Ethics and Compliance in Pepsico

Topics: Ethics, PepsiCo, Balance sheet Pages: 5 (1637 words) Published: December 14, 2012
Running head: PEPSI-COLA

Ethics and Compliance within Pepsi-Cola
November 24, 2012

Ethics and Compliance within Pepsi – Cola
Pepsi-Cola or PepsiCo is a global company that has $510 million in sales and 19,000 employees in many countries worldwide including Europe, Asia, Middle East and Africa. PepsiCo was founded in 1965 after Pepsi merged with Frito-Lay. PepsiCo has the philosophy of being committed to delivering sustained growth through empowering people, acting responsibly, and building trust within the community it serves (PepsiCo, 2012). The mission of PepsiCo is to be the premier world’s consumer product company focusing on convenient foods and beverage (PepsiCo-Mission, 2012). The focus of this paper is to discuss the ethical behavior of PepsiCo; to explain how financial markets work within the United States; to identify the processes PepsiCo uses to comply with SEC regulations and discuss the financial performance of PepsiCo. Roles of Ethics and Compliance in Pepsi’s Financial

In order, to identify the roles of ethics and compliance we must understand the meaning of ethics and compliance. When determining what is right or wrong, who is responsible or not responsible, who was fair or unfair we concerned ethics. Ethics is the response to the question, “What should I do?”

Compliance is the fact of meeting rules or standards. Compliance are internal policies and procedures set forth ensuring that each individual abide by the regulations.
In today’s society we have several businesses that have adhered to their ethics and compliance. One amazing company that stands out among the rest is PepsiCo. Pepsi was originally created in the year of 1893 by Caleb Bradham. Pepsi has a commitment to strengthen their consumers and at the same time build a bridge of trust for their customers. Pepsi believes that each employee should show respect, act with integrity and perform work responsibly for their shareholders. These principles are outline as a road map to demonstrate the ‘right’ way in doing business. According, to the annual report from 2011 PepsiCo is a $66 billion global powerhouse focused on two complementary businesses with attractive growth, margin and returns-global snacks and global beverages. In 2011, they delivered core net revenue growth of 14 percent (2011Pepisco Annual Report). Not only is Pepsi creating policies and procedures, they are implementing them and they are reflected in the 2011 annual report. PepsiCo is a company that prides itself on taking risks. This amazing company has succeeded both national and international. Pepsi has merge with other companies in order to increase their revenue. Indeed, Pepsi has had their ups and downs. Despite the negative criticism the company still press on to enhance growth, increase financial returns and improve their products to meet our healthy needs. Ensuring Ethical Behavior

In every company there are rules and regulations that are set forth and there are also consequences assigned if the rules are not properly followed. That is when a written code of ethics is introduction. Typically, when you are hired at a new company the employee has to read and signed the code of ethics in order to proceed with the job process. The reason why the code of ethics is one of the materials signed first is that the company wants to place emphasis on the importance of the ethics and compliance in their business. The PepsiCo has a compliance committee that oversees the compliance program at PepsiCo (PepsiCo Inc., 2011). The compliance committee makes recommendations that are upheld by the utilization of issue resolution strategies (PepsiCo Inc., 2011). The regulations are heavily enforced and each employee understands the importance of ethics and compliance within the company. Each regulation is designed based on the action of the behavior. Indeed, many would say that code of ethics could be eliminated if only...

Bibliography: PepsiCo. (2012). Pepsico Values & Philsophy. Retrieved November 24, 2012, from
PepsiCo-Mission. (2012). Misson Statement. Retrieved November 24, 2012, from
Press, E. (1999). Analyzing Your Financial Ratios. Retrieved November 27, 2012, from
PepsiCo Inc. (2010). PepsiCo. Retrieved from
PepsiCo Annual Report: 2011-
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