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PepsiCo India On Road to Sustainable Development? Case study Reference no 711-015-1

This case was written by Suchitra Mohanty and Ishani Chakraborty, Amity Research Centers Headquarters, Bangalore. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources.

© 2011, Amity Research Centers Headquarters, Bangalore. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner.

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PepsiCo India: On Road to Sustainable Development?

PepsiCo India: On Road to Sustainable Development?

Authors: Ms. Suchitra Mohanty and Ms. Ishani Chakraborty Abstract: PepsiCo, one of the world’s largest food and beverage companies, entered Indian market in 1989. Over the years the company grew to become a leading beverage manufacturer in India. However, during 2003-06, the company faced severe criticism and wrath of various government agencies and NGOs due to existence of pesticides in its products. Besides, there was also public protest against water exploitation by the soft drink makers. In the background of all these controversies, PepsiCo started its corporate social responsibility (CSR) and sustainable development initiatives in India. The company plunged into the image building exercise with a great intensity and carried forward its CSR activities in association with state governments (like Gujarat) and institutions like TERI (The Energy Research Institute). The company also pioneered several major initiatives to replenish water in the country. It rationalised the water use in its manufacturing plants and undertook water recharge projects and water conservation projects in agriculture. In addition, the company started Solid Waste Management initiatives in partnership with Exnora (an environmental NGO) in the country. PepsiCo’s business was thus based on its sustainability vision of “making tomorrow better than today”. The study would discuss in detail about the various sustainability/CSR approaches taken by PepsiCo in India and how the company would be able to make over its tarnishing image in the country caused by the pesticide controversies and ground water contamination. Pedagogical Objectives The case study helps to understand and analyse:

x� The core issues against PepsiCo in India x� The various CSR strategies adopted by PepsiCo in India x� The issues and challenges faced by the company with regard to its sustainability initiatives in India x� PepsiCo’s seriousness about its water sustainability initiatives.

Case Study “In 2009, PepsiCo made a promise. For the next 10 years, we promised to deliver sustainable growth by investing in a healthier future for our consumers, our planet, our associates and external partners and the communities we serve.”1

– Indra Nooyi, Chairman & CEO, PepsiCo Inc. PepsiCo Inc. (PepsiCo) entered India in the year 19892. As of 2010, the beverage portfolio of the company in India consisted the iconic brands like Pepsi, Mountain Dew, 7 Up, and Mirinda under the carbonated drinks; Gatorade, Tropicana in the non-carbonated category and Aquafina under the mineral water group. It

1 “Letter from Indra Nooyi”, http://www.pepsico.com/Purpose/Performance-with-Purpose/Letter-from-Indra-Nooyi.html 2 “PepsiCo India Region”, http://www.pepsiindia.co.in/

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PepsiCo India: On Road to Sustainable Development?

also produced snacks under the Frito Lay brand. As of 2010, the company was one of the largest employers of India with 150,000 people3 associated with it. PepsiCo was considered as one of the largest multinational investors in India, which invested more than $1 billion4 in the country since its entry. As the company was involved in the production of snacks, bottled water and beverages, its operations were intensively water consuming. This led to the controversy of ground water depletion in various parts of the country and people alleged that they were facing problems in getting drinking water. Moreover, farmers faced acute shortage of water for agriculture. In addition to this, in 2003, the report of Center for Science and Environment (CSE)5 revealed the presence of pesticides in 12 major brands of soft drinks in the country (out of which seven brands were from PepsiCo)6. The study also reported that no pesticides were found in the same brands available in US. Initially PepsiCo India denied the allegation, but later the soft drink samples were tested in various labs and traces of pesticides were found. In 2006, again the company was under controversy because of the same pesticide issue7. All this tarnished the image of the company in the country. The government in some of the states in India barred selling of the soft drinks in the campus of schools, colleges and universities. Consequently, the sales volume of PepsiCo India slipped down significantly. To gain confidence of the people and to sustain its business the company started various corporate social responsibility (CSR) initiatives in the country. In 20078 Indira Nooyi became the CEO and President of PepsiCo. She further focused on CSR activities and under her reign the company undertook a new CSR motto called ‘Performance with Purpose’. In India, PepsiCo initiated several CSR projects like rain water harvesting, new water saving technology in agriculture, biomass production, conversion of household waste to high quality organic manure and other community development initiatives to achieve sustainable development and to assert its responsibility towards people and the environment. On May 4th 2010, PepsiCo India won the number one position in sustainability technology category at the Responsible Business Summit 2010, hosted by Ethical Corporation magazine9, London. PepsiCo received the award for its technological innovation in water management practices. The citation for PepsiCo said, ''Agriculture in India uses over 80% of the country's water. India is among the largest rice growers in the world. This company's R&D team perfected direct seeding of rice in 2009 and extended it to 6,500 acres throughout India, resulting in a savings of 5.5 billion litres of water. This significant reduction of water use helped the company to achieve positive water balance – giving back more water than the business consumed”10. However, some analysts felt that all these CSR initiatives of PepsiCo in India were rather a growth strategy of the company to explore the rural market. Some others criticised the company’s waste management system as they felt it did not follow the norms properly. Nonetheless, some industry experts and state agencies supported the company’s CSR and sustainable development initiatives and PepsiCo India received a number of awards as an appreciation of its projects. However, success of its sustainable growth plan was remained to be seen.

3 “PepsiCo India Region”, op.cit.

4 “PepsiCo India Region, Our Corporate Profile”, http://www.pepsiindia.co.in/Company/ourcorporateprofile.aspx 5 It is a research organisation working for the public interest. It is headquartered at New Delhi, India. 6 “A briefing paper on pesticides contaminations and Pesticides, Poison Vs Nutrition”, http://www.indiaenvironmentportal.org.in/files/poison.pdf 7 “Pesticide cocktail in Coke, Pepsi”, http://www.rediff.com/money/2006/aug/02cola.htm, August 2nd 2006 8 “eDynamic delivers new CSR website project for Pepsi”, http://www.financialexpress.com/news/edynamic-delivers-new-csr-website-project-for-pepsi/307399/, May 9th 2008 9 Ethical Corporation was founded in 2001. It publishes the Ethical Corporation Magazine that encourages debate and discussion on responsible business through publishing, conferences and independent research and advisory work.

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PepsiCo India: On Road to Sustainable Development?

