Ethics and Compliance

Topics: Coca-Cola, Pepsi, PepsiCo Pages: 6 (1999 words) Published: April 29, 2013
Ethics and Compliance
Tyrese Simmons
February 5, 2013
Gary phillips

Ethics and Compliance
Ethics, or rather a lack of ethics, is a recurring theme in the news. Recently, finance has been home to an almost continuous series of ethical lapses. As recent history show, the business world does not forgive ethical lapses. Acting in an ethical manner is not only morally correct, but it is a necessary ingredient to long-term business and personal success. (Titman & Martin, 2011) In this paper, the authors will assess the role of ethics and compliance in Pepsi-Cola’s financial environment. The authors will describe the procedures Pepsi-Cola has in place to ensure ethical behavior. The authors will explain how financial markets work in the United States. The processes Pepsi uses to comply with SEC regulations will be discussed. The financial performance of Pepsi for the last 2 years will be calculated using current, debt, return on equity, and days receivable ratios. Each year will be calculated. Lastly, the trend for each ratio and what it tells us about the organization’s financial health. The ethics and compliance role at Pepsi is of the upmost importance. The company strives to comply with rules and regulations put in place by officials. Ethics play a huge part of any organization and its success. The ethics and compliance standards that are in place at Pepsi are provided to ensure the company’s success. If anything unethical or non-compliant from the company would end up with the company in the headlines and on the news. These guidelines are also put in place to empower the employees of the company. The employees embrace the fact that a culture is put in place to promote honesty, trust, and responsibility. The company also strives on the fact that they are both socially responsible and socially conscious. To ensure this will be carried out by each employee, Pepsi has principles to help keep employees grounded. Within these principles are encompassing total care of the consumer as well as the customer, offering the highest quality product, conducting business truthfully, having an equal balance of short-term and long-term goals, through inclusion and diversity display victory, being respectable and succeeding as a team. (, 2012) Pepsi has a compliance committee that handles the program that ensures all rules and regulations are followed. Four sub-committees complete the compliance committee. Anti-trust, safety and environment, human resources, and finance are the four committees. (, 2012) To ensure accountability for the company actions, Pepsi is committed to strict corporate standards. The standards that Pepsi have adopted for its employees show that Pepsi is committed to operating within the legal guidelines. Pepsi has a company motto of “doing business the right way”. Pepsi believes acting ethically and responsibly is not only the right thing to do, but also the right thing to do for their business. The company’s Code of Conduct was revised October 1, 2012 to address changing laws that impact their business. It was designed to provide the employees with specific guidelines on how to act ethically while performing work at Pepsi. (, 2012) In efforts to ensure the Code of Conduct is being followed and employees are kept up to date with the ever changing policies, Pepsi announced in 2010 that they would be imitating a goal and commitment policy. The company soon after announced that the policy would better the lives of everyone associated with the company. The areas focused on were performance, human sustainability, talent sustainability, and environmental sustainability. Following is a list of procedures put in place by Pepsi to assist and ensure ethical behavior in the workplace: 1. Foster diversity and inclusion by developing a workforce that reflects local communities. 2. Ensure a safe workplace by continuing to reduce lost-time injury rates, while...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Realogy-Employees Ethics Essay
  • Develop an Ethics Program Essay
  • Est Task 2
  • Business Ethics in India and Brazil Research Paper
  • Essay about Business Ethics
  • Ethics in Human Resource Management Research Paper
  • EST1 Task 2 Ethics Essay
  • Essay on Ethic in hospitality operations

Become a StudyMode Member

Sign Up - It's Free