Coca-Cola Faces Another University Ban*

            

Details


Case Code : CLBE009
Publication date : 2008
Subject : Business Ethics
Industry : FMCG
Length : 03 Pages

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The article discusses about the ban on coca cola by University of Michigan and other universities, Coca-Cola's annual contracts with the University of Michigan alone were worth around US$ 1.4 million in sales but the officials mentioned that the sale could resume if the company addresses these problems in a satisfactory way. This ban was the outcome of a relentless campaign by student activists and human rights groups, who have pressurized universities to boycott Coca-Cola.

Introduction

The University of Michigan became the tenth US University to have put on hold the sale of Coca-Cola's products in its campus, with effect from January 01, 2006. Other prominent US universities that have banned Coca-Cola are New York University, the largest private university in the US, Rutgers University in New Jersey, and the Santa Clara University in California. Both the University of Michigan and New York University were Coca-Cola's largest campus markets in the US. Coca-Cola's annual contracts with the University of Michigan alone were worth around US$ 1.4 million in sales. However, Michigan University officials mentioned that this was a temporary suspension and sales of Coca-Cola's products could resume if the company made satisfactory progress on addressing these problems.

Both Coca-Cola and the university have agreed to keep the negotiations on. Kari Bjorhus, a spokesperson for The Coca-Cola Company said, "The University of Michigan is an important school, and I respect the way they worked with us on this issue. We are continuing to try hard to work with the university to address concerns and assure them about our business practices."...



Questions for Discussion:

1. Evaluate Amazon's response to the entire controversy. Considering its own interests, as well as the interests of other stakeholders, what were the alternative responses that it could have considered?
2. In your opinion, will Amazon action have a significant impact on Kindle's sales? Why, or why not?
Cases on Related Topic

1. The McDonald's 'Beef Fries' Controversy
2. Kentucky Fried Chicken: Tackling the Trans Fat Problem
3. Coca-Cola's Business Practices: Facing the Heat in a Few Countries
4. Coca-Cola's Belgian Crisis - The Public Relations Fiasco
5. Coca-Cola's Dasani in the UK - The Public Relations Fiasco

Key words:
university of michigan, coca cola, product, New York University, Rutgers University in New Jersey, the Santa Clara University in California, annual contracts, business practices, labor practices, boycott, environmental concerns, protocol, union leaders, International Labor Rights Fund, United Steelworkers of America, and SINALTRAINAL, lawsuit, death squads, allegations, Plachimada plant, Kanjikode Industrial Area





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