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Coca-Cola vs. Pepsi Case Study in Terms of Global Responsibility

Executive Summary

This business analysis contrasts The Coca-Cola Company with its main competitor of their different worldwide responsibilities. Research in this study compares and contrasts the global responsibility practices of Coca-main Cola’s competitor with those of Coca-Cola, finding that the latter is more beneficial to public health and the environment.

Coca-Cola has come under fire in recent years for producing sugary drinks in large quantities, which have been linked to an increased risk of obesity, diabetes, and other chronic diseases. Furthermore, the company’s water use has been called into question, with critics arguing that the company’s water-intensive production process is to blame for water scarcity in some areas. The company has also been charged with not doing enough to reduce the environmental damage caused by its operations.

However, the competitor under scrutiny in this study has shifted to a policy that minimizes negative effects on the world. They have taken steps to reduce their water usage, increase the efficiency of their energy usage, and deal with the environmental effects of their production methods. Moreover, they have pledged to invest in renewable energy sources to reduce their negative environmental effects.

This investigation shows that Coca-Cola needs to adopt more responsible business procedures globally, while its competitor has been more proactive. What causes what? This study elucidates the need for companies to have a broader view of their global responsibilities and highlights the need to take steps to mitigate the negative impact of their activities on the environment and the public’s health.

Coca-Cola’s Global Responsibility Effects

Most people believe that The Coca-Cola Company is one of the most successful companies in the world that focuses on producing beverages. The marketing and the iconic soft drinks produced by the corporation are mostly responsible for this success (Bekimbetova et al.,2021)s. The company has seen a great deal of success, but the commercial activities it engages in have resulted in many unfavorable ramifications for the commitments that the global community as a whole is obligated to uphold. In the following lines, we will talk about some of the most significant obstacles that Coca-Cola needs to overcome to live up to its worldwide duties (Brandon, 2019).

The availability of water is in short supply.

Coca-Cola is one of the businesses that use the most water consistently because its production processes require more than two billion liters of water every day. Because of the substantial amount of water the corporation consumes, water scarcity has become a topic of concern in many of the world (Parco, 2018). Consequently, many people are getting anxious about the possibility of a water shortage. Complaints regarding the company’s water practices are fairly common, and some people have suggested that Coca-Cola takes advantage of the residents of the area in order to fulfill its water requirements (Olegario, 2021).


Coca-Cola is also to fault for a significant quantity of pollution in a variety of different places throughout the world. The corporation is being accused of dumping rubbish in local waterways, which has led to many problems for the environment and human health in the surrounding area (Van et al., 2022). The energy-intensive industrial activities of the corporation have contributed to increased levels of global warming and climate change. These activities have also resulted in the emission of large quantities of carbon dioxide into the atmosphere(Obebe et al., 2020).

Worries Regarding the Existing Healthcare System

Coca-Cola beverages have been connected to an increased risk of acquiring diabetes, obesity, and cardiovascular disease due to the high levels of sugar that are contained in these beverages. Some detractors have interpreted this fact as proof that the company is recklessly marketing potentially harmful products to children and teenagers (Schmidt et al., 2020). The company has also been accused of engaging in unethical labor practices at several of its production facilities across the world. It has been asserted that certain nations provide their citizens with extremely meager wages and force them to work in hazardous conditions (Barlow et al., 2018).

In conclusion, the business practices of Coca-Cola have resulted in a variety of unintended outcomes regarding the responsibilities of the international community. These effects include the following: The company’s actions have resulted in widespread repercussions for people and the environment worldwide. These repercussions include, but are not limited to, issues concerning health and unethical labor practices. Water scarcity and pollution have also been caused directly by the company’s actions.

Pepsi’s Global Responsibility Effect

The Pepsi Company is a worldwide conglomerate that has been an industry pioneer in corporate social responsibility since its inception in 1919. Manufacturing consumable goods are the company’s bread and butter. Pepsi is committed to producing its products in a way that has zero environmental impact. The group has decided that all its operations will be conducted consistently with the values of social responsibility and ecological stewardship. Pepsi has taken steps to lessen its negative influence on the environment by, for example, cutting carbon dioxide emissions, conserving water, and urging customers to adopt healthier habits (Koomen et al., 2022).

As part of its global commitment to social and environmental responsibility, Pepsi has implemented several modifications to its business processes to ensure they are ethical and sustainable. So that Pepsi may continue to operate sustainably, several alterations were made. These adjustments were designed to make the methods more long-lasting and moral. That is why we went and changed it. Many issues, including the company’s carbon footprint, water use, and ecologically friendly materials in its products, are all part of its complete sustainability program. Among the program’s other intended outcomes is a rise in the proportion of eco-friendly components in final goods. Pepsi has pledged to use entirely renewable energy by 2025 and has taken measures to reduce the amount of trash it produces. In addition, by 2025, Pepsi plans to ban single-use plastic bottles completely.

Moreover, Pepsi has taken steps to reduce the amount of waste plastic firm generates, which is a step in the right way. In addition, the business has introduced numerous programs to encourage healthy living, such as increasing access to healthy food and drink options and creating a setting that promotes activity. Consider joining a program like the Healthy Lifestyles Initiative. The Healthy Lifestyles Initiative is just one of several available initiatives.

