Pepsico Social Responsibility

1409 Words 6 Pages
Introductory paragraph
Pepsico, a brand known for it’s unhealthy products, has attempted to break the barriers between junk food and health conscience products. This idea has caused very divergent views about the company, from the corporate social responsibility views of Pepsico’s CEO, to the neo-liberal perspectives of the shareholders, and finally to the socially aware health critics worried about the implications of Pepsico’s less healthy options. Clashing worldviews are a very prominent problem in the realm of business ethics, this paper will discuss the contributors, the issues at hand, as well as remedies and their alternative course of action.
Pepsico was formed through a merger of the Pepsi-Cola Company and Frito-Lay, two companies
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Despite her lengthy and very pertinent background in corporate strategies, her emphasis on a healthy alternatives “good-for-you” line rather than Pepsico’s typical “fun-for-you” products, met friction with shareholders and health critics alike. Indra made very valid changes to their strategies including the decision to bring on a director of global health policy as well as a chief scientific officer (Badaracco 5). These two hires were to develop dietary guidelines for the healthy alternatives she was pushing, and gain some respect from the health conscious world. Despite stakeholder disapproval, Indra saw the market progression and knew that Pepsico couldn’t just build by pushing high energy soda alone, as education against sugar consumption was becoming more prominent in first and second world …show more content… . They are negatively interested in PepsiCo’s new business operations, and they are also trying to damage the image of the company by publishing how irresponsible the corporation is towards its consumers by selling junk food. Those same consumers are the demanding stakeholders who are against Pepsico’s unhealthy product lines, and they are very concerned with Pepsico’s actions in enabling the junk food addictions among the already obese populous of most countries. These stakeholders do not have any actual power to elicit change - other than their collective buying power and the hopes that they can influence the profit margins of the company in hopes of being heard. Health critics are another party criticizing Pepsico’s healthy food initiatives, which could be considered demanding. They are convinced the only way Pepsico could be socially and ethically accountable would be to stop their high sugar, high sodium product lines altogether. As this is the only feasible way in which they won’t be directly involved in the propagation of obesity in the countries they

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