PepsiCo India: An Overview PepsiCo, the world leader in convenient snacks, foods and beverages with revenues of more than $60 billion11 had a long history of more than hundred years. It was first introduced by Caleb Bradham (Bradham), a pharmacist of New Bern, US, way back in 189812. Bradham prepared the refreshing drink with the combinations of spices, juices, and syrups to beat the hot humid summer of New Bern. The drink became popular and named fondly as "Brad's Drink"13 by his customers. However, Bradham renamed his product as Pepsi-Cola and the new name was trade marketed in 190314 (Annexure I). During World War I (1914-18) business of Pepsi-Cola underwent a rough phase due to rise in the sugar prices. And subsequently by 1923, the company went bankrupt15. Charles G. Guth, President of Loft Candy Company16 bought Pepsi-Cola in 1931 and tried a lot to make the product successful and popular17. At one point of time Guth even tried to sell Pepsi-Cola to Coca-Cola18. But Coca-Cola denied the offer. In 1938, Walter S. Mack, Jr. (Mack) was elected as the President of the Pepsi- Cola Company and he was the key man who transformed it to a market oriented company19. In 1941 the company was listed for the first time on the New York Stock Exchange20. During World War II (1939-45) Mack took a cautious approach by acquiring sugar plantation from Cuba. This acquisition helped the company to overcome the sugar supply problem which was one of the major reasons for the company’s downfall during World War I21. Soon after the World War II Pepsi-Cola shifted its headquarters to Manhattan and focused on overseas expansion. During 1950s its operations spread across 120 countries22. This time the company focused more on quality conscious advertisements. In 1965, Pepsi-Cola merged with Frito Lay, Inc23 and PepsiCo Inc was formed24. In 1970s the company launched lightweight, recyclable plastic bottles for the first time in the industry as a response to customer preference. Besides, ‘Pepsi Light’ – a new variant of the concoction with a distinctive lemon taste was introduced. In 1980’s PepsiCo’s business flourished further and it was considered as one of the largest selling brands of America. As of 2010, PepsiCo was a global leader in food, beverages and snacks, providing employment to more than 285,000 people globally25. India was considered as one of the top market for soft drinks. PepsiCo entered India in 198926 with a joint venture with Punjab Agro Industrial Corporation (PAIC)27 and Voltas India Limited (Voltas)28. Until 199129 Pepsi was sold as Lehar Pepsi (Lehar in Hindi means wave) as India’s trade policy put a restriction on the use of foreign brand name for the domestic sales. In 199430, the liberalised trade policy of the country became an opportunity for the company and it ended the joint venture with PAIC and Voltas. Soon after, the

11 “Our History”, http://www.pepsico.com/Company/Our-History.html 12 “A Brief Pepsi History”, http://www.sirpepsi.com/pepsi11.htm 13 ibid. 14 “The History of Pepsi-Cola”, http://web.archive.org/web/20080212003647/http://www.sodamuseum.bigstep.com/generic.jhtml?pid=3 15 Bellis Mary, “The History of Pepsi Cola Caleb Bradham”, http://inventors.about.com/library/inventors/blpepsi.htm 16 It was a candy manufacturer with retail stores which also contained soda fountains. 17 “The History of Pepsi Cola Caleb Bradham”, op.cit. 18 One of the largest beverage companies of the world and the number one competitor of PepsiCo. 19 “Pepsi-Brattleboro”, http://pepsibrattleboro.com/pepsihistory.html 20 “A Brief History of Pepsi-Cola”, http://www.gono.com/museum2003/museum%20collect%20info/briefhistoryofpepsicola.htm 21 “Over 100 years of run and refreshment, The Pepsi-Cola Story”, http://www.pepsi.com/PepsiLegacy_Book.pdf 22 ibid. 23 US based company and World’s largest manufacture of snacks food mainly potato chips merged with Pepsi-Cola in 1965. 24“Corporate Profile”, http://www.pepsico.com/Investors/Corporate-Profile.html 25 “Our History”, op.cit. 26 “PepsiCo India Region”, op.cit. 27 Initiated in 1966, one of the premier organisations of the Punjab Government which was engaged in project development, contract farming, promotion of agro-processing unit etc. 28 It was incorporated in 1954. It sells fast moving consumer goods and electrical equipments. 29 Singh Kamaljit, “Broken commitments: The case of Pepsi in India”, http://www.hartford-hwp.com/archives/52a/042.html

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PepsiCo India: On Road to Sustainable Development?

government of India allowed PepsiCo to set up a new company in the country. The new company was named as PepsiCo India Holdings Pvt Ltd, (PepsiCo India), a wholly owned subsidiary of PepsiCo Inc. By 2010 PepsiCo India set up 41 bottling plants in the country (13 owned by the company and 28 owned by the franchisee) and its Frito Lay foods division was having 3 plants31. PepsiCo’s CSR initiatives in India In India, Coca-Cola was the first MNC to enter the soft drinks market in the early 1970s32. However, after 1977, the company had to leave India due to the strict norms33 of the Foreign Exchange Regulation Act (FERA)34 proposed by the Indian government. When PepsiCo entered India in late 1980s, the home grown Parle group (Parle)35 dominated the Indian soft drink market. In 1990, Parle had 70%36 share of the Indian soft drink market. The product portfolio of the company consisted of the popular brands like Thums up, Limca and Goldspot37. However, economic liberalisation in early 1990s allowed the multinational companies (MNCs) to enter India. Under the new economic policy, PepsiCo established a wholly owned subsidary in India. Subsequently, Coca-Cola re-entered into the country in 199338. Soon after its re-entry, Coca-Cola made an acquisition of the leading domestic soft drink brands from the Parle group ((Mazza, Citra, Gold spot, Limca and Thums Up)39. In 2001 Coca-Cola became the new budding leader of the Indian soft drink market closely followed by Pepsi40. Globally the two companies were fighting each-other and India too was not left behind. This soft drink major’s war was popularly known as the ‘cola- war’. During 2002-2003, the business of both the companies was at its peak and they aggressively competed with each other on pricing, advertising, distribution and started to capture the rural market. The growing population in India coupled with increasing number of middle class consumers further became a positive factor for the high growth of the soft drink companies in the country. However, PepsiCo faced major trouble in 200341 when Sunita Narain, Director of CSE declared that PepsiCo’s products contained pesticides. The Pollution Monitoring Laboratory (PML) of CSE tested the water quality of the seventeen42 most popular packaged drinking water brands including Pepsico’s Aquafina. The results of the test by CSE indicated that, most of the brands contained pesticides considerably higher than the permissible limits of 0.0005mg/l43. Even the ground water sample collected from the nearby plant area was also contaminated with the same pesticides. This adversely affected the brand image of PepsiCo in India. Soon after the bottled water, the pesticides issue cropped up in soft drinks as well, in the same year. The laboratory results of CSE found that twelve44 leading soft drink brands including Pepsi contained pesticides level more than the referred threshold level. The pesticides found in the samples of these beverages were mainly lindane45, malathion46, DDT47, chloropyrifos48 etc. which could lead to dangerous diseases like

