Coca Cola Company is one of the best selling beverages companies in the world and it has extended its businesses worldwide. As a result of their success and as a result of their utmost contribution towards the world economy most of Coca Cola's unethical business practices have been ignored by the general public. Yet as a result of the protests and civil organizations' activities against the company reveals the truth. Coca Cola Company was established in May 1886 and since its inception they have used significant amount of drugs in order to make unique recipe and the drink consists of 60mg of cocaine which comes from the coca leaves. Even though the cocaine is harmful to human body company use it with their products in order creates addiction towards the product. This was a total crime and unethical practice of the company so legal issues were brought against Coca-Cola and they had to avoid cocaine but as a substitution company decided to use caffeine which is also well known as an addictive ingredient.
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Apart from that company was sued for misleading labeling process in 2006. Company had included fake details about the drink which mislead the consumers. This is one of the unethical business practices of the Coca Cola Company. In 2001 company was accused for violating human rights of the employees who work in bottling plants in Columbia. Company has offered very poor and unsafe working environment also they were paid very low wages. The worst part of the above story was company was suspected for kidnappings and killing of union members who tried to win their demands and rights by using the paramilitary death squads.
This is a good example for the unethical business practices of the organizations and it is not accepted by the whole society.
How organizations can attain success by being an ethical organization
Most of the businesses exist to make profits but maximizing the profits should not be the only purpose of the any business but it should be more ethical. With the development of the global business practices and concepts organizations are keen on producing the products that not harmful to human beings and environmental friendly and harmless new technologies are being used to make such products. In addition to that organizations avoid the misleading advertising practices and employees and consumers are treated fairly and honestly. Organizations can gain more advantages by practicing ethical behavior. Now it is time to demonstrate the advantages of being an ethical organization. So I have used the direct selling company which was established in UK as an example.
Amway is very famous huge global direct sales enterprise which own by few families of UK and it manufactures and distributes more than 450 consumer products. This company has become leading icon as a organization that follows organizational social responsibilities, that have implemented social and ethical programs around the world, that have action plans to be a good corporate citizen and as a organization that support people to enhance their living standards.
Amway's vision is "helping people live better lives" so by keeping their vision in mind company helps to poor children around the world particularly to access to education and medicine.
Amway Company perform major role in the societies it functions. They have implemented global business strategy for producing, distributing, and marketing the product over the local boundaries. In order to be strength for above mentioned strategies and gain positive image for the organization it has created another strategy for promoting corporate social responsibility of the company in globally. The policy include helping to charities, always acting in a ethical way and honest way.
By establishing ethical policies organization expects to build up loyalty and pride towards their products, enhance Amway's reputation as a caring organization, make a real difference to human lives, conducts social campaigns that support the business and social aims of the company, to builds trust and respect in Amway brands and to establish corporate social responsibility as a high priority.
As an ethical business organization Amway contributes to societies in several ways such as creating employees' job security, providing harmless goods that value for consumer's money and conducting community conducting projects.
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The company has created business ethics that can guide the behavior of the company and its supporting roles. As a result of the ethical company they have to fallow rules and regulations of the different countries that they functions without violating them and they need to protect the consumers by providing safety goods which meet the quality standards and satisfaction levels of the customers. This directly helps and encourages ethical selling process of the organization.
Amway operates in highly competitive business environment and they have found perfect competitive advantages performing a positive participation in the society and paying their more attention on environmental protection programs. As a result of concerning above mentioned facts society believes that the organization is very ethical and it helps to upgrade its image as a more accountable organization.
This is how the Amway Company attains many business advantages by being an ethical business organization. This example will be good model to follow because if any other business can function such way it is easy to enhance their business reputation, it is easy to improve the customer base and loyalty and it is easy to increase customer satisfaction and finally any organization can maximize the profits by presenting harmless goods.