Learning Journal

How does PepsiCo try to balance profit and responsibility? Do you think they have the right balance?

Answer:

PepsiCo came up with new motto “Performance with Purpose” to balance its profit, which is to provide broad range of healthy snacks, developing innovative ways of reducing impact on environment and operation cost, providing safe and inclusive work environment for workforce, valuing and respecting stakeholders and generating healthy financial return and high level financial performance (Hollender, 2014). Hence the Motto of PepsiCo act as a guideline because it focus on the product type as customer demand i.e. healthy snacks, environment impact reductions i.e. plastic waste and employees satisfaction and work culture, which will guide PepsiCo for balancing profit and sustainability of  organization.

For balancing the responsibility PepsiCo has developed PepsiCo Foundation in 1962 and continuously supporting victims of natural disaster by funding. In 2009 for charitable activities the foundation donated $27.9 million and for Haitian earthquake in 2010 the foundation donated $1 million with other resources like beverage and bottled water (Daniels Fund Ethics Initiative, 2014).

PepsiCo also started the campaign known as ‘we inspire campaign’ where women are empowered and provided a platform to share, communicate the ideas using Pepsi website. In 2010 PepsiCo announced partnership with waste management Inc. to develop the initiatives of recycling the waste products. This is unique social responsibility initiative because every time people recycle their products they will obtain a point which can be redeemed and points can be movie ticket, coupons etc which was a good idea for balancing the social responsibility.

Yes, PepsiCo has right balance because it has used its principle guide line ‘Performance with Purpose’ to balance its profit by providing low calorie snacks and non carbonated drinks. PepsiCo kept on valuing its employees and other stakeholders for the healthy financial return.  PepsiCo is organizing and developing different initiatives for the proper balance of social responsibility.

Hence in my view, PepsiCo have right balance of its profit and responsibility as it has followed proper guideline by valuing stakeholders, environment and healthy products. For the responsibility PepsiCo is developing environment friendly initiatives as well as funding to those who are helpless due to natural disaster. (345 words)