Coca-Cola and PepsiCo in India A Question of Multinational Corporation - Free Essay Example

Sample details Pages: 7 Words: 2128 Downloads: 9 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Did you like this example? Coca-Cola and PepsiCo are the two largest corporations producing soft-drinks and bottled water today, therefore having a huge impact on people all around the world. One country in particular that has been greatly affected by these two corporations is India. Raman (2007) reported that both Coca-Cola and PepsiCo were initially attracted to India for production due to its expanding middle-class between the end of the 1980s and early 1990s as well as the extremely cheap supply of water (p. 107). Ironically, water is what ultimately caused the start of problems within India (in Kerala specifically) which came into view around 2001. The idea of water being a human right and the power that multinational corporations hold in foreign countries of the South became huge concerns. Canadians and many others around the world use these products daily, therefore making this very relevant to our daily lives. This paper will therefore argue that Coca-Cola and PepsiCo, although thought to h elp India economically, has rather only caused many internal issues. Theoretical Backing Arturo Escobar and Gustavo Estevas post-development theory supports the argument that multinational corporations such as Coca-Cola and PepsiCo have only caused more problems in India rather than creating economic prosperity. Escobar explains that economic diversity is lost with modernization and development, which is what is happening in India. Their economy is highly based on the success of corporations within their country. The post-development theory also explains that environmental destruction is a negative result of modernization in third-world countries such as India. One of the major concerns with Coca-Cola and PepsiCo in Kerala, India are the environmental concerns, including polluted water, water depletion, and agricultural problems. The whole reason that Coca-Cola and PepsiCo have built factories in India is because it is the cheapest for them overall and there are less safety regulations. The government of India was convinced that allowing these factories to be built within their country would bring them economic prosperity (Raman, 2010, pg. 255), which has not necessarily happened. This could easily be linked to Andre Gunder Franks underdevelopment theory because the money that Coca-Cola and PepsiCo have made from their factories in India is immense and has brought development back to the north, however, it has only caused underdevelopment to occur within India and has brought on many internal problems. The main idea of the underdevelopment theory is that development in the Global North has caused underdevelopment in the Global South. It is the idea that these countries are not undeveloped, but they are still not as developed as the countries and companies exploiting them, which is the case in India. Looking at the base reasons as to why transnational corporations such as the Coca-Cola Company and PepsiCo would want to have factories in India can be linked to the theory of neoliberalism, which supports the idea of globalization and privatization. The reasons that these corporations are spreading themselves around the world is for more profit, which is an important part of neoliberalism. India itself has been becoming increasingly liberalized since the 1990s, as the country previously did not allow corporations like Coca-Cola to be sold or produced within the country, but it is now open to corporations. Overall, the argument of this paper will be based on the post-development theory, but the phenomenon of these corporations existing in India is based on neoliberalism. Research Analysis The Coca-Cola Company and PepsiCo corporations have had negative impacts in India in three major ways: first, they have been the cause for several environmental problems, especially with water depletion and agriculture. Secondly, many health problems have arisen out the pollution and pesticides used by the two corporations; and lastly, alt hough they may contribute to the macroeconomics of the world, local economies in India have been virtually destroyed because of Coca-Cola and PepsiCo. Looking firstly at the issue of environmental issues that have arisen in India (namely within Plachimada in Kerala), water shortages and lack of safe drinking water have been the cause for major debate (Aiyer, 2008). The Coca-Cola Company was extracting anywhere from 500,000 to 1.5 million liters of groundwater a day (it takes roughly 3 liters of groundwater to make 1 liter of soft drink or 1 liter of bottled water) (p. 645). Plachimada was once a very plentiful place with a great amount of groundwater, which is why Coca-Cola originally decided to build up its factory there (Raman, 2007, p. 107). However, now residents are left with very little water for self-consumption, and in some areas, the water is not safe to drink at all (Hyams, 2004; Vedwan et al., 2007). This brings in a question of, who owns the water? Human rights sugges ts that water should be provided free to whoever needs it, but now Coca-Cola and PepsiCo own the only safe water, which has caused many legal issues in the recent past. Vedwan (2007) explains that there are simply not enough regulations governing the quality of commercial bottled beverages, which