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Conflict Palm Oil and

Ethical Dilemma

Straetegic Management
Lecture : Rusdi Akbar, PhD, CMA, CA, Akt
Prepared by : GROPU 10
1. Ricky Imanda (17/421942/PEK/23519)
2. Alfianita Dewi S (17/421848/PEK/23425)
Topics Covered
• Company Background
• Vision & Mission
Statement
• Product Offered (Brand)
• PepsiCo’s Ethical
Dilemma
• Analysis & PepsiCo’s
Willingness
• PepsiCo’s Commitment
• Others Ethical Issue
• Conclusion
Company Background
1965
Merger with
1898 Frito-Lay, Inc.
2001
Coining the name
Merger with Quaker Oats
“Pepsi-Cola”

1988
The acquisition of Tropicana

1902
Creating the Pepsi-Cola
Company

1880s
Making recipe for the
soft drink
PepsiCo’s Vision Statement
• PepsiCo’s vision statement is “to deliver top-tier financial performance
over the long term by integrating sustainability into our business
strategy, leaving a positive imprint on society and the environment.”
PepsiCo adds that this vision statement is built on the idea of
“Performance with Purpose.”
• Based on these considerations, PepsiCo’s vision statement has the
following main points:
1. Top financial performance
2. Sustainability
3. Corporate social responsibility
PepsiCo’s Mission Statement
PepsiCo’s mission statement is :

• “To provide consumers around the world with delicious, affordable, convenient and
complementary foods and beverages from wholesome breakfasts to healthy and fun daytime
snacks and beverages to evening treats.”

• “We are committed to investing in our people, our company and the communities where we
operate to help position the company for long-term,
sustainable growth.”

• The main points of PepsiCo’s mission


statement are as follows:
1. Consumers around the world
2. Delicious, healthy and fun products
3. Affordability
4. Convenience
Product Offered (Brand)

Top Global Brands Better For You

Good For You Fun For You


PepsiCo’s Ethical Dilemma
PepsiCo’s ethical dilemma related to conflict palm oil.
Palm oil is a key ingredient that goes into the company’s snack foods.
Over the years, the demand for palm oil had increased sharply as it was one of the
cheapest vegetable oils available on the global market with no trans fats.
The rise in demand was linked to large-scale deforestation across South East Asia.
Impact :
Deforestation
Human Rights Violations
Climate Pollution
Adding to global warming emissions
Reducing habitat for many already threatened species
Analysis

MULTI PRODUCTS DERIVES FROM ONE OIL

Palm oil is in so many products that it’s hard to


avoid. Even if it’s could, palm oil isn’t the main
problem, deforestation is the main problem,
and that will only stop when corporations take
responsibility for the palm oil they buy. Only a
few companies are making significant headway
towards ensuring that there is no deforestation
in their palm oil supply chains, and most are
moving far too slowly.

Source Pic : https://www.bbc.co.uk/news/business-43696948


Source : https://twitter.com/rspotweets/status/701773445093134339
PepsiCo’s Willingness
PepsiCo has been
targeted by a broad
number of
environmental
groups for its
continued use of
large quantities of
Conflict Palm Oil in
its snack foods.
PepsiCo’s Commitment
Others Ethical Issue
Plastic bottle and tin cans
Packaging
Plastic Bottle and
Tin Cans
PepsiCo’s Commitment
The PepsiCo target covers all EU
countries by 2025, targeting all
beverage brands in the company’s
portfolio, including PET bottles,
including Pepsi, Pepsi MAX, 7Up,
Tropicana and Naked. This will apply
to all operations related to PepsiCo’s
beverage production and has also
been accepted by franchise bottlers.

PepsiCo already uses about 13 percent recycled


PET (rPET) in its bottling operations in the EU in
2017.
Conclusion
• PepsiCo should be ethically and legally responsible and aware of
environment where they operate their business
• Avoid any conflicts and also to provide/deliver their philanthropy to
people
• CSR is also the best way for company to show their concern for
environment that they operate and those people who are affected
their operation