Part 1: Profile of USAID
USAID is an acronym that stands for United States Agency for International Development. It is a non-profit organization that carries out interventions in hard hit areas, primarily in third world developing countries. It is a federal agency of the government of the United States of America primarily tasked with delivering civilian foreign aid.
- Areas of Interest
USAID has interest in many areas around the globe. Firstly, it is important to identify the areas of operational interest for the organization. USAID seeks to help overseas people who are struggling to live a better life, live in the reins of democracy and freedom or recover from a debilitating disaster. The organization has operations on Europe, Latin America, Africa and Asia.
- History of USAID
USAID was created in 1961 by the then president John F. Kennedy. The organization was formed through the issuance of an executive order. It was tasked to implement and oversee development assistance programs in those areas that are authorized by the American Congress through the Foreign Assistance Act.
- Summary of Activities
The main activities that USAID is involved in can be grouped into four major groups. They include disaster relief, poverty relief, global issues, social economic development and United States bilateral interests. This is through the provision of both technical and financial aid during these activities. At times, USAID is involved in the distribution of food products in addition to technical and financial aid. This is especially during disaster relief where afflicted parties have lost livelihoods.
- Funding sources
USAID was formed through an act of parliament. It was placed under the state department in the United States. It derives its funding from the federal government through allocations in the budget. Additionally, USAID has many partnerships with other organizations. As such, it gets grants and donations directed to certain causes.
- Mission statement
The mission statement of USAID is to create an increasingly secure, prosperous and a democratic world for the benefit and overall good of the American people in addition to the international community.
- Vision statement
The vision statement of USAID is to act on behalf of the citizens of America in expanding the reach of dignity and prosperity to the most vulnerable people in the world.
The organization is headquartered at the state department offices in Washington DC, in the United States. The organization has many missions in many other locations around the globe. Some of the major locations are in Kenya, India, Liberia, Bangladesh and West Bank.
- Tax exempt status
As espoused earlier, the organization was created through an act of parliament. Since the organization is under the State Department, USAID is allocated less than one percent of the federal government. This money is not taxed.
- Personnel
As of 2012, USAID had three thousand, nine hundred and nine employees. The staff members from the host country are hired on contractual capacity, usually a one year contract. They are responsible for more than half of the entire workforce. In 2009, 57% of the entire workforce was members of the host country contracted to work on the missions of the organization.
Different obstacles face USAID in its attempts to deliver on its mandate. In the face of limited resources, USAID has been faced with limited budgetary allocations for its diverse scope. To get any chance of more budgetary allocations, the organization has to show accountability for money spent. In addition to this, the organization has innovatively resulted to sustainability. USAID seeks to ensure that there is sustainable development in the projects that it undertakes. This will reduce the recurrent budget for such projects because with time, they are able to suffice their needs from their operations (USAID, 2013).
New directions
In the 1970s, USAID face a very trying moment that not only threatened its operations but also to disband it altogether. President Nixon proposed to abolish the organization and consequently replace it with three other institutions. The administration and overseeing of private investment programs was transferred from USAID to OPIC (Overseas Private Investment Corporation). The congress with the support of USAID management charted the proposal for new directions in foreign aid. This is what gave the organization a new lifeline.
Ethical Dilemma
As of the twenty fourth day of January 2013, USAID was involved in an ethical dilemma involving bid rigs. The department of justice in the United States of America was investigating claims that the general counsel was involved in contract rigging. This was aired in documents obtained by the Associated Press show. Memos emanating from the inspector general of USAID indicated that there was overwhelming evidence that the deputy administrator attempted to impede an internal investigation on the matter. In the matter, the general counsel wired the contract so that the retiring chief financial officer of USAID could win. The actions of the organization were very commendable from an ethical stance.
