Coke and Pepsi Case Study

2162 WordsJan 30, 20139 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…show more content…
As discussed in the book, their pesticide levels were dangerously high by 24 times the maximum pesticides allowed by the Indian government. These companies were also polluting the water and soil as well which in turn were polluting the crops and food being grown by farmers since the companies were selling their solid waste as fertilizer to farmers. The third responsibility is ethics and this is just expected by society. This deals with avoiding questionable practices and companies should operate above the minimum. I think the major problem that Coca-Cola and Pepsi had here is that they felt like they were not doing anything wrong. When they were being accused the first time, they completely denied in and ran their own test to try and prove their innocents. At this point, they knew that water was a sacred source and they should have been doing everything they could to gain their customers back. They should have been apologizing as well as explains ways in which they were going to cut back on water usage and pollution. The final responsibility in the CSR model is philanthropic. The main point is to be a good corporate citizen and give back to the community. Neither of the two business were doing anything at all with this responsibility. They need to get more involved in the community so that they can build a relationship with their customers as well as build trust. They could have done something like have a “green” event and have

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