Coke and Pepsi Case Study Essay

2171 Words Feb 8th, 2013 9 Pages
Case Study 16: Coke and Pepsi
1. Identify the ongoing issues in this case with respect to issues management, crisis management, global business ethics, and stakeholder management. Rank order these in terms of their priorities for Coca-Cola and for PepsiCo. Number 1 Priority: The major global business ethics I found in this case study was the whole issue with excessive water usage in their companies as well as the pollution of the water. The book explains that water is very sacred in India. Even though India has some of the worse/polluted water in the world, it still carries a very large significance to Indians. Just because they have poor sewage, pollution, and pesticide use, that doesn’t mean that we can just bring an American company
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They claimed that these high levels of pesticide can cause cancer as well as birth defects and also harm nervous and immune systems if consumed over long periods of time. The IRC also accused these two companies of over consuming scarce water as well as polluting the groundwater and soil. This resulted in Coca-Cola and PepsiCo. being forced to put warning labels on their products which in turn decreased their sales for the next several years.

2. Evaluate the corporate social responsibility (CSR) of Coke and Pepsi in India. The economic responsibilities of a company are one of the two things that are required by society from a business. This is basically the social responsibilities companies should abide by. Neither Coke nor Pepsi were worried about their social responsibilities when they enter India. Either they did not do their research about the culture or they just didn’t care. It made both companies look horrible and like they did not care about anyone but themselves. Like discussed early, water is a very sacred resource to Indians and by these two companies using it excessively while polluting the water and soil it just showed they had little respect for their culture. The second responsibility that is required by society from a business is legal issues. The obliviously deals

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