Coke Cola Face Csr Problem in India

(1)Indian political sympathies traditionally undervalue the business activities. Politics and leisure are neted more value than work. While in U. S. , American dream emphasis on working hard for personal value, business and politics gain the same social respect. (2)India has many political and legal issues with foreign investors. Indian law to some period is ambiguous when handling the lawsuits with foreign investors,which may have been the grounds causing problems for Cokes exertions in India? 3) Both countries may have different ways of doing businesses. Foreign investors should consider the fact that all culture is different and they need their own practices (polycentric), if Coke still thinks its American style of business operation is better and practices it in India(ethnocentric), the consumers in India will regard those practices as wrong and inappropriate. This could also have been the reason why India blame on the water contamination and shortage caused by Coke.Coke an d PepsiAs the Indian people scan still as guilt, thus the representatives of Coke should response quickly firstly, to apologize for the destroying of water resources in India, and because do some compensation for the local anesthetic people. secondly,find ways independently or Corporate with authoritative NGOS to solve the problem. It is very important for Coke to built good reputation and consumer loyalty in international market. thirdly, look from what Pepsi does doing CSR such as digging village wells, trying best to reduce water waste,etc. these measures could help to move with local people, improve relationships with government and the public.From global standardization to localization Change the style of advertisement to conciliate the flavor of Indian people. Add some Indian cultural factors to the can package. Take more CSR as what Pepsi did. Improving relationships with Indian government and the public. Start to communicate with local consumers, and response quickly. Because in India, keep silence means guilty,even though India and U. S. both speak English, because of different value, culture and social environment, miscommunication may exists on the summation side, it is the best way to understand the need or complain of Cokes consumers. 1) MNCs should overcome Parochialismview the world through and through their own perspectives, and the simplificationthe process of exhibiting the same orientation toward different culture groups. Because doing things the same way in foreign markets as they are done in domestic markets may arise more conflicts when involving in cross-cultural management. In this case, Coke prefers individualism to achieve their own value in India, while India is a society respect more about politics than business, Coke did not improve the relationships with bureaucratic offices and in the end it brings trouble to Coke about the pesticide findings.MNCs should set up unique human resource management administration to fit for local employees, improve communication effectiveness to reduce misunderstanding among multicultural groups in the company, for example, to offer up language and cultural training, to improve feedback system. Internally, to select CSR practices that fit with the companys existing capabilities externally, work with NGOS, pragmatically respect local culture and protect the environment.