Chosen Question: Drawing on IHRM theory and contemporary literature examined in this

unit discuss ii) how the company's Global Code of Conduct shapes the business operations of
your chosen MNE/MNC in different countries. What wider lessons can you draw from your
analysis of your MNE/MNC ?

Introduction:

The establishment of a "Global Code of Conduct" has a significant influence on the business
operations of multinational corporations (MNCs). It nurtures a framework of ethical
principles and practices that govern uniform behaviour and adherence across the company's
numerous operating jurisdictions. The code of conduct is vital for MNCs as it encourages
ethical behaviour, preserves a standardised approach to global business operations, and aids
in avoiding the ramifications of human rights violations. In the case of Coca-Cola, their
Global Code of Conduct is utilised to outline standards and practices across the organisation.
Their code addresses a diverse range of subject matters such as labour practices,
environmental sustainability, ethics, and human rights. Furthermore, the code exemplifies the
organisations steadfast commitment to maintaining the protection of human rights in its vast
worldwide operations and promotion of a workplace that prioritises the health and safety of
its employees.

The Global Code of Conduct:

The development of a Global Code of Conduct is critical in influencing multinational

companies' business operations (Mijatovic & Stokic, 2010). The code in which varies
amongst organisations establishes a foundation for consistent behaviour and practises
throughout various countries a business operates in by defining a framework of ethical
standards and principles. (Campopiano & De Massis, 2015). The implementation of a code of
conduct assists MNCs in maintaining a consistent approach to business operations, fostering
ethical behaviour, and limiting the consequences associated with human rights
infringements.

The global code of conduct for Coca-Cola defines the multinational corporations, company-
wide expectations and standards for its employees and stakeholders (The Coca-Cola
Company n.d). It contains a wide range of subjects such as labour practices, environmental
sustainability, ethics and human rights. Coca-Cola's dedication to ethical company practices
is reflected in the code, which sets principles for decision-making and behaviour across the
company's worldwide operations (Coca-Cola Amatil Australia 2017).The Coca-Cola global
code of business conduct is easily accessible to both Coca-Cola employees and the general
public, via their website. The Coca-Cola Company revised its Code of Business Conduct on
the 12th of February 2018, amendments were made to the code to make it simpler for
individuals to read (The Coca-Cola company, 2023a).

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Labour practices:

Multinational Corporations must implement labour practices into their global code of conduct
to ensure that their global manufacturers and suppliers adhere to ethical labour practices
(Barrientos & Smith, 2007). MNC’s typically centre their labour practices around the
International Labour Organization's core labour guidelines. (Bird, Short & Toffel,
2019).These practises must include crucial employment concerns such as the avoidance of
child labour, health and safety, employees rights to livable wages and overtime compensation
(Santoro, 2003). MNCs who implement and adhere to labour practises in accordance with
their global code of conduct may reap an array of benefits (Schömann et al., 2008). In turn,
this safeguards their valuable brand reputation by reducing the likelihood of labour and
human rights violations and the penalties associated with infringements (Santoro, 2003).

The Coca-Cola Global Code of Conduct consists of a framework for ethical labour practises
across the company's international operations. The code highlights the company's dedication
to equal opportunity, diversity and inclusion, health and safety, and worker rights (The Coca-
Cola Company, 2022a). Coca-Cola adopts policies and practices that emphasise anti-
discrimination whilst promoting equal opportunities, such as strict safety regulations, risk
assessments, and training programmes are in place. (The Coca-Cola Company, 2022b).Coca-
Cola engages with labour unions to address labour concerns and establish an atmosphere of
collaboration at work. They also communicate with suppliers and manufacturers to
encourage fair labour practises, perform audits, and provide retraining to guarantee that
ethical labour practises are followed companywide (The Coca-Cola Company, 2023b).

Coca-Cola's commitment to ethical labour practises, engagement and collaboration with

labour unions and other stakeholders, logistics transparency, ongoing advancement in labour
practises, offer valuable insights (The Coca-Cola Company, 2022c). The wider lessons
gained from the case of Coca- Cola emphasise the importance for an organisation to foster an
environment of responsibility and accountability by prioritising equitable treatment of
employees, communicating with stakeholders, ensuring transparency throughout the supply
chain, continually assessing and enhancing labour practises.

Environmental sustainability:

The incorporation of environmental sustainability into the global code of conduct is critical
for multinational corporations operating in a variety of countries, as MNC’s are the primary
polluters of the environment (Béthoux, Didry & Mias, 2007). Multiple academics argue that
multinational corporations must play a significant role in promoting the development of
global environmental ethics due to their power and impact on the environment (Van Tulder et
al., 2021). MNCs all over the world have embraced the notion of environmental sustainability
and have adopted standards and regulations defined in their global code of conduct to shape
their corporate operations (Andersson, Shivarajan & Blau, 2005). Top management
engagement and dedication to environmental sustainability management is one of the most
important variables contributing to a company's success in maintaining sustainability (Jang,

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Zheng & Bosselman, 2017). Through their passion and authority, senior managers provide
resources and incentives to motivate employees to participate in sustainability projects. They
also have a significant influence on organisational culture and influence the development of
company policies and practices (Kiesnere, Baumgartner & Fritz, 2022).

