Pepsi’s focus on corporate responsibility has made the organization known for the beneficial work that it does for the community. PepsiCo has founded a program called “Performance with Purpose” to be responsible to the community and environment in various different ways. Various tasks performed by this program include finding innovative ways to reduce the use of water, energy and packaging. Another tactic which Pepsi uses in order to be a responsible company is hiring local people, partnering with local growers and providing healthier food alternatives. There are three main components of the “Performance with Purpose” program which each focus on different elements of social responsibility and sustainability. The three sections are human, environmental and talent sustainability. I was able to find out about Pepsi sustainability efforts by browsing the 28 page 2009 sustainability report which can be found on the company’s website.
Pepsi’s human sustainability efforts include changes to their products, marketplace and community. Product changes include increasing the amount of whole grains, nuts, fruits and vegetables. To improve the healthiness of their products, Pepsi will be decreasing the amounts of sodium, saturated fat and sugar in their products. Pepsi plans to improve human sustainability through the marketplace by displaying calorie counts and key nutrients, eliminate the direct sale of full-sugar soft drinks to schools and increase the range of portion sized snacks. Substantiality through the community will be achieved by investing and researching nutritionally relevant products, promoting healthier communities and integrating health and agriculture policies.
The second component of Pepsi’s corporate responsibility program is environmental sustainability through which Pepsi works to maintain our resources such as land, energy and water. PepsiCo hopes to improve their water use efficiency by 20 percent, strive for positive water balance and provide access to safe water for 3 million people. Land and packaging can be sustained by continuing to incorporate recycled polyethylene terephthalate, eliminate all solid waste from landfills and reduce packaging weight. Pepsi aims to reduce their carbon footprint by improving electricity efficiency, reducing fuel-use intensity and reducing green house gas. Pepsi also has a commitment to its community which can be shown through their efforts apply sustainable agriculture practices, provide support to local farmers and promote environmental education.
The third way in which social responsibility and sustainability are cultivated by PepsiCo is through focusing on employee talents. Pepsi hopes to enable its employees to thrive by providing a supportive and promotional workplace. Pepsi hopes to enable its employees by ensuring high levels of employee engagement, fostering diversity, encouraging them to lead healthy lives, providing a safe workplace and complying with ethical and legal standards. Pepsi fosters careers through providing an environment where people know their skills can develop and providing frequent training to upper management.
These are three different areas that show the social responsibility of the Pepsi Company. Since Pepsi focuses on each of these areas in addition to simply earning revenue, it shows that they want to improve the world which they are running in through setting up these ambitious sustainability goals.
Monday, May 2, 2011
Thursday, April 21, 2011
Crisis Management
After research, there has been one big crisis in PepsiCo's history which is often used as an example of a situation that needed a well layed out crisis management plan in order to maintain the companies reputation.In 1993, a man from Tacoma, Washington claimed he found a syringe inside of his can of Diet Pepsi. While people became worried about the production of the company's products, Pepsi knew that their manufacturing would not allow for such tampering. Pepsi realized that people from outside of the company were inserting these foreign objects in order to receive money from the company and alter Pepsi's image.
In order to avoid damage to the company's name, Pepsi employed a defensive strategy, claiming that the organization was innocent in this situation. A tactic that Pepsi used was to attack the accuser. As Pepsi knew that customers were inserting objects after they had been opened in order to receive settlement money from the organization, Pepsi made it clear that legal actions would be taken against those making false claims. Since there was so much information on the news about this situation, Pepsi knew they needed to comment on the situation even though it was not their fault. If Pepsi did not respond to the crisis, it would become worse as information from outside the organization began to spread.
The second strategy which Pepsi employed was to say there was no crisis. In order to show the safety of their factories and that merchandise could not be tampered, they brought video cameras into the manufacturing room. This served as visual representation that due to Pepsi's bottling process it would be impossible for foreign objects to be entered into the cans or bottles before they had been sealed. Pepsi also released a video of a convenience store surveillance system catching a woman tampering a can of Pepsi. These videos served as actions taken to maintain customer confidence in Pepsi's product in the midst of a crisis.
While this crisis is different from most others since there was no subject and Pepsi had done nothing wrong, it was still very important for Pepsi to take actions in minimizing the rumors. While there was no legitimate crisis, the allegations were able to create a negative sentiment about the organization until PepsiCo was able to show the tampering was not their fault. This situation is a specific example that the perception of a crisis must be dealt with just as an actual crisis is.
