... Ethical Dilemmas faced by Pepsi Co. INSTITUTE FOR INTERNATIONAL MANAGEMENT & TECHNOLOGY, GURGAON SUBMITTED BY: SUBMITTED TO: Swati Khandelwal Ms. Monica Bhardwaj PGPM (2012) (Module Leader) Executive Summary: This assignment is all about the business ethics and ethical dilemma. I have taken a case of PepsiCo. It is a high brand company. When it was heavily criticized about pesticides in soft drink. PepsiCo has to take the decision whether to continuously earn profit and not think about the society, their customer who believes more of that company or to think what can be done under that issue to resolve it, taken as their morale values and ethics into consideration. After study about the decision and their impact I analyses that the decision taken by the PepsiCo at the time of Ethical dilemma and the impact of the company is for the benefit of the society and the Stakeholders. INTRODUCTION Ethics and ethical Dilemma Ethics concern attempt to distinguish ‘right’ from ‘wrong’, ‘good’ from ‘bad’, and what constitutes desirable conduct in a particular set of circumstances (Ghosh, 2006). The concept of ethics comes from the Greek word, “ethos” that means both an individual’s character and a community’s culture. In the field of ethics there is a variety of theories, approaches...
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...ETHICS-COMPANY PEPSICO Ethics Business ethics is the accepted set of moral values and corporate standards of conduct in a business organization. These standards of business behavior promote human welfare and the good. Business ethics are exhibited both as written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ from one company to another because of differences in cultural perspectives, operational structures and strategic orientations. Therefore, different people have different beliefs about what constitutes ethical behavior. The law defines what is or not legal, but the distinctions between moral right and wrong are not always so clear. In many situations lines between right and wrong are blurred. Such situations can be helped to be cleared by using organization written codes and/or policies. Through the usage of auditors, ethics classes, written codes and policies, numerous companies have reinforced their business ethics and best practices to ensure that fraudulent activities are prevented. The food and beverage sector of the economy has faced increasing pressure from consumers to provide transparency on the sources and operations related to their products. Responsible and ethical procurement is especially challenging for food and beverage, because agricultural commodities typically rely on low-cost labor inputs and environmentally-damaging technology and practices in order...
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...The case study prepared by Archie B. Carroll entitled, “Coke and Pepsi in India: Issues, Ethics, and Crisis Management”, describes issues two major, well known multinational corporations (MNCs) have been facing in India over the past several years, since 2003. Coke and Pepsi are known competitors in the world of soft drinks, but have become allies given the situations they are facing in India. There are allegations of highly contaminated soft drinks, which claim to cause cancer and birth defects. An interest group in India, Center for Science and Environment (CSE) made the allegations and stated tests can verify the products contain high levels of pesticide residue (Carroll & Buchholtz, 2012, p. 649). Another special interest group, India Resource Center (IRC) raised concerns of an issue Coke experienced which is the claim of overconsumption and pollution of scarce water resources due to plant operations and production. This affected many cities and regions of the country, especially in the communities of Kerala and Mehdiganj (Carroll & Buchholtz, 2012, p. 649). In addition to the scarcity of water, there were also complaints of the water around the soft drink giant’s plants tasting and smelling bad. Donated waste to farmers for fertilizer tested positive for cadmium and lead creating toxic waste (Carroll & Buchholtz, 2012, p. 649). The allegations made by these groups were taken very seriously and believed valid because of the support of a very powerful and influential...