31 “Pepsi the Game, Play ‘The Game’ with Ranbir Kapoor and Sanjay Dutt”, http://pepsi.webrelease.in/, March 25th 2010 32 Sharma Prabodh, “Coca-Cola and Pepsi in Indian Market”, http://www.coolavenues.com/mba-journal/marketing/coca-cola-and-pepsi-indian-market, May 27th 2010 33 The FERA policy wanted the company to disclose its trade secret which was against the company’s rule. 34 Foreign Exchange Regulation Act, (FERA) 1973, controls India’s foreign exchange control export import policies. 35 It was founded in 1929 as a small company. As of 2010, it was India’s one of the largest biscuits and confectionaries manufacturer. 36 “Coca-Cola and Pepsi in Indian Market”, op.cit. 37 “pricing strategy for soft drink industry”, http://www.scribd.com/doc/28038428/Soft-Drink-Industry 38 “Coca-Cola India little drops of joy”, http://www.coca-colaindia.com/environment/environment_vision.aspx 39 “Coca-Cola and Pepsi in Indian Market”, op.cit. 40 Faheem Hadiya, “Coca-Cola India’s Corporate Social Responsibility Strategy”,http://www.oikos-international.org/ fileadmin/oikos-international/international/Case_competition/oikos_CS_Finalist_2009_Coca-Cola-India.pdf 41 “A briefing paper on pesticides contaminations and Pesticides, Poison Vs Nutrition”, op.cit. 42 ibid. 43 ibid. 44 Centre for Science and Environment, “Hard Truth About Soft Drinks”, http://www.outlookindia.com/article.aspx?220992, August 6th 2003 45 A pesticide, whose excess use led to the problem of kidney and liver. 46 An insecticide whose excess use led to birth defects in human being. 47 Dichlorodiphenyltrichloroethane a synthetic pesticide that cause defect in the reproductive system of the human being

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PepsiCo India: On Road to Sustainable Development?

cancer and immune system disorder in human beings. The total pesticides contained in all PepsiCo brands were on an average of 0.0180 mg/l (milligram/ litre) that showed 36 times higher than the EEC49 limit (i.e 0.0005 mg/l)50 (Exhibit I).

Exhibit I Average Residue of the Pesticides Found by CSE in Laboratory Test\

SN Brand Name Total Organochlorine

(mg/l)

Total Organopho-

sphorous (mg/l)

Total

Pesticides (mg/l)

EEC limits for Total

Pesticides (mg/l)

Deviation from the EEC

Limits (Times)

1 Pepsi 0.0032 0.0155 0.0187 0.0005 37

2 Mountain Dew 0.0033 0.0108 0.0141 0.0005 28

3 Diet Pepsi 0.0008 0.0063 0.0071 0.0005 14

4 Mirinda Orange 0.0050 0.0146 0.0196 0.0005 39

5 Mirinda Lemon 0.0084 0.0268 0.0352 0.0005 70

6 Blue Pepsi 0.0022 0.0125 0.0147 0.0005 29

7 7-Up 0.0036 0.0130 0.0166 0.0005 33

8 Coca-Cola 0.0044 0.0179 0.0223 0.0005 45

9 Fanta 0.0060 0.0154 0.0214 0.0005 43

10 Limca 0.0047 0.0101 0.0148 0.0005 30

11 Sprite 0.0027 0.0028 0.0055 0.0005 11

12 Thums Up 0.0015 0.0096 0.0111 0.0005 22 Source: “A briefing paper on pesticides contaminations and Pesticides, Poison Vs Nutrition”,

http://www.indiaenvironmentportal.org.in/files/poison.pdf Another study was conducted by the Maharashtra Food and Drugs Administration (MFDA) in the Roha factory51 of PepsiCo India in mid 200352. It was found that four of the products (i.e., Diet Pepsi, Mountain Dew, Lehar Pepsi and Mirinda Orange) of PepsiCo contained pesticide Lindane. Uttam Khobragade, the then commissioner of MFDA, confirmed the presence of pesticides in the soft drink. But he gave a clean chit to the company as the presence of pesticides was within the reference range53. Again, in the same year Pepsi and Coca-Cola came under the controversy of ground water depletion. The license of PepsiCo India’s plant in the Palakkad district of Kerala was cancelled by the villagers due to mis-utilisation of the ground water resources. The villagers complained about the acute shortage of ground water in that area54. The entire incident badly affected the overall Indian beverage market. There was mass protest against the cola brands. The sales of soft drinks went down by more than 40%55 in the country. PepsiCo’s products, along with other soft drinks were banned in the restaurants, shopping malls, schools and college campuses. To regain goodwill, the company associated itself with various state Governments like Gujarat and Kerala; research institutions like The Energy Research Institute (TERI)56 and several NGOs. Through these

49 European Economic Community, an international organisation which set up specific norms for quality of beverages. 50 “Hard Truth About Soft Drinks”, op.cit. 51 It is one of the PepsiCo’s manufacturing units in Maharashtra. 52 “We have found pesticide in 4 Pepsi drinks”, http://www.rediff.com/money/2003/aug/23cola.htm, August 5th 2003 53 ibid. 54 “Coke, Pepsi charged with depleting water level in Kerala villages”, http://www.rediff.com/money/2003/may/23cola.htm, May 23rd 2003 55 “Independent tests confirm findings: CSE”, http://www.rediff.com/money/2003/aug/18cola.htm, August 18th 2003

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PepsiCo India: On Road to Sustainable Development?

