BUS5001 Ethical, Legal, and Industrial Frameworks Report Sample
A summary report will be submitted by each student based on the points made in the debate – this can include some points made by other debaters and how you refuted those points, however it should focus mostly on your own research.
• Business report format is required for the case study submission.
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• Use Font 12 Times New Roman with 1.5 spacing, single column, justified and 2.5 cm margin in all four sides for the report body and submit as a Microsoft Word file.
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Solution
Introduction
The suit launched by Earth Island Institute against Coca-Cola raises questions about corporate ecological responsibility and ethical business practices. Coca-Cola pursues greenwashing, the Institute states, implying that claims regarding its sustainability are fanciful and incorrect reflections of the company's real environmental impact. Coca-Cola is listed as one of the biggest contributors to global plastic pollution, despite the corporation's public statements that it is reducing plastic, made trash and encouraging recycling. Through this particular lawsuit, Coca-Cola's integrity is put in question along with the honesty of corporations and their duties to the planet. It calls on businesses to adjust their public statements consistent with real and efficient initiatives to promote sustainability, informing a far more honest and accountable corporate climate. A precedent might be established by the end of this case which would affect how businesses promote their environmental activities and also meet sustainability criteria. This article evaluates the ethical and legal concerns involved with the case, talks about applicable ethical principles and laws and also discusses feasible remedies to improve the corporate environmental responsibility.
Problem Overview and Case Summary
Corporate ecological responsibility for university assignment help in the Earth Island Institute's Coca-Cola case. The complaint accuses Coca-Cola of using greenwashing or even of mispresenting itself as ecologically favourable. Coca-Cola's sustainability programs are misrepresented, claimed by the Earth Island Institute. Coca-Cola allegedly contributes more to worldwide plastic trash than any other firm despite its green promises (Prabaningrum et al. 2023). The lawsuit centers on Coca-Cola's environmental effect and public image, a case study in corporate ethics and environmentally friendly responsibility.
Beverage business led by worldwide brand Coca-Cola. Its marketing highlights sustainability initiatives including plastic waste reduction and recycling. Environmental images and phrase are prominent in the company branding (Nagyova, 2024). Such claims are mostly cosmetic and illegitimate, the Earth Island Institute says. The organisation affirms Coca-Cola creates enormous amounts of plastic bottles each year which wind up in seas and landfills (Prabaningrum et al. 2023). Coca-Cola's promotional slogans and environmental impact conflict, the Institute's legal challenge.
The case claims Coca-Cola's sustainability claims are bogus advertising which violates consumer protection laws. Coca-Cola is accused of playing the fool to customers by presenting itself as an environmentally friendly champion while littering plastic cans (Lauchlan and Roberts, 2020). Legal and moral issues concerning business honesty and integrity arise. Earth Island Institute says customers deserve accurate product environmental impact information. Coca-Cola accused of greenwashing, a violation of this customer right.
Coca-Cola's plastic manufacturing is environmentally harmful. The plastic bottles pollute marine habitats for Coca-Cola, the Earth Island Institute says. Marine creatures frequently ingest plastic garbage and die. Plastic degradation releases dangerous chemical compounds and destroys ecosystems (Verma and Bharti, 2023). The Institute says Coca-Cola's involvement in the environmental issue contradicts their sustainability objectives. The suit seeks to hold Coca-Cola responsible because of its environmental impact and press business to adopt much more genuine and tangible sustainability efforts.
The lawsuit by Earth Island Institute against Coca-Cola centers on corporate responsibility and consumer protection. If the court sides with the Earth Island Institute, it might make other businesses more truthful about their environmental activities (Lauchlan and Roberts, 2020). This may raise environmental marketing claim rules and corporate sustainability monitoring.
The case also illustrates how environmental advocacy organisations are increasingly holding businesses accountable. Earth Island Institute helps discover polluting business activities. By suing Coca-Cola, the Institute is promoting environmental justice and corporate accountability (Kopnina, 2018). This particular activity is part of a developing pattern of civil society organizations implementing public and legal pressure to encourage sustainable business behaviour.
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Figure 1: Coca-Cola Over Greenwashing Claims & False Advertisement charged by Earth Island
(Source: Verma and Bharti, 2023)
Legal and Ethical Issues
The Coca-Cola case of the Earth Island Institute begs legal and moral questions. They include Coca-Cola's practices along with greater issues of corporate responsibility, transparency and environmental effect.
