PEPSI
REFUSES COKE SECRETS

Topics: Business; Competition; Ethics; Fairness; Golden Rule; Honesty; Integrity; Morality; Temptation; Values; Virtue

References: Exodus 23:8; Deuteronomy 16:19; Proverbs 10:9; 11:3; 15:27; Ephesians 4:25; 1 Timothy 1:19; 6:10

In 2006, an administrative assistant at Coca-Cola’s Atlanta headquarters left work with classified materials in her purse, which included recipes for upcoming products, future promotions, and a beverage sample for an upcoming product.

With the help of two other employees, the secretary sent a letter to Pepsi—Coke’s oldest and biggest competitor—offering to sell the secrets. Pepsi could have seriously damaged its competitor for a relatively low price.

Pepsi officials immediately responded, however, by contacting Coca-Cola officials, who then called the FBI. The Feds conducted a sting operation that netted the three conspirators when they agreed to part with the secrets for $1.5 million.

“We were just doing what any responsible company would do,” said Pepsi spokesperson Dave DeCecco. “Despite the fierce competition in this industry, it should also be fair.”

—Kathleen Kingsbury, “You Can’t Beat the Real Thing,” Time (July 17, 2006)