Pepsi in Burma - A Globalization Catastrophe

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"Deciding to do business in Burma was one of the toughest decisions. But we believe that trade is a positive factor in changing the world."

- Pepsi sources, quoted in an article on www.motherjones.com, in March 1994.

"If you are buying Pepsi products, you are supporting human rights abuses." ¹

- 'Free Burma Coalition' activists, in October 1995.

"Companies such as Pepsi prolong the agony of my country."

- Aung San Suu Kyi, Nobel Peace Prize Winner and renowned political and human rights activist from Burma, quoted in an article on www.christis.org.uk.

Boycott Pepsi - Save Burma

The mid-1990s were a period of turmoil for Pepsi, the US-based multi-billion dollar cola company. Thousands of customers in the US and Canada were boycotting the company's products as well as those of its affiliate companies such as Taco Bell, Frito-Lay, KFC and Pizza Hut. In addition, Pepsi was under attack from a host of human rights organizations as well as its own shareholders and various other stakeholders.

The reason for this opposition was Pepsi's presence in the South-Asian country, Burma. In April 1996, one of Pepsi's major institutional customers in the US, Harvard University (Cambridge, MA), decided not to allow Pepsi to sell its products on its campus. This move came in the wake of protests by students against the company for conducting business in Burma, a country ruled by military dictators. Commenting on the decision to keep Pepsi off the campus, the Food Services director of Harvard University dining services, Michael Berry, said, "I am a businessperson who says that we have to be socially and ethically responsible. I do think there is a problem doing business with such a company."2

Though losing out on Harvard University's business cost Pepsi only $1 million, the damage this incident caused the company proved to be severe in the days to come. Soon after, Pepsi lost contracts at other leading universities such as Stanford, Colgate, and U.C. Berkeley. Stanford University even refused to let Pepsi open a Taco Bell fast food outlet the company had been planning for.

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1] 'As we see it: A Protest? At Albion?' www.albion.edu, October 27, 1995. The Free Burma Coalition coordinated various groups from around the world that worked towards bringing freedom and democracy in Burma. Modeled after South-Africa's anti-apartheid movement, it is supported by many governments, companies, colleges/universities and over 40 organizations (like Amnesty International) in 15 countries.

2] 'Harvard Dumps Pepsi,' www.ibiblio.org, April 08, 1996.