When suspicions arose on the matter, the organization cancelled the contract bids. Additionally, the organization instituted an internal investigation on the matter in order to unearth and ascertain the revelations. Additionally, the inspector general who is tasked as the watchdog of the organization notified the justice department so that criminal proceedings can be instituted. The actions of the organization on this matter had far reaching implications. The general counsel of USAID resigned in order to pave way for investigations. USAID is also subject to investigation for flouting federal laws, government ethical principles and federal acquisition regulations.
Part II: Profile of Coca Cola
- Areas of interest
Coca Cola is a multinational company headquartered in Atlanta in the United States of America. The company has chief areas of interest in the food industry. More specifically, the company deals with the manufacture of nonalcoholic drinks, syrups and concentrates. The company is a global leader and a force to reckon with in the beverage industry. It has hundred s of brands including fruit juices, soft drinks and sports drinks among other beverages.
- History
Coca Cola was invented by John Pamberton. The premise for the invention was a morphine addiction. This addiction caused him to source for an alternative to the dangerous opiate. At Pamberton’s Eagle Drug and Chemical House, the prototype for the Coca cola recipe was formulated. The product was Coca wine, a product that was later prohibited through a legislation passed by Atlanta and Fulton County. In his response, Pamberton developed Coca Cola, a nonalcoholic version of Coca wine. In 1888, the Coca Cola Corporation was filed.
- Summary of activities
Coca Cola Company is involved in numerous activities. The manufacture of syrup and concentrates for the nonalcoholic beverages is one of the activities that the company involves itself. Additionally, the company involves itself in the retailing and marketing of these syrups and concentrates. The company is also involved in bottling of the nonalcoholic soft drinks for sale. On a corporate social responsibility level, the company is involved in sports through sponsorship deals with various teams on a global scale (Coca Cola, 2013).
- Funding sources
The company is a multinational retailer, manufacturer and marketer. The operational finance of the company from the revenue it generates from the sale of the wide array of products from its product line. Additionally, the company gets money through advertisement from the loyalties in the sports clubs and programs it sponsors. The sale of its merchandise is also an additional source of merchandise for the company. The company also gets funding from its shareowners and stockholders.
- Mission statement
The mission statement of the company is to inspire and create moments of happiness and optimism, refresh the world and make a difference by creating value. This mission statement is the standard against which the decisions and actions of the company are based. It also declares the purpose of the multinational company in the foods and beverages industry.
- Values statement
The vision statement of the company offers a framework for every aspect of business in the company. It defines what the company ought to accomplish so that it can achieve quality growth and sustainability. The vision statement is comprised of the following:-
People: the company envisions a place of work where the employees are inspired to achieve their highest levels of productivity.
Partners: create a winning network of suppliers and customers so that together, a enduring and mutual value can be created.
Portfolio: create a portfolio of beverage brands that not only anticipate but also satisfy the needs and desires of people.
Productivity: the company envisions a lean, highly effective and fast-moving organization.
Planet: the company also envisions responsible citizenry by helping build and also offer support to sustainable communities, thereby making a difference in the world.
Profit: the company envisions maximizing the return to shareowners in the long-term in addition to being heedful of the overall responsibilities of the company.
Company Details
The company is headquartered in Atlanta, Georgia in the United States of America. The company has many braches in various places around the globe. Some of these major branch offices can be found in Baltimore, India, Kenya and other countries.
- Financial facts
As espoused earlier, Coca Cola is a global leader in the food and beverages industry. The most recent revenues were posted in the year 2012. The company posted revenues of 48.01 billion dollars. Of this amount, the operating income amounted to 10.84 billion dollars. The net income amounted to 9.01 billion dollars.
- The company’s historical growth in relation to its revenue and profit
Since its inception, the company has grown exponentially in terms revenue and profit. The company started on meager means and grew up to be the global leader it is today. The main competitors of the company are PepsiCo, Nestle and Dr. Pepper Snapple Group Inc. In the year 2012, PepsiCo posted a revenue of 65.492 billion dollars compared 48.01 billion dollars posted by Coca Cola. In terms of operating income, Coca Cola edged out PepsiCo which posted 9.112 billion dollars. The net income of PepsiCo in the same year was 6.178 billion dollars compared to the 9.01 billion dollars posted by Coca Cola Company.
