CASE ST UDY-1

INTRODUCTION TO COCA COLA

CO.
 It is the world's largest beverage
company, largest manufacturer,
distributor and marketer of non-alcoholic
beverages ,based in US.
 The Company was bought in 1892.
 It currently offers nearly 400 brands in
over 200 countries or territories and
serves 1.5 billion servings each day.
 The Coca-Cola Company is headquartered
in Atlanta, Georgia.
 Its current president and CEO is
POPULAR BRANDS
PRODUCTS
REVENUE
 According to the 2005 Annual
Report, the company sells
beverage products in more than
195 countries.
 The report further states that of
the more than 50 billion beverage
servings of all types consumed
worldwide every day,
 Also according to the 2007
Annual Report, Coca-Cola had
gallon sales distributed as
follows:
 37% in the United States
 43% in Mexico, Brazil, Japan and
China
 SUMMARY OF CASE
STYDY-1
• Unusual uses:- contain phosphoric acid of
pH value 2.5 midway of vinegar and
gastric acid.
• Use of coke for cleaning blood on
highways and also as a anti rust
substances.
• Dissolve tooth overnight.
• IRON OXIDE------------- IRON PHOSPHATE
• (phosphoric acid)
• Reduces calcium intake, leads to osteoporosis.
 CONTINUE….
 High fructose corn syrup:- due to hike in
price of sugar(G+F),coke has been made
with high fructose syrup(diabetes and
osteoporosis) and corn syrup(corn from
genetically altered plants).
 Middle east and U.S foreign policy:-due to
disapproval of US policy in Israel, coca
cola is less popular in Arab countries,
Middle-East is the only region in world,
where coca cola is not the no.1 soft drink.
 CONTINUE…
 Coca cola in India:-uses 5l of water to
make 1l of coke. so water extracted on
unsustainable rate, damaging local supply
and force farmers to relocate.
 In 2003, CSE proves that aerated water
produced contain toxins(malathion,DDT
etc).
 CSE also found 36 times the level of
pesticide residue in coca cola but in US no
such residues found in the same product.
 CONTINUE….
 Columbia and International boycott:- In
2003,Columbian trade union
SINALTRAINAL called an international
boycott of coca cola products because of
kidnapping, and brutal murder of workers
in coca cola bottling plants by
paramilitaries who were allegedly acting
on behalf of coca cola co. in order to drive
down the wages of worker in Columbia.
 Q. IS COCA COLA DOING
ITS BUSINESS ETHICALLY?
 ANS-Before we comment on the
ethical/unethical practices of coca cola
co.,let us understand the term BUSINESS
ETHICS.
 It is the difference between right and
wrong and choosing to do what is right.
The phrase 'business ethics' can be used
to describe the actions of individuals
within an organization, as well as the
organization as a whole to maintain a
high sense of values and conduct honest
 CONTINUE….
 Looking at the definition business ethics,
we can conclude that the coca cola co.
has not been doing its business ethically.
 The above statement can be proved or
validated by throwing lights on the
following facts:-
 Ingredients of coca cola
 Unusual uses of coca cola
 Health hazards
 Controversies with different countries
INGREDIENTS OF
 UNUSUAL FACTS ABOUT
COCA COLA
 1.
In many states (USA) the highway patrol
carries two gallons of coke in the truck to
remove blood from the highway after a car
accident. (Phosphoric acid)
 2. To clean a toilet.
 3. The citric acid in Coke removes stains.
 4.
To remove rust spots from chrome car
bumpers.
 5. To clean corrosion from car battery
 CONTINUE….
§ 7. To remove grease from clothes: Empty a can of
coke into a load of greasy clothes, add detergent,
and run through a regular cycle.
 8. Its phosphoric acid can dissolve rust and
grease and was used by the steel industry to
clean products.
 9. The active ingredient in Coke is phosphoric
acid. Its pH is 2.8. Phosphoric acid also leaches
calcium from bones and is a major contributor to
the rising increase in osteoporosis.
 10. To carry Coca-Cola syrup (the concentrate)
the commercial truck must use the Hazardous
HEALTH HAZARDS
 The phosphoric acid present in soft drink competes
with the hydrochloric acid of the stomach and affects
its functions. When the stomach becomes ineffective,
food remains undigested causing indigestion ,
gassiness or bloating.

 Kidneys are less able to excrete phosphoric acid

when it is in excess. Thus, there is extra work for the
kidneys and can lead to kidney disorders.

 Soft drinks remove Calcium from the body, causing an

excess amount of Calcium that tends to be deposited
in the kidney, resulting in kidney stones. Over time,
bones can become fragile and more susceptible to
fractures.
 Acidic blood affects the action of glutathione, which is
an antioxidant enzyme.

 Phosphoric acid, present in carbonated drinks de-

oxidizes blood. . In human body, it removes Ca²+ and
CONTROVERSIES OF COCA
COLA
 The Coca-Cola Co. has been involved in a
number of controversies related to its
relationship with human rights violations and
other unethical practices.
§ A number of lawsuits have been issued in
relation to its allegedly
monopolistic and discriminatory practices, some
of which have been dismissed, some of which
have caused The Coca-Cola Company to change
its business practices, and some of which have
been settled out of court. There had been
criticisms regarding the Coca-Cola Company's in
relation to the:

§ Middle East and U.S. foreign policy.

§ Columbia trade union boycott.
§ India –boycott-environmental issues.
COLUMBIA-TRADE UNION
BOYCOTT
 In 2003,Columbian trade union
SINALTRAINAL called an international
boycott of coca cola products because of
kidnapping, and brutal murder of
workers in coca cola bottling plants by
paramilitaries who were allegedly acting
on behalf of coca cola co. in order to
drive down the wages of worker in
Columbia. The product has been given
the name ”KILLER COKE”.
 On 11th April 2006, the university of
Michigan agreed to purchase the
product of coca cola co. saying that ,it
was satisfied with the plans for two
investigation into the company’s labor
 INDIA-BOYCOTT COCA
COLA-
ENVIROMENTAL ISSUES.
 KALADERA ISSUE
“Kaladera” is a village outskirt of
Jaipur city of big agricultural
land, residing poor farmers.
Coca cola put up his bottling
plant in that location, extracting
water for its production at an
unsustainable rate, damaging
the local supply and torturing
and forcing local farmers to
relocate.
It made the deep bore well of
kaladera toxic, making the
water inedible to drink.
CONTINUE….
 PESTICIDE IN COCA COLA
In 2003, the CSE, a non-governmental
organization in Delhi, said aerated water
produced by soft drink manufacturers
India, contain toxins like- lindane,
malathion,DDT,etc.which can lead to
cancers and break down immunity.
CSE also found that Indian produced coca
cola has 36times the level of pesticide
residues but the same products in US has
found no such residues. And thus it was