shows how multinational corporations often take advantage of underdeveloped countries like India. In Ghoshrays article (2007), Searching for Human Rights to Water amidst Corporate Privatization in India: Hindustan Coca-Cola Pvt. Ltd. v. Perumatty Grama Panchayat, he writes, At the heart of the case lies perhaps the most poignant legal battle of the current century: the corporate right to privatization versus the indigenous right to water,(1). Basically, the issue of water depletion in Plachimada has brought on many local economic problems. Agriculture is the largest industry in Kerala, India, but now many farmers can no longer afford to live happily (Aiyer, 2008, p. 650). Agriculture, on ce the backbone of the economy and the key source of capital accumulation, now only contributes 25 percent to the national GDP even as 75 percent of the population is dependent on it, (Hyams, 650). Their crops cannot grow without a sufficient amount of rainfall and groundwater. This means that local economies have been falling due to the Coca-Cola Company and PepsiCo factories in India, even though the companies have brought money into the country as a whole. The Indian Government will also have to start paying for this problem because if soil degradation gets worse, importing more foods may become necessary. Therefore, this issue is actually not good economically for much of India. Closely linked with environmental degradation, the health of the people in and amongst the area of Coca-Cola and PepsiCo has also become an issue. Hyams article, Killa-Cola (2004) explains that people had become getting sick just months after the Coca-Cola Plant was built in Kerala. The waters were ev entually tested by the government, and it was declared that the once clean water was no longer drinkable. For the locals living in Plachimada, this news was terrible because for many, the local groundwater was their only source of clean water. Now women are expected to walk miles for fresh water each day (Raman, 2007, p. 110). Not only that, but Coca-Cola had suggested that local farmers use their fertilizer on their fields for better crops. The farmers were encouraged to spread the sludge on their land; the corporation said it was an excellent fertilizer that would improve their yields. This provided a cheap and convenient waste disposal mechanism for the factory (Hyams, 2004). Little did they know that the sludge contained dangerous levels of toxic metals including lead, cadmium, and chromium. So not only were the people of Plachimada being poisoned by their water, but also by their food thanks to Coca-Cola. This problem has costed a lot of money for the Indian Government to deal with, and will surely cost more for them in the future. Sludge on the fields, however, was not the only health concern when Coca-Cola came to Plachimada. The drinks themselves, according to Raman (2007) and Ciochetto (2004), were also contaminated with pesticides. In India, however, it was the thoughtless ecological degradation that laid the land to waste and the poisonous content of the soft drinks themselves that were condemned by villagers and activists alike (Raman, 2007, p. 106). This issue is what ultimately brought most publicity to Kerala, India against the Coca-Cola Company. Even after this point, the CEOs of both PepsiCo and Coca-Cola did not really change their ways. In fact, Vedwans article (2007) explains, Perhaps, the most paradoxical act to undo the effects of bad publicity came from the PepsiCo CEO when he publicly opposed the adoption of European norms for beverages sold in India (p. 671). This ultimately leads to increased underdevelopment in Kerala and other ar eas being affected by the drinking corporations because the people of the region are basically sinking deeper into poverty without sufficient water, increased disease, and lack of food . The post-development theory supports this. The last reason as to why the Coca-Cola and Pepsi corporations have had a negative impact on the overall society in India is economic-based. Although the corporations have helped stimulate the macroeconomics, it is clear that the micro or local economies in India have become even worse that they had been in the past (Raman, 2010, p. 254). Aiyers article (2008), for example, mentions that the agriculture sector, which used to be the largest sector in India, now only accounts for 25 percent of the GDP compared to the 75 percent of the population who relies on it. Seventy percent of this rural population faces daily hunger in terms of caloric intake, (p. 650) This fact has also led to a widespread physical depression in the rural areas of India, where an av erage of seven suicides per farmer happen each day (ibid). The corporations influence over India is massive, which is overall good economically for the countries in control (the United States), but not so much for India. According to Raman (2007), The Coca-Cola marketing system is an example of how the culture of consumerism is rendered essential to individuals perceptions of culture and self-worth (p. 109) Hyams notes that, Coca-Cola, which is the biggest US corporate investor in India, has the countrys law makers in the palm of its hand, (2004). Although the above statement may show some bias against Coca-Cola, it is for the most part true. Even in 2006 when the state of Kerala in India banned the use of Coca-Cola and Pepsi products, there was so much pressure from the government and