Research

PepsiCo has formed the PepsiCo Foundation to work with public, private and civil organizations in order to improve the fundamental problems and concerns throughout the community. The primary purpose of this foundation when it was first established was to promote health and wellness within Pepsi. As time went on, the company spread its focus to funding fitness education for youth. In 1998, the PepsiCo Foundation was the first corporation to become a sponsor of the YMCA of the USA. Since the program started, PepsiCo and their foundation have funded numerous programs on the importance of active lifestyles and making smart dietary choices. In recent years, PepsiCo Foundation has changed its community relations practices to reflect the needs of underprivileged populations. They also look to protect and improve existing water sources, sustain agriculture, and to improve education and women’s empowerment.

2. What factors in your organization influence the social responsibility strategies?

The satisfaction experienced by individuals influences the social environment as well as cooperation in the workplace. People who are happy at their jobs make an effort to reach others; will not become uncooperative or counterproductive. Ethics also plays a part in influencing social responsibility. If a company has a strong code of ethics, they should also have a strong desire to help the communities they serve.

3. What is one social initiative your organization will champion?

One social initiative PepsiCo is championing is delivering access to safe water through partnerships. According to the United Nations, every day nearly 800 million people lack access to safe water and more than 2 billion people live without basic sanitation.

PepsiCo believes that a responsible business must act as a global citizen. The ability of a company to flourish long-term depends on the health of the communities the business is part of and the natural resources the company relies on. PepsiCo understands that access to safe water is fundamental to the business and the communities where they operate. It impacts the internal company operations and the supply chain- which is dependent on water-intense agricultural activities. There is no business without water.

4. What is your organization's responsibility to the community? Explain.

PepsiCo’s people are united by a commitment to sustainable growth by investing in a healthier future for people and the planet, which they believe means a more successful future for PepsiCo. The commitment is called Performance with Purpose. This is PepsiCo’s promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize their impact on the environment by conserving energy and water and reducing package volume; to provide a great workplace for their associates; and to respect, support and invest in the local communities where they operate.

5. What are the main components of an effective CSR policy?

An effective CSR policy consists of its origins, social responsibility, environmental responsibility, and CSR profits. Several prominent business scandals have commanded the attention of the government, consumer watch groups, and society at large. As a result of these scandals, people expect more of companies and expect these types of things not to happen. Internal controls are a major preventative component of CSR.

Social responsibility is one of the main components of CSR operations. This component widens the idea of business ethics to include proactive involvement in the community. This means contributing to community projects and being part of community activities and events. Social responsibility also means treating all stakeholders with respect and compassion. The stakeholders are investors, employees, customers, etc.

Environmental responsibility is also a part of an effective CSR policy. Companies should seriously consider environmental preservation, efficient use of natural resources and reduction of waste in balance with making money. More and more companies are “going green,” using recyclable products and making sure waste is useful or as little as possible.

CSR is not so much about profits, but about that social responsibility. Of course, companies want to make a profit and can probably expect to see an increase in profit for being more socially responsible, but they should not rely on that for a huge increase in profits. As word gets out, though, they may realize a steady incline in profits.