associations the company participated in various CSR activities like Harvesting of rain water, Technology transfer in agriculture and rural development. Again, in 2006 CSE conducted a fresh study and declared the existence of pesticides in 11 brands57 of soft drink majors Coca Cola and PepsiCo. It was the same brand as detected earlier in 2003. The study showed that the presence of average amount of pesticide residues in the samples were 24 times more than the BIS standard58 (the permissible limit of pesticides in soft drink was 0.5 ppb)59. This led to mass protest against the beverage giants in India once again. Sales and production of soft drinks (both Pepsi and Coca-Cola) was banned by the Kerala Government. At the same time, Karnataka Government went one step ahead and prohibited the sale of soft drinks (namely Pepsi, Coca-Cola, Mirinda, Mountain Dew, Diet Pepsi, Pepsi Blue, Fanta, Limca, Sprite, Thums Up, and 7 Up) within 100 metres of all schools, colleges and hospitals across the state60. In 2007, PepsiCo appointed Indra Nooyi (Nooyi) as the CEO and the company’s CSR initiatives gained further momentum under her reign. It wanted to revive its image not only in India but also worldwide through its new business model termed as 'Performance with Purpose'. The company took various sustainable initiatives by taking into account the three key pillars of business namely people, company and the stakeholders. It built up its CSR model by giving importance on three critical areas i.e., environment sustainability, talent sustainability and human sustainability (Exhibit II). In India, PepsiCo focused on four significant areas which were replenishing water, waste to wealth, and partnership with farmers and healthy kids.

Exhibit II Pepsi Co’s CSR Model

Source: Prepared by the authors on the basis of information from http://www.pepsiindia.co.in/CSR To counter the criticism against over-exploitation and misutilisation of ground water resources, PepsiCo India decided to undertake various initiatives to conserve water, the most precious asset of the nature. To achieve ‘positive water balance’61 it pioneered several projects in recharging, replenishing and reusing of water (Exhibit III). The company decided to minimise its water footprints62 and aimed to return back more water than it consumed in its factory for various operations.

57 “Pesticide cocktail in Coke, Pepsi”, http://www.rediff.com/money/2006/aug/02cola.htm, August 2nd 2006 58 Bureau of Indian Standards (BIS) was a national body of India worked for quality certification of the products, consumer affairs and development of technical standards established in 1986. 59 “Pesticide cocktail in Coke, Pepsi”, op.cit. 60 “Kerala, Karnataka ban cola sale”, http://www.rediff.com/money/2006/aug/09cola.htm, August 9th 2006  61 Positive water balance is when the water used by the company in its manufacturing process is equal or less than the

Human Sustainability

Environment Sustainability

People

Stakeholder Company

Talent Sustainability

Performance with

Purpose

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Exhibit III Details of Positive Water Balance

Credits Through Various Interventions

≥ Debits Through In-process Improvements

In-plant water recharge and harvesting +

Water recharged through community programs +

Saving through agricultural interventions

Total water used in the manufacturing process

Source: “Positive Water Balance: PepsiCo”, http://www.wbcsd.org/plugins/docsearch/details.asp?DocTypeId=-1&ObjectId=Mjc4ODc&

URLBack=result.asp%3FDocTypeId%3D-1%26SortOrder%3D%26CurPage%3D257 Out of the total fresh water used in India, more than 80% was accounted by agriculture alone63. To reach positive water balance PepsiCo India’s agriculture team worked on the ‘Direct Seeding technology’64 of cultivation and extended this technology to the farmers in 2006. Initially the programme covered over 20 acres of land in Punjab, which was finally extended to 6500 acres in 2009 over 5 states65. This ultimately saved 5.2 billion litres of water of the country66. Direct seeding of paddy mainly avoided three fundamental operations of the paddy cultivation i.e., puddling67, transplanting68 and standing69. By skipping these operations around 30%70 of water/acre of paddy cultivation could be saved in the farmer’s field. Even the company claimed that if 25%71 of the Indian paddy cultivation could be shifted to this method, the water saving would be equal to the total water used by the industrial sector (Indian industries accounted for 6%72 of the total water use of the country). Beside water conservation, direct seeding of paddy also saved energy (30% /acre), labour cost (53%/ acre) and reduced the emission of the dangerous methane gas by 75% from the rice field73. To include the direct seeding of paddy cultivation as an accepted means to earn carbon credit, PepsiCo was waiting for the approval from the United Nations Framework Convention on Climate Change (UNFCCC)74. It was working with the Indian Agricultural Research Institute (IARI)75 for further development in the process of reduction of methane gas from the paddy field through direct seeding technology76. In 200777, Nooyi joined United Nations ‘CEO Water Mandate’78 and announced PepsiCo’s commitment towards solution of global water crisis. In 2009 PepsiCo India claimed that its various water sustainable community project interventions namely check-dams, reviving of ponds and water bodies had created a recharge potential of one billion litres79 of water in the country (Exhibit IV). “Given the nature of monsoon in India, the key to meeting the country's growing demand for water for domestic and agricultural use is to more effectively harness rainfall - the ultimate source of all fresh water resources. We at PepsiCo India have initiated several projects to provide water to villagers who had to earlier walk up to 2 kms every day to collect water. It is very heartening to note that this particular project will benefit nearly 12,000 community

63 “Replenishing Water”, http://www.pepsiindia.co.in/CSR/replenishingwater/ReplenishingWater.aspx 64 Here paddy was directly sown in the field instead of nursery bed. 65 “Water Conservation in Agriculture”, http://www.pepsiindia.co.in/CSR/replenishingwater/Waterconservationinagriculture.aspx 66 “Replenishing Water”, op.cit. 67 Softening the top layers of the soil with water before transplanting the paddy plant. 68 Planting the paddy plant from the nursery bed to the main field. 69 Standing of paddy plant inside the water. 70 “Water Conservation in Agriculture”, op.cit. 71 ibid. 72 “Positive Water Balance: PepsiCo”, http://www.wbcsd.org/plugins/docsearch/details.asp?DocTypeId=- 1&ObjectId=Mjc4ODc& URLBack=result.asp%3FDocTypeId%3D-1%26SortOrder%3D%26CurPage%3D257 73 “Water Conservation in Agriculture”, op.cit. 74 An international environmental treaty with an objective to stabilise the greenhouse gas emission of the atmosphere, initiated in 1992. 75 The premier agricultural research institute of India established in 1905 at Pusa, Bihar, later shifted to New Delhi in 1936. 76 “Replenishing Water”, op.cit. 77 “CEO Water Mandate”, http://www.sourcewatch.org/index.php?title=CEO_Water_Mandate 78 A voluntary CSR programme of United Nations.

