Case Analysis 4 Pepsi and Coke
CeCe Miyagawa
Professor Preston Cameron
SBU200 Society and Business
October 15, 2014
Case Analysis – Case#16 Coke and Pepsi in India: Issues, Ethics, and Crisis Management
Introduction
This case delves into whether or not Pepsi and Coke are equal targets in India. It questions whether the companies are doing their ethical duties, as well as whether they are managing crises and stakeholders well.
The Real Problem The real problem is whether or not these companies are doing their duties to their stakeholders and to the host countries (in this case India) based on ethics and cultural divides. The issue in this case reflects largely on actions taken or not taken by the two corporations. When the CSE first tested the products in 2003, the companies did nothing much to ease the public. They continued to produce their products as they had previously and denied allegations despite the testing done and the scrutiny of major stakeholder groups. From the article and the videos, it seems as if the multinational corporations entered a host country and went about their business as if the environment were the same as in their original country. They did not test the waters for their products for purity prior to producing their product, or they tested it and did not care because it was a different country. They did not consider the differences in the environment that could affect the healthiness of their products.
Analysis
In this case we see that Coca-Cola is under more scrutiny from the stakeholders than PepsiCo. We need to question whether or not this is based on the fact that Pepsi has a CEO from India. To my understanding, the companies’ products were investigated and scrutinized prior to the election of Indra Nooyi as a CEO. The products were found to contain high levels of pesticide in 2003, but Nooyi was not taken on as a CEO until 2006. We can see that in 2003, “contaminants in Pepsi samples were 37 times higher than the EEC limit while its rival Coca-Cola
Professor Preston Cameron
SBU200 Society and Business
October 15, 2014
Case Analysis – Case#16 Coke and Pepsi in India: Issues, Ethics, and Crisis Management
Introduction
This case delves into whether or not Pepsi and Coke are equal targets in India. It questions whether the companies are doing their ethical duties, as well as whether they are managing crises and stakeholders well.
The Real Problem The real problem is whether or not these companies are doing their duties to their stakeholders and to the host countries (in this case India) based on ethics and cultural divides. The issue in this case reflects largely on actions taken or not taken by the two corporations. When the CSE first tested the products in 2003, the companies did nothing much to ease the public. They continued to produce their products as they had previously and denied allegations despite the testing done and the scrutiny of major stakeholder groups. From the article and the videos, it seems as if the multinational corporations entered a host country and went about their business as if the environment were the same as in their original country. They did not test the waters for their products for purity prior to producing their product, or they tested it and did not care because it was a different country. They did not consider the differences in the environment that could affect the healthiness of their products.
Analysis
In this case we see that Coca-Cola is under more scrutiny from the stakeholders than PepsiCo. We need to question whether or not this is based on the fact that Pepsi has a CEO from India. To my understanding, the companies’ products were investigated and scrutinized prior to the election of Indra Nooyi as a CEO. The products were found to contain high levels of pesticide in 2003, but Nooyi was not taken on as a CEO until 2006. We can see that in 2003, “contaminants in Pepsi samples were 37 times higher than the EEC limit while its rival Coca-Cola
Cited: "Coke, Pepsi India Fight Pesticide Residue Claims in Court." Coke, Pepsi India Fight Pesticide Residue Claims in Court. N.p., n.d. Web. 16 Oct. 2014. Devraj, Ranjit. "Indian Coke, Pepsi Laced with Pesticides, Says NGO." Indian Coke, Pepsi Laced with Pesticides, Says NGO. Inter Press Service, 5 Aug. 2003. Web. 16 Oct. 2014. Kannan, Shilpa. "Pepsi and Coke Under Fire Again." BBC News. BBC, 08 Feb. 2006. Web. 16 Oct. 2014. Lakshman, Brian Bremner and Nandini. "India: Pesticide Claims Shake Up Coke and Pepsi." Bloomberg Business Week. Bloomberg, 09 Aug. 2006. Web. 16 Oct. 2014.