Coca Cola Company: Justification Overview

Coca Cola Company: Justification Overview

In 1886, John Pemberton from Atlanta, GA mixed a caramel-colored liquid with carbonated water and created the world's most popular beverage, Coca Cola Classic. Only two years later, in 1888, John died without seeing the success his creation would have to the world. Coca Cola has become a beverage conglomerate with over 3500 products sold in more than 200 countries (McKelvey, 2006). Currently, the Coca Cola Company enjoys over 40% of the world's soft-drink market shares and bottles four of the top 10 popular soft drinks in the US, including Coke Classic, Diet Coke, Sprite, and Caffeine-Free Coke (McKelvey, 2006).

Although Coca Cola has enjoyed immense success, the path has not always been without road bumps. The Coca Cola Company has been criticized for its marketing tactics (McKelvey, 2006), its over-consumption of water (Walsh & Dowding, 2012), bribery to the American Academy of Pediatric Dentistry (Newitz, 2012), and its relationships with labor and trade unions (Civil Procedure, 2009), among other serious allegations. Additionally, the company responsible for the largest profit margin in sugary drinks has also been under stiff accusations for its responsibility in the country's increased obesity rates (Madhavan, 2012).

Coca Cola is an iconic brand and public company, traded on the New York Stock Exchange (NYSE) (Coca Cola, 2013). As a public corporation, Coca Cola abides by the SEC filing requirements and has a corporate governance section in their public website. However, with as many of the issues that plague the Coca Cola Company's reputation being of ethical nature, the company lacks a true governance plan that is transparent and preventive of unethical temptations. Furthermore, as natural resources such as water become scarce and the public is more aware of the health of the planet, the company can address its social responsibility and sustainability plans to a larger audience beyond its investors by creating a stand-alone plan that is not also a SEC requirement.

Conclusion

The Coca Cola Company is an American staple that continues to reach many place that American's have struggled to reach, such as Germany in the 1940s, China in the 1970s, and most recently North Korea (Coca Cola, 2013). With such global influence, strong corporate governance is imperative to prevent misappropriation of power in developing countries, struggling economies, and uneducated consumers. The Coca Cola Company can benefit from an easy-to-access, governance plan that is inclusive of social responsibility and sustainability measures currently in place by this public entity.