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members and the villagers will now have an opportunity of a second cultivation cycle during the Rabi season due to improved availability of water”80, commented Sanjeev Chadha (Chadha), Chairman and CEO of PeosiCo India.

Exhibit IV Replenishing Water Through Various Initiatives in India

x� During 2005-2010 the company saved more than 3 billion liters of water through various conservation efforts

x� In 2009, PepsiCo India reported that it had constructed 13 check dams and 100 recharge wells in Paithan, Maharashtra which in turn created a recharge potential of 700 million liters of water. It also benefited directly around 12,000 community members and helped them to access clean water, cultivates additional crops and augmented the productivity of the rain-fed crops. This also increased the income of the farmers by INR 6000/acre per month.

x� In 2009 PepsiCo India carried out direct seeding of paddy in 5 states over 6500 acre of land, which in turn saved around 5500 million litres of water and this made PepsiCo a positive water balance company of India. The Direct Seeding method of paddy cultivation also reduced the cost of the farmers by INR 1500/acre.

x� PepsiCo created three water harvesting structures in Neelamangla, Banagalore in a partnership with Alternative Development Initiative81. This water harvesting structures were having a potential to recharge 200 million litres of waters/year and around 4000 people enabled to access the water availability. PepsiCo even built an agricultural farm pond in Neelmangla that in turn collected around 140, 000 litres of water.

x� In partnership with TERI, PepsiCo’s community water project in Karnataka and Uttarakhand installed 28 small and large scale drip irrigation system. It also constructed six ground water recharge structures, infrastructure for rain water harvesting in schools and houses and revived number of streams in theses states.

x� Rain/Roof water harvesting methods became mandatory in all PepsiCo plants of the country

x� In 2009 PepsiCo benefited more than 35,000 community members by constructing check dams and revitalising ponds that in turn created a potential of more than 1.5 billion litres towards positive water balance.

x� In 2009 with the support of PepsiCo Foundation82, Safe Water Network83 started a project on Rain Water Harvesting in Rajasthan.

x� With the sponsorship of the PepsiCo foundation, the Columbia Water Center84 initiated a project in Punjab and Gujarat. The objective of the project was mainly to reduce the ground water depletion and promote the sustainable use of this water for all needs including agriculture with the help of private sectors in Punjab and energy reforms in Gujarat.

Compiled by the authors from various sources In addition to this, in 2010, PepsiCo India stated that it had reduced the water use by more than 45%85 in its production process throughout its manufacturing plants in the country. Its Palakkad plant in Kerala earned 80 “PepsiCo India accelerates its water program for rural communities” http://www.pepsiindia.co.in/Media/pressreleases/News14Nov2009.aspx, November 14th 2009 81 It is an international organisation which works toward sustainable growth of communities. 82 Started in 1962 by PepsiCo and supported eligible Non Profit Organisations (NGOs) in various developmental works. 83 An international organisation founded by Paul Newman worked for the provision of safe drinking water to the needy people of the world.

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special reputation by saving 200 million litres of water during 2006-10 and claimed to reduce the water usage by 60%86, highest among PepsiCo manufacturing plants in India. Also, PepsiCo declared that its Indian subsidiary was the first unit globally to achieve ‘the positive water balance’ status by recharging 6 billions litres of water and using 5.17 billion litres of water (net saving 836 million litres) in 200987. According to Nooyi, “As the first business in our system and probably the entire beverage world to conserve and replenish more water than it consumes, PepsiCo India is a huge inspiration for all of us. I am proud of this accomplishment”88. She also said that the company was planning to replicate the Indian model of water conservation in other global markets like China that faced similar water shortage problem. Besides this, PepsiCo was working in collaboration with various national and international organisations like TERI, Safe Water Net Work and Columbia Water Center as a part of its water sustainability initiatives. In 2010, PepsiCo celebrated the Global Water Day and announced its goal to provide the access to fresh water to three million people in the developing countries by 201589. It also declared that it would continue to maintain the target of positive water balance in company’s manufacturing process especially in the water poor areas (Annexure II). Solid waste management was another major sustainable development initiative of PepsiCo in India. The company had adopted the unique approach of converting the bio-degradable waste materials into organic manure and recycled the recyclable waste materials for environmental sustainability. PepsiCo India started a joint venture with Exnora International90 in 2005 in Pammal district of Tamilnadu91. The joint venture was known as ‘Exnora PepsiCo Zero Waste Center’. The prime goal of this initiative was to provide a clean environment to the community through solid waste management. Besides Chennai, as of 2010, the programme was also practiced in Nagapattinam, Tenkasi and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and Panipat in Haryana. More than 450,00092 people directly benefited from this programme. In the Exnora partnership programme the household wastes were converted to better quality organic manure by applying vermiculture93.This programme recycled around 97%94 of the household waste products. Besides this, under the recycle of waste materials, PET (Post Consumer polyethylene terephthalate) and plastics, waste papers and tetra packs were also recycled.95 This unique approach earned several recognitions to the company in India. In 2006, PepsiCo-Exnora initiative in Pammal received the environmental Golden Peacock award96 in the innovation category (Exhibit V). In 2007 it was acknowledged as a model project by the UNICEF and further in 2008 the project became the winner of the BSE NASSCOM97 Social and Governance award.

Http://pepsiindia.co.in/CSR/replenishingwater/ReducingWaterused to manufacture our products.aspx 86 Bhushan Ratna, “Pepsi India touches eco watershed, first unit to achieve positive water balance”, http://www.indiacsr.in/article.php?article_id=406, May 27th 2010 87 Krishnan Muruganandham, “PepsiCo India replenishes more water than used”, http://www.moneymint.in/brands/pepsico-india-replenishes-more-water-than-used, May 28th 2010 88 “PepsiCo India replenishes more water than used”, op.cit.   89 “PepsiCo Marks World Water Day 2010 with Global Water Goals”, http://www.csrwire.com/press_releases/29132- PepsiCo-Marks-World-Water-Day-2010-with-Global-Water-Goals, May 19th 2010 90 A NGO Established in Chennai in 1988 and was working for the field of environment. 91 Thiyagarajan Y, “Exnora Pepsico Zero Waste Center at Pammal Municipality – A Case Study on Solid Waste Management”, http://www.swlf.ait.ac.th/IntlConf/Data/ICSSWM%20web/FullPaper/Session%20VIII/8_03%20_Y.Thyagarajan.pdf 92 “PepsiCo India Region, Waste to Wealth”, http://www.pepsiindia.co.in/CSR/CorporateSocialResponsibility/wastetowealth.aspx 93 A technique of raising earthworms and their byproducts for compost/manure. 94 “PepsiCo India Region, Waste to Wealth”, op.cit. 95 ibid. 96 Established in 1991 was recognised worldwide as a prestigious award for corporate excellence.

