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03/20/2012

Issues Related to Industrial Relation in Coca-Cola Company and How They are Solved


 

 Issues Related to Industrial Relation in Coca-Cola Company and How They are  Solved

 

 

Coca-Cola Company or most popularly known as Coke is a manufacturer of  carbonated soft drink that  is sold  over two hundred countries worldwide.  Coke has been the most strong brand in the international market over  its rival Pepsi.  Despite all industrial issues and challenges its subsidiaries and products  encountered in the past and  still encounter at present time;  both local and international consumers still  patronize its products for  100  years already.  Admittedly,  it  still remains the unbeatable brand  in the world.  Many issues and criticisms from watchdogs and other consumer groups have heightened  the allegations that Coca-Cola products have  harmful effects to the health of the consumers.  And, year 2012  brings  the very recent issue that   HIV blood drop that   allegedly  contaminated by one of its workers in  the Coca-Cola production area.  This worker  is allegedly positive of HIV; though, the company itself contradicts the news  which is going around the internet.   In the Philippines, in contrast to the allegation, the company has launched its newest commercial to commemorate   100 years Coke existence  in the business.  Filipino Coke endorsers have been bubbly enough to testify that Coke has been a part of their lives for  many years now, and still patronizing the brand despite many issues. 

 

In addition to that,  the company has been in many  allegations of suppressing trade unions, labor malpractices, poor environmental condition, monopolistic business practices, questionable marketing strategies and violations of intellectual property rights.  Because of these, Coca-Cola  has been encountering numerous boycotts  from various schools and  universities in the globe; and product-related lawsuits have been filed against the company. Relatively,  many court cases have been filed  against the Coca-Cola Company on its acidity and high fructose of its products that dangerous to consumers' health. 

 

 

In  2003, Coca-Cola  India subjected to  wide spread scrutiny by the Center for Science and Environment (CSE)  on how its products produced.  This non-governmental agency in New Delhi, India questioned the water that is used  to produce Coke that  allegedly contained   levels of pesticides, toxins and other harmful chemicals that may cause cancer and  weaken the human immune system.  The drying up and  the relocation of the farmers in some regions in India due to shortage of water and contamination of soil and groundwater  had been associated with the water requirement used by Coca-Cola for Coke production. Naturally, Coca-Cola Company  denied the allegations.  The Indian  government stopped its operations and the  Coca-Cola  has been trying to regain the plant's license by bringing the case to the Indian Supreme Court. But, the case  has been pending for sometime now.

 

Aside from that, the packaging that is used by  Coca-Cola Company on its products has a harmful effects to the environment.  However,  the company still opposes to  new mechanisms  like container deposit regulation.  Moreover,  Pepsi Co Inc. in the United States accused Coca-Cola Company  of monopolizing  the market for fountain-dispensed soft drinks in the same country.  However, in 2000, due to lack of   concrete evidences US federal judge dismissed  the lawsuit filed by Pepsi Co Inc. against Coca-Cola Company.  Subsequently, in 2005, European shops and bars stopped their  business deals with Coca-Cola due to stifled competition.  In the same year,  Coca-Cola's Mexican unit - Coca-Cola Export Corporation's   distributors and bottlers were fined $68 million for biased commercial activities.

 

On July 7, 2008,  Coca-Cola Company agreed to pay $137.5 million (£69.4 million) for  shareholder lawsuit. It was charged in a U.S. District Court for the Northern District of Georgia for  forcing several bottlers  to buy hundreds of millions of dollars of unnecessary beverage concentrate just to  increase their sales.  Consequently, the company also paid US $ 192.5 million in order to settle  a  racial discrimination lawsuit filed against it by its black employees. In January 2004, New York City's fact finding  body found out that there were   a total of 179 major human rights violations of Coca-Cola's workers, including 9 murders.  And, some of the family members of union activists were abducted and tortured, union members  were being fired  for attending  union meetings.   So, there were many workers who were forced to leave their union  groups in order to  retain in their jobs. And because of these incidents, Christian Brothers Investment Services, Inc.  along with others, file a  shareholder resolution  that  required  Coca-Cola to adopt a code of conduct on bottling practices and employee relations. From then on,  the resolution has been supported by  Cola-Cola Unions in  Philippines, United States, Zimbabwe, Columbia and Guatemala.  But, the resolution was rejected by the shareholders of the company.

 

 

 

 

 

 

 

 

 

References:

http://en.wikipedia.org/wiki/Criticism_of_Coca-Cola

 

http://www.slideshare.net/umairalimu/coca-cola-4136759

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