Coca-cola owns an astonishing 500 brands and is sold in over 200 countries and territories. This is the definition of ‘global reach’ considering the UN only recognises 195 states.
This single company has a higher annual income than two thirds of the world’s countries.
Is this massive revenue earned through ethical means? Is it being reinvested in the creation of strong policy, or are workers and the planet paying the price?
Is Coca-Cola ethical?
Our research highlights several ethical issues with Coca-Cola. The company has therefore been marked down in our rating system in a number of categories, including: climate change, habitats & resources, palm oil, pollution and toxics, human rights, workers' rights, irresponsible marketing, animal rights, controversial technologies, anti-social finance and political activities.
Below weoutline of some of these issues. To see the full detailed stories, and Coca-Cola's overall ethical rating, please sign in or subscribe.
People
Coca-cola is the target of several trade union campaigns.
In 2019 The International Union of Food (IUF) severed its 15-year partnership with Coca-Cola, accusing it of attacking union leaders and intimidating members through dismissals and disciplinary action.
Ireland’s largest trade union, Services Industrial Professional and Technical Union (SIPTU), told Ethical Consumer that Coca-Cola had refused to engage with representatives at the company’s plant in Ballina.
Coca-Cola received Ethical Consumer’s worst rating for Supply Chain Management. The company and its subsidiaries have also been accused of contributing to water shortages in Mexico, appropriating Guarani culture, and using child labour in its Mexican recycling system.
Politics
Coca-cola received our worst rating for likely use of tax avoidance strategies, and its highest paid executive was paid an incredible £13.9m in 2019.
When we checked in November 2019, Coca-Cola was involved in a plethora of corporate lobby groups: the Business Round Table, National Foreign Trade Council, American Chamber of Commerce, USCIB and World Economic Forum. These were considered to lobby for free trade at the expense of issues like animal welfare, human rights or the environment.
In total, the company was said to have spent nearly $7m on lobbying in 2019.
Environment
Coca-Cola received Ethical Consumer’s worst rating for Carbon Management and Reporting and its Palm Oil policy.
It’s also a leading plastic polluter. In October 2020 Coca-Cola was facing a lawsuit for plastic pollution from the Earth Island Institute and Plastic Pollution Coalition. It was labelled the world’s biggest plastic polluter in a 2019 survey by Break Free From Plastic, and Greenpeace too labelled the company a top plastic polluter. A Guardian article stated that the company was responsible for around 3m tonnes of plastic packaging per year.
Coca-cola is also involved in environmentally damaging industries such as motor sports and sale of fish.
Animals
Several Coca-Cola products, including popular soft drinks, contain animal products, including fish gelatine, honey, vitamin D sourced from lanolin in sheep's wool and milk.
To see the full detailed stories, and Coca-Cola's overall ethical rating, please sign in or subscribe.
FAQs
Coca-Cola received Ethical Consumer's worst rating for Supply Chain Management. The company and its subsidiaries have also been accused of contributing to water shortages in Mexico, appropriating Guarani culture, and using child labour in its Mexican recycling system.
How ethical is Coca-Cola company? ›
Since the 1990s Coca-Cola has been accused of unethical behavior in a number of areas, in- cluding product safety, anti-competitiveness, racial discrimination, channel stuffing, dis- tributor conflicts, intimidation of union workers, pollution, depletion of natural resources, and health concerns.
What are the ethical issues involved in Coca-Cola case study? ›
The unethical practices being practiced by the Coca-Cola Company include abuse of human rights, increased environmental pollution due to poor disposal of plastics. Consequently, the company engages in channel stuffing to enhance its profits.
What company is facing ethical issues? ›
Companies such as Google, Amazon, Nestle, Tesco, Coca-Cola, the Big Four accounting firms, Facebook, Nike, and McDonald's have all faced scrutiny for their actions across various ethical dimensions, including tax avoidance, worker exploitation, irresponsible marketing, and environmental damage.
Does Coca-Cola have a good reputation? ›
The soda king has achieved a most-reputable status for all 15 years the survey's been conducted, and it's achieved an aggregated RQ score of around 80 across all those years. Harris characterizes that as "a nearly unmatched show of reputation consistency."
