How does PepsiCo balance those stakeholders such as consumers and shareholders that are interested...

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How does PepsiCo balance those stakeholders such as consumers and shareholders that are interested in good tasting products and financial performance with special-interest groups and regulators that are more concerned about nutrition? 2. How effective do you think PepsiCo has been in responding to stakeholder concerns about nutrition and sustainability? 3. While PepsiCo was trying to become a responsible and ethical company, how did the AMP Up Before You Score mobile app get distributed without proper oversight from those who are concerned about appropriate conduct and the reputation of the company?
	
Document Preview: Daniels Fund Ethics Initiative  
University of New Mexico 
http://danielsethics.mgt.unm.edu 
PepsiCo’s Journey Toward an Ethical 
and Socially Responsible Culture 
COMPANY OVERVIEW 
PepsiCo is one of the largest food and beverage companies in the world. It manufactures and sells 
eighteen brands of beverages and snack foods and generates over $98 billion in retail sales. PepsiCo 
encompasses the Pepsi Cola, Frito-Lay, Tropicana, Quaker, and Gatorade brands and offers products 
in over 200 countries. It currently holds 36 percent of the total snack food market share in the U.S. 
and 25 percent of the market share of the refreshment beverage industry. The company’s 
headquarters are in New York and employs over 200,000 people. In 2006, Michael D. White became 
the CEO of PepsiCo International, and in 2007 Indra K. Nooyi became the CEO of PepsiCo. PepsiCo 
has received many awards and recognitions over the years, including being ranked in the top 25 of 
the best global brands, ranking number four overall by Diversity Inc, and earning the Green Award 
by the Environmental Protection Agency. 
COMPANY AND MARKETING HISTORY 
The Pepsi recipe was developed by pharmacist Caleb Bradham in the 1890s. Originally marketed 
under the unassuming name “Brad’s Drink,” Bradham’s creation was renamed Pepsi-Cola in 1898 
due to the pepsin and kola nut ingredients used.  Awareness of Bradham’s new creation spread 
quickly, and in 1902 he decided to create the Pepsi-Cola Company so people everywhere could 
enjoy the drink. In 1903 the patent became official, and by 1910 Pepsi-Cola had franchises in 24 
states and sold over 100,000 gallons of the syrup annually. However, the Pepsi brand would 
encounter several rocky situations before becoming the success that it is today. World War I proved 
to be an especially turbulent time for Pepsi-Cola. Severe fluctuations in sugar prices caused the 
company to lose money, and in 1923 Bradham sold the trademark to Craven’s Holding Corp., who...

Robert · Accepted Answer

PepsiCo’s Journey toward an Ethical and Socially Responsible Culture
Being one of the largest Food and Beverage Company, PepsiCo has become a household name as they hold 36 percent of US snack food market and 25percent of beverage market. Not only they have created a niche in the market by generating huge revenue in retail sales as they have a wide product range to offer but have also taken consumer feedback, their need and requirement seriously thus diversifying the brand by entering into healthy products through partnership or through a joint venture. Like each successful brand, PepsiCo has also attained a strong position in the market but it was not a cake walk for sure, they came under scanner for many times globally because of some or the other reason but their quick response to rectify things that went wrong, their work towards sustainable development and establishing association with powerful and relevant stakeholders who will help the organization grow by introducing or adding health related product and ingredient is highly appreciable. They received lot many awards for their contribution to society and for being a responsible brand like Green Award by the Environmental Protection Agency, PepsiCo has also ranked in top 25 best global brands etc.
The organization has adopted many new marketing tactics and has positioned them very well according to the changing market condition, for an instance we can see that they have positioned themselves as a low cost leader strategy at the time of Great depression and with the change in the market condition and increasing acceptance among the targeted audience they have changed their positioning strategy and moved from being a low cost leader to a lifestyle drink. They have also introduced different celebrity endorsers to attract and enhance their target market and in return increase the revenue. With change in external environment like government and NGO becoming more conscious about the impact of business unit on environment and also on people, change in business policies of different countries, customers need and preference shifting from fast food products to healthy foods and change in internal working environment where every other organization wants to hire the best human resource available and there is a fight in retaining and hiring the best talent. Thus, Ms. Nooyi the present CEO of PepsiCo started focusing on these key issues to cater the market and  stakeholders like customer, employees, Government or non governmental body etc. properly so that no or less uncertainties bothers the organization in future.
Lets have a look at few criticism faced by PepsiCo like one in India wherein Center for Science and environment has claimed in 2003 that the water used by PepsiCo contains toxins which include pesticides and can cause breakdown of immune system and it also contributes to cancer.

How does PepsiCo balance those stakeholders such as consumers and shareholders that are interested in good tasting products and financial performance with special-interest groups and regulators that...

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