http://www.nytimes.com/2010/09/14/business/14mott.html?_r=1
Amidst a general slowdown in economic activity, Dr Pepper Snapple has garnered much profit last year, at a record of $555 million. On May 23, workers of Mott’s, one of the many companies that Dr Pepper Snapple markets, were on strike against a $1.50-an-hour pay cut and freezing of pensions. The basis upon which the decision of aggressive cuts is made is questionable. Despite recording stellar growth, profits and executive compensations, the company believes its workers were overpaid. But according to iuf.org ( http://cms.iuf.org/?q=node/414), “…their pay is in line with the average wage in their industry and geography.” The demands of the company were unethical. In the words of Milton Friedman, “[corporate executive] has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.” Corporate executives of Dr Pepper Snapple have not adhered to their social responsibility. While CEO Larry Young claims that the company’s actions are in the best interests of all stakeholders, the fact of the matter is that workers are being exploited. After a 16-week strike, luckily, a settlement has been reached on Monday, September 13th.