- Personnel
As of December 2011, the company had 146200 employees under its banner.
Competitiveness
The Coca Cola Company faces very stiff competition both on the domestic and foreign markets. Its biggest competitor is PepsiCo. PepsiCo controls the Russian market with revenues of over five billion from this particular market. PepsiCo entered the Russian market in 1974. For a while the company controlled the Canteen Stores Department. Two decades later, Coca Cola ventured into the market. Despite this, the company boasts double the market share of PepsiCo which is at 18%. In the local market, PepsiCo has a market share of 30.8% whereas Coca Cola has a market share of 42.7% (PepsiCo, 2013).
Obstacles to Business
The beverage company has been faced by many obstacles, some of which have threatened to stall its business operations. The competition from PepsiCo is one obstacle that has curtailed the exponential growth the company has reported before. In order to edge out the competition, the company has increased the Canteen Stores Department. This ensures that quality beverages are readily available to the customers.
Leadership
In 2003, the branch in India was found to use water that contained toxins in the manufacture of its soft drinks. The analysis of samples taken from the company found that the illicit elements were more than thirty times the accepted levels. The sales of the soft drinks in the country plummeted. In response, the company required that all its products get tested before they are shipped out for distribution.
Ethical Dilemma
The Coca Cola Company has operations India where it has a bottling company in Kala Dera. The company alongside its competitor PepsiCo was implicated in issues where it used contaminated water in the preparation of soft drinks. A parliamentary commission was formed to investigate the matter. The company was found to have exceeded the accepted limits by thirtyfold. The company has also been implicated of using excess water in its operations. The company instituted a study into its operation. The study found and recommended that the company shut down its bottling plant in Kala Dera, India. The company did not implement the recommendations of the study. This caused upheaval in the villages with massive campaigns against the company. The company acted with impunity and arrogance in its treatment of the villagers.
Part III: Personal Reflections on Ethical Actions
USAID Ethical Dilemma
The ethical dilemma that USAID is faced by involves graft and corruption. It is about the general counsel wiring contracts so that they are skewed towards the retiring chief financial officer. The general counsel and the chief financial officer were responsible for the ethical dilemma that the organization was faced by. From my ethical standpoint, the actions of the general counsel were immoral. Contracts should be awarded after a competitive bidding process. This is in order to enhance transparency in the process of awarding the tenders. The organization did not respond to the dilemma in a ethical manner.
As espoused earlier, officials in the organization tried to impede an internal investigation on the matter. This was an attempt to cover up the gross graft that was being perpetrated by the organization officials. The move by the inspector general to notify the justice department so that criminal proceedings could be instituted was ethically upright. As the watchdogs of the organization, the inspector general delivered in his mandate by notifying the authorities of the crime so that appropriate action could be taken. In my opinion, the ethical dilemma was of the organization’s making. The core of the problem lay in the organization culture.
Coca Cola Ethical Dilemma
The ethical dilemma the Coca Cola Company faced was one of their own making. Its operations in India were prosperous with the company boasting a 67% market share. Probably the company took this for granted and forewent one of its core values; quality. Before use in a manufacturing plant, especially one dealing with foodstuffs, water is rigorously tested using different indicators so as to ascertain its quality. Additionally, the resultant food products are supposed to be tested not only for deformities but also for chemical elements that might be harmful to human beings.
In my opinion, the company took advantage of the fact that there were no standards for these elements in India. Knowing this, the company maximized on the loophole because it also meant reduced cost of production. The company had an opportunity to do more. The company did not team up with universities and research institutes in the country to come up with standards for the finite elements for soft drinks. Instead, the company funded a study on its operations in the region with specific focus on the ethical dilemma.
