Coke and Pepsi Issues

5071 Words21 Pages
Case 23: Coke and Pepsi in India: Issues, Ethics, and Crisis Management

In APA style

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
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This is very unethical in business and they should be sued. This is because consumers have their rights to be informed of both benefits and dangers of a product in order to make their choice whether or not to purchase a product. In conclusion, Coke did not handle the issue with CSE and IRC well from the beginning. When the issue had worsened into a crisis, Coke and Pepsi only started taking serious and proper actions. This matter will be discussed under crisis management (pg. 7).


In author’s opinion in ranking issues management, crisis management, global business ethics, and stakeholder management in terms of order of priorities for Coca-Cola and PepsiCo will be as:

1) Crisis management 2) Issues management 3) Stakeholder management 4) Global business ethics

4. Crisis Management

According to Business and Society (7th edition) written by Buchholtz and Carroll, crisis has four stages, which are the prodromal crisis stage, the acute crisis stage, the chronic crisis stage, and the crisis resolution stage. It can be in any of one of these stages. Briefly explaining the few stages:

a) Prodromal stage is the warning stage where there are symptoms that required attention. Symptoms can be obvious depending on the cause of the crisis.

b) Acute crisis stage is where actual crisis occur. This is the stage where crisis have
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