Case 16: Coke and Pepsi in India: Issues, Ethics, and Crisis Management
1. Identify the ongoing issues in this case with respect to global business ethics, issue
management, and stakeholder management. Rank these in terms of their priorities for Coca-Cola
and for PepsiCo.
Initially, both companies faced allegations that their products contained unsafe amounts of
inking water. This was an issue to be
2. Assess the corporate social responsibility (CSR) of Coke and Pepsi in India.
Both companies have recognized their economic, legal, and ethical responsibilities in India. By
accessing the Indian market, both Coke and Pepsi have tapped new consumers to enhance
3. Are these companies ignoring their responsibilities in India, or is something else at work?
4. Why does it seem that Coke has become a larger and more frequent target than Pepsi in
India? Does having an Indian-
5. How do companies defend themselves against the nonstop allegations of activist groups that
have made them a target? Is any form of stakeholder management workable?
The steps taken by both companies seem to have met with some success. The response in the
media and the hiring of popular, visible Indian-born spokespeople to support the products seem
6. -Cola. Is IRC an interest group that
has just gone too far?
7. experiences in India present for multinationals in their
global business and society relationships? Enumerate three to five lessons and give examples
from the case to document them.
MNCs must be prepared for the resistance they will meet in the global marketplace from special-