The key issue for legal purposes is deceptive advertising. The Earth Island Institute says Coca-Cola's sustainability promises are untrue. Deceptive advertising is an offence in consumer protection. Companies must disclose accurate products and practice information to help customers make judgments (Haws, 2022). Coca-Cola markets itself as reusing and reducing plastic waste. The Institute says those accusations are unsupported by company operations. Coca-Cola is the world's greatest plastic garbage squanderer, driving enormous amounts of bottles to seas and landfills despite its green business. In case a court finds the advertising incorrect or even misleading, Coca-Cola might be fined and ordered to alter its marketing. Legal consequences go beyond financial fines (Ellens, 2020). If Coca-Cola loses, many other firms might market their environmental efforts differently. It would signal to corporations that greenwashing, portraying sustainability as illegal, could have severe implications (Haws, 2022). Companies might have their environmental claims questioned and be asked to document their sustainability. Such a precedent would encourage corporate marketing openness and integrity while stopping deception by promising customers.
The ethical considerations are equally or much more pressing. Ethical problems entail honesty. Coca-Cola greenwashing betrays customer trust. Customers who care about their environmental impact might select a company's goods over another in case it promises to be ecologically friendly (Y?lmaz and Baybars, 2022). If they are untrue, customers lose faith in Coca-Cola along with corporate sustainability promises. Long-term trust loss may lead customers to avoid support for sustainable enterprises.
The ethical question also concerns environmental damage. Coca-Cola's higher plastic contamination rate defies sustainability claims. Plastic waste threatening wildlife, ecosystems and human health. Coca-Cola contributes to this global disaster by creating enormous quantities of plastic trash, even its denials are not sufficient (Parguel and Johnson, 2021). It raises ethical concerns regarding the company's environmental duty. Coca-Cola influence along with resources can help reduce plastic waste and increase sustainability. The case asserts Coca-Cola is placing its public image above environmental action, therefore breaking this particular moral obligation. Another ethical concern concerns how influence impacts stakeholders like consumers, workers and communities (Senay et al. 2022). False statements confuse consumers, greenwashing businesses conflict staff and plastic pollution-affected places suffer environmental effects. An ethical corporation must consider all stakeholders, not only stockholders. Coca-Cola is breaking this particular ethical obligation by allegedly being dishonest in protecting its market share and brand (Zhao, 2023).
Hence, the Coca-Cola lawsuit creates serious legal and ethical questions outside the situation. It asks legal definitions of deceptive advertising and business marketing claims. It raises serious ethical questions regarding honesty, responsibility and corporate environmental sustainability (Y?lmaz and Baybars, 2022). This particular case might impact Coca-Cola's activities and establish a standard for company behavior in business.
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Figure 2: Most Plastic polluters in 2020
(Source: Roper & Richter, 2020)
Application of Ethical Laws and Principles
Resolving the Earth Island Institute's greenwashing claims against Coca-Cola requires applying ethical rules and values. These frameworks help Coca-Cola determine its ethical responsibilities. Consumer protection legislation, environmental restrictions, corporate social responsibility (CSR), openness, honesty, responsibility along with other ethical ideas related to the case are talked about (Verma and Bharti, 2023).
The ethical and legal issues are generally consumer protection laws. They require corporations to offer factual information to customers for informed decision-making. People expect Coca-Cola to behave green when it advertises it is (Nagyova, 2024). These regulations emphasize advertising and marketing sincerity based on honesty. If Coca-Cola makes bogus sustainability claims, it violates the principle by misleading customers and breaking trust (Prabaningrum et al. 2023). Ethical marketing requires enterprises to declare their environmental effect in substantial, verifiable and factual ways so customers make educated choices in line with their beliefs.
Environmental regulations and rules are also significant. These regulations control polluting and degrading activities to safeguard the environment (Zhao, 2023). These limitations require companies to reduce environmental impact. Coca-Cola's substantial plastic pollution effect raises environmental questions. Environmental sustainability and stewardship ethics call for that organisations reduce their environmental effect actively and abide by the law (Ellens, 2020). This means implementing sustainable packaging, recycling and clear plastic reduction. Coca-Cola might show their environmental commitment by following these ethical guidelines.
The 2002 U.S. Sarbanes Oxley Act (SOX) requires accurate and truthful reporting along with corporate governance and responsibility (Gorshunov et al. 2020). SOX addresses financial disclosures but its openness and accountability might extend to environmental reporting too. Coca-Cola could uphold corporate ethics by requiring rigorous sustainability reporting standards.
Another applicable ethical framework is CSR. By way of CSR, firms assume social, ecological and economic accountability for their activities. It comprises several behaviours advantageous to society and reducing externalities (Senay et al. 2022). Coca-Cola's sustainability declarations implicitly recognize CSR requirements. The complaint says the company's activities might contradict its pledges. According to CSR ethics, corporate actions should match public declarations and sustainability initiatives must be meaningful (Kopnina, 2018). This implies that environmental concerns must be considered basic business strategy and operations, and not only marketing tools for corporations.
