Management

Management

The Coca-Cola Company and Pepsi Co are the largest beverage companies operating worldwide. In fact, these two brands are among the most recognizable and popular in many countries of the world. At the same time, such a position of companies makes the rivalry particularly serious and affects practically all spheres of the functioning of both companies. Nevertheless, neither the Coca-Cola Company nor Pepsi Co can avoid the criticism, especially in the field of their social policy.
On comparing both companies, it should be said that the social responsibility of both companies is quite arguable. To put it more precisely, it would be more precise to speak about social irresponsibility than responsibility of the Coca-Cola Company and Pepsi Co. in this respect, it should be said that, in spite of the existing criticism, Pepsi Co is in a better position in regard to its social responsibility compared to the Coca-Cola Company. At the same time, it should be said that one of the major concern of the public is the potential danger of products of both companies, which prove to contain pesticides. At any rate, the researchers revealed the presence of pesticides in products of both companies in India.
However, this is not the only problem the Coca-Cola Company faces. In addition, the company is criticized for its social policy in regard to its employees and their rights, especially in developing countries. For instance, the company is suspected in hiring assassinators of the leader of trade union in Colombia. Also, the company often uses its monopolistic position to maximize their profits regardless interests of customers.
On the other hand, the Coca Cola Company attempts to improve its public image and focuses on sponsorship of sports events, such as the English Football League in 2004-2005, NASCAR, the NBA, the FIFA World Cup and others. The same may be said about Pepsi Co. In such a way, both companies contribute to the development of sports and, therefore, promote the healthy lifestyle.
On the other hand, they pursuit mercantile goals while supporting sports, which may be viewed as a negative social effect of their sponsorship activities. They promote sport drinks that are not as healthy as sport and linking them to sports events force the supporters and fans to buy their products. In addition, the current focus of both companies on bottled water threaten the monopolization of this segment of the market by Pepsi and Coca-Cola and limits the access of people to valuable sources of water.
In such a situation, the major threat to both companies is the safety of their products to the health of customers. Obviously, nowadays health is the primary concern of customers and the problems with pesticides and negative effect of Coca-Cola and Pepsi products on human health can undermine their position, especially in markets of developed countries.

References
“How a Global Web of Activists Gives Coke Problems in India”. (July 7, 2005). Wall Street
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Mohrman, S. A. (2005). Tomorrow's organization: Crafting winning capabilities in a
dynamic world. San Francisco: Jossey-Bass.
Stanford, D. (2007, May 25). “Coke to buy Glaceau in $4 billion deal.” Atlanta Journal-
Constitution.
Zyman, S. (June 1, 1999). The End of Marketing as We Know It. New York: HarperBusiness.