corporations that the ban only lasted for one month (Aiyer, 2008, p. 640). It should also not be forgotten that while so many people are being starved in the towns where these companies exist, Coca-Co la and Pepsi are making around $2 billion per year in profit in India (Aiyer, 2008, p. 641). Overall, the above points provide truth as to why Coca-Cola and PepsiCo have had more of a negative effect on India overall rather than the positive effect that we are tricked into thinking exists. The academic journal articles referenced above support this thesis by proving that there has been environmental devastation, health problems, and economic issues caused by the Coca-Cola and Pepsi factories in the Kerala state in India. Conclusions: Overall, the issue of multinational corporations exploiting developing countries is nothing new, and countries going through rapid expansion, such as India, want corporations to come so that they can build a strong GDP. Looking specifically at Coca-Cola and Pepsi in India, it is easy to see that there have been many more negative aspects of having these corporations in India than positive aspects, even economically. The environmental degradatio n and health problems have caused many internal problems within Indian communities, and rather than bringing economic prosperity, it is clear that economic problems have resulted from Coca-Cola and Pepsi setting up factories in these villages. This brings us to the question of whether multinational corporations are really a good thing or not. We use their products everyday in North America, and most people share a common belief that they have helped build economies. Not only that, but we daily hear about the good things that corporations are doing for us and the events that they sponsor, such as the Olympics; but we must question what is happening behind the scenes of all of this. Looking at the issue of Coca-Cola and Pepsi in India is just a small example of the problems that multinational corporations have caused worldwide. Also, we must question if these corporations are really bringing development to a country, or rather causing underdevelopment, as Coca-Cola and Pepsi seem t o be doing in the Kerala province. Finally, is neoliberalism the answer? It seems like there have been so many problems that have arisen from it. That being said, Escobar and Estevas underdevelopment theory is becoming increasingly popular as the world begins to realize what multinational corporations and neoliberalism is doing to separate the rich-poor gap between the North and South. Is globalization all that great? By looking Plachimadas case, most would come to the conclusion that it is not. These are the types of questions that can be considered when looking at the issue of Coca-Cola and PepsiCo not only in India, but all around the world. Don’t waste time! Our writers will create an original "Coca-Cola and PepsiCo in India: A Question of Multinational Corporation" essay for you Create order

The Swinging Sixties A Time of Civil Resistance Essay

â€Å"Free at last† were the words of a legendary man who would later inspire change throughout the world. Through his panoply of work, Dr. Martin Luther King Jr. challenged the popular idea of African Americans being of less status than â€Å"white men†. His I Have a Dream speech is recognized across the world, not only as inspiration for blacks everywhere, but also as a prime example of non-violent civic activism. King’s main objective was to achieve the equality that blacks had been deprived of. He discussed the issues of racial discrimination, segregation, and political and economic justice by means of public speeches that spanned throughout America. Martin Luther King Jr. was a man willing to challenge the status quo by disassociating himself†¦show more content†¦This caused an environment in which African Americans felt as though they were â€Å"languished in the corners of American society† (King). Due to this barrier, oppression was felt t hrough the black community. There was lack of hope but through his campaign, Martin Luther King was able to restore the optimism that had been lost. He had a vision in which all men were equal. In his speech, King suggests that whites and blacks are the same when he says â€Å"[white America] have come to realize that their destiny is tied up with [black America’s] destiny† (King). He also goes on to say that he wants â€Å"to make justice a reality for all of God’s children† (King). His ability to relate ideas back to religion is partially responsible for the success of this speech. Martin Luther King was able to use biblical references as a way of conveying his message to his audience in a more effective manner. The use of this idea was relevant in the sense that it made the ideas that he proposed comprehensible as opposed to far-reaching and radical. King makes reference to The Epistle of the Galatians when he speaks of the â€Å"day when all of God’s children, black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing† (King). References such as these â€Å"added amplification and depth of field to the speech,† an opinionated statement made by Michiko Kakutani in The Lasting Powers of Dr. Kings’ Dream Speech in the NY Times.Show MoreRelated The Psychedelic Sixties Essay3476 Words   |  14 Pagesquot; What better line to epitomize the feeling of the Americans throughout the chaos and turmoil of one of the most memorable decades in United States