Project Topic On PepsiCo

Project Topic on PepsiCo

[Name of the Writer]

[Name of the institution]

[Date]

Project Topic on PepsiCo

Introduction

Known widely as one of the top food and beverages companies internationally, PepsiCo is American multinational cooperation that has its headquarters in New York. PepsiCo operates in more in 200 countries and cooperates manufacturing, marketing and the distribution of all its products including soft drinks, snacks and other kinds of products.

Size of PepsiCo

Till the end of 2017, the total number of workers globally in PepsiCo was 263000. The total number of employees in the US only was 113000. In the year 2011, the number of associates peaked to the point of 297000. They increased by a total of 100,000 from the period of 3005 to 2017. However, the ratio in top management decreased in the record time of the last three years, but their number is rising in middle management.

History of PepsiCo

The huge corporation was formed through the merger of Pepsi-Cola and Frito-Lay in 1965. Since then, the multinational corporation has expanded in a speedy growth both horizontally and vertically in the global market providing a wide range of products. PepsiCo is regarded as the second largest in the business of food and beverages in the worldwide market. PepsiCo is the biggest food and beverage business in terms of net revenue within North America. The chief executive of PepsiCo is currently Ramon Laguarta since 2018.

Organization of PepsiCo

PepsiCo’s organizational structure was initially hierarchical in its starting years. However, due to its merging and joint ventures with many companies, as well as worldwide spread, the company has modified its organizational structure (Eades et al., 2017). Some of the unique features of Pepsi Co.'s corporate distribution is market division, global hierarchy, and functional departments.

Corporate Social Responsibility (CSR) of PepsiCo

In 2010, PepsiCo was among the leading corporations that were present in the list of top 10 in Social Responsibility Index. The results of the rankings were done by public perception of the U.S. Company's efforts for Corporate Social Responsibility. PepsiCo is excellent at predicting and then maximizing the potential of market opportunities when they arise and opts for the marketing strategies accordingly incorporating social responsibility motives. The company was also ranked 7th in the list of 50 best companies for Minorities in Fortune’s Magazine. PepsiCo gives many employment opportunities to minorities even in top management. The corporation has put efforts and showed positive results by a consistent commitment to corporate social responsibility for sustainable development. The administration is very keen to contribute to the vision for healthier lives for future generations (Venkataraman et al., 2017). In 2010, PepsiCo also started a multi-year program by partnering with waste management to keep America clean and beautiful. Many recycling projects followed this program by PepsiCo across the globe. This recycling program was related to disposing of the Pepsi cans, bottles, etc. by providing a reward to the consumers for participation. The corporation also received the award for Environmental Excellence from U.S. Environmental Protection Agency.

Pepsi’s Approach towards CSR (Freidman’s or Carroll’s view)

Looking deep into the concerns of corporate social responsibility, it becomes hard to associate PepsiCo with either of them as PepsiCo has put efforts in the way of Corporate Social Responsibility. If we look at the view of Freidman's concerning PepsiCo's contribution, then it will be perceived that the company has performed well whenever CSR was considered (Schwartz, 2012). But looking at the view of Carroll makes us reconsider the position of PepsiCo in CSR. Keeping all the matters aligned, it can be concluded that PepsiCo has failed to perform effectively in the way of CSR (Carroll, 1991). This is because the cooperation earns supernormal profits and has huge net revenues early but do not invest much in the economic, legal, ethical and charitable aspects of the society. PepsiCo is in debt to the consumers who made the corporation profitable by consuming the products despite having many alternatives in the market (Peloza & Montford, 2015). Until now whatever work was done by PepsiCo in CSR was due wholly and solely related to the recycling of its products (Forbes, 2010). This kind of CSR cannot be considered as a social contribution of any organization as CSR has much broader definitions than these actions of minor impacts. PepsiCo can undertake many other responsibilities by investment, but motivation is required (Doheny & Griffith, 2017).

References

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business horizons, 34(4), 39-49.

Doheny, M., & Griffith, J. A. (2017). CSR at Work: Considering Corporate Social Responsibility from a Motivation to Act Perspective. Journal of Organizational Psychology, 17(6).

Eades, K. M., Thornhill, D., & Eades, K. M. (2017). PepsiCo, Inc.: Cost Of Capital. Darden Business Publishing Cases, 1-13.

Peloza, J., Ye, C., & Montford, W. J. (2015). When companies do good, are their products good for you? How corporate social responsibility creates a health halo. Journal of Public Policy & Marketing, 34(1), 19-31.

'Pepsi Refresh' Is Not PepsiCo's True CSR Effort. (2010). Forbes.com. Retrieved 6 March 2019, from https://www.forbes.com/sites/csr/2010/10/19/pepsi-refresh-is-not-pepsicos-true-csr-effort/#53eac99445dd

Schwartz, M. S., & Saiia, D. (2012). Should Firms Go “Beyond Profits”? Milton Friedman versus Broad CSR 1. Business and Society Review, 117(1), 1-31.

Venkataraman, S., Summers, M., & Venkataraman, S. (2017). PepsiCo: The Challenge of Growth through Innovation. Darden Business Publishing Cases, 1-22.