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Exhibit V

List of Awards and Recognition Received by PepsiCo India Year Awards 2005 Palakkad plant of PepsiCo won “Golden Peacock National Award for Environment

Management” PepsiCo and Exnora98 solid waste management initiative in Pammal received the environmental “Golden Peacock Award” for its unique innovation

2006

PepsiCo India received “Asia region HR Star Award” 2007 UNICEF recognised the Zero Solid Waste Centre in Pammal as a model project

PepsiCo India was awarded the “Golden Peacock Award 2008” for its innovative idea of direct seeding technique BSE NASSCOM “Social and Corporate Governance Award” to PepsiCo- Exnora Waste to Wealth program for its innovative strategies PepsiCo India received the “CII award for excellence in water management” by the Confederation of Indian Industry-Godrej Business Center for its “water efficient initiative outside the plant premises” i.e., the Direct Seeding technology for paddy PepsiCo’s Palakkad plant won the “CII award for excellence in water management” by CII-Godrej Business Center award for its “Water Efficient Unit within the plant premises”

2008

PepsiCo India was recognised with the UNESCO’s “Water Digest Award” for Corporate Social Responsibility

PepsiCo India holdings Gurgaon plant won the national award for “excellence in water management 2008” beyond the fence

2009-10 PepsiCo India awarded the certificate of appreciation by the Businessworld “FICCI- SEDF CSR Awards” PepsiCo Roha factory won the CII-GBC99 national award for “excellence in water management”

2009

Pepsico India Holdings Pvt Ltd received the First prize of “TERI Corporate award for Business response” to HIV AIDS

2010 PepsiCo won the “sustainable technology award” at the Responsible Business Summit, 2010 in London, organised by ethical corporation magazine and the award was sponsored by Global sustainable business practices consultancy SAP.

Compiled by the authors from various sources The company also set up a biogas plant at its Frito-Lay100 manufacturing unit in Pune in mid 2009 with an investment of INR 35 million101. This plant used biogas directly in the manufacturing process of its product Kurkure. This was PepsiCo’s first plant to use biogas for its manufacturing operations in the Frito-Lay’s function globally. Out of the seven processing lines of Kurkure, two were already using biogas instead of the LPG (Liquefied Petroleum Gas)102 as reported by Rajeev Kumar, Vice President, Operation, of PepsiCo India. He also said that as of 2009 everyday 2200 million cubic meters of biogas were produced in the plant and this in turn replaced around 200 tonnes of LPG annually for the Frito-Lay manufacturing plant103. This initiative of PepsiCo India also reduced the carbon dioxide emission yearly by 600 tons104 in the plant. In addition, the Frito-Lay’s manufacturing unit of Pune produced 10 to 12 tons of biodegradable waste daily (i.e., potato peels, green potatoes, extra burnt chips etc.) and this was further used in the production of biogas105. Around INR 15 million106 of the company’s expenditure for waste product disposal was saved by

98 An NGO working for sustainable environment. 99 Confederation of Indian Industry. 100 Consisted of manufacturing of snacks product namely Lays, Kurkure, Cheetos, Uncle Chipps and Aliva. 101 “PepsiCo installs biogas plant at Pune unit”, http://economictimes.indiatimes.com/Food/PepsiCo-installs-biogas-plant- at-Pune-unit/articleshow/5063539.cms, September 28th 2009 102 Consisted of a mixture of Hydrocarbon gases. 103 “PepsiCo installs biogas plant at Pune unit”, op.cit. 104 ibid.

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the biogas plant every year. It was also planning to use LPG in the rest of its processing line as LPG was considered as a low carbon producer. Apart from this, since the company used huge amount of energy in its production process it planned to use three renewable energy sources i.e., Wind, Biomass and Solar Energy for its manufacturing plants. In 2008, around 18% energy requirements of the company were met by the renewable energy sources; 75% of the energy need of the Mamandur plant of Tamil Nadu was met by the wind energy resources and 14 of the bottling plants used the energy from the biomass sources107. In addition ‘Partnership with farmers’ was another CSR initiative of PepsiCo in India. The main objective of this partnership was augmentation of their (farmers’) income and productivity with the help of various new agricultural initiatives like direct seeding of paddy and contract farming. The idea of contract farming was implemented by the company jointly with the Punjab Agriculture University108 and Punjab Agro Industries Corporation109. PepsiCo’s foray into contract farming in India was a huge success. In 2009 more than 20,000 contract farmers were engaged in the contract farming of potato and paddy successfully in various states of the country110. The company was the largest contract farming operator in potato farming and as of 2010 it involved around 12,000 farmers111. Along with contract farming, the company was providing weather insurance to the farmers against various weather related risks (i.e., drought, flood, frost etc). The ‘Buy Back Price’112 policy of the company also helped the farmers to ensure a regular income from the crop113. Further, ‘Healthy Kids’ was another initiative of the company through which it focused on the health and wellness of the future generation. Its ‘Get Active’ programme was based on the concept of Good Nutrition and an Active Lifestyle for the Children of the country. This programme was planned, initiated and supported by the Pepsico Health and Wellness team. It was implemented in various schools of India in collaboration with the NGOs namely Hriday Shan114, Swashrit Society115 and the Indian Medical Association116. The main objective of this programme was to bring awareness about the importance of balance nutrition along with physical activity among the school children for a healthy life style. In 2008, the programme covered around 250,000 children in 240 schools across the six metros of the country117. In 2009, this figure further increased to 300,000 students in 350 schools in ten cities of the country118. Beside this, as a part of its social responsibility, PepsiCo India in association with ‘Salaam Balak Trust’119 tried to improve the quality of life of the girl child with the help of a strong co-operation from its employees. The employees and their family members shared their knowledge, skills related to computers, arts and crafts, nutritive foods etc. with the children. This further helped the children to prepare themselves for a better life in future120. In addition to this, serving the community was one of important criteria of PepsiCo’s CSR approaches in India. In 2005, PepsiCo India initiated an awareness programme on the HIV (Human Immunodeficiency Virus)/AIDS (Acquired Immune Deficiency Syndrome)121 with partnership with the International Labour Organisation (ILO)122. This programme was set off by the company with a small group of master trainers and peer educators. They further disseminated their knowledge among the employees of the company at 107 “Corporates and communities, CII”, http://newsletters.cii.in/newsletters/CSRnew/May09/spotlights.html 108 One of the premier and reputed agriculture universities of India. 109 “Corporates and communities, CII”, op.cit. 110 ibid. 111 “Pepsico records 100% growth in crop output in Bengal”, http://www.business-standard.com/india/news/pepsico- records-100-growth-in-crop-output-in-bengal/389501/, March 24th 2010 112 The guaranteed price the farmers could receive for the crop. 113 “Pepsico records 100% growth in crop output in Bengal”, op.cit. 114 Established in 1992, a NGO worked for health related issues and by health professionals and social scientists. 115 An NGO working for the poor and under privileged children of the society. 116 A national organisation of doctors, established in 1928. 117 “PepsiCo India Region, Healthy Kids”, http://www.pepsiindia.co.in/CSR/CorporateSocialResponsibility/healthykids.aspx 118 ibid. 119 A Gurgaon (Harayana) based NGO worked for the shelter of homeless girls. 120 “PepsiCo India Region, Other Community Initiatives”, http://www.pepsiindia.co.in/CSR/CorporateSocialResponsibility/CommunityInitiatives.aspx 121 A disease affected the human immune system caused by HIV virus.

