Pepsico Ethics and Compliance
PepsiCo Ethics and Compliance
FIN/370 – Finance for Business
PepsiCo Ethics and Compliance
PepsiCo Inc. is a world leader in the beverage and snack food industry. Founded in 1965, the company has grown to become a household name. PepsiCo employs more than 285,000 employees worldwide, and has revenues of more than $60 billion (Our History, 2011). PepsiCo prides itself on social and environmental responsibility, and maintains a commitment to ethical business practices.
Role of Ethics and Compliance in PepsiCo’s Financial Environment
The management at PepsiCo realizes that reputation hinges on adherence to ethical policies as seen in the public eye. Because of this, PepsiCo has interwoven ethics throughout the company’s policies and procedures, its training practices, and its timely and accurate financial reporting. As evidence of such, in 2010 Ethisphere Magazine ranked PepsiCo one of the world’s most ethical companies. The magazine also placed PepsiCo in the top 25% for compliance performance among beverage industry competitors in the Dow Jones Sustainability World Index (Ethisphere, 2010, Sec. 40).
PespiCo’s letter to the Shareholders (2010) states, “our actions—the actions of all our associates—are governed by our Worldwide Code of Conduct…the Code and our core values enable us to operate with integrity—both within the letter and the spirit of the law” (p. 102). The letter further states that PepsiCo is “committed to providing timely, accurate, and understandable information to their investors” (p. 102). PepsiCo displays its ethical commitment by maintaining strong controls over financial reporting, exerting rigorous business oversight, and requiring strong and effective corporate governance from its board of directors. The company is committed to providing investors with financial results that are “complete, transparent, and understandable” (Annual Report, 2010, p. 102).
To ensure adherence to these ethical principles, PepsiCo employs an independent
FIN/370 – Finance for Business
PepsiCo Ethics and Compliance
PepsiCo Inc. is a world leader in the beverage and snack food industry. Founded in 1965, the company has grown to become a household name. PepsiCo employs more than 285,000 employees worldwide, and has revenues of more than $60 billion (Our History, 2011). PepsiCo prides itself on social and environmental responsibility, and maintains a commitment to ethical business practices.
Role of Ethics and Compliance in PepsiCo’s Financial Environment
The management at PepsiCo realizes that reputation hinges on adherence to ethical policies as seen in the public eye. Because of this, PepsiCo has interwoven ethics throughout the company’s policies and procedures, its training practices, and its timely and accurate financial reporting. As evidence of such, in 2010 Ethisphere Magazine ranked PepsiCo one of the world’s most ethical companies. The magazine also placed PepsiCo in the top 25% for compliance performance among beverage industry competitors in the Dow Jones Sustainability World Index (Ethisphere, 2010, Sec. 40).
PespiCo’s letter to the Shareholders (2010) states, “our actions—the actions of all our associates—are governed by our Worldwide Code of Conduct…the Code and our core values enable us to operate with integrity—both within the letter and the spirit of the law” (p. 102). The letter further states that PepsiCo is “committed to providing timely, accurate, and understandable information to their investors” (p. 102). PepsiCo displays its ethical commitment by maintaining strong controls over financial reporting, exerting rigorous business oversight, and requiring strong and effective corporate governance from its board of directors. The company is committed to providing investors with financial results that are “complete, transparent, and understandable” (Annual Report, 2010, p. 102).
To ensure adherence to these ethical principles, PepsiCo employs an independent
References: 2010 Annual Report. (2010). Retrieved from PepsiCo, Inc.: http://www.pepsico.com/ Download/PepsiCo_Annual_Report_2010_Full_Annual_Report.pdf Ethisphere. (2011). Business ethics leadership alliance. Retrieved from http://www.ethisphere.com/bela/ Mayo, H. B. (2007). Basic finance: An introduction to financial institutions, investment, and management, 9th ed. Mason, OH: Thompson Higher Education. Our History. (2011). Retrieved from PepsiCo: http://www.pepsico.com/ Company/Our-History.html Pepsico Inc (PEP.N). (2011). Retrieved from Reuters: http://www.reuters.com/ finance/stocks/financialHighlights?symbol=PEP.N Silverblatt (2010). Investing in Ethics. Retrieved on Oct 23, 2011 from http://money.usnews.com/ money/blogs/Fund-Observer/2010/03/25/investing-in-ethics Worldwide Code of Conduct. (2011). Retrieved from PepsiCo, Inc.: http://www.pepsico.com/Company/Worldwide-Code-of-Conduct.html