Fifth Annual Saint Mary’s Hall Model United Nations Conference
Equilibrium: Balancing Economic Interest with Ethical Responsibility
Saturday, March 25th, 2017
GA Background Guide
Committee:
Topic:
General Assembly Analyzing How the Quest for Profit Makes the World Less Healthy Statement of the Problem Multinational consumer goods corporations have a history of “investing” heavily in
developing nations with little regard for the end result of their investments outside of their
profits. For example, Coca-Cola and PepsiCo are pouring billions into developing and lowerincome countries—to increase soda consumption, says a report by the Center for Science in the
Public Interest (CSPI). Both have continued the practice devised by the tobacco industry, of
buying local brands, building bottling plants, heavily advertising, and filling the remaining void
with their product in these vulnerable areas to hook their prospective consumer, young children
and teens, on their sugary and caffeinated drinks. In fact, Coca-Cola has committed over $17
billion to Africa through 2020, making it the largest employer on the continent. However, meanwhile, obesity rates soar in these same countries being targeted for
expansion. South and Central America, eastern Europe, and the Middle East all have obesity
rates nearing 40 percent. Furthermore, two-thirds of all obese people in the world reside in
developing nations. Since 1980, obesity rates have risen by 28 percent amongst adults—and 47
percent amongst children. Per Newsweek1, “Diabetes robs the world of 3.7 million lives each
year, imposing an $827 billion burden. The condition has been steadily increasing for the past
three decades and research shows it is continuing to grow, most rapidly in low-income,
developing countries.” This near trillion-dollar cost of diabetes hits these lower income countries
disproportionately harder than thoroughly developed nations. Whilst developed nations like the United States and China can allocate funds to combat
this health crisis, developing nations can hardly spare any space within their budget to educate
and limit soda and sugar consumption within their populace, nor can they afford the inflated
healthcare costs that come with this high consumption. Delegates need to do something about the
fact that companies like Coca-Cola and PepsiCo are putting profit over people. History of the Issue The United Nations has historically pushed for the well-being of the people of the world,
and it is becoming ever-more apparent that soda consumption is contributing greatly to the
expanding waistline of the world. The World Health Organization (WHO) has formally
acknowledged that “rising consumption of sodas, sports drinks and even pure fruit juices had
contributed to a doubling of global obesity rates from 1980 through 2014” and that there is
“strong evidence” that the taxation of these “sugar-sweetened beverages” could be a “very
important tool” to bring about the decline of obesity worldwide. However, it is unclear whether corporations like Coca-Cola and PepsiCo are amoral or
moral. Seeking only to increase dividends for shareholders and generate profit, the decisions
made by these companies in their targeting of vulnerable markets have failed so far to show
proper care and foresight in their actions in regards to the well being of the citizens of these
Fifth Annual Saint Mary’s Hall Model United Nations Conference
Equilibrium: Balancing Economic Interest with Ethical Responsibility
Saturday, March 25th, 2017
GA Background Guide
developing nations. Without the proper oversight, these companies and those similar have great
potential to vastly harm the populations of the world while seeking a profit. Possible Solutions As stated, WHO has proposed the taxation of these sugary beverages, but other options
exist. ● Regarding consumer goods corporations, where is the balance between ethical
responsibility and economic interest?
● What products need to be regulated in addition to soft drinks?
● Should the governments that these companies reside in regulate the business they
conduct outside of their borders?
● Should the United Nations empower developing nations to “just say no?”
● Is it possible to deter consumption through education worldwide?
Helpful Links 1. http://www.newsweek.com/world-health-day-diabetes-soars-developing-countries-poorfeel-rapid-444938
http://www.theatlantic.com/international/archive/2014/05/two-thirds-of-the-worlds-obesepeople-now-live-in-developing-countries/371834/
http://www.forbes.com/sites/nancyhuehnergarth/2016/02/09/as-u-s-soda-sales-fizzle-coca-colaand-pepsico-target-developing-nations/#1eeca7dd2616