Pepsi was able to rebound from this situation by using honesty and open communication with both their customers and employees. This crisis was able to be easily averted due to the fact that Pepsi took action extremely quickly after the claims against the company had been made. PepsiCo's preparedness for crisis situations helped them to maintain their positive image even after terrible allegations were made against them.
After looking through their website I was able to find a document about the variety of crisis that PepsiCo is aware they may be affected by. In their 2008 and 2009 annual reports, Pepsi had a section dedicated to "Our Business Risks". This section discussed various things that could potential create conflict for the organization. Potential crisis that were included on the website include:
1. Change in customer preferences
2. Product contamination or tampering
3. Problems with retailers of Pepsi products or bottling companies
4. Problems top management’s ethics or with retaining them
5. Legal changes
6. Economic instability
7. Lack of resources
In order to avoid damage to the company's name, Pepsi employed a defensive strategy, claiming that the organization was innocent in this situation. A tactic that Pepsi used was to attack the accuser. As Pepsi knew that customers were inserting objects after they had been opened in order to receive settlement money from the organization, Pepsi made it clear that legal actions would be taken against those making false claims. Since there was so much information on the news about this situation, Pepsi knew they needed to comment on the situation even though it was not their fault. If Pepsi did not respond to the crisis, it would become worse as information from outside the organization began to spread.
The second strategy which Pepsi employed was to say there was no crisis. In order to show the safety of their factories and that merchandise could not be tampered, they brought video cameras into the manufacturing room. This served as visual representation that due to Pepsi's bottling process it would be impossible for foreign objects to be entered into the cans or bottles before they had been sealed. Pepsi also released a video of a convenience store surveillance system catching a woman tampering a can of Pepsi. These videos served as actions taken to maintain customer confidence in Pepsi's product in the midst of a crisis.
While this crisis is different from most others since there was no subject and Pepsi had done nothing wrong, it was still very important for Pepsi to take actions in minimizing the rumors. While there was no legitimate crisis, the allegations were able to create a negative sentiment about the organization until PepsiCo was able to show the tampering was not their fault. This situation is a specific example that the perception of a crisis must be dealt with just as an actual crisis is.
Pepsi was able to rebound from this situation by using honesty and open communication with both their customers and employees. This crisis was able to be easily averted due to the fact that Pepsi took action extremely quickly after the claims against the company had been made. PepsiCo's preparedness for crisis situations helped them to maintain their positive image even after terrible allegations were made against them.
After looking through their website I was able to find a document about the variety of crisis that PepsiCo is aware they may be affected by. In their 2008 and 2009 annual reports, Pepsi had a section dedicated to "Our Business Risks". This section discussed various things that could potential create conflict for the organization. Potential crisis that were included on the website include:
1. Change in customer preferences
2. Product contamination or tampering
3. Problems with retailers of Pepsi products or bottling companies
4. Problems top management’s ethics or with retaining them
5. Legal changes
6. Economic instability
7. Lack of resources
Wednesday, April 13, 2011
Global Communications
Global communications is an important feature for Pepsi Co to focus on as 39% of their revenue is received internationally. As previously mentioned, PepsiCo has four separate divisions as part of their corporate structure. Two of these divisions are completely internationally focus, which include PepsiCo Europe and PepsiCo Asia, Middle East, Africa (AMEA). As Pepsi has been trying to obtain a healthier global image, they have acquired, partnered or purchased share in a variety of global brands which are known for their nutritious products. Associating themselves with prospering and nutritious brands throughout the world helps to provide Pepsi with an excellent global reputation. The healthier brands they have acquired on a national level include
- Lebedyansky, Russia's leading branded juice company
- Sandora, a leading juice company in Ukraine
- V Water, an all‐natural enhanced water in the United Kingdom
- Amacoco, Brazil's largest coconut water company
As PepsiCo is known on such an international level, I was able to find there Worldwide Code of Conduct available in 42 different languages. This indicates that the company is dedicated to transparency within the United States and any other countries which produce or purchase PepsiCo products.
Pepsi is the leading food and beverage company in Europe, in addition to employing 43,000 people within the region. The company began in European expansion of distribution in the 1980s and this market makes up 16% of the company’s global net revenue. Pepsi is present within 45 separate nations in Europe as a distributor of its most known brands including Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. While the typical brands are sold in Europe, they have also acquired brands specific to the European culture such as popular juice companies in Russia and Ukraine, which were previously mentioned. Other local brands include Walkers crisps, Copella, Paw Ridge, Snack-a-Jack and Duyvis. Since PepsiCo is extremely dedicated to pleasing the European market, they have recently spent more than 20 million euros in European R&D centre, and 180 million euros in the UK to create new, healthier snacks for that market.
