BACC104

1. Research on five (5) firms that encountered problems in business ethics as they operate
their businesses.

Coca - Cola Company

Jollibee
PLDT
Nestle
NutriAsia

2. Provide facts, the problems and the solutions implemented by these firms.

Coca-Cola Company
According to a youtube video, Coca-Cola is known as the largest beverage
company. Even though it portrays success in business it still experiences criticisms
regarding unethical practices. One of the major cases of Coca-Cola company was the
Kala Dera case of 2004. Kala Dera is a village in India and after a year of operations of
the company the village experienced rapid decline in groundwater levels. Investigation
occurred and deduced that at the time of declining groundwater levels was the peak of
Coca-Cola’s Production. The company continued to extract water despite the shortage.
Villagers demanded the closure of the company. Solutions were water offset and to
convince people that the company has responsible practices.

Jollibee
One of the successful fast-food business is Jollibee because the food is mostly
loved by children and still remain a favorite for adults. It is a fast-growing business that
are even loved by people in different countries. According to a news article, in 2018, the
company and its contractors were found engaging in illegal “labor-only” activities.
Employees experienced work without pay or deduction of salaries. It was given penalties
by the Department of Labor and Employment (DoLE) and ordered Jollibee to pay back
affected employees and provide proof of remittances with SSS, Philhealth, and pag-IBIG
to ensure worker’s social welfare benefits.

PLDT
According to a news article, Philippine Long Distance Telephone(PLDT) workers
threaten to go on the strike in 2018 due to unethical practice of increase in overtimes and
less vacation time. Out of the 12,000 contractual workers, PLDT only had 4000 regular
employees nationwide. This resulted to employees such as supervisors, to work late until
11pm, with some not being allowed to file a vacation leave. Workers experienced
additional workload and did not enjoy overtime pay. PLDT despite being one of the three
companies to engage in labor-only contracting practices still managed to comply with the
DoLE’s regularization order.
 Nestle
The Nestle company began in Vevey Switzerland and was originally created as
one of the first infant formula companies. The company was also founded evidence of
unethical practices that prevented them from growing in terms of profit/net income. It is
said that Nestle produces very high-quality formula that it was healthier that other
products. The formula was only needed to be mixed with clean water. However, the
company failed to consider important cultural and economic differences. In third world
countries where there is low literacy rate failed to understand that clean water is needed
to mix the formulas rather than polluted water. This put children at a huge risk of water
born diseases and parasites. Nestlé has the obligation to see ways to avoid ways for these
clients to be damaged by the misuse of the produce.

NutriAsia
Workers at a NutriAsia plant in the Philippines went on a strike in view of low
wages and undesirable working conditions. The workers likewise claimed that NutriAsia
rehearsed contractualisation - stretching out customary business arrangements to under
10% of its 1,400-man labor force. NutriAsia gave an assertion rejecting that regarding
engagement in restricted types of contractualisation. The Department of Labor and
Employment (DoLE) has requested NutriAsia to regularize its laborers and the
Commission on Human Rights has approached security powers to notice greatest
resistance to guarantee that the privileges of protesting workers are ensured.

3. What are your insights on these cases?

I think the companies were not intentional on these unethical practices. Some
companies didn’t realize that people would be affected by their course of action to
maintain business. I think the companies should properly assess their management and
how their decisions would affect stakeholders.

Sources:
Analysis Of an Unethical Behavior Of The Nestle Company - Free Essay Example | EduZaurus. (2020, December 9).
EDUZAURUS. https://eduzaurus.com/free-essay-samples/analysis-of-an-anethical-behavior-of-the-nestle-
company/
Clarissa, A. [Clarissa Ante]. (2015, January 19). Unethical Practices of Coca-Cola Co. [Video]. YouTube.
https://www.youtube.com/watch?v=2jVUtC018LQ
Depasupil, W. T. (2017, December 24). Jollibee penalized for illegal contracting. The Manila Times.
https://www.manilatimes.net/2017/12/25/news/top-stories/jollibee-penalized-illegal-contracting/370553/
Lai, M. (n.d.). Ethical Issues of Nestle. Academia. Retrieved August 19, 2021, from
https://www.academia.edu/11730202/Ethical_Issues_of_Nestle
Philippines: Workers at NutriAsia factory face lawsuits and suffer injuries after dispersal of protest. (2018, June
16). Business & Human Rights Resource Centre. https://www.business-humanrights.org/en/latest-
news/philippines-workers-at-nutriasia-factory-face-lawsuits-and-suffer-injuries-after-dispersal-of-protest/
Yee, J. (2018, September 5). PLDT workers threaten to go on strike. INQUIRER.Net.
https://business.inquirer.net/256663/pldt-workers-threaten-go-strike