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various work places, partner NGOs and the other stakeholders (i.e., spouses, business partners, distributors, labourers, bottle franchisers etc). As of 2010, PepsiCo India had created a pool of 58 master trainers and 175 peer trainers under this approach123. In 2009 PepsiCo India received the TERI Corporate Award for Business Response to HIV/AIDS for this initiative124. Since 2005, the PepsiCo foundation in association with the CAP foundation125 provided training on alternate livelihood options to the youth (between 18 to 35 years of age) in the tsunami affected areas of Andhra Pradesh and Tamil Nadu. The company invested INR 10 million for this training programme126. The training was mainly based on six market oriented skills which were Customer Relations & Sales, Hospitality, Automobile mechanism, IT Enabled service, Multi Skilled training (Electrical & electronics, plumbing, house wiring) and White Goods Services, R & A/C (refrigeration and air-conditioning). The company claimed that in 2007 more than 1500 youth of the tsunami affected area got an employment opportunity with some of the country’s leading companies like Vodafone127, Aircel128 etc129. PepsiCo India: Heading Towards Sustainable Development? Although PepsiCo India asserted that it had taken several initiatives to re-make its brand image in the country, it continued to draw criticism from several corners. The company’s bottling plant in Kerala was criticised for exhausting the groundwater resources and the local people were facing the problem of access to water both for the drinking purpose and for the agricultural purpose. Moreover, a report submitted by the State Groundwater Department of Kerala stated that excessive use and discharge of water in that state by the company led to groundwater contamination. The report also mentioned that PepsiCo was crossing the permissible extraction limit of 0.234 million litres water per day and was extracting 0.6 million liters daily (as on 2008)130. Approximately 93.3% of the available groundwater was already been exploited by the company (the total availability of groundwater in Pudussery Grama Panchayat was 7.81 million cubic metres)131. Moreover, the expert team found traces of calcium, magnesium, chloride, sodium etc. in the groundwater samples near by the factory location132. On the other hand, some industry watchers criticised PepsiCo by suggesting that its CSR initiatives could be another corporate strategy to capture the rural market. Nevertheless, irrespective of these speculations, PepsiCo India was surely reaping the benefits of its CSR activities. While its various agricultural initiatives like contract farming, direct seeding technology, rain-water harvesting etc. were providing benefits to the farmers, the produce (mainly potato) were used as raw materials for its products (like chips). "We help them with progressive farming techniques and they are of huge benefit to us in securing a reliable supply chain"133, commented Chadha. Nonetheless, there were some supporters for PepsiCo’s CSR initiatives as well. KSPCB (Kerala State Pollution Control Board)134 supported PepsiCo by saying that the company was following the norms and regulations. “An independent study in 2009, by a renowned research institute, concluded that the impact of PepsiCo’s Palakkad plant on the depleting ground water level in the area is insignificant. According to the report, PepsiCo is utilising only 0.7 per cent of the total annual water consumption in the area. It further

123 “PepsiCo India Region, Other Community Initiatives”, op.cit. 124 ibid. 125 A registered Trust in 2005, worked for the children and youth of the deprived section of the societies and provides them quality learning and sustainable livelihood opportunities. 126 “PepsiCo Trains Tsunami Affected Youth For Employment”, http://www.newswiretoday.com/news/24149/, October 1st 2007 127 One of the world’s leading mobile telecom companies, headquartered at Newbury, England. 128 Started its operation in 1999, was a joint venture between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited. 129 “PepsiCo Trains Tsunami Affected Youth For Employment”, op.cit. 130 M Suchitra, “Kerala and Pepsi, Inaction on panel findings against beverage major”, http://www.indiatogether.org/2008/may/env-colawater.htm, May 6th 2008 131 ibid. 132 ibid. 133 “MNCs in Rural India: At a Turning Point:India Knowledge@Wharton”,

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PepsiCo India: On Road to Sustainable Development?

states that the groundwater use by the PepsiCo plant is negligible in comparison to other water users” 135, commented a company spokesperson. Chadha, on the other hand, commented that the controversies (Pesticides and water issues) had a positive impact on the nation and economy as a whole. As the Government set up some stringent norms and regulations for the beverage companies in relation to the pesticides limits and water use as an aftermath. Also, as a result, PepsiCo’s products were tested properly against the norms by the testing laboratories established by the Government, Private and International agencies136. He felt that along with the healthy product it was necessary to adopt the environmental and sustainability approach by the company that would have a significant impact on the people. “The path to a sustainable and socially-relevant business is not an easy one. It’s not a sprint, it is a marathon. It requires courage, commitment, and bold leadership”137 , commented Chadha.

135 “Pepsi plant under Kerala scanner”, http://www.business-standard.com/india/news/pepsi-plant-under-kerala- scanner/388968/, March 18th 2010 136 “Performance with purpose: PepsiCo's growth mantra”,

th 2010

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PepsiCo India: On Road to Sustainable Development?

