matter in purchase behavior.
Journal of Consumer Marketing. 18(7). pp.560 – 578.
Blili, S., 2010. Ethical products and consumer involvement: what's new. European Journal of
Marketing. 44(9/10). pp.1305 – 1321.
Bredeson, D., 2011. Applied Business Ethics: A Skills-Based Approach. Cengage Learning.
Eastwood, I., 2015. Sustainable retailing and consumerism. Management Research News. 28(1).
pp.34 – 44.
Ellis, T., 2010. The New Pioneers: Sustainable business success through social innovation and
social entrepreneurship. John Wiley & Sons.
Harris D., 2007. Organisational Management and Information Systems Systems, Page 4.
Elsevier.
Healey, J., 2013. Ethical Consumerism. Spinney Press.
Krebber, E., 2010. Ethical Consumerism & the Relative Importance of Ethical and Traditional
Product Features. Erasmus Universities.
Nash, B., 2015. Fair-Trade and the Growth of Ethical Consumerism within the Mainstream: An
Investigation into the Tesco Consumer. University of Leeds.
Nash, B., 2015. Fair-Trade and the Growth of Ethical Consumerism within the Mainstream: An
Investigation into the Tesco Consumer. University of Leeds.
Newman, J., 2011. Green Ethics and Philosophy: An A-to-Z Guide. SAGE.
Pelsmacker, P., 2009. Will ethical consumers sustain their values in the global credit crunch.
International Marketing Review. 26(6). pp.674 – 687.
Ramanathan, J., 2012. The Myth of the Ethical Consumer. Journal of Product & Brand
Management. 21(1). pp.68 – 68.
Shaw, D., 2015. The Ethical Consumer. SAGE.
Shiu, E., 2013. Ethics in consumer choice: a multivariate modelling approach. European Journal
of Marketing. 37(10). pp.1485 – 1498.
Trevino, K. L. and Nelson, A. K., 2010. Managing Business Ethics. John Wiley & Sons.
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Wisniesk, J., 2010. Consumerism and ethical attitudes: an empirical study. International Journal
of Islamic and Middle Eastern Finance and Management. 3(1). pp.36 – 46.
Online
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