Ethicalscenario: Coca-Cola Company
Itis the view of Bosch (2005) that ethics is “a code of morals or amoral philosophy practiced by a group of people or an individual”(p. 4). These “morals” are molded by cultural practices, socialnorms, and religious influences. Ethics serve as a moral compass todirect people by determining what is just, wrong, bad and good (p.5). Just like the society, companies too have a code of ethics thatdirect how people should relate to each other as well as otherbusinesses. However, in an organization, there exists an“organizational culture” defined by core values like leadership,integrity, accountability, diversity, quality and collaboration(DiMauro & Grant, 2006).
Whileethical values and beliefs are held by persons, they can be reflectedin the policies, values and practices that shape the choices drawn bydecision makers (managers) on behalf of their companies (Scott, 2012,p. 35). The two principal organizational culture values manyorganizations have in play against bribery and corruption areintegrity and accountability (p. 36). In this essay, I will discusshow Coca-Cola handles cases of corruption in an easy comparison toThe United States Army where I currently work. I’ll respond as aCoca-Cola senior manager receiving gifts and generous proposals frommy juniors as a sign of bribery for organizational courtesies.
Asa Coca-Cola manager, if I were to be awarded any offers, gifts,promises or anything of value from my juniors in return of favorslike lopsided promotions, I would act in accordance to Coca-Cola’sglobal anti- bribery policy and report the matter to the relevantauthorities for immediate action. Coca-Cola, as an entity, iscommitted to doing business with integrity, which means that anyforms of illegal canvassing for any organizational favors areprohibited (The Coca-Cola Company, 2012, April 12). Coca-Cola, inthis effect, has an anti-bribery and corruption policy in play,equivalent to the United States Army where I currently work.
Therefore,in my capacity as manager, I would any corruption matters to myseniors and the relevant anti-corruption authorities for sternaction. Just like the United States Army, Coca-Cola reports anyindividuals suspected of indulging in bribery and corruption, afterwhich an investigation is launched after the involved person’ssuspension to clarify whether the allegations are indeed factual orfictitious. If proven guilty, the affected individuals are relievedoff their contractual duties with fines imposed as per the companypolicies (The Coca-Cola Company, 2012, April 12). If at all they arediscovered to be innocent and acquitted, the affected parties areadmitted back to the organization with a stern warning against anyfuture indulgence of any form of bribery or corruption (Bosch, 2005,p. 6).
Inreal time, this concern relates to the case my group was analyzing onthe discussion board. In specificity, the case we were analyzing onthe discussion board was centered on the sensitive issue ofindividuals giving offerings and gifts to their departmental managersas a manner of canvassing for unwarranted promotions and job favors.Thus, there is a very close and positive relation. After conductingthorough research, I have resolved that the best industry practicesrelated to bribery and corruption are reporting the matters to toporganizational managers and relevant anti-corruption authorities forthe investigation of facts (DiMauro & Grant, 2006).
Tomany companies, this ingenuity has proven to be effective because theinvestigations are conducted by independent bodies that do not havean interest in the outcome of the investigations (Bosch, 2005, p. 7).Therefore, these agencies often do the investigations impartially,coming up with dependable and truthful results upon which actions canbe taken (Scott, 2012, p. 38). In the next section is a policy andprocedure I have come up with that can provide executives with theassistance on how to handle cases of bribery and corruption.
Overview of policy
Thispolicy is intended to guide organizational managers on how to handleany case that involves the allegations of bribery and corruptionwithin their organizations. A desecration of this policy can lead tosevere criminal and civil penalties therefore, it is vital thatmanagers understand and appreciate the significance of this policy.
Policy Eligibility/Applies to
Thispolicy applies to all-level managers and departmental heads of anyorganization.
Allcompanies and their subsidiaries have a civil and legal commitment toconducting business with utmost integrity (DiMauro & Grant,2006). This corporation, existing as a legal entity under the federallaws of the United States, is expected to abide by the U. S. ForeignCorrupt Practices Act (FCPA). This means eluding corruption of allforms, including but not limited to bribery and gift offering (Scott,2012, p. 42).
Prohibition of bribery and gift-giving
Applicablelaws on corruption forbid companies and their employees as well asrepresentatives from promising, giving, offering or authorizing anyform of valuable payments to any party to secure some unsuitableadvantage (DiMauro & Grant, 2006). In other words, managers andtheir employees are not expected to receive or give anything of valueso as to influence our or another person’s actions respectively.The prohibition of bribery by giving something of “value” is notlimited to money stock options, business opportunities, favorablecontracts (promotions), entertainment and gifts also count (Bosch,2005, p. 8). Therefore, managers, in their organizational leadershiprole, should act to make sure that corruption is kept at arm’slengths from their corporations. The subsequent section of thispolicy discusses the responsibilities and roles of managers asanti-bribery agents in their establishments
Roles and responsibilities
Mangers,as anti-bribery agents in their corporations have the followingresponsibilities
Sensitize their employees about the repercussions of indulging in any form of bribery or gift-offering. Managers should ensure that all the new and existing employees are educated about corruption and the forms in which it can transpire. Also, managers should let all their personnel know of the stiff penalties of indulging in corrupt dealings (DiMauro & Grant, 2006).
Managers should conduct frequent audits of their systems to seal off all the possible weakness in the system where corruption may blossom. Furthermore, frequent impromptu system audits performed by managers might shell out recent cases of corruption, diminishing the odds of corrupt dealings being covered up by time (Scott, 2012, 41).
Managers should institute a good corruption “red-flagging” system to allow employees that have witnessed any form of corruption report their allegations. This way, transactions that enhance bribery and gift-offering will be almost impossible to complete.
Policy procedures to follow
Entailthe documentation of the bribery or gift-offering allegation to therelevant top organizational managers and appropriate anti-graftauthorities for the investigation procedures to begin.
Theparty under scrutiny is suspended from his or her duties until provenguilty or is acquitted.
Thesuspected parties are examined independently by a competentanti-graft institution.
Ifthe individual under investigation is found guilty of the briberyallegations, he or she should be dismissed from his/her contractualobligations and face the necessary criminal and civil penaltiesemanating from the weight of the bribery investigation results. Ifthe party is proven to be innocent and acquitted, then he/she can bere-admitted back to the company.
Bosch,P. (2005). Business Ethics. Corruptionand Bribery in the Workplace,4-9. Retrieved March 23, 2016.
DiMauro,L., & Grant, T. (2006). Ethics.Detroit: Greenhaven Press.
Scott,S. (2012). Ethicsfor Managers.34-45. Retrieved March 23, 2016.
TheCoca-Cola Company. (2012, April 12). Anti-Bribery. Retrieved March23,2016, http://www.coca-colacompany.com/our-company/governance-ethics/anti bribery/