Coke Cola Face Csr Problem in India

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(1)Indian government traditionally undervalue the business activities. Politics and leisure are gained more value than work. While in U.S., American dream emphasis on working hard for personal value, business and politics gain the same social respect. (2)India has many political and legal issues with foreign investors. Indian law to some extent is ambiguous when handling the lawsuits with foreign investors,which may have been the reason causing problems for Coke’s operations in India。 (3) Both countries may have different ways of doing businesses. Foreign investors should consider the fact that every culture is different and they need their own practices (polycentric), if Coke still thinks its American style of business operation is better and practices it in India(ethnocentric), the consumers in India will regard those practices as wrong and inappropriate. This could also have been the reason why India blame on the water contamination and shortage caused by Coke.

As the Indian people interpret silence as guilt, thus the representatives of Coke should response quickly: firstly, to apologize for the destroying of water resources in India, and then do some compensation for the local people. secondly,find ways independently or Corporate with authoritative NGOS to solve the problem.It is very important for Coke to built good reputation and consumer loyalty in international market. thirdly, learn from what Pepsi does: doing CSR such as digging village wells, trying best to reduce water waste,etc.these measures could help to interact with local people, improve relationships with government and the public.

From global standardization to localization
Change the style of advertisement to fit the flavor of Indian people. Add some Indian cultural factors to the can package.
Take more CSR as what Pepsi did.
Improving relationships with Indian government and the public. Start to communicate with local consumers, and response quickly. Because in India, keep silence...
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