Pepsi is ahead of the pack because it cares about the community and the environment, while Coca-Cola focuses on profit (Štofová & Kopčáková, 2020). More so than its competitors, Pepsi is committed to reducing its environmental impact and improving its recycling initiatives. Coca-Cola has not done nearly as much as other firms have to decrease its impact on the environment or inspire people to lead better lives. In contrast, other companies have achieved major advances, including Google and Facebook. Some of the criticism directed at the company centers on the fact that it is widely believed that the company’s usage of plastic packaging is to blame for the environmental damage that has been done. Alternatively, Pepsi has pledged to switch to renewable energy sources and reduce its plastic waste by 2025. In addition, the soda giant has attempted to cut down on its carbon dioxide output. Similarly, Pepsi has implemented policies to reduce the quantity of paper waste produced at its operations.

Regarding environmental responsibility, Pepsi is an example for the business world to follow. The company has taken significant preventative measures to decrease its environmental effect. It is working toward this aim in several ways, including decreasing its use of fossil fuels, encouraging healthier lifestyles, and decreasing its plastic trash output. Compared to its main competitor, Coca-Cola, Pepsi stands out as a market leader because of its dedication to social and environmental responsibility. Pepsi, in particular, has been working to reduce its environmental impact and increase its recycling rates (Matta, 2022).


Pepsi and Coca-Cola have made significant contributions to global responsibility, but Pepsi is on the front thanks to its dedication to a greener tomorrow. Pepsi has made major efforts in numerous sustainability measures, such as decreasing water use, manufacturing ecologically friendly packaging, and supporting local communities. Standards and best practices in the business have been developed thanks to these efforts, and they have also positively affected the environment and society. However, Coca-Cola has been criticized for allegedly not doing enough to protect the environment. The firm has been accused of exploiting local people and neglecting to accept responsibility for the environmental harm it has produced. It also needs more time to embrace industry standards and best practices. Pepsi has made many investments in renewable energy sources and created production procedures that are more efficient in order to decrease the company’s negative effects on the surrounding environment. In addition, the firm has invested in water conservation projects, such as installing water-saving equipment in its manufacturing plants and delivering safe drinking water to communities in need of it. Pepsi has attempted to reduce its negative environmental impact by developing eco-friendly packaging. It includes using recycled materials and reducing the amount of plastic used.

On the other hand, Coca-Cola has been called out for its lack of dedication to sustainability, which has led to criticism. The company has been criticized for its alleged lack of promptness in adopting industry best practices and standards, as well as allegations of exploiting locals and ignoring the impact on the environment. In addition, Coca-Cola has been called out for using plastic packaging, which contributes to the wider issue of plastic pollution worldwide. The company has made certain moves to reduce its environmental impact, such as investing in renewable energy, but these are overwhelmed by its general lack of concern for the environment (Chua et al., 2020).

Both companies must decrease their harmful environmental effects and be supportive of the communities in which they operate. In this respect, Pepsi has long held the dominant position, while Coca-Cola still has much work to do to demonstrate the depth of its commitment to environmental protection. The firms should continue to invest in renewable energy, water conservation, and ecologically friendly packaging, and they should endeavor to guarantee that their operations do not contribute to the devastation of the global environment.

Pepsi has launched several programs with the dual goals of reducing the company’s environmental impact and enhancing its service to local communities. These include investments in water conservation projects to reduce its water footprint, investments in renewable energy sources such as wind and solar to reduce its reliance on fossil fuels, and investments in sustainable packaging initiatives to reduce the amount of plastic waste generated by its operations. Pepsi has also created a range of agreements with local communities to promote programs linked to the growth of the local economy, education, and health care.

However, Coca-Cola has been rather inactive in this area compared to other firms. The firm has invested in renewable energy, water conservation, and environmentally friendly packaging, but it needs to do more to demonstrate that it is serious about conserving the environment. Coca-Cola should continue to invest in renewable energy sources, water conservation programs, and sustainable packaging projects. Additionally, the corporation should endeavor to guarantee that its operations are not contributing to the deterioration of the world environment. In addition, Coca-Cola should make an effort to create partnerships with the communities in which it operates to promote programs linked to economic growth, education, and health. As a result, Coca-Cola will be able to show that it cares about the world and the people in the places where it has factories.

Pepsi has generally exhibited a greater commitment to global responsibility than Coca-Cola. It gives Pepsi a leg up on the competition. Pepsi has proved that it is a good corporate citizen by investing in projects that promote sustainability and setting industry standards and best practices.

  1. Spending money on clean energy sources By 2040, Pepsi plans to be the world’s largest buyer of renewable electricity and has committed to sourcing all of its energy needs from renewable resources.
  2. Lessening of water consumption Pepsi has pledged to decrease its water usage by 20% by 2025. Drip irrigation and water recycling are just two examples of the water-saving technology used in the company’s production processes.
  3. Investing in local communities To give back to the communities it serves, Pepsi has funded initiatives like the “Pepsi Refresh Project,” which has awarded more than $40 million in grants to deserving nonprofits and community organizations. Pepsi is committed to giving back to the communities in which it operates.
  4. Pepsi has vowed to use 100% recyclable, compostable, or biodegradable packaging by 2025 as part of its sustainable packaging strategy. The corporation has also funded research into innovative packaging solutions like edible packaging to reduce its environmental footprint further.
  5. Advancing efforts to increase diversity and acceptance Pepsi’s “Women in Leadership” and “Many and Inclusive Workplace” programs are just two examples of its efforts to foster an environment that values and supports the contributions of people from diverse backgrounds. These programs aim to increase the number of women in senior positions in the firm.

Pepsi has put money into educational efforts like the “PepsiCo Education Foundation,” which has given away over $1 million to schools and nonprofits in the US and abroad. Sixth, Pepsi is dedicated to education, as stated by statement six.


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