Annexure I A Glimpse of the Major Happenings in PepsiCo’s History

Year Events

1893 x� Beginning of the Pepsi-cola as Brad’s drink named and developed by Caleb Bradham

1900-1910 a. Bradman applied for trade mark in US patent office and formed the first Pepsi- Cola company

b. First newspaper advertisements of the company came out in the New Bern Weekly Journal

c. In 1905, Company’s first bottling franchises was set up in Charlotte and Durham of North Carolina

d. By the end of 1910, total Pepsi-Cola franchises was in 24 states and the company sold more than 100,000 gallons drinks/year

1911-1920 "Drink Pepsi-Cola, it will satisfy you" was the theme line of Pepsi-Cola and Caleb promoted the drink with this tag line

1921-1930 a. The company bankrupted due to rise in sugar price during the world war I b. Caleb sold Pepsi-Cola trademark to Craven Holdings Corporation c. Again the Pepsi trademark was bought by Roy C. Megargel, a Wall Street

broker, from the Craven Holding Corporation for $35,000, and he established the Pepsi-Cola Corporation

1931-1940 a. Pepsi-Cola went bankrupt for the second time b. Loft Candy company acquired the Pepsi-Cola corporation and Charles G. Guth

President of Loft Candy became the commander of the Pepsi-Cola c. Under Guth leadership Pepsi-Cola business became a huge success and was

again a popular national brand d. Pepsi-Cola granted 94 new US franchises e. Walter S. Mack selected as the President of Pepsi-Cola and felt that advertising

was the key success for the marketing of the soft drink and gave emphasis on advertising

1941-1950 a. Pepsi’s stock traded first time in New York Stock exchange b. “Bigger Drink, Better Taste” became Pepsi’s tag line c. Expanded business to Latin America, Philippines and Middle East

1951-1960 a. American became weight conscious and Pepsi’s ad change to “The Light Refreshment” denoting low calorie content

b. New “Swirl” bottle was introduced for Pepsi c. Pepsi was available in 120 countries

1961-1970 a. Diet Pepsi launched b. Mountain dew acquired by Pepsi c. PepsiCo Inc formed after Pepsi-Cola company merged with Dallas, Texas,

marketer of Frito-Lay

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PepsiCo India: On Road to Sustainable Development?

1971-1980 a. Pepsi the single leading brand sold in the supermarkets of America b. Pizza Hut acquired by PepsiCo c. PepsiCo was number one in sales in the take home market

1981-1990 a. PepsiCo restructured and focused on three business i.e. soft drinks, snacks and restaurant

b. Slice the first fruit juice soft drink was launched by the company c. Acquired Smart Food the ready-to-eat popcorn

1991-2000 a. Introduced Aquafina bottled water b. An Indian company of Mumbai was acquired by Pepsi-Cola, its first big bottling

plant c. PepsiCo celebrated its 100 birth anniversary d. Acquired Tropicana product from Seagram Company Ltd. The biggest

acquisition by PepsiCo

2001-2010 a. Pepsi-Cola trade mark completed 100 years b. Mirinda re-launched by PepsiCo c. Pepsi and Lay’s selected as the most preferred beverage and food brand by

CNBC Awaaz awards d. Domodedovo, largest bottling plant of PepsiCo opened by the company in

Russia Source: Compiled by the authors from –

a. “Our History”, http://www.pepsico.com/Company/Our-History.html b. “Over 100 years of run and refreshment, The Pepsi-Cola Story”,

http://www.pepsi.com/PepsiLegacy_Book.pdf c. “Pepsi-Brattleboro”, http://pepsibrattleboro.com/pepsihistory.html

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Annexure II Pepsi Co’s World Water Goals and Various Water Initiatives/Achievements

x� Pepsi Co celebrated the World water day on March 19th 2010 and announced its milestone to provide access to safe water to three million people in the developing countries of the world by 2015.

x� It also announced to stick up to the norm of positive water balance in the company’s operations especially in the water distressed areas.

x� In 2007 the company had a target to reduce the water consumption by 20% unit by 2015 and as of 2010 it succeeded to increase the water use efficiency by more than 15%.

x� Since 2005, more than $15 million was supported by the PepsiCo foundation to various organisation engaged in the provision of safe drinking water specially in the developing countries of the world.

x� Besides, the PepsiCo foundation was also involved in the accessibility of safe drinking water project in the drought prone area since 2008 and more than 400,000 people were benefitted under this project.

x� The company had supported Water.org for Water Credit and micro loan programme. x� In 2009, it saved more than 11 billion liters of water through efficiency improvements. x� Company’s technology and initiatives like cleaning of the new Gatorade bottles with purified air in

US saved billions liters of water from going down the drain. x� By utilising the moisture content of the potato PepsiCo Walkers' business had already reduced

water usage of the potato chip facility by 42% within 2001- 2007 in UK. x� In China, PepsiCo was sharing its water conservation techniques of cultivation with local farmers

engaged in potato cultivation (for Lays’s Potato chips) that ultimately reduced more than half of the water use in the potato farm. It also provided training to the farmers in China to grow potatoes and other cash crops in a deserted condition.

x� PepsiCo's Smith's snacks manufacturing facility was the first wastewater reuse system in Australia that dramatically reduced stress on local water resources at a time when the country was facing one of the worst droughts in history.

x� Approximately 80% of the process water used in production of Frito-Lay in Arizona and for 10 consecutive years, PepsiCo reduced the amount of water used to make Frito-Lay products in North America significantly.

x� In Mexico, the Gatorade plant installed a rain water harvest system, which collected 640 cubic meters of water in 2009 that helped to recharge the underground aquifer and contributed to the business's overall water usage reduction of 10.5% in 2008.

x� By 2011, The PepsiCo Foundation would reach its goal of providing access to safe water and sanitation to 1 million people. This would be achieved through the support of partners such as Water.org, Safe Water Network, The Energy Resources Institute, China Women's Development Foundation138 and the Earth Institute at Columbia University139. These projects were helping to install village water and irrigation systems, establishing water health centers, constructing nearly 750 rainwater harvesting cisterns, improve sanitation programs and recharge aquifers in developing communities, particularly in Ghana, Kenya, Brazil, China and India.

Source: “PepsiCo Marks World Water Day 2010 with Global Water Goals”

http://www.csrwire.com/press/press_release/29132-PepsiCo-Marks-World-Water-Day-2010-with-Global- Water-Goals, May 19th 2010

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