ETHICAL PRACTICE OF PEPSI CO.

NAME.: KHAN MOHD FAHAD

S.Y.B.MS.  FINANCE   DIV.: A    R.NO.20  
 Meaning of Ethical Practice :

Ethical practice is the application of ethical values in organisational behaviour.

It applies in all aspects of organisational conduct, including corporate governance,
employment practices, sales techniques, stakeholder relations, accounting practices,
and issues of product and corporate responsibility.
Introduction to Ethical Practice :

Everything you need to know about business ethics. Business ethics implies general ethical ideas to
business behaviour. Ethical behaviour not only improves profitability but also fosters business
relations and employees productivity. Business ethics is concerned with the behaviour of
businessman in doing a business. Unethical practices create problems to businessman and business
units. Business Ethics is an art and science for maintaining harmonious relationship with society, its
various groups and institutions as well as recognizing the moral responsibility for the tightness and
wrongness of business conduct”.
Meaning of Moral Code of Conduct :

 A code of ethics and professional conduct outlines the ethical principles that govern
decisions and behavior at a company or organization. They give general outlines of
how employees should behave, as well as specific guidance for handling issues like
harassment, safety, and conflicts of interest. A code of ethics sets out an organization's
ethical guidelines and best practices to follow for honesty, integrity, and professionalism.
 For members of an organization, violating the code of ethics can result in sanctions
including termination.
 In some industries, including banking and finance, specific laws govern business conduct. In
others, a code of ethics may be voluntarily adopted.
 Benefits of Managing Ethics :

● Improves Society
● Maintains a moral course in turbulent times
● Cultivates employee team work , productivity , morale and development
● Acts as an insurance policy
● Establishes value for quality management , strategic planning and diversity management
● Promotes strong public image
About Pepsi Co. :

 Pepsi is a soft drink company . Their vision led to what quickly became one of the world's leading food and
beverage companies: PepsiCo.
 PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries
and territories around the world. PepsiCo generated more than $70 billion in net revenue in 2020, 
 Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with
Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed
purpose into all aspects of our business strategy and brands.
 Moral Code of Conduct of Pepsi Co. :

 Our PepsiCo Global Code of Conduct (the "Code") was issued effective October 1, 2012 and is amended periodically (most
recently effective August 1, 2021), as appropriate, to address changing laws or procedures that impact our business.
 All PepsiCo employees are expected to embrace the principles of the Code. Our Code is the foundation of our commitment
to ethical excellence and provides the policies and guidelines that define how we do business the Right Way - The PepsiCo
Way:
 Respect in the workplace
 Trust in the marketplace
 Fairness in our business relationships
 Honesty in business conduct
 Purpose in our world
Ethical Practice by Pepsi Co. :

ENVIRONMENT MANAGEMENT: PepsiCo has an established elaborate policy on the environment, health, as well as
safety management. The policy seeks to ensure that the company caters for its immediate business environment
effectively. The policy comprises of eight critical points that include ownership culture, business integration, regulation
compliance, as well as resource allocation (PEPSICO, n.d.).
Ethical Consumer Treatment :
PepsiCo also strives to ensure that it treats its customers in morally acceptable ways without allowing inhumane practices
to penetrate through its corporate human resource practises. The beverage and food company definitely deals with a large
number of consumers that may prove too tricky to handle or manage effectively because it is a large multinational firm
with a presence in almost all the continents in the world. also strives to ensure that it treats its customers in morally
acceptable ways without allowing inhumane practices to penetrate through its corporate human resource practises. The
beverage and food company definitely deals with a large number of consumers that may prove too tricky to handle or
manage effectively because it is a large multinational firm with a presence in almost all the continents in the world.
Moral action towards Employees :
PepsiCo fully supports and expresses a commitment to its entire workforce. The company encourages a diverse
corporate culture where any qualified individual from whatever race, tribe, nationality, or gender can apply for
job positions in the firm and be considered for employment without any discrimination.
 In particular, its corporate philosophy identifies the importance of the firm maintaining mutual respect,
workplace safety, and integrity.
 Pepsi’s inspiration of a collaborative culture focuses on recruiting, as well as retaining world-class talent by
ensuring that its workers achieve employment satisfaction or what the company refers to as “Talent
Sustainability” (PEPSICO
Employees Motivation :
The moral actions directed towards the workers by the firm enhance the level of their motivation. The workers feel they are highly valued and
consider themselves as owners of the firm. They are willing to increase their output because they are aware that their collective hard work
will, in turn, mean that they will receive more benefits from the employer.
Controversies Related to Pepsi Co. :

