"The more effective we are in dissuading investors, like Pepsi, from backing the military regime, the quicker we will be able to restore democracy peacefully," Minister of Finance Bo Hla-Tint wrote.

HDS's response to the pleas of Hla-Tint and activist groups may have more than economic clout with PepsiCo.

According to Simon Billinguess, a senior research analyst at Franklin Research, Inc., Harvard's decision may be used by PepsiCo shareholders to show that Burma is having an effect on the company's ability to strike business deals in the U.S.

Though the monetary value of Harvard's account is not large in comparison to PepsiCo's net earnings, Berry says he believes that "Harvard has a little bit of bully pulpit and we might be able to use that to get Pepsi to pull out of Burma."

But despite continued negotiations with HDS, PepsiCo has made no move to concede any part of its involvement with Burma.

Shareholders

Shareholders of PepsiCo, upset by the company's involvement in Burma, drafted a resolution to be voted on at a May shareholder's meeting.

The proposal, submitted by Maryknoll Fathers and Brothers in New York State, requested that "PepsiCo and its subsidiaries shall terminate operation in Burma until political prisoners are released and political power transferred to the democratically-elected government of Burma."

But the Securities and Exchange Commission (SEC) excluded the proposal as a voting issue from the May shareholders meeting after PepsiCo applied for an exemption on the grounds that its sales in Burma were less than five percent of net earnings and gross sales.

As a result, the shareholders group added another proposal to the agenda, asking PepsiCo to "review and update the PepsiCo Code of Conduct and report their revisions to shareholders."

The board of directors responded on the proxy shareholders' ballot, saying, "Due to the long-term nature of PepsiCo's businesses and the inevitability of political and social change, we long ago concluded that it is neither prudent nor appropriate for us to establish our own country-by-country policy."

"The filers' proposal would put PepsiCo in the untenable position of having to assess and respond to any number of political and ideological disagreements which may arise wherever we do business," the response continued.

Billinguess, who works for the company representing Maryknoll's interests, said, "It is very clear with what is going on at Harvard that Pepsi is the target of a growing consumer boycott."

Campus Reaction

Noah R. Freeman'98, a member of the Progressive Undergraduate Council Coalition, an organization within the Undergraduate Council, said he believes PepsiCo has an obligation to deal with human rights issues.