Pepsi burma connection

Bounded by India, China, Thailand, and the ocean. Infant mortality rate of 95 deaths for every live births. Economic conditions were declined in July

Pepsi burma connection

Hire Writer The country was attractive for several reasons such labor extremely cheap, high value on education, worker literacy rates were very high, oil resources were an irresistible, and its many untapped resources presents major opportunities.

Because of these reasons, the SLORC invited foreign private investors and companies to invest in Burma with the hopes of improving the economy. However, during doing business in Burma, many groups including the U. Also many companies that invested in Burma, were questioning the ethics of doing business.

There were many students pressure the universities to purge their portfolio of any business in Burma. Several cities put ban on purchasing products of those companies invested in Burma. There were students from about campuses launched a boycott of Pepsi products. PepsiCo also received many letters from its shareholders asking PepsiCo to stop investing in Burma as well.

The critics against this investment claimed that by investing in Burma means the American companies are supporting the military government. The military would fail and will be pressured to reform instituting democratic if those American companies do not invest there.

Moreover, many of the American companies in Burma engaged in a practice called counter trade, according to critics, was associated with the forced labor that was now rampant in rural areas. Burma money was worthless outside of the country, making it virtually impossible for an American company to transfer its profits out of Burma and into the United States, so to solve this problem many companies traded their Burmese profit for Burmese agriculture commodities.

PepsiCo and other companies responded to the critic that by staying in Burma, it would also pressure the military to change to democracy.

Pepsi Tries to Fool the Protestors

If it stays in Burma, it would improve the economic condition. This would increase the number of middle class people that could bring in the democracy for the country. As result inLevi Strauss had withdrawn from Burma. InReebok and Liz Claiborne also had withdrawn from Burma too.

InPepsiCo sold its holding in the plants to its partner, but PepsiCo decided to continue to honor its 10 years license allowing the bottler to sell Pepsi in Burma.

Pepsi burma connection

Critics objected that the half way move meant that PepsiCo was still doing business in Burma and vowed to keep up the pressure on the company. How to cite this page Choose cite format:Pepsi’s Burma Connection Essay.

25 Aug admin. Burma is an Asiatic state with a population of 42 million. The state is hapless with a per capita gross domestic merchandise of merely $ a high infant mortality rate.

a low life anticipation and rising prices above 20 per centum. Awa monde PHI D Module #5 Response Reading Consider the cases "Pepsi's Burma Connection" & "Levi Strauss & Co. and China." Levi Strauss and Pepsi are each trying to strike a balance between profit and protecting human rights (or at least corporate image) while still participating in the nations where human rights abuses are certainly taking place%(18).

Pepsi’s Burma Connection From: Business Ethics Concepts and Cases 5th ed. Velasquez (pp.

MNCs Enter Burma

) On April 23, , PepsiCo announced that it had decided to sell its 40 percent stake in a bottling plant in Burma in part because of criticisms that by remaining in Burma the company was helping to support the repressive military regime that now .

Pepsi's Burma Connection. From: Business Ethics Concepts and Cases 5th ed. Velasquez (pp. ) On April 23, , PepsiCo announced that it had decided to sell its 40 percent stake in a bottling plant in Burma in part because of criticisms that by remaining in Burma the company was helping to support the repressive military regime that now ruled the country.

Consider the cases “Pepsi’s Burma Connection” & “Levi Strauss & Co. and China.” Levi Strauss and Pepsi are each trying to strike a balance between profit and protecting human rights (or at least corporate image) while still participating in the nations where human rights abuses are certainly taking place.

The Pepsi Connection: As is the case with all investors in Burma, PepsiCo's presence there is to the benefit, financial and otherwise, of the SLORC. As outlined below, Pepsi is connected in several manners to the dictatorship.

PepsiCo's Burma Connection by Radhika Nikam on Prezi