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...of the respondents lean towards the assessment of a firm’s ethical marketing process before making a decision to buy from such a company. Table of Contents Executive summary 2 Introduction 4 An overview and analysis of ethical consumerism 4 Review of Pepsi Co Inc Company 6 Result of the Short Opinion Survey 8 Conclusion 10 Recommendation 10 Reference 11 Appendix 13 Introduction Ethical consumerism is growing in significance influencing customer choices as well as increasing the role played by the social movement in the marketing process (Buechler, 2010, p.13). New unfolding and ethics are pushing customers to participate actively in market participation and also to criticize the market process and retreat from it. This paper will focus on the analysis of factors that influences consumer behavior through an opinion survey conducted among thirteen students at GSM London. The study also focuses on the identification of products deemed to fall within the ethical category. In addition, the paper also analyzes a case study of PepsiCo, with a view to identifying ways in which it applies ethical issues in its business. It focuses on different strategies employed by PepsiCo in order to continue being a socially conscious business...
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...Ethics and Responsibility 1 Business Ethics Business Ethics and Social Resposibility Caladia Faulkner Business Ethics Grand Canyon University Ethics and Responsibility 2 Business Ethics And Social Responsibility Most companies have built a strong foundation on giving and making a difference, whether its in the workplace or in the community where it does business. It is a known fact social responsibility is one aspect of business ethics. Some companies develop volunteerism programs where employees can volunteer for non-profit organizations and, in turn, the company will intiate rewards through matching donations back to the non-profit organizations. This allows employees to donate their time to issues they are passionate about and extend an extra hand financially through company contributions...
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...OUTSTANDING BUSINESS ETHICS ESSAY COMPETITION Alexander Murray “Apple's Ethical Dilemma” Congratulations! Newsweek has just named you the author of one of the 100 greatest novels of all time. This is nothing new, just another accolade on your seemingly endless resume. Your name continually appears on lists alongside Faulkner, Chaucer, and Tolstoy. Time Magazine, the Library of Congress, and countless literary re views praise your work as one of the greatest literary achievements of all time. As you graciously accept yet another honor, it sickens you to wonder, "How did I get here?” The answer is simple, but unknown to anyone except you. To answer it, you must go back to the winter of 1925. As you walk along the frigid Manhattan sidewalks, you find a manuscript lying upon a table outside of a restaurant. You page through the document, reading about a woman named Daisy and a man named Gatsby. Not wanting to put the document down, you place the manuscript inside your jacket and continue to walk down the sidewalk. After a brief moral deliberation, you decide to publish the novel under your name. Later that year, a lawsuit is filed by an unpublished author named Fitzgerald. The litigation is dropped and nothing is ever heard from the plaintiff again. Fitzgerald forever fades from the public eye as your name becomes increasingly recognizable among high school and university students throughout the United States. Nearly a century later, you are still credited as the author of The Great...
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...captaining skills which resulted in a natural disaster which should have been prevented. An analysis of the traits of a profession evidently suggests management would arguably not be classified as a profession. Ultimately managers therefore do not adhere to the same level of ethical standards as professionals. For Exxon managers to be ethically responsible in their commercial roles they need to find ways of balancing the needs of the company and satisfying their own personal interests with that of the organisation. One way of achieving this is to strictly adhere to the organisations code of ethics, which sets out the best way to behave in certain situations. Table of Contents Oceana Pharmaceutical 1 Executive summary 2 Introduction 3 Body 5 Ethical issues faced by Management at Exxon and similar corporations 5 Relevant norms, ethical principles, codes of ethics, applicable to the management of Exxon Valdez 8 Is management a profession?...
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...Corporate Marketing Ethics and its Relative Importance Vivek Parashar Lecturer of Marketing Center for Management Development (CMD) Dr. K.N Modi Foundation Modinagar – 201204 Email id- vparashar.edu@rediffmail.com vparashar@in.com Mob: 08899080891 |Abstract | |Markets present a clash of interest between various players. There is competition for resources, customers and price etc, which breeds ground| |for activities that may not get ethical sanctions. A certain code of conduct, policies and practices called ethics are required to manage | |markets and marketing. | |Marketing is the heart of all businesses and all other functions depend upon the same for keeping the business moving. It is one business | |function that interacts the most with markets, in fact markets are meant to sell and they exist only when they sell! In such a scenario there| |are bound to be multiple players and a clash is inevitable. Such clash leads to malpractices like hoarding, price competitions, brand wars | |and use of unfair tactics, which is precisely where marketing ethics come into play. | |It is important when addressing marketing ethics to recognize that...
