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Coke and Pepsi Issues

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Coke and Pepsi Issues
Case 23: Coke and Pepsi in India: Issues, Ethics, and Crisis Management

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Table of Contents

Chapter Page

1. Abstract 3

2. Introduction 4

3. Issue Management 5

4. Crisis Management 7

5. Global Business Ethics 10

6. Stakeholder Management 13

7. Corporate Social Responsibility 14

1. Economic Responsibilities 14

2. Legal Responsibilities 15

3. Ethical Responsibilities 16

4. Philanthropic Responsibilities 18

8. Lessons from the Case 20

9. Conclusion 21

References 22

1. Abstract

The Coke and Pepsi are multinational companies. They have business in almost every country on the Earth. However, there are always problems occurred in business world as ‘business is risk’. Coke and Pepsi could not escape as well. They had faced an ethical crisis in India where it is concern about consumer’s health and the environment cleanliness. This paper will discuss about Coke and Pepsi issues with respect to issue management, crisis management, global business ethics and stakeholder management besides looking into their corporate social responsibilities and what lesson does this case portray to other multinational companies to be aware of.

2.0 Introduction

First of all, the issue started to take place when Coke and Pepsi’s products were tested containing a hazardously high level of pesticide residue by a public interest group called Center of Science and Environment (CSE). The director of CSE, Sunita Narain proclaimed that such residues are able to cause cancer and birth defects besides harming the human nervous and immune system if the products are being consume over a long period of time. Later, CSE claims that the pesticides levels in the products of Coke and Pepsi were much over the limit permitted by



References: BS Reporter Kolkata. (2007, December 11th). Coke water project may cover 1000 schools. Retrieved December 5th 2009 from http://www.business-standard.com/india/news/coke-water-project-may-cover-1000-schools/307138/. Buchholtz/Carroll. (2007 January 31st). Business and Society 7th Edition. Case 23 Coke and Pepsi in India: Issues, Ethics, and Crisis Management Pg.855 – 860. Publish by Nelson Education Ltd. Coca-Cola. (2009, January 20th). Water Conservation Partnership Strives for Better Life for India’s Children. Retrieved December 5th 2009 from http://www.thecocacolacompany.com/citizenship/environmental_news_india_water_conservation_partnership.html

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