Coca-Cola demonstrates a commitment to managing environmental concerns by embedding

sustainable practices into its business operations through its Global Code of Conduct (The
Coca-Cola Company, 2021). The code promotes conservation of energy, waste reduction,
environmentally friendly packaging and responsible water use. (The Coca-Cola Company,
2022d).Coca-Cola's pledge to promote sustainability is consistent with the larger global aims
of reducing climate change and conserving natural resources (The Coca-Cola Company,
2023c).The code of conduct for Coca-Cola emphasises the vital importance of transparency
and responsibility regarding environmental sustainability. To uphold its integrity and
demonstrate dedication to environmental oversight, the corporation reports on its
accomplishments on a regular basis, establishes goals, and engages in expert evaluation (The
Coca-Cola Company, 2023d). Furthermore, Coca-Cola decreases its carbon footprint and
promotes a sustainable future by incorporating sustainability practices such as the production
of sustainable packaging that may be recycled or reused into its operations (The Coca-Cola
Company, 2022d).

Companies may enhance their environmental sustainability practices by applying the Insights
gained from Coca-Cola, such as incorporating sustainability into the core company
objectives, collaboration with internal and external stakeholders, emphasising responsibility
and transparency, and embracing innovation and continual growth.

Ethics:

The implementation of a Global Code of Conduct has a significant impact on the operations
of MNC's in many nations, most notably in terms of ethics (Preuss, 2009). The code
functions as a complete framework outlining the ethical expectations and guidelines for staff
members and stakeholders throughout the company. Companies that adopt a global code of
conduct and adhere to its guidelines maintain uniform ethical behaviour across their global
operations (Logsdon & Wood, 2005).

The formation of an adequate ethical base is one of the primary motives of the Global Code
of Conduct for Coca-Cola. The code expresses Coca-Cola's adherence to ethics, honesty, and
ethical company conduct (The Coca-Cola Company n.d). It establishes standards for
equitable rivalry, anti-corruption and bribery and adherence to laws and regulations. These
principles of ethics offer employees an unambiguous guide for making ethical judgements
and conducting their work with integrity in a variety of cultural environments (Coca-Cola
FEMSA 2022). Furthermore, the code emphasises employees, executives, and managerial
obligations in following ethical standards of conduct and accountability through performance
auditing (The Coca-Cola Company, 2022b). These practices assure compliance to ethical
standards, cultural adaptation, and dedication to responsible business operations.

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Human rights:

Human rights is a vital subject that must be embedded into every Multinational Corporations
Global code of conduct in order to ensure human rights are upheld throughout the global
operations of an organisation (Logsdon & Wood, 2005). MNC's convey a strong statement
about their commitment to protecting the fundamental human rights and basic liberties of all
employees and stakeholders when they are included in their global code of conduct (Arnold,
2010). Additionally, it assists MNC's in aligning their operations with international human
rights laws and expectations, as well as improving their credibility as a moral and
accountable organisation (Wisor, 2015).

The enforcement of human rights in Coca-Cola's Global Code of Conduct demonstrates the
company's unwavering commitment to protecting the fundamental rights of all
employees(The Coca-Cola Company 2023e).Their code of conduct encompasses an array of
human rights subject matters that are governed by the code. These include anti-
discrimination, freedom of unionisation, equitable salaries anti-forced and child labour, fair
working conditions and equality (Coca-Cola European Partners 2020).These components
indicate Coca-Cola's devotion to upholding human rights throughout their global business
operations and the creation of a workplace that values the health and safety of its personnel.

The following are some of the broader observations from the analysis of Coca-Cola: It is
imperative for Human rights to be incorporated into a MNCs' Global code of conduct as it
serves as a safeguard of employees' rights, exhibit commitment, and comply with
international regulations. Coca-Cola's enforcement demonstrates its devotion to fair treatment
and the protection of human rights.

Conclusion

Coca-Cola's Global Code of Conduct emphasises the organisation's dedication to moral and
ethical business operations. Coca-Cola preserves its brand's reputation by complying with
international standards, upholding accountability, and promoting environmental
sustainability. The wider lessons drawn from the case of Coca-Cola includes the value of
managerial involvement, engagement with stakeholders, continual development,
accountability and transparency. The incorporation of labour practices, environmental
sustainability, ethics, and human rights into the code promotes a unified standard throughout
the company's worldwide operations.

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