Pepsi in Burma - 1403 Words

Pepsi in Burma Question 1 Identify the moral issues that are raised by Pepsi’s presence in Burma. A moral issue can be defined as any issue concerning how one ought to behave, how others ought to behave, or whether a situation is proper or improper. Morality is judged based on what is right or wrong. Pepsi’s presence in Burma raised several ethical and moral concerns due government operations under the military regime. In the 1990’s Burma was undergoing social, economic and political crisis under the military rule of the State Law Order Restoration Council (SLORC). During this time the state economy became open and provided opportunities that Pepsi, among other companies, could exploit. These opportunities involved low labour†¦show more content†¦These are moral rights that every individual should be afforded and if there is such a country, institution or otherwise that does not allow this, it is suggested that, in the case of Burma, no company should invest in such a country. Question 3 Business decisions are about what is profitable; the business organization’s decision to invest should not be guided by the social climate in the country. Discuss According to the Business Dictionary, profitability is defined as the state or condition of yielding a financial profit or gain and it is agreed upon that every company’s goal is to be earning consistently. Being of the view that profitability of the business comes first supports the view of Friedman that states that, â€Å"the social responsibility of a business is to increase its profits.† However, if a business focuses on the economical aspect of its operations it may over look other important aspects such as ethics and law and should therefore take into consideration the social climate in which it will be conducting business. Therefore, the theory put forth by the theorist Freeman should be considered. It highlights that any individual or group that can impact or be impacted by the actions of the fi rm should be considered in its operations. In order for the business to be fully socially responsible it must take intoShow MoreRelatedPepsi Co Essay930 Words   |  4 PagesIndustrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. [1] Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of Indias sometimesRead MoreCase Study Analysis Essay884 Words   |  4 PagesA Case study On PepsiCo Burma connection Executive summary: The case mentions about how PepsiCo had to withdraw all its assets from Burma despite the fact that they were doing very well in this country. In July 1988, decline in economic conditions led to large-scale and bloody rioting in cities in Burma. In Sept 1988, the army under General U.Saw Maung replaced the Government with the State Law and Order Restoration Council (SLORC), a group of military officers. In 1990, SLORC proposedRead MoreDescribe the Ethical Issues a Business Needs to Consider in Its Operational Activities.807 Words   |  4 Pagesbecause it an internationally recognized company that generated billions of pounds a year in revenue. 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