1. When you consider Milton Friedman’s position on corporate responsibility in Chapter 4, is it possible to defend DPS’s demand for lower hourly wages?
2. IS DPS considering the interests of all stakeholders in this battle? Explain why or why not.
3. How could senior executives have approached this situation differently?
4. Based on the information in the case, is there room to achieve a compromise here? Explain why or why not.
In 2009, the Dr. Pepper Snapple Group (DPS) reported a net income of $555 million, compared with a loss of $312 million in 2008, with sales down 3 percent at $5.5 billion. The beverage conglomerate owns 50 brands including 7UP, A&W Root Beer, and Hawaiian Punch, but lately it has been receiving the most media attention for its Mott’s apple juice plant in the Rochester area of upstate New York. The 305 hourly workers at the plant have been on strike since Monday, May 24, 2010, in response to a new contract offer by the senior management of the plant that reduced production wages by $1.50 per hour, froze pension benefits, ended pension benefits for new hires, reduced employer contributions to the 401(k) plan, and increased employee copays in the health care plan.