The review of Coca-Cola's procedures also demands openness. Transparency enables stakeholders evaluate and hold a corporation responsible by sharing its operations with them. Sustainability requires transparent reporting of environmental objectives, accomplishments and difficulties (Senay et al. 2022). If Coca-Cola exaggerates or even erroneously portrays its sustainability initiatives, it contradicts this concept by covering its environmental effect. Ethical businesses should be transparent so customers, regulators and investors can evaluate the company's environmental results (Y?lmaz and Baybars, 2022).
Another ethical element is accountability. Accountability is accepting responsibility for one's actions and the results (bad and good). Accountability means Coca-Cola admits its plastic pollution and vows to reduce it (Ellens, 2020). Set measurable sustainability targets, monitor progress and fix issues. By being accountable, companies can build stakeholder self-confidence and show their environmental sustainability stance. The ethical concept of accountability calls for Coca-Cola to reveal its plastic use and recycling procedures and implement steps to limit its environmental impact (Lauchlan and Roberts, 2020).
Coca-Cola's activities have to be also analyzed on integrity. Integrity means following moral and ethical norms when it is tough. Coca-Cola should link its company activities to its sustainability claims (Senay et al. 2022). Deceptive marketing statements on environmental responsibility imply lack of integrity as the firm would put its image before its ethical behaviour. Coca-Cola needs to show that its sustainability initiatives are genuine and important - not PR stunts (Zhao, 2023). These ethical regulations and ideals also impact business. This particular case might influence how firms market sustainability and transparency. It highlights the need for clear moral and regulatory norms, which hold companies responsible for their environmental promises (Verma and Bharti, 2023).
The suit of the Earth Island Institute against Coca-Cola demonstrates the role of ethical standards in business evaluation. Coca-Cola activities are assessed against consumer protection laws, environmental regulations, honesty and CSR, openness, integrity and accountability (Nagyova, 2024). These ethical criteria emphasize genuine sustainability, honest communication and environmental responsibility. The suit will test those ethical concepts and their application in business as it develops and could impact company practices and consumer belief in sustainability promises.
Critical Evaluation of Issues and Solutions
Earth Island Institute's suit against Coca-Cola begs questions about corporate environmentally friendly accountability and sustainability claims. The basic challenges, their ramifications and ethical and practical remedies, which Coca-Cola along with other organisations might apply must be critically analysed and alternatives offered (Haws, 2022).
A significant worry is the Coca-Cola greenwashing scandal. A firm greenwashes by passing along bogus info to make it appear ecological. The Earth Island Institute says Coca-Cola's sprawling marketing campaigns tout sustainability but are insufficient for the company's heavy plastic pollution load (Lauchlan and Roberts, 2020). This disconnect between Coca-Cola's marketing and its environmental impact deceives clients, marries trust, and might derail sustainable endeavors.
Attempts to combat greenwashing abound. For starters, Coca-Cola should be more transparent in its environmental efforts and outcomes. This demands accurate stats on the company's plastic manufacturing, trash management and recycling (Verma and Bharti, 2023). Coca-Cola can build customer confidence and show it is lowering its environmental impact by demonstrating tangible sustainability data. Transparency must include recognizing challenges and opportunities for growth - not triumphs (Lauchlan and Roberts, 2020).
One more issue is Coca-Cola's plastic pollution effect. It is one of the world's top plastic trash generators despite sustainability promises. Coca-Cola has a great moral and environmental obligation. The company's single-use plastics contaminate seas and kill marine life. Coca-Cola should use greener packaging to counteract this effect (Ellens, 2020). Examples include investing in eco-friendly products, reusing plastics and producing environmentally friendly packaging. The sustainable packaging requires both short and long-term approach. Coca-Cola might soon expand plastic bottle recycling and promote it aggressively (Prabaningrum et al. 2023). Research and development of environmental-friendly materials might be a long-term plan. These activities ought to form part of a longer-term plan to decrease the company's plastic impact.
To overcome these worries, Corporate Social Responsibility (CSR) could assist. Companies should assess how their activities affect society and also the environment under CSR (Verma and Bharti, 2023). Coca-Cola has to make sustainability a primary business feature as opposed to a side issue. The organisation should determine quantifiable sustainability targets and also report on its accomplishments (Nagyova, 2024). This makes sustainability a company policy as opposed to a marketing slogan. Additionally, these challenges call for consumer education. Given its platform Coca-Cola can influence customer behavior (Lauchlan and Roberts, 2020). Coca-Cola could benefit the planet by instructing consumers on plastic waste and green living. This might consist of recycling, single-use plastic reduction and plastic pollution awareness campaigns. Coca-Cola might educate consumers to inspire sustainable behavior.
