On June 13, 1999, Coca-Cola (Coke) recalled over 15 million cans and bottles after the Belgian Health Ministry announced a ban on Coke's drinks, which were suspected of making more than 100 school children ill in the pre
CS Professional · Ethics, Governance and Sustainability · PYQS · June 2021
On June 13, 1999, Coca-Cola (Coke) recalled over 15 million cans and bottles after the Belgian Health Ministry announced a ban on Coke's drinks, which were suspected of making more than 100 school children ill in the preceding six days. This recall was in addition to the 2.5 million bottles that had already been recalled in the previous week. The company's products namely Coke, Diet Coke and Fanta had been bottled in Antwerp, Ghent, Belgium while some batches of Coke, Diet Coke, Fanta and Sprite were also produced in Dunkirk, France. Children at six schools in Belgium had complained of headache, nausea, vomiting and shivering which ultimately led to hospitalization after drinking Coke's beverages. Most of them reported an 'unusual odor' and an 'off-taste' in the drink. In a statement to Reuters, Marc Pattin, a spokesman for the Belgian Health Ministry explained the seriousness of the issue: "Another 44 children had become ill with stomach pains, 42 of them at a school in Lochristi, near Ghent, northwest Belgium. We have had five or six cases of poisoning of youngsters who had stomach pain after drinking (the suspect beverages). In the same week, the governments of France, Spain and Belgium also banned Coke's products while Coke's Dutch arm recalled all products that had come from its Belgium plant. The entire episode left more than 200 Belgians and French, mostly school children, ill after drinking the Coke produced at Antwerp and Dunkirk. The company had to assure its British customers that the products made in its UK factories were safe. By June 15, 1999, Coke had recalled about 30 million cans and bottles, the largest ever product recall in its 113-year history. For the first time, the entire inventory of Coke's products from one country was banned from sale. As part of a damage control exercise, Coke sent a team of scientists to Europe. During its visit to Europe after a week of these incidents, Coke's Chairman and CEO Michael Douglas Ivester said, "We deeply regret any problems encountered by our European consumers in the past few days." Coke Belgium even announced that it would reimburse the medical expenses for people who had become ill after consuming its products. Keeping in the view facts of the case answer the following questions : (i) What are the ethical issues involved in the above case ?
Answer & Explanation:
The case study embraces numerous ethical issues. Some of them are as under: The company lacked in exercising strict quality control measures and advertently or inadvertently allowed their products in the market which caused injury to health of many consumers, especially children. When company was aware that their product are/could be used by children and teenagers who are more vulnerable section of the society, the company must have exercised extra care and due diligence in shipping the product to the market. Company recalled its product from the market after Belgium Health Ministry announced a ban on its products. Thus, company adopted reactive approach rather than a proactive approach. When company came to know about first incident of child illness, it must have recalled the entire lot of its products from the market acting swiftly, as it is a quite sensitive issue associated with the health of children. The company never acknowledged or took action on the reports of 'unusual odour' and 'off taste' in the drink. The company owe a responsibility and are answerable to the customers. Even after being aware about the incidents of child illness, the company kept continuing to assure its British consumers that the products produced in UK factories are safe. Lastly, company considered itself free from its ethical liability by issuing a regret from the side of its Chairman and CEO.
Topics: Ethics in Business
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