Question

What option does the soft drink company and government of India have and what should date do and why?

Answer 1

Answer:

An international soft drink company has a signature soft drink that it sells all over the world. In India, the version of the soft drink complies with Indian food and health regulations, but is less healthy than the drink sold in the European market where the law is stricter. The soft drink company is obeying the law in India, but it is selling an inferior, less healthy product in a developing country.

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Answer 2

Complete Question:

An international soft drink company has a signature soft drink that it sells all over the world. In India, the version of the soft drink complies with Indian food and health regulations, but is less healthy than the drink sold in the European market where the law is stricter. The soft drink company is obeying the law in India, but it is selling an inferior, less healthy product in a developing country. What are the issues of integrity, ethics and law posed in the case study? What options does the soft drink company and the government of India have What should they do and why?

Answer:

• Businesses operate in several nations as a result of the rise of globalization.
• Some businesses have been observed adopting lower standards in developing nations compared to those in the American and EU markets without breaking local laws and regulations.

Integrity, ethical, and legal concerns:

• Integrity, put simply, is doing the right thing even when no one is looking or keeping an eye on you.
• Due to inconsistent standards, the soft drink industry fails the integrity test in this instance.

Applying ethical principles allows one to determine if a behavior is good or bad.

Selling less nutritious goods in a nation is immoral on the side of the firm.

Laws are the instruments that are enacted to safeguard the general populace and advance societal well-being.

The law that governs the production of soft drinks in the current circumstances is deficient in essential elements.

Options for the Soft drink company:

1. Take no action since it complies with the rules of the developing countries in question.

2. Update the requirements in emerging nations to make drinks healthier even when they are inferior to EU standards.

3. Adopt standard practices across all markets.

Options for the government and reasons:

1. If the executive is allowed to amend the rules of the relevant law, any flaws in the law should be addressed and made known.

2. To close the gaps, the legislature must act right now. If the elected assembly is not in session, take the ordinance route.

3. Regularly assess the laws to ensure that they are still valid and being appropriately applied.

4. The government must, on its part, stop the distribution of low-quality beverages and alter standards because they could have a significant negative impact on the nation's health.

5. Even if the drink has no negative consequences in the long run, India may end up becoming a source of low-quality food due to its lax safety regulations.

6. Before beginning to distribute drinks to India, the soft drink industry must raise the quality of its products because any negative effects on consumer health would undermine the brand's credibility and eventually hurt its bottom line.

7. On their part, civil society must urge the government to raise standards and educate the public about the problem.

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