Discuss the Company’s Reputation (Justified or Not) in Light of the Concept of “Managing Interdependence Around the World.” What Does It Take to Be a “Good Citizen” in Host Countries? How Well Has Coca-Cola Fared in This Regard? What Doe...
When discussing company’s reputation in the light of the concept of managing interdependence, first we have to understand what is meant by managing interdependence. Global interdependence is a compelling factor in the global business environment creating demands on international managers to take a positive stance on issues of social responsibility and ethical behavior, economic development in host countries and ecological protection around the world (Deresky H. 2008) .
A multinational corporation (MNC), whom main concern of the business is to make profit, within the confines of the law, in order to produce goods and services and serve its shareholders’ interests (Friedman M. 1962) , are also expected to anticipate and solve social needs of their host country, this is called the corporate social responsibility (CSR) of a MNC. The concept of international social responsibility includes the expectation that the MNCs concern themselves with the social and economic effects of their decision. As mentioned by, Donaldson T. (2005, 6), corporate activity should be motivated in part by a concern for the welfare of some non-owners, and by an underlying commitment to basic principles such as integrity and respect for persons .
Coca-Cola had always believed that they conducted their business with responsibility and ethics. The company’s business practices were aimed at creating value at the marketplace, providing excellent working conditions, protecting the environment, and strengthening the communities in the place of operation. Commitment to quality and a code of business conduct were evolved to ensure good business practices (Coca-Cola Business Practices, 2006) .
However, The Coca-Cola Company (TCCC) has been alleged with business misconducts in Columbia, Mexico and India which has linked the company with several charges against violation of human rights issues, business misconducts and environmental issues. These allegations against TCCC have led to several protest,
A multinational corporation (MNC), whom main concern of the business is to make profit, within the confines of the law, in order to produce goods and services and serve its shareholders’ interests (Friedman M. 1962) , are also expected to anticipate and solve social needs of their host country, this is called the corporate social responsibility (CSR) of a MNC. The concept of international social responsibility includes the expectation that the MNCs concern themselves with the social and economic effects of their decision. As mentioned by, Donaldson T. (2005, 6), corporate activity should be motivated in part by a concern for the welfare of some non-owners, and by an underlying commitment to basic principles such as integrity and respect for persons .
Coca-Cola had always believed that they conducted their business with responsibility and ethics. The company’s business practices were aimed at creating value at the marketplace, providing excellent working conditions, protecting the environment, and strengthening the communities in the place of operation. Commitment to quality and a code of business conduct were evolved to ensure good business practices (Coca-Cola Business Practices, 2006) .
However, The Coca-Cola Company (TCCC) has been alleged with business misconducts in Columbia, Mexico and India which has linked the company with several charges against violation of human rights issues, business misconducts and environmental issues. These allegations against TCCC have led to several protest,