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The case discusses the controversy surrounding the Indian subsidiaries of multinational cola majors Coca-Cola and Pepsi in 2002-2003. The two companies had caused severe ecological damage in the state of Himachal Pradesh by painting their advertisements on rocks. The case describes the ecological importance of these rocks and the nature and extent of environmental damage caused by the companies. Besides giving a detailed account of the legal proceedings initiated against them, the case also discusses the efforts taken by the companies to repair the damage. The case also gives information on the various other controversial activities of Coca-Cola and Pepsi in India. The case is structured to enable students to: (1) examine the rationale behind seasoned companies exploiting natural resources for commercial gains from the business ethics perspective; (2) understand the importance of conducting business in an environment friendly and socially responsible manner; (3) understand why the rocks and other natural formations of the Himalayan region are of significant ecological importance and the need to carefully preserve such formations; (4) understand why companies need to balance their financial goals with their social and ethical responsibilities; (5) understand the importance of implementing and following stringent corporate governance policies; and (6) become aware of the ethical, moral and financial repercussions of failing to follow corporate governance policies. The case is aimed at MBA/PGDBA students, and is intended to be part of the business ethics curriculum.