Whistle Blower

 

Statement of the Situation

A strategic planning manager for a multinational organization, which owns and manages tea plantations in a developing country, is facing a critical issue. An organization has been the subject of a series of critical articles in a national paper about: the exploitative pay and conditions on the plantations; and an arrangement has made with the country's government for the repatriation of profits.

Coke is an example of Whistle Blower scenario. Coke had been found to have pesticides in their products. However, they issued advertising along with many other methods to deny the fact.

Background of the Situation

A strategic planning manager for a multinational organization, which owns and manages tea plantations in a developing country, is facing a critical time. While the organization's advertising emphasizes the organization's 'partnership with the developing world', it has been the subject of a series of critical articles in a national paper about the exploitative pay and conditions on the plantations and for the repatriation of profits with the government. The information is accurate; and it is being supplied by a member of an organization. An organization has a rule that a member of staff “must not disclose commercial information to unauthorized persons” and another one, which says that “all contacts with the press must be handled by the properly authorized officers of the organization.”

A member of your department inadvertently makes it plain that it is she, who has been supplying the information to the newspaper. She immediately recognizes what she has done and says, “that you 'must ignore what I've said or I'll be sacked”.

Coke had been found to have pesticides in their products. The test results found high concentrations of pesticides and insecticides, including lindane, DDT, malathion and chlorpyrifos, in the colas, making them unfit for consumption. Coca-Cola India has hired a public relations firm, Perfect Relations, to rebuild its tarnished image in India.

Issues to be Resolved

 

The issues are the Corporate Ethics on communicating with Media by the employee and Social Responsibility of corporations, and Coca-Cola in India in particular.

 

Procedures Employed

 

According to the organization rule, an employee has violated it. However, her action is necessary because she did ring a bell about corporation practice. The corporation practice is absolutely unethical and lack of social responsibilities. A member who did supply the information should be appreciated rather than being punished. Even the articles has tarnished the corporation image, however, the image can be rebuilt with the right and corrective actions like improving pay and working condition, running an ethical business and being more socially responsible.

 

For Coca-Cola in India, it is an unacceptable reaction. Coca-Cola had conducted more and more unethical behaviors to cover its action: having pesticides in its drink products, using forces to make problems going away, hiring a public relations firm, Perfect Relations, to rebuild its tarnished image in India rather than solving the root of problems. Coca-Cola in India did not behave ethically and had no social responsibilities to India at all. These actions should be stopped immediately, and the procedures to solve the root of problems should be implemented immediately.

 

Outcomes

 

As a responsible and ethical corporation, the company should handle the root of problem like create a great and friendly working environment, conducting necessary action to enhance ethical behaviors as well as whistle blowing actions. Any harmful or unethical actions shall be brought to the public to prevent in the future.

 

Summary of Case

 

A member of an organization bravely blew a whistle about her organization practice of exploitative pay and working condition as well as repatriation of profits to the government. Even it is against the organization rule, but it is very necessary and it is a corrective action to do.

 

Coca-Cola in India had conducted so many unethical actions which caused many badly consequences to the society of India. Coca-Cola India was totally lack of social responsibilities and shall be punished for their actions.

 

Principles of Practice Demonstrated

 

The ethical behaviors are valued and preserved. Any whistle blowing actions are encouraged to keep the organization being socially responsible and preserving ethics and values.

 

Identify the Competencies Demonstrated

 

A member who supplied the information is truly a valuable leader, who honors ethics and social responsibilities. She was so brave to blow a whistle even she knew she would face many tough consequences.