Corporate initiatives must be supplemented by regulatory steps to ensure accountability and sustainability (Ellens, 2020). Governments and regulators should tighten company environmental claims. This includes requiring corporations to prove sustainability claims with evidence and penalising fraudulent advertising. Such laws would even the playing field out there, and stop fraudulent marketing from giving corporations a competitive edge (Lauchlan and Roberts, 2020). Regulatory monitoring could also encourage corporations to consider sustainability rather than greenwashing.
Another route involves collaboration between environmental groups and companies. Coca-Cola could learn from NGOs and advocacy organisations and produce successful sustainability programs (Nagyova, 2024). These relationships may share best practises, invent sustainable packaging and enhance business sustainability reputation. Collaboration might help organisations to resolve environmental problems and to maintain highly effective environmental activity. Firm accountability structures are required for critical examination of problems. Coca-Cola should develop internal procedures to periodically evaluate its environmental effect (Verma and Bharti, 2023). This might require specialist sustainability teams, detailed data gathering and analysis and frequent environmental assessments. Accountability procedures make sure that sustainability activities are planned, performed and changed.
A sustainable company culture is vital. This means involving all workers in sustainability projects, teaching them about environmental problems and also encouraging sustainable practice innovation. Employee involvement in the organization's sustainability goals allows a coordinated and targeted response to environmental issues (Nagyova, 2024). A sustainable culture considers environmental aspects in organisational decision-making.
Conclusion
The lawsuit by the Earth Island Institute against Coca-Cola signals a turning point in corporate environment-friendly responsibility and ethical marketing. The case demonstrates greenwashing, where firms misrepresent their environmental accomplishments. This paper calls for openness, accountability, and true environmentally friendly stewardship by looking at Coca-Cola's alleged sustainability gaps with its plastic pollution. Consumer protection, environmental and CSR legislation requires that firms disclose their environmental effect. Such challenges might be dealt with via enhanced transparency, sustainable packaging, awareness of customers and engagement with environmental groups. Organisations might also adapt by establishing internal responsibility and a sustainable culture. This particular case might encourage firms to go beyond greenwashing and pursue real environmental efforts. This particular case illustrates the need for legal monitoring, ethical business practice and proactive environmental responsibility towards a more sustainable and trustworthy corporate landscape.
References
Ellens, C., 2020. The Relationship Between (Un) conscious Use of Persuasion Knowledge and Greenwashing.
Gorshunov, M.A., Armenakis, A.A., Feild, H.S. and Vansant, B., 2020. The Sarbanes-Oxley Act of 2002: Relationship to magnitude of financial corruption and corrupt organizational cultures. Journal of Management, 21(2), p.73.
Haws, J.W., 2022. Cherry Red Greenwashing: The Rhetoric Behind Corporate Recycling Narratives (Master's thesis, Brigham Young University).
Kopnina, H., 2018. Teaching circular economy: Overcoming the challenge of green-washing. Handbook of engaged sustainability, 2(2), pp.809-833.
Lauchlan, E. and Roberts, W., 2020. Green lies: Exploring consumer perceptions of greenwashing. Shift Insight.
Nagyova, L., 2024. Talk is cheap: Coca Cola’s use of greenwashing, slacktivism and virtue signalling (Doctoral dissertation, Institute of Art, Design+ Technology).
Parguel, B. and Johnson, G., 2021. Beyond greenwashing: Addressing ‘the great illusion’of green advertising. Revue de l’organisation responsable, 16(2), pp.59-66.
Prabaningrum, M.R., Suliyanto, S. and Setyanto, R.P., 2023, October. The Effect of Greenwashing on Switching Intention with Green Perceived Risk as a Moderation
Variable (Study of Plant Bottle Coca Cola consumers in Indonesia). In Proceeding of International Conference Sustainable Competitive Advantage (Vol. 4, No. 1).
Roper, W. and Richter, F. (2020) Infographic: Worst Plastic Polluters in 2020, Statista Daily Data. Available at: https://www.statista.com/chart/23720/worst-polluting-companies/ (Accessed: 29 July 2024).
Senay, E., Cort, T., Perkison, W., Laestadius, J.G. and Sherman, J.D., 2022. What can hospitals learn from the Coca-Cola company? health care sustainability reporting. NEJM Catalyst Innovations in Care Delivery, 3(3), pp.CAT-21.
Verma, M. and Bharti, U., 2023. Combating Greenwashing Tactics and Embracing the Economic Success of Sustainability. VEETHIKA-An International Interdisciplinary Research Journal, 9(3), pp.6-12.
Y?lmaz, M.B. and Baybars, B., 2022. A critical perspective on greenwashing under the roof of corporate environmentalism. Green Marketing in Emerging Economies: A Communications Perspective, pp.119-140.
Zhao, J., 2023. How the EU should to respond to the challenge of greenwashing?. Journal of Education, Humanities and Social Sciences, 24, pp.798-810.
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