ANALYSIS OF CODE OF ETHICS

COCA COLA-HBC

Submitted By
Prateek Gupta
(92)
M.B.A(Marketing)
 INTRODUCTION
 Coca-Cola is the largest soft drink producer in
the world with more than 500 sparkling and
still brands.
 The company sells products such as Coke, Diet
Coke, Fanta and Sprite are among the top 10
soft drink products in the US.
 This reflects the strong customer relationships
of the company and is encouraging sign for the
company to commit for customer satisfaction.
 Its competitor Pepsi Cola primarily focuses on
US market while Coke has diverted its
concentration to the global market.
CONTINUED
 Coca cola uses multisegment targeting
strategy which means company has more
than one , well- defined market segment.
 Market segments helps the company to
improve their products and services knowing
what their customer needs and penetrate
new sectors.
 They market the product selling into different
or more than one market(e.g. Diet Coke).
 To know what their customer needs Coca-
Cola uses the customer segmentation criteria
and market into different groups based upon
behavior pattern.
 OBJECTIVES
 To find out consumer acceptability of Coca
Cola products in market.

 To analyze the basic code of conduct adopted

by Coca Cola as per the company policy.

 The study the various ethical issues involved

in the C.o.E.

 To check and cross verify the ethical

parameters that are claimed to be a part of
the C.o.E at Coca Cola.
 CONSUMER ACCEPTABILITY
 If companies want to run their business
successfully they must know how to dissolve
in different cultures.
 Coca Cola knows people from various blends
of culture and it using it to innovate different
cultures and flavors together to build a new
customized product.
 For e.g. The European launch of a new
beverage called by the name “Jianchi”.
 SEGMENTATIONS
 Geographic Segmentation
Internationally coke segments its products
country wise and region wise based upon the
taste and quality. It is based upon the taste
and income level of people in that country.
 In Coke the marketing idea is to serve the
drink cold so the main concentration is on
the hot parts of the world. Such as middle
east and parts of South Asia.
 The sales of Coca Cola is more in Summers
as compared to Winters.
 PSHYCOGRAPHIC SEGMENTATION
 Psychographic variables include the level of
education, personality, lifestyle, social class.
 But packaging also plays an important role
because people who are brand conscious
won’t purchase products of lesser known
brands.
 Since Coca Cola is very well recognized
therefore people will drink its product without
any hesitation.
 In a high percentage educated society the
company can convey to their consumers
through advertisements.
 ETHICAL PARAMETERS
Society
 In the code of conduct Coca Cola claims to be
a society friendly company with numerous
initiatives undertaken in the field through
corporate social responsibility.
 Further many initiatives for the upliftment of
the poor sections of the society and renewal,
rejuvenation of water bodies in the region
where it has established bottling plants.
 Coke also claims to provide a healthy drink
with balanced nutrition present.
 ANALYSIS

 Under actual circumstances Coca Cola

drastically fails in working for the society
since most of the things change their
direction on actual ground.
 Most of the regions throughout the world
wherever Coca Cola has established its plant
suffers from droughts, water scarcity and low
ground water levels creating a panic among
the localites.
 The claims of Coca Cola to be a nutrient rich
beverage are false after certain health
scientist proved that it leads to obesity,
accumulation of fat in the body and tooth
decay.
 EMPLOYEES
 As per the information provide in the C.o.E
Coca Cola is a employee friendly
organization harnessing its future goals with
the achievements of their employees.

 According to Coca Cola the growth of the

company lies in the growth of its employees.

 Further it claims that the work culture of the

company is based on the policy of
meritocracy and hard working, innovative
employees are always rewarded based upon
their performances.
 ANALYSIS
 In the U.S and several countries of North
America Coca Cola is being dragged in the
court of law owing to its poor practices
towards its employees.
 Several employees have claimed Coke to be
hostile towards them owing to their modus of
operandi.
 Complaints have been filed throughout the
world specially from several countries in
Africa against Coca Cola owing to racial
discrimination and due to the believe in
policies such as apartheid.
 CONSUMERS
 Coca Cola claims to have produced the
cheapest drink maintaining the
corresponding level of hygiene required.
 The level of digestion that elevates the
mechanism of crucial body processes just
because of the fact of being a loyal customer
of Coca Cola
 Further coke claims to have used the best
manufacturing raw materials free form any
sort of adulteration such as purest form of
water.
 It products claims to cause weight loss such
as Diet Coke.
 INVESTORS
 As per the C.o.E. ,Coca Cola has mentioned
that it fully works in the interest of the share
holders and investors.

 The company has investors oriented goals

and if any conflict of interest arises it will be
sorted out in every best possible manner for
both.

 The company claims to have framed a policy

with umpteen moral obligations towards the
stake holders and that will be prioritize in
every difficult situation.
 ANALYSIS
 It has came to light in past few decades that
the decision making done by the lop level
management at Coca Cola is narrow and only
profit based.

 Coca Cola has neglected the interest of its

share holders at many instances and turned
out to be malaise

 Coca Cola has broken the relation of trust

that is very important for every organization
to bind together its employees and stake
holders.
 NATURAL ENVIRONMENT
 Coca Cola claims to work in friendly
atmosphere with the individuals of any
region to form a favorable and sanguine
environment.

 C.o.E of the organization clearly states that

no harm has been ever caused to natural
bodies such as lakes, rivers, ponds, well etc
while carrying its operations.

 C.S.R initiatives at Coca Cola have led to the

upliftment of weaker sections of the society
specially in South Asia in countries like India.
 ANALYSIS
 Many case studies reveal the side effects of
establishing a Coca Cola plant in new cities,
towns, villages as it degrades the quantity and
quality of ground water level available.
 Kala Dera a famous place in the district of Jaipur
has faced critical problems such as water scarcity,
droughts, unfit water for human consumption due
to a Coke bottling plant operating in the locality.
 Several such instances have been reported in
several cities in America such as U.S.A, Canada.
 Coke has been denied permission by cities such
as Bhopal(M.P) and Dehradun (Uttarakhand) to
establish a new plant owing to its bad reputation.
 GOVERNMENT LAWS
 The board of directors at Coca Cola accepts
to work according to the law of the land.
 Following the rules and regulations that
governs the work culture in a particular
country is the utmost priority as claimed by
Coca Cola in its C.o.E.
 The manufacturing at different Coca Cola
plants throughout the World is carried out in
accordance with the rules of that place.
 Coca Cola expresses to respect the law of the
land at every country it operates.
 ANALYSIS
 In several instances reported Coca Cola has
blatantly broke the laws of the land in
countries like U.S.A, India etc.
 Coca Cola has been penalized by the court of
law due to such unethical and malpractices.
 Organizations such as Anti –competition
commission has fined Coca Cola for working
in bad faith with falsified advertisements.
 Coca Cola’s major competitors have filed law
suits against it for negligent and
irresponsible behavior towards them such as
Pepsi Co.