Organization

Pharmacist Caleb Bradham established the beverage company in the 1890s, in New Bern, North Carolina. Within a few years of being in operation in the beverage industry, the company was incorporated as a public traded company on 6^th June 1903 (Penzkofer, 2007). As such, the company was provided with an excellent opportunity to operate within the larger United States of America market, and this set the beginning for the globally recognized company.

Currently, PepsiCo operates in more than 200 countries across the world. In the year 2015, the company reported net revenue of $ 63,056 million resulting to an operating profit of $ 8,353 million. The company has maintained its mission of being the market leader especially in the US.  As of the year 2015, the company commanded a market share of 20.5% worldwide in the beverage industry (The Statistics Portal, 2015).  The company seeks to continue producing quality products to its customers. At the same time, the company endeavors in providing success and growth opportunities for its employees, investors and all its business partners.

Leadership

The company has a team of managers that manages the everyday operations headed by Indra K. Nooyi who is the chairman and chief executive officer.

Success

How to determine ethical

To determine if an organization is ethical, one needs to analysis several aspects about the organization.  A major aspect is the regulatory framework. In any industry, there are regulations which must be followed by all the organizations in this industry. If an organization is committed to following these regulations, then it is ethical. Another element is respect. Any organization must have respect in its day to day operations. Customers are the major stakeholders of any organization and they must be respected. The employees must respect each other and also respect the customers.

A very important element is integrity. This included being morally upright and being honest. Some organizations tamper with their financial statements to look healthier which is unethical. The management of any organization must always stay by its word. Employees must also maintain high integrity. If the employees are unethical, it reflects as a problem of the organization.

Another major element is result oriented. A company like PepsiCo is a public company where its primary mandate is to make profits for the shareholders. The company must stay results oriented to achieve the desirable results. If the company shifts its objectives from making profits to an objective that is not beneficial to the shareholders, then it is unethical.  Any organization must focus on the needs of the customers to ensure that the customers are satisfied. When the customers are satisfied. Then there are good results.

Is it ethical?

In the conduct of its business, PepsiCo Inc has to consider the ethical issues that are likely to affect the business. A major ethical issue is the use of bioengineered food and ingredients. PepsiCo Inc is dedicates itself to producing high quality food and beverage products by ensuring that they exceed the quality and safety standards. The company uses ingredients that have been approved by the appropriate authorities. PepsiCo Inc has a food and safety regulatory department that work closely with suppliers to ensure the safe and integrity use of bioengineered ingredients. In addition, the scientific and regulatory department tracks any emerging issues in scientific reports, which are critical for the maintenance of high standards in food safety.

The world is becoming more health conscious in recent times. The products manufactured by PepsiCo Inc have caused health problems in the past. People these days are considering food rich in low calories, natural items and low fat as opposed to processed salty and sugary foods. PepsiCo Inc fought back by producing drinks that are low in sugar content and calories. PepsiCo Inc is making big strides in addressing the heath issue with its products.

PepsiCo Inc also engages in the conservation of the environment. The company has developed plastic bottles that use less plastic to solve the waste issue. Plastic bottles are a major cause of landfills. PepsiCo Inc keenly observes issue that is unethical and improves on them accordingly. When making decisions, ethical issues have to be considered

Every industry has regulatory issues that affect the decisions of the companies.  Failure to follow such regulations would be unethical for any organization. Major Regulations facing PepsiCo include environmental and accounting regulations. Being in the beverage industry, PepsiCo Inc. has to follow the laws and regulations that govern the food and beverage industry. The Food Safety Modernization Act is the major regulation faced by the PepsiCo Inc. The act aims to enable the Food and Drug Administration (FDA) agency to protect the public against any food borne diseases (Heckman et al., 2010). The FDA focuses more on safety rather than reacting to problems when they occur. They concentrate on preventing the problems from occurring.

PepsiCo Inc is required to write and implement a preventive control plan. This involves evaluating the hazards, specifying the controls, defining how the controls will be monitored, maintaining records routinely and specifying what steps are to be taken to correct problems, which arises. The FDA has established science-based procedures to be followed in the harvesting of fruits and vegetables. Fruits are a major ingredient used by PepsiCo Inc in the production of juices such as Tropicana. Other issues to be considered in the growth and harvesting of fruits according to FDA include soil amendments, hygiene, temperature controls, packaging, and water.

PepsiCo Inc also has the mandate to monitor the environment. The company strives to be responsible regarding conserving the environment. To be socially responsible, the company is committed to using methods that are economically sound and scientifically based. The company engages in recycling and use of energy programs that promote clean water and air and reduced wastes. In broader terms, PepsiCo Inc is committed to following the environmental laws and regulations in the countries where they operate.

The Non-Alcoholic Beverages Sustainability Accounting Standard Board (SASB) sets the sustainability accounting standards to be used by the publicly listed companies in the beverage industry. PepsiCo Inc being publicly listed and in the beverage industry has to follow these guidelines. The SASB’s disclosure identifies and specifies the sustainability topics at an industry level (Heckman et al., 2010). Depending upon the specific operation context of a company, each company decides what is to be included in the periodic SEC filings. PepsiCo Inc has to follow the guidelines in the disclosure when filing the form 10-K, 8-K, and 10-Q. there has never been a case of the company failing to follow these standards.

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