Uncategorized Today, more from the world of product safety. This time the story is about Coke and Pepsi, and allegations that the versions of their products manufactured in India contain unacceptably high levels of pesticides.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. 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. 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.
These companies should have done their research and found that water is extremely sacred to them and these problems never would have risen.
That is why it is so important for businesses to have cultural knowledge about the countries they enter because something that is not important to us may be the most important thing to another country. Both Coca-Cola and PepsiCo dealt with this crisis very poorly this first time.
Instead of taking action and accepting the fact that they were in the wrong, they choose to deny the allegations of CSE and IRC through the media. They should have explained to their customers the problem, why it happened, what they were going to do to fix it, and keep their customers informed of the progress.
They did not do these steps but rather, they conducted their own tests within their companies and came to the conclusion that their drinks met demanding European standards. The two companies also tried to play the blame game and explain that other companies in India had high levels of pesticides as well.
This is not the correct way to go about the crisis, Coca-Cola and PepsiCo. Inissues were still arising but this time the two companies responded much better to the allegations from CSE and IRC.
Coca-Cola hired researchers to talk to customers to find out what exactly the allegations were. They created a TV commercial with a famous Indian celebrity where he told the people that the product was safe and that they could go to the company and see for themselves.
Over 4, customers did just that and took a tour of the company. This proved that they have nothing to hide which was very persuasive. Their commercials featured the PepsiCo. Pepsi also increased its efforts to cut down on their water usage.
In terms of stakeholder management, the company was not really at the best interest of their customers. They clearly were putting pesticides in their soft drinks that were over the legal amount in India.
This also shows that at first they were not trying to do anything to improve their company. They just wanted to do what was best for them which was sell their product and make more money.
They did not care about the pesticides or the sacred water they were overusing and polluting. If any business wants to be successful they need to put their customers first and their company second.
The issue management that began to arise with Coca-Cola and Pepsi in is that it is extremely difficult to go into another country and sell a product. Every country and culture is different across the World and not all products can be sold the same way in the United States as they are in India.
They were continuously being bashed by CSE for selling these soft drink beverages that had dangerously high levels of pesticide residue in them that were 24 times higher than the maximum allowed by the Indian government.
They claimed that these high levels of pesticide can cause cancer as well as birth defects and also harm nervous and immune systems if consumed over long periods of time. The IRC also accused these two companies of over consuming scarce water as well as polluting the groundwater and soil.
This resulted in Coca-Cola and PepsiCo. The economic responsibilities of a company are one of the two things that are required by society from a business.
This is basically the social responsibilities companies should abide by. Neither Coke nor Pepsi were worried about their social responsibilities when they enter India. It made both companies look horrible and like they did not care about anyone but themselves. Like discussed early, water is a very sacred resource to Indians and by these two companies using it excessively while polluting the water and soil it just showed they had little respect for their culture.
The second responsibility that is required by society from a business is legal issues. The obliviously deals with follows all the laws and regulations within the country you are in. Clearly Coke and Pepsi where not following through with this either.
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.Stakeholder management, specifically management of consumers and government, is key to addressing these issues.
In fact, successful attempts to resolve the allegations faced by Coke and Pepsi involved both companies identifying ways to manage the expectations of both these stakeholders%().
Unlike most editing & proofreading services, we edit for everything: grammar, spelling, punctuation, idea flow, sentence structure, & more. Get started now! coke pepsi case study. Coke and Pepsi in India: Issues, Ethics and Crisis Management Assignment 2 Dharshviny a/p Sasidharan SCM/5(1).
Case Study 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 . The Coca-Cola Company Struggles with Ethical Crisis Case Study Essay The ethical issues and dilemmas that the Coca-Cola Company has faced since within the last few decades have brought into question the responsibility that a company has to the consumers, financial stakeholders, employee’s and the environment.
Coke and Pepsi Case Study Essay Sample. 1.
Identify the ongoing issues in this case with respect to issues management, crisis management, global business ethics, and stakeholder management.