Case Study Analysis: Uber, Coca-Cola, Starbucks, and New Belgium

This case study examines the ethical challenges and business practices of four companies: Uber, Coca-Cola, Starbucks, and New Belgium Brewing. The Uber case explores ethical issues related to peer-to-peer sharing technology, disruptive business models, and deceptive advertising. The Coca-Cola case analyzes advertising deception, particularly in comparison to POM Wonderful, and the role of the FTC in regulating health claims. The Starbucks case delves into the company's corporate social responsibility (CSR) strategy, employee benefits, and its impact on growth. Finally, the New Belgium Brewing case investigates environmental issues, social responsibility initiatives, and the ethical considerations for companies selling potentially taboo products. The analysis covers financial misconduct, privacy concerns, safety issues, and the importance of ethical sourcing, community engagement, and environmental sustainability. The study highlights the significance of adhering to regulations, providing truthful information to consumers, and prioritizing employee well-being as key components of a successful and socially responsible business strategy.

Case Study

TABLE OF CONTENTS
CASE 1............................................................................................................................................1
1. What are the various ethical challenges faced by Uber while using app based peer to peer
sharing technology?....................................................................................................................1
2. What are the ethical challenges which are faced by Uber?.....................................................1
3. Uber using disruptive business model and marketing strategy. What are the risk which
company need to overcome?.......................................................................................................2
CASE 2............................................................................................................................................3
4. Determining difference in various potential deception between Coca-Cola’s advertisers and
POM Wonderful advertising?.....................................................................................................3
5. Why does FTC want food and supplement makers’ claims about the health impact of their
products to be substantiated with clinical trials?.........................................................................3
6. Do you think POM Wonderful—a product with known health attributes must be subjected
to same scrutiny as compared with drug companies?.................................................................4
CASE 3............................................................................................................................................4
7. Why Starbucks is concerned with corporate social responsibility in its corporate strategy?. 4
8. Do you think Starbucks is unique in providing high level of benefits to its employees?......5
9. Do you agree, Starbucks has grown rapidly due to its socially and ethical responsible
activities?....................................................................................................................................5
CASE 4............................................................................................................................................6
10. What are the environmental issues on which New Belgium Brewing Company work to
address?.......................................................................................................................................6
11. Do you think New Belgium Brewing Company tends to focus on social responsibility?...6
12. Society tends to claim that organization who tends to sell taboo products and alcoholic
beverages are not socially responsible company because of the nature of primary products. Do
you think New Belgium Brewing Company initiatives and actions are an indication of socially
responsible corporation? Support you answer. ..........................................................................7

CASE 1
1. What are the various ethical challenges faced by Uber while using app based peer to peer
sharing technology?
Peer to peer sharing technology is an application used by Uber where people tends to
collaborate with other individuals in order to offer services related with rides and places to stay.
The key ethical challenges faced by the Uber company is mainly related with the financial
misconduct, privacy issues, safety, puffery, etc. Ethical challenges which are faced by Uber are:
 One of the serious ethical issue associated with the peer to peer sharing technology is that
passengers or customers are prone to risk such as personal safety, sexual assault, abuse
and accidents.
 Ethical issue associated with the privacy concern by sharing personal information such as
credit card and debit card on online application.
 Uber tends to surge their prices when the demand is high such as at time of heavy traffic,
time crisis, etc.
 Lack of insurance coverage, legal action, consumer protection which in turn is considered
on of the major ethical issue while using peer to peer sharing technology.
 False advertising with the slogan of “the safest ride on the road” and also claiming that
they have the “strictest safety standards” are deceptive.
2. What are the ethical challenges which are faced by Uber?
 Safety of the consumer is one of the ethical issue faced by the Uber which mainly
associated with personal safety, sexual assault, abuse and accidents.
 Unethical conducts associated with employees are associated with delivering of bank
cards in order to generate duplicate accounts in order to allure people.
 Uber does not adhere to the proper safety standards which in turn leads to higher risk to
the customers at the time of accident.
 Non- compliance with the regulation is considered to be one of the major challenge for
the business which in turn affects the operations of the business.
 Not checking the background of the drivers in turn results in creation of various unsafe
situation.
 Increase in the fare prices at the time of high demand is considered to be one of the major
ethical challenge for Uber.
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 Independent contractors and not covering any insurance is one of the ethical challenge
faced by the Uber company.
3. Uber using disruptive business model and marketing strategy. What are the risk which
company need to overcome?
Disruptive business model is referred to as the innovation which in turn helps in creating
value network and also a new market space. It tends to eventually disrupt the current existing
market, network and alliances. The major risk associated with the Uber which company needs to
overcome are:
 Uber tends to charge high level of prices at the time of high demand. They tend to charge
triple fare prices from the customers which in turn is not considered fair. Uber must focus
on keeping its price consistent which in turn helps in improving the reputation of the
company.