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...DAVID versus GOLIATH - SODA INDUSTRY Without a doubt, companies have ethical obligation to protect people through products that they make. In this age of Corporate Citizenship, Social Responsibility, Environmental Issues, Product Liability and other Legal Issues, Federal Government Regulations and Oversight such as Food and Drug Administration (FDA), and other Health and Food Safety Organization, Corporations (Goliath) that violate “do no harm” ethic or imperative or the first rule of business conduct cannot claim they did not get the memo to produce safe and health products for consumers (David). Corporate Leaders directly and indirectly include the promise to do no harm in their corporate Vision, Mission, Goals, and Objectives. Peter Karoff, a Thought Leader and an...
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... Pages 1. Executive Summary 3 2. Main Issues 4 3. Ethics Policy and its Development 5 3.1. Proposed Ethics Policy 5 3.2. Rationale of Ethics Policy 6 3.3. Policy Development 6 3.3.1. Virtue Ethic 7 3.3.2. Utilitarianism Ethic 7 3.3.3. Kantianism Ethic 8 3.4. Corporate Social Responsibility 8 4. Implementation, Effectiveness, and Limitations 9 4.1. Implementation of Ethics Policy 9 4.2. Effectiveness of Ethics Policy 10 4.3. Limitations of Ethics Policy 11 5. Conclusion 12 6. Reference List 14 1) Executive Summary The Coca-Cola Company was founded in 1892. The company, till date, offers a wide range of products to meet different demands of customers all over the world. Coca-Cola not only produces and sells soft drink and non-carbonated beverages; they also distribute bottled waters around the world. Increasing shareholder values would be any major company’s target, likewise Coca-Cola’s, having to keep costs low but yet selling the customers their trusted quality products. Coca-Cola operates in a very competitive environment being in the beverages industry. In 1893, Coca-Cola’s greatest competitor, Pepsi-Cola, came into the market, and rivalry has been going on from then till now. Competition leads to the necessity of...
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...In our society, we as consumers are continuously being bombarded by advertising ads on T.V and billboards and highways to promote the latest product. A user isn’t always looking at the product or reading product safety warning on the labels; they are only looking at who and what athlete and movie star promotes this latest product. For example, Pepsi, and always uses high profile athletes or famous people to promote its product. These ads provide a sublime message. These Ads are gear to get the consumer to buy their product. In order for me to be like LeBron James, I have to drink Gatorade. There has been a major shift over the last couple of years in product safety. According to Chandra, “product safety has become a major problem for businessmen, consumers and the government” (Chandran, 1979). Advertising can be both influential and persuasive. It presents an issue of product safety. The Consumer Product Safety Commission threatened to ask Congress to give it greater authority. Advertising is protected under the First Amendment, but there has to be limits. “While advertising does not directly contribute to all product related accidents, it does, inadvertently, have the power to promote unsafe behavior” (Chandran, 1979). Advertising indirectly contributes to the problem of consumer product safety. “Advertisers and advertising agencies should therefore do more to educate consumers in a safe and prudent use of products that are potentially hazardous for several reasons” (Chandran...
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...In our society, we as consumers are continuously being bombarded by advertising ads on T.V and billboards and highways to promote the latest product. A user isn’t always looking at the product or reading product safety warning on the labels; they are only looking at who and what athlete and movie star promotes this latest product. For example, Pepsi, and always uses high profile athletes or famous people to promote its product. These ads provide a sublime message. These Ads are gear to get the consumer to buy their product. In order for me to be like LeBron James, I have to drink Gatorade. There has been a major shift over the last couple of years in product safety. According to Chandra, “product safety has become a major problem for businessmen, consumers and the government” (Chandran, 1979). Advertising can be both influential and persuasive. It presents an issue of product safety. The Consumer Product Safety Commission threatened to ask Congress to give it greater authority. Advertising is protected under the First Amendment, but there has to be limits. “While advertising does not directly contribute to all product related accidents, it does, inadvertently, have the power to promote unsafe behavior” (Chandran, 1979). Advertising indirectly contributes to the problem of consumer product safety. “Advertisers and advertising agencies should therefore do more to educate consumers in a safe and prudent use of products that are potentially hazardous for several reasons” (Chandran...