history, than this quote in the Jeffers on Airplane song quot;Volunteers?quot; The people of the time were utterly awestricken by the horrors they were being forced to endure, and they decided they would do the best they could to publicize their total disgust for the United States approach to its people. The 1960s was a decade to remember, a decadeRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pageseds., Oral History and Public Memories Tiffany Ruby Patterson, Zora Neale Hurston and a History of Southern Life Lisa M. Fine, The Story of Reo Joe: Work, Kin, and Community in Autotown, U.S.A. Van Gosse and Richard Moser, eds., The World the Sixties Made: Politics and Culture in Recent America Joanne Meyerowitz, ed., History and September 11th John McMillian and Paul Buhle, eds., The New Left Revisited David M. Scobey, Empire City: The Making and Meaning of the New York City Landscape GerdaRead MoreFundamentals of Hrm263904 Words   |  1056 Pagesresources With WileyPLUS: Students achieve concept mastery in a rich, structured environment that’s available 24/7 Instructors personalize and manage their course more effectively with assessment, assignments, grade tracking, and more manage time better study smarter save money From multiple study paths, to self-assessment, to a wealth of interactive visual and audio resources, WileyPLUS gives you everything you need to personalize the teaching and learning experience.  » F i n d o u tRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesAll this business growth has caused increasing complexity in business action and decision making. It has presented chief executive officers (CEOs) and management leaders in all markets and industries with new intricacies in deciding how to weigh and time the business decisions—and the quality of those decisions—that increasingly challenge their companies’ basic survival. W HICH FACTORS HAVE DRIVEN 3 4 Feigenbaum−Feigenbaum: The Power of Management Capitol 1. New Management for BusinessRead MoreMarketing Mistakes and Successes175322 Words   |  702 PagesKresge), JCPenney, and Dayton-Hudson and its Target subsidiary. He held positions in store management, central buying, and merchandise management. His first textbook, Marketing: Management and Social Change, was published in 1972. It was ahead of its time in introducing social and environmental issues to the study of marketing. Other books, Marketing Fundamentals, Retailing, Sales Management, and Marketing Research, followed. In 1976 the first Marketing Mistakes book was published and brought a new

Whitney Young Free Essays

Ap American History Whitney Young Whitney young was a civil rights activist born on July 31, 1921 in Lincoln ridge, Kentucky. He graduated from Kentucky State College at 18 and he studied engineering at the Massachusetts Institute of Technology. After his discharge, he received an MSW from the University of Minnesota in 1947. We will write a custom essay sample on Whitney Young or any similar topic only for you Order Now Mr. Young has many accomplishments from being head of many social worker companies to being advisors to president. But his overall goal was to bridge the gap between white political and business leaders and poor blacks and militants. Mr. Young was involved in many social worked companies including National Urban League. He was President of National Urban League in 1961. In just four years, he revitalized the relatively passive civil rights organization and turned it into an aggressive fighter for civil rights and justice. He expanded the organization from 38 employees to 1,600 employees and from an annual budget of $325,000 to more than $6. 1 million. Under his direction the organization grew from 60 to 98 chapters. He was also in other social worker companies like National Conference on Social Welfare in 1965 and NASW in 1969. With these companies he did many things like secured jobs and training for African-Americans in areas traditionally closed to them. An also he helped bridge the gap between white political and business leaders and poor blacks and militants. Whitney Young did many things He pioneered the development of social work in industrial settings with both union and management. He was an advisor on race relations to Presidents Kennedy, Johnson, and Nixon and his innovative â€Å"Marshall Plan† was considered a major inspiration for the â€Å"War on Poverty† of the Johnson Administration. In 1968 Johnson bestowed upon Young the Medal of Freedom, the nation’s highest civilian award. Whitney is a true inspiration in 1960’s showing that African American’s can be on top of corporate industries and lead Americas economy. He was credited with almost singlehandedly persuading corporate America and major foundations to aid the civil rights movement. Whitney Young was a true civil rights activist and deserves to be called a civil rights pioneer. This is my report on Whitney Young and how he is a pioneer or social workers all over the United States of America. Bibliography â€Å"National Association of Social Workers. † National Association of Social Workers. NASW, 20 Feb. 2003. Web. 28 Feb. 2013. Whitney Moore Young, Jr. from Encyclopedia of World Biography.  ©2005-2006 Thomson Gale, a part of the Thomson Corporation. All rights reserved. â€Å"Whitney Young Jr. † 2013. The Biography Channel website. Feb 28 2013, 01:09 http://www. biography . com/people/whitney-young-jr-9539757 How to cite Whitney Young, Essay examples