In this second article highlighting the work PepsiCo is undertaking to promote sustainability, we take a look at a few of the cultural, social and management practices that have been successfully implemented within their corporate structure. For Part 1 click here.
Workplace Policy
A critical component in evaluating companies from a financial and investment perspective is the inextricable link to the employee workforce. Whenever we look forward at the future prospects of a firm, examining the corporate culture becomes a key indicator in what we may foresee with regard to the success or failure of a company. An employee base fostered by upper management to add value and creativity, and motivated around a framework providing exceptional support and career options is indicative of a healthy working environment. PepsiCo expands its social influence both inside and outside its corporate walls through a number of initiatives that positively support this trend.
Health & Wellness
Just as PepsiCo realizes that protecting the environment that ultimately provides the source of all of its food and beverage business, they have also recognized that a focus on health and wellness and doing good for consumers is good for business.
It may come as a surprise to hear about the work PepsiCo is doing to work on programs that help reduce obesity and improve diets, also developing responsible marketing practices that support the adoption of healthier lifestyles. This includes marketing only products that meet specific nutrition criteria to children, reformulation of existing products with higher quality ingredients, and the introduction of newer nutritious products to their line up. They have even taken the step of developing a program called Smart Spot that provides a ‘smart label’ on products that meet nutritional guidelines provided by the FDA. Three hundred products currently display this label. This initiative extends to the company’s responsible marketing program, which pledges a number of proactive actions. Perhaps the most significant is that 100% of its products marketed to children under the age of 12 in TV, radio and in print advertising have to meet the Smart Spot criteria.
Diversity
Diversity isn’t just important to your investment portfolio. PepsiCo has come to realize that to truly understand global consumers’ needs and be competitive in the international marketplace, they must take extra steps in integrating their business, suppliers and employees. Encouraging and committing to diversity takes shape in many different ways, including project donations from the PepsiCo foundation, and focusing on customer product needs that meet a wide range of ethnic groups and cultures. Business partners are selected from a wide supplier base and PepsiCo actively seeks out suppliers from minority and women backgrounds.
Internally, PepsiCo is recognized as a global leader in hiring and maintaining a workforce of women and minorities in professional positions and was the first fortune 500 company to have an African-American as a vice-president. The firm regularly receives awards in Europe as one of the top companies for where women want to work, and received a 100% rating for the 5th year in a row from the Human Rights Campaign Foundation (America’s largest civil rights organization), which recognizes companies that actively engage with all Americans and work to remove discrimination.
PepsiCo is pushing forward sustainable corporate responsibility in many areas other than those presented above and in Part 1. To learn more about the steps PepsiCo has taken to encourage sustainable business practices click here to be directed to their corporate site.