 Uber has been charged of displaying false advertisement which in turn results in
communicating wrong message to the customers. Uber must display true and relevant
information to the customers and must not display any misleading information. This is
considered to be an effective marketing strategy in order to attain corporate social
responsibility.
 Risk associated with the non- compliance of legal laws, regulations, standards, taxes,
insurance, consumer protection act, etc. hampers the working of the business. In order to
improve the efficiency of the company, they must adhere to all the legal laws and must
have necessary insurance for the safety of customers.
 Risk associated with the expansion of business to new international market tends to
increase the operational risk of Uber business. Uber needs to comply with legal
government regulatory requirements in order to function smoothly in the international
market. They must also hire optimum number of Uber drivers to provide effective
services to the customers.
CASE 2
4. Determining difference in various potential deception between Coca-Cola’s advertisers and
POM Wonderful advertising?
POM wonderful is headquartered in California. POM wonderful tends to focus on
providing high quality, best tasting pomegrantes to its customers. POM wonderful is considered
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to have one of the strong market share in the pomegranate beverage area. Coca Cola's rivalry
product minute maid pomegranate blueberry blend has a challenging promotional claims. POM
wonderful believed that, this was a deceptive advertising which in turn lowers the sale of the
company and it also tends to file law suit against Coca Cola. This in turn states that the
competitive brands are not competing fairly.
There was no difference in potential deception between Coca-Cola’s advertisers and
POM Wonderful advertising. The promotion activities of the Coca Cola minute maid
pomegranate blueberry blend, tends to deceive customers because 99.4% of the beverage mainly
consist of grape and apple juice. This in turn led POM Wonderful to file a lawsuit against Coca
Cola for deceptive advertisement. This in turn states that the Coca Cola violated the Lanham
Act. Coca Cola can use minute maid pomegranate blueberry blend without using intellectual
property rights such as name, label, advertising and marketing of the POM wonderful. There was
no difference in potential deception between Coca-Cola’s advertisers and POM Wonderful
advertising.
5. Why does FTC want food and supplement makers’ claims about the health impact of their
products to be substantiated with clinical trials?
On February 23, 2010, FDA has claimed that POM wonderful tends to promote their
juice products similar to the drug promotion. For instance, pomegranate ingredients mainly helps
in combating erectile dysfunction, LDL cholesterol, prostate cancer, promotion of healthy heart,
prevention of disease, curing and mitigation. Federal Trade Commission (FTC) stated that, use
of deceptive advertising is mainly linked with the POM Wonderful advertising were not
substantiated. The advertisement mainly includes phrases like “Amaze your cardiologist”. FTC
states that it is very necessary for the company to deliver truthful and transparent information to
the consumers. It has been evaluated that, FTC found out POM wonderful is guilty of violating
the FTCA i.e., Federal Trade Commission Act by making deception claims in several promotions
and advertisement. FTC accused the firm for making unsubstantiated efficacy claims. The
company should focus on claiming the product's superiority and benefits which are scientifically
established and clinically tested. FTC tends to focus on adopting several stringent standards of
FDA in order to approve new drug products which in turn holds the food and dietary supplement
makers which in turn is necessary for protection of consumers. FTC tends to focus on clinical
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trails which helps in determining the health benefits associated with the POM products and it is
also useful in posing no danger to the consumers.
6. Do you think POM Wonderful—a product with known health attributes must be subjected to
same scrutiny as compared with drug companies?
POM Wonderful is taking serious active steps to ensure that healthy food products are
delivered to the customers. POM states that, consumers are shifting its focus on healthy diet. So
the company ensures natural ingredients in order to achieve the nutritional target. POM tends to
sell an exotic product which in turn includes potassium, antioxidants and various other healthy
and nutritious ingredients. On the other hand, drugs tend to have harmful effect on the individual
and in turn also requires rigorous clinical testing. POM Wonderful—a product with known
health attributes does not contain any harmful chemical and in turn does not have to undergo any
clinical trails as drug companies. It has been evaluated that, pomegranates have various set of
health benefits and is very useful in preventing heart disease. It is very crucial to transmit useful
information to the consumers. It has been evaluated that, POM Wonderful should not undergo
the same scrutiny process as drug companies because it is recognized as healthy juices which
contains natural ingredients.
CASE 3
7. Why Starbucks is concerned with corporate social responsibility in its corporate strategy?
Corporate social responsibility (CSR) is considered to be one of the effective measure
which pertains organization to work in an ethical and legal manner. Starbucks is engaged with
CSR practice because it is engaged in several ethical business practice which h in turn helps in
improving the brand image of the company. Being socially responsible helps Starbucks to gain
various financial and non- financial rewards. The main reason of Starbucks being socially
responsible is that it has positive effects on the brand image of the company. On the other hand,
if Starbucks is not socially responsible then it will have impose negative image on the company.