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...achieve organizational success. Strategic management involves strategy development, which is comprised of five stages. Discovery requires all members of the team to individually gather information on an agreed upon set of attributes affecting the organization. Strategic thinking, which can be defined as ‘the generation and application of business insights on a continual basis to achieve competitive advantage’. Strategic planning stage utilizes the insights form the strategic thinking phase to assemble a mission statement, set goals and objectives, audit the organization for internal strengths and weaknesses, assess the external environment for opportunities and threats, evaluate strategic options, and then select and operational an organizational strategy. The strategy roll-out phase turns the strategy into activities and offerings and ensures that the strategy is communicated well throughout the organization. The strategy tune-up phase is a meeting held several times per year to keep track of the progress of the implemented strategy and adjust for changes in the internal and external climate of the organization. Seven S-Models includes are Business Environment/Strategy: Competition, Economy, regulation/taxes, labor & supplier issues, Short-Term Vs. Long-Term Goal etc. Shared Values: How would you describe the mission of this company to your prospective buyers? Structure: Organization Chart, Departments, the number of management layers. Staff: the strengths and...
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...Overview of Business Ethics in Indian Businesses Authors: 1) Ms. Swenee Shah 2) Ms. Mehal Pandya 3) Ms. Chitral Patel (Faculties of Hasmukh Goswami College Of Engineering (MBA)) Submitted to: Gujarat Technological University 1 Abstract Business ethics deals with ethical rules and principles necessary for a successful business. It explains the various ethical problems that can rise in a business setting and the responsibilities of persons who are engaged in an organization. We have here shown how the Indian Businesses follows ethical practices even though they are working globally. We have here also taken few examples MNCS to show how are they going ahead unethically. In this research paper we have tried to show that no business can get success even though they are going globally (locally) if they don’t follow ethics and legitimate values. Our research paper reflects that true and ethical business can sustain for longer time and even can survive at toughest time. ethical training ,policies procedures will help any organization to manage their work place very well .we have shown that how ethics will help to enhance reputation of business and generate loyalty from staff members. Our research paper will open new avenues to the ethical dilemmas 2 Table of Contents Particulars What is Business Ethics Ethics and military Overview of issues in Business Ethics Ethics in Indian context: Scope of business ethics Approaches to Business ethics. Importance of Ethics in Business...
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...Depot, Inc. © 2006, Business Roundtable Institute for Corporate Ethics www.corporate-ethics.org Distribution Policy: Bridge Papers™ may only be displayed or distributed in electronic or print format for non-commercial educational use on a royaltyfree basis. Any royalty-free use of Bridge Papers™ must use the complete document. No partial use or derivative works of Bridge Papers™ may be made without the prior written consent of the Business Roundtable Institute for Corporate Ethics. A PDF version of this document can be found on the Institute Web site at: http://www.corporate-ethics.org/pdf/ethical_leadership.pdf Bridge PaPers™ Uniting best thinking with leading business practice. ContEnts Foreword .................................................................................................... 2 What is ethical Leadership ...................................................................... 2 Becoming an ethical Leader ..................................................................... 8 developing ethical Leaders ...................................................................... 9 Thought Leader Commentary™ with steve Odland ............................. 10 about the authors ................................................................................... 13 ForEworD what Is EthICaL LEaDErshIp? The Business Roundtable Institute for Corporate Ethics is an independent entity established in partnership with Business Roundtable—an association ...
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