Analysis Of Corporate Social Responsibility (CSR) Strategies Of PepsiCo
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation. PepsiCo has a portfolio of 22 billon dollar brand and has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. Below are few of the reasons for the inclusion of the company in the Global CRS 100 list:
PepsiCo understands that sustainable agricultural practices will be important in order to meet the increasing demand for food as the global population grows. As of the end of 2017, 24 percent of their direct crops were sustainably sourced. Through their Sustainable Sourcing Program (SSP) PepsiCo is working to realize zero deforestation in their company-owned and operated activities by the end of 2020. As part of this approach, PepsiCo has said to only purchase responsibly-sourced wood fiber products.
With a growing obesity in the world PepsiCo has been working on its products to deliver them with zero trans-fat. Proudly the first company to voluntarily remove trans-fat from their snacks by reducing added sugars, sodium and saturated fat in their products and launching a revolutionary nutrition focused product options.
PepsiCo is driven to combat climate change. In 2017, they have reduced their Scope 3 GHG emissions by approximately 2. 1 million metric tonnes when compared to their 2015 baseline. This represents approximately seven percent of their 2030 target reduction amount which is to reduce absolute GHG emissions across their value chain by at least 20percent. As of 2017 85percent of their packaging worldwide are recyclable, compostable or biodegradable. They have started to explore the potential of plant based bags which now will help in drastically decreasing non-biodegradable packaging products.
PepsiCo works to ensure availability and sustainable management of water and sanitation for all. 95percent of their wastewater from operations met PepsiCo’s high standards for protection of the environment in 2017. They are committed in providing clean and safe water to the worlds most stressed areas. The company has already invested more than $40 million to help communities effectively conserve, manage and distribute water locally.
PepsiCo supports the communities at large –The women empowerment program ‘Women With Purpose’ is one of the example of how PepsiCo foundations supports locally with culturally relevant solutions to prepare women to enter workforce in countries around the world. They are committed to invest $100 million and as of 2017 they have invested $14. 3 million in the program. Through their Sustainable Farming Program (SFP), they engage their growers on farms of all sizes and types around the world to encourage continuing improvement in sustainable farming practices. This expands respect for workers’ human rights, enhance growers’ capabilities and address risks. Partnering with local framers to optimize economic, social and environmental on-farm practices and to improve the grower’s livelihoods.
PepsiCo closely follows an interactive responsive behaviour. PepsiCo Launches Nutrition Greenhouse program to support food and beverage brands driving change in North America. PepsiCo has realised the need for more nutritious products in the global industry. With awareness in obesity and following a healthier lifestyle PepsiCo has planned and invested involving its stakeholders to produce healthier choices. PepsiCo expanded safe water access to nearly 16 million people, achieving more than 60 percent company’s performance with purpose 2025 goal which is to support 25 million people with safe water access by 2025. The company has already invested more than $40 million in safe water access solutions.
PepsiCo and Feed the Children return to defeat hunger in Kansas City, MO where more than 22 percent of the population lives below the poverty line. This shows that PepsiCo is committed in giving back to the communities. PepsiCo has gone through a few negative publicity and the following are the press reports respectively. Pepsi’s Kendall Jenner ad was so awful it did the impossible: it united the internet. This PepsiCo ad made an impression that if carried Pepsi one would never get arrested. PepsiCo pulled back the ad and apologised that they were trying to project a global message of unity, peace and understanding but clearly we can see that they have missed the mark.
Q3 financial results of PepsiCo stated that PepsiCo is losing to Coco-Cola in key North American carbonated beverage markets. Despite the favourable economic conditions PepsiCo's volatile gross margins imply instability at the bottom line. PepsiCo Finally Comes Clean And Admits The Truth About Their Bottled Water. PepsiCo Aquafina bottled water is just tap water and not the water that originates from the natural drinking source as most us have believed because of including a picture of the mountains on their label. Activists are still pressuring the company to label all of their bottles with something that, truly, should be public knowledge. Pepsi has said to be contributed to the killing of orangutans by purchasing conflict palm oil, the Rainforest Action Network alleges.
Pepsi has be known for objectifying women to promote an energy drink, they released an iPhone app that coaches men on pickup lines and encourages those who score to post details such as name, date, and comments to Facebook and Twitter. This controversial app is called “AMP UP BEFORE YOU SCORE” which was released to promote Pepsi’s AMP energy drink.