The social responsibility of the Starbucks is based on three pillars which is mainly associated
with the ethical sourcing, community and environment. Starbucks is concerned with corporate
social responsibility because the reduced economic friendly mark. It also tends to provide
effective consumer services which helps in building strong brand image of the organization.
Starbucks is concerned with protecting the right of the workers which make the company more
socially responsible.
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8. Do you think Starbucks is unique in providing high level of benefits to its employees?
Starbucks tends to provide high level of benefits to the employees because they
understand the importance of staff in the company. There are several benefits which are offered
by the company to its employees such as vacation, life insurance, health insurance, tuition
reimbursement, disability coverage, commuter benefits, employee assistance, adoption
assistance, etc. It also provides Starbucks employees with employee stock options, dental and
vision facilities which in turn is useful in providing large range of services to the employees.
They tend to keep their employees happy by effectively providing them with various benefits.
This in turn helps in delivering quality services to the customers and which leads to higher
profitability. The key principal of Starbucks is “people first and profit last” which in turn tends to
show how valuable employees are for the company. It tends to focus on providing benefits
associated with both physical and intellectual which in turn helps in providing high level of
benefits to its employees. It also carries out thrive wellness programs which offers services such
as weight loss, exercise and smoking cessation.
9. Do you agree, Starbucks has grown rapidly due to its socially and ethical responsible
activities?
Yes, Starbucks has grown rapidly due to its socially and ethical responsible activities
across the globe and it also tends to focus on providing services, products and environment
which customer wants. The company tends to focus on protecting the culture of the business and
in turn also focuses on improving the reputation of the company. Starbucks tends to believe that,
being ethically and socially responsible helps company to expand in various markets which in
turn leads to long term sustainable growth and development of the business. It tends to target
unemployed individuals in order to improve the performance of the economy and improve the
employability ratio. It tends to focus on creating a positive environment where individuals can
meet and spend a quality time. Carrying out ethical and socially responsible activities helps
company in creating an optimistic view the eyes of public. Consumer tends to focus on
supporting company who tends to create an ethical impression which leads to long term growth
of the business. Starbucks has created a very good reputation which in turn helps company grow
in the future.
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CASE 4
10. What are the environmental issues on which New Belgium Brewing Company work to
address?
New Belgium Brewing Company tends to focus on identifying environmental issues
which are energy saving, cost efficient and in turn helps in reducing the negative impact of the
on the environment. It tends to focus on recycling, reusing and reducing. New Belgium Brewing
Company also focuses on green building techniques and also focuses on creative reusing and
recycling strategies. New Belgium Brewing Company tends to focus on using wind turbine
which in turn helps in reducing carbon dioxide emission. This is also beneficial ion harvesting
fish food through waste water, purchase of energy efficient brew kettle which in turn helps in
improving the performance and efficiency of the business. New Belgium Brewing Company
focuses on encouraging the sustainability of the supply chain by effectively complying with the
sustainable purchasing guidelines. They tend to focus on recycling approximately 9% of the
waste in order to provide eco- friendly services which leads to sustainable operations of the
business.
11. Do you think New Belgium Brewing Company tends to focus on social responsibility?
I completely agree with the fact that, New Belgium Brewing Company should focus on
improving the corporate social responsibility of the business which in turn helps in proving
competitive advantage to the company. It focuses on enhancing the life of the people and
community with the help of event sponsorship, corporate giving, donation, philanthropic
involvement. New Belgium Brewing Company is well known for two things which is mainly
associated with the commitment of company towards sustainability and delivering of high
quality products to consumers. New Belgium Brewing Company also tends to effectively
maintain a community bulletin which is useful in providing large array of social and ethical
services to the community which in turn helps in improving the brand image of the company and
also helps in gaining higher competitive advantage by delivering various services for the welfare
of the community. New Belgium Brewing Company also focuses on adopting the practice
associated with the open book management which in turn is beneficial in teaching individuals
how to read. It is very useful in maintaining long term relationship with the customers which is
very essential for the growth of the company.
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12. Society tends to claim that organization who tends to sell taboo products and alcoholic
beverages are not socially responsible company because of the nature of primary products.
Do you think New Belgium Brewing Company initiatives and actions are an indication of
socially responsible corporation? Support you answer.
New Belgium Brewing Company has created an effective brand image which is socially
responsible while carrying out business operations. This company tends to focus on taking sveral
actions and in turn is an indication of socially responsible company because it donates 1% of its
profit for the social cause. It also focuses on enhancing and in turn put more emphasis on
sensible transportation, bike advocacy, youth environmental education, sustainable agriculture,
water conservation, etc. This in turn helps in creating an effective brand image in the eyes of
customers by effectively carrying out socially and ethically responsible activities. New Belgium
Brewing Company has also been honoured with the Environmental protection agency regional
environmental achievement award. This in turn motivated company to continue its socially
responsible activities. New Belgium Brewing Company is considered to be socially responsible
corporation because it tends to reuse the waste and focus on water conversion and creation of
eco- friendly environment.
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