 Pepsi has apologized for a controversial advertisement that borrowed imagery from the Black Lives Matter
movement, after a day of intense criticism from people who said it trivialized the widespread protests against
the killings of black people by the police.
 “Pepsi was trying to project a global message of unity, peace and understanding. Clearly, we missed the
mark and apologize,” the company said in a statement on Wednesday. “We did not intend to make light of
any serious issue. We are pulling the content and halting any further rollout.”
 The ad, posted to YouTube on Tuesday, shows attractive young people holding milquetoast signs with
nonspecific pleas like “Join the conversation.” The protesters are uniformly smiling, laughing, clapping,
hugging and high-fiving.
 In the ad’s climactic scene, a police officer accepts a can of Pepsi from Kendall Jenner, a white woman,
setting off raucous approval from the protesters and an appreciative grin from the officer.
 At PepsiCo, they believe that there is an opportunity to change how the world produces, distributes,
consumes, and disposes of foods and beverages in order to tackle the shared challenges we face.
They aim to use our scale, reach, and expertise to help build a more sustainable food system; one that can meet
human needs for nutrition and enjoyment, and continue to drive economic and social development, without
exceeding the natural boundaries of the planet.
 As well as being good for our business, working to realize this purpose is also the right thing to do. Where
our food system may be operating in an unsustainable way, it can create supply chain, operational, and
financial risks for our company. By contrast, addressing risks within our value chain and the wider food
system effectively can create new opportunities for competitive advantage and future market growth, while
also supporting the communities in which we operate.
 Indian Traders Boycott Pepsi company for straining
Water Resources :

More than a million traders in India are boycotting fizzy drinks including Coca-Cola and Pepsi after claims from from
two Indian trade associations that foreign firms are exploiting the country’s water resources.

Traders in the south Indian state of Tamil Nadu, which has a population bigger than the UK, will replace big brands with
locally produced soft drinks.

“These foreign companies are using up scarce water resources of the state,” said K Mohan, secretary of the Vanigar
Sangam, one of the associations supporting the boycott.
 Concerns about excessive water usage by companies such as Coca-Cola and PepsiCo were heightened after
 low rainfall during the last monsoon.
 In January, Tamil Nadu’s interim chief minister O Panneerselvam declared the state “drought-hit” and asked
the central government for funds to help farmers.
 Vikram Raja, president of the Vanigar Sangam trade association, said: “[Foreign companies] are exploiting
the state’s water bodies to manufacture aerated drinks while farmers were facing severe drought.”
 Amit Srivastava, director at the NGO India Resource Centre, estimates that it takes 1.9 litres of water to
make one small bottle of Coca-Cola. He says demand for sugar from fizzy drinks companies is also hugely
problematic in India. “Sugarcane is a water-guzzling crop. It is the wrong crop for India,” he said.
 According to our research Coca-Cola is the number one buyer of sugarcane in India and Pepsi is number
three. If you take into account the water used for sugarcane, then we’re using 400 litres of water to make a
bottle of Cola.”
 The Indian Beverage Association (IBA), which represents many soft drinks manufacturers, said it was
disappointed with the boycott.
 “Coca-Cola and PepsiCo India together provide direct employment to 2,000 families in Tamil Nadu and
more than 5,000 families indirectly … IBA hopes that good sense will prevail and that consumers will
continue to have the right to exercise their choice in Tamil Nadu,” it said.
 Raja said demand for fizzy drinks had dropped significantly since January, and many traders who were not
part of his trade association had voluntarily stopped stocking foreign brands.

 The boycotts may only be the beginning of Coca-Cola and PepsiCo’s woes as they try to expand in India.
The Indian government has dropped hints that it may introduce a “sin tax” on sugary drinks, which could
further hit growth figures.
 “It is extremely unfair on the part of certain individuals and organisations to propagate misinformation,” said
Arvind Varma, secretary general of the IBA. “These actions are detrimental to the image of the country and
to the long-term interests of the Indian economy.”
 THANK YOU