Which company is more ethical co*ke or Pepsi? ›
Coca-Cola brands, which includes Fanta, Dr Pepper, Sprite, and many more, receive a score of 55 in our table. PepsiCo, which owns 7Up, Copella, Pepsi, and Tropicana, receives a score of 41. We recommend avoiding these brands if you are concerned about contributing to plastic pollution.
What are the ethical issues of Pepsi? ›
Yet Pepsi also has a history of questionable behavior. The company has lobbied against public health legislation targeting the obesity epidemic. It has also been accused of sourcing palm oil from unethical suppliers and engaging in deceptive marketing, practices the company has since taken steps to remedy.
What are the four major ethical issues? ›
The most widely known is the one introduced by Beauchamp and Childress. This framework approaches ethical issues in the context of four moral principles: respect for autonomy, beneficence, nonmaleficence, and justice (see table 1).
How much waste does Coca-Cola produce? ›
The Coca-Cola Company increased its use of plastic packaging by over 6% or over 454 million pounds (206,000 metric tons) to a reported 3.43 million metric tons in 2022.
Is Pepsi an ethical company? ›
“PepsiCo is proud to be a 17-time World's Most Ethical Companies honouree,” said Ramon Laguarta, chairman and CEO of PepsiCo. Added Kellogg chairman and CEO Steve Cahillane, “We work diligently to fulfil our purpose of creating better days and a place at the table for everyone through our trusted food brands.
Harassment and Discrimination in the Workplace
Harassment and discrimination are arguably the largest ethical issues that impact business owners today. Should harassment or discrimination take place in the workplace, the result could be catastrophic for your organization both financially and reputationally.
What is the least ethical company in the world? ›
As part of our 25th Birthday celebrations Ethical Consumer asked its readers to vote for who they thought was the least ethical company over the last 25 years. Nestlé 'won' with 15% of the vote, finishing just above Monsanto (14%) and the UK's number one tax avoider Amazon (12%).
What are some examples of ethical issues? ›
ETHICAL AND SOCIAL ISSUES
- Privacy and Confidentiality. Privacy has many dimensions. ...
- Socially Vulnerable Populations. ...
- Health Insurance Discrimination. ...
- Employment Discrimination. ...
- Individual Responsibility. ...
- Race and Ethnicity. ...
- Implementation Issues.
In total, 61% of U.S. soft drink drinkers say they like Coca-Cola. However, in actuality, among the 96% of U.S. respondents who know Coca-Cola, 64% of people like the brand.
How do consumers perceive Coca-Cola? ›
Brand perception of Coca Cola
In comparison to other brands the consumer perception of Coca Cola is >80% (very positive [91%]) in comparison to other brands. Coca Cola carries strong dominance [94%] and is perceived slightly masculine.
Why is Coca-Cola a good company? ›
So, Why is Coca-Cola so Successful? Few companies can boast the tremendous success and growth that The Coca-Cola Company has enjoyed for over 135 years. This accomplishment can be attributed to industry-leading advertising, innovation of their products, and delivering a positive brand message.
Is Coca-Cola a socially responsible company? ›
Coca-Cola's Corporate Social Responsibility (CSR) initiatives focus on four key areas: World Without Waste, Sustainable Packaging, Water Stewardship, and Women's Empowerment. Achievement: Collected and recycled 69% of bottles and cans sold globally in 2021. Impact: Diverted 120 billion bottles and cans from landfills.
How does Coca-Cola maintain its reputation over time? ›
Through skillful advertising efforts, Coca-Cola is widely recognized as a symbol of American culture through its influence on politics, pop culture, and music around the globe. Key statistics and facts about The Coca-Cola Company: Owns 43.7% of the US carbonated soft drinks market.
How does Coca-Cola give back to the community? ›
Over the past three decades, the Foundation has grown from a local foundation into a global philanthropic organization. The Coca-Cola Company is committed to giving back 1 percent of its prior year's operating income annually. This commitment is made through The Coca-Cola Foundation and company donations.