The findings of the study were published and mainly recommended that the company shuts downs its bottling plant in Kala Dera. Instead of implementing the recommendations of the study that the company funded, in acted with impunity and continued its operations. Even though shutting down the bottling plant was too severe for the company, it should have put in measures to ensure water conservation and ensure absence of toxic elements in the water it uses for production of soft drinks. In this breadth, the actions of the company were immoral an unethical especially because they endangered human life.
Part IV: Critique of Actions
USAID
The organization appears to have used moral relativism theory in its decision making. The moral relativism theory holds that due to our different backgrounds, more often than not people disagree on what is considered moral or immoral owing to this and due to these disagreements, no individuals is objectively wrong or objectively right. As such, people ought to tolerate the actions of the others seeing that no one is right or wrong (Jebreal, 2011). This is exactly what USAID seems to have done.
The organization tolerated the actions of the general counsel and the chief financial officer. They instituted a sham internal investigation and meddled in its affairs so that it could not deliver on its mandate. This was not the best ethical theory to use in this situation. This is because such a theory is in contravention of established laws. The best ethical theory for this situation was the deontological theory (Hooker, 2012). This is because this theory encourages the adherence and compliance with the established laws of the land. By using this theory, the organization would have found the behavior of the general counsel wanting and instituted disciplinary action against him.
Suffering and profits have a very established relationship. A company needs not enjoy business bliss in order to make profits. Sometimes, during moments of suffering, the innovative and creative levers hinge and unique products are developed. Running an ethical business requires one to ensure sustainability while maximizing on profits. It involves running a business using sound ideals that are in line with the accepted norms in the society (Ferrell, Fraedrich & Ferrell, 2013).
The general happiness and wellbeing of the workers and customers is important in creating a competitive edge over one’s competitors. The best way to achieve this competitive edge is to ensure that one’s workers are motivated and the quality of work is improved (Singh, 2008). Motivated workers will work more efficiently and serve the customers with the highest ideals of courtesy. This creates an aura around the business that brings in the clients at the competitors detriment (Treviño & Nelson, 2011).
Coca Cola Company
The theory that the company seems to have used in its decisions is the ethical egoism theory. In so doing the company sought to pursue that which is in their best interest and that which serves their cause best (Baofu, 2011). The company is in the business of making money through increased performance and decreased costs of production. By testing the water before use, the cost of production margins went up. The cost of production would also have increase if they were to test their products for the implicated elements. Water conservation measures are also costly since to some extent, they involve installations that cost money. In doing all that was expected of them, the company would lose money. Since there was no law and standards to adhere to, the company decided not to test the raw materials or the products.
This is not moral or ethical because it put the lives of millions of people in danger. Additionally, the lives of other organisms in the ecosystem were also threatened due to the wastage of water resources through the water intensive operations of the company. The company should have used the virtue ethics theory in decision making. The virtue ethics theory accentuates the role of an individual’s character and virtue in decision making (Athanassoulis, 2013). By using this theory, the company would have realized it is not virtuous to put the lives of individuals in danger in order to make a profit. The concepts of this theory would have informed the company that it does not require laws or standards to compel it to do the right thing; that good deeds should come innately because they are virtuous.
References
Athanassoulis, N. (2013). Virtue ethics. London: Bloomsbury.
Baofu, P. (2011). Beyond ethics to post-ethics: A preface to a new theory of morality and immorality. Charlotte, NC: Information Age Pub.
Coca Cola, (2013). Available at > http://us.coca-cola.com/
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases. Mason, OH: South-Western/Cengage Learning.
Hooker, B. (2012). Developing deontology: New essays in ethical theory. Malden, MA: Wiley.
Jebreal, R. (2011). Moral Relativism. London: Serpent's Tail.
PepsiCo, (2013). Available at> http://www.pepsico.com/
Singh, M. (2008). Strategic management and competitive advantage. New Delhi: Global India Publications.
Treviño, L. K., & Nelson, K. A. (2011). Managing business ethics: Straight talk about how to do it right. New York: John Wiley.
USAID, (2013). Available at> http://www.usaid.gov/
