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PepsiCo: Domestic and Global Environmental Factors

Introduction

Environmental factors could be social, political, cultural, ecological, ethical, and technological in nature. For an organization that has both a domestic and global reach on its products/services, it becomes important to consider the impacts that these factors may have on such an organization. By not considering these factors, an organization could be faced with a failure to market its products either domestically or globally, despite the existence of significant market potential. Although the organization’s sustainability vision may appear simple in terms of concept, its impacts are far-reaching. Environmental stewardship has also become an integral part of this vision for purposes of supporting the company’s goals and for corporate citizens’ reasons.

Impact of domestic and global environmental factors on PepsiCo’s marketing decisions

Socio-cultural influences: lifestyle changes greatly affects the markets under which PepsiCo operates in, as the company’s advertising campaigns are targeted at certain populations with unique lifestyles. Therefore, the company has to be committed to lifestyle changes. Social mobility is of special concern in order not to lose a potential market. PepsiCo has also ventured into emerging markets such as China, and it thus becomes important that the company understands the culture of the locals and the political environment of such markets.

From a sociological perspective, PepsiCo provides an ideal environment for the growth and development of its human resources, as well as the stakeholders. These include consumers, retailers, suppliers, and employees. Employees at PepsiCo undergo training on human rights. During the training, the intrinsic aspects of human rights are often explored, and the need for the sustenance of an inclusive nature is emphasized (PepsiCo News Release, 2008).

According to PepsiCo’s code of conduct, all employees are required to adhere to employment laws and regulations in their locality. This includes labor laws as well and the treatment of employees. Such a kind of training and mode of thought is in line with the company’s marketing practices. PepsiCo has also been able to achieve and maintain high ethical, environmental, and social standards (PepsiCo News Release (2008). Consequently, the organization’s reputation has endeared consumers, employees, and stakeholders alike to embrace its products, and this has seen growth and expansion of the company.

From a legal/political standpoint, PepsiCo has ensured that it is always in compliance with both the legal and regulatory requirements. The company is also committed to regular conducting of audits to verify compliance with such requirements. Additionally, the company has vowed to apply environmental management practices that it deems sound in a case where the present legal requirement appears to be insufficient for its operations (PepsiCo Annual Report, 1999). Moreover, PepsiCo is also committed to considering any potential environmental impacts when they are undertaking their regular marketing decisions.

From an ecological perspective, PepsiCo encourages recycling, pollution control for cleaner water and air, source reduction, conservation of natural resources, and a reduction in landfill wastes. These environmental best practices are shared across the organization. PepsiCo works closely with its licensed bottlers, customers and suppliers, to ensure that throughout the lifecycle of their products, environmental impacts are reduced (PepsiCo News Release, 2008).

Technologically, PepsiCo has heavily invested in information technology and communication in a bid to monitor the emerging issues in the soft drinks industry, as well as the other affiliated sectors of the organization. This is also aimed at keeping pace with the regulatory changes and technological innovation to beat the competition.

Through advances in technology, PepsiCo has managed to establish metrics that enable the company to monitor environmental performances. Such metrics are then used for the setting of the company’s goals, as well as for the organization’s continuous improvement. Technology has also enabled the company to easily implement environmental management systems with a view to identifying risks, opportunities, and obligations. Technological influences on PepsiCo will also include new manufacturing techniques, and these will have an impact on all the three business sectors under which the company operates; soft drinks, juices, and snack foods (PepsiCo Annual Report, 1999). As such, the company has to pay special attention to new techniques in the distribution sectors. Also, the company has to be committed to the development of competence, as well as the knowledge of new products from competitors.

Corporate social responsibility at PepsiCo

PepsiCo is committed to giving back to society, and for this reason, the company contributes to projects and organizations in support of diversity. For instance, in 2006, PepsiCo donated $ 100,000 to the National Urban League. This was a contribution towards the support of the organization’s education, health, diversity, youth, economic self-sufficiency, and inclusion programs. Another beneficiary of PepsiCo’s corporate social responsibility initiative is the Enterprise Peepul Project (PepsiCo News Release, 2008).

This is a small training and business incubators program that targets Asian women and youth from challenged socio-economic backgrounds. In 2004, PepsiCo was the leading contributor to this project, thanks to its contribution of $ 300,000. The Manushi project that benefits needy Asian women and children and victims of domestic violence has also benefited from PepsiCo’s CSR initiative. PepsiCo has also established college scholarship funds, aiding HIV/AIDS programs, and supports faith-based and community-based organizations.

Ethics

PepsiCo has stood out as an organization that respects and is committed to business ethics. A case in point is a letter that the company received, with an offer of selling them confidential information from coca-cola, their long-term business competitor. The management at PepsiCo immediately alerted the FBI on the matter, and investigations were conducted to find the anonymous sender (Cunningham, 2006). This is a clear indication of a company that has instilled and practices business ethics.

At PepsiCo, worker’s dignity at their place of work is respected. As such, the company is committed to ensuring that such rights of their associates as clean and healthful working place, personal security, and freedom from abuse and harassment are upheld. In terms of wages and benefits, the plight of the company’s associates is handling with fairness and dignity (PepsiCo News Release, 2008). Furthermore, PepsiCo is an equal opportunity employer and condones discrimination against workers. Ultimately, the company encourages its suppliers, partners, vendors, and contractors to embrace and support these policies as a show of the organization’s commitment to the respect of human rights.

References

Cunningham, D. (2006). People’s ethics are just, well, refreshing. Times Herald. 2008. Web.

PepsiCo Annual Report (1999). Web.

PepsiCo News Release (2008). Web.