The other international division of Pepsi is similar to the European division in that it sells the traditional brands known in America, while also selling brands localized to the area. The Asia, Middle East and Africa division sells specific brands including Mirinda, Kurkure and Red Rock Deli. PepsiCo owns production and distribution centers in these areas while also producing through alternative means including joint ventures, affiliate programs and licensing. 13% of Pepsi’s worldwide international revenue worldwide comes from this area.
The final component of examining Pepsi's global communications was to view the websites of each country in order to see if there were differences in sites depending on the country. It was interesting to me that the website had extremely simliar layout yet the opening banner ad was different in each country. On the website for America, had an animated image of Brisk, while Italy and China had colorful images explaining Performance for A Purpose. It was clear that the website had very similiar information posted on them, yet the opening images of the sites were catered to the country they were made for.
- Lebedyansky, Russia's leading branded juice company
- Sandora, a leading juice company in Ukraine
- V Water, an all‐natural enhanced water in the United Kingdom
- Amacoco, Brazil's largest coconut water company
As PepsiCo is known on such an international level, I was able to find there Worldwide Code of Conduct available in 42 different languages. This indicates that the company is dedicated to transparency within the United States and any other countries which produce or purchase PepsiCo products.
Pepsi is the leading food and beverage company in Europe, in addition to employing 43,000 people within the region. The company began in European expansion of distribution in the 1980s and this market makes up 16% of the company’s global net revenue. Pepsi is present within 45 separate nations in Europe as a distributor of its most known brands including Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. While the typical brands are sold in Europe, they have also acquired brands specific to the European culture such as popular juice companies in Russia and Ukraine, which were previously mentioned. Other local brands include Walkers crisps, Copella, Paw Ridge, Snack-a-Jack and Duyvis. Since PepsiCo is extremely dedicated to pleasing the European market, they have recently spent more than 20 million euros in European R&D centre, and 180 million euros in the UK to create new, healthier snacks for that market.
The other international division of Pepsi is similar to the European division in that it sells the traditional brands known in America, while also selling brands localized to the area. The Asia, Middle East and Africa division sells specific brands including Mirinda, Kurkure and Red Rock Deli. PepsiCo owns production and distribution centers in these areas while also producing through alternative means including joint ventures, affiliate programs and licensing. 13% of Pepsi’s worldwide international revenue worldwide comes from this area.
The final component of examining Pepsi's global communications was to view the websites of each country in order to see if there were differences in sites depending on the country. It was interesting to me that the website had extremely simliar layout yet the opening banner ad was different in each country. On the website for America, had an animated image of Brisk, while Italy and China had colorful images explaining Performance for A Purpose. It was clear that the website had very similiar information posted on them, yet the opening images of the sites were catered to the country they were made for.
Wednesday, April 6, 2011
Investor Relations
Investor Relations is becoming an increasingly important part of all companies as disclosure to investors has become more regulated in recent years. There is a section of the PepsiCo website dedicated entirely to the company's investors. The website provides downloadable versions of all the company's annual reports in order for investors and potential investors to have all of the company's avaliable financial information. The company's corporate profile contains all the basic information about the company which people would like to know of before buying or selling stocks of the organization. The profile includes information about each division of the company which are PepsiCo Americas Beverages (PAB), Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), Europe and Asia, Middle East & Africa. Another way that PepsiCo keeps their investors informed is with a Financial News section of the investor relations page. Having all financial press releases in one location ensures that Pepsi is providing all investors with the same information and is avoiding the practice of insider trading.To increase the ease of obtaining information, PepsiCo has set up an option where investors can request to have any financial updates sent to their email accounts in order to further simplify the process of obtaining information.
The investor section also provided contact information for IR workers at the organization in case people have confusion or questions that need immediate assistance. After any earnings statements are released Pepsi will issue press releases along with having conference calls to discuss the earnings and inform people of any financial changes that have taken place. Making these releases, calls and transcripts avaliable online is one of the many ways that PepsiCo practices transparency and increases the flow of information with investors. Pepsi, along with any other public company, holds annual meetings with people that hold shares within the company. Pepsi's annual meeting will be held on Wednesday May 4th at the Frito-Lay's headquarters. According to the website, shareholders will be able to conduct a vote on executive compensation, approve amendments to the Articles of Incorporation and review the progress of the company throughout the past year. As shareholders have invested money within Pepsi stocks, this meeting will give these shareholders a chance to express their opinions on this organization that they have invested in.
As we have discussed in class, each company is required to submit certain reports to the Securities and Exchange Commission. Pepsi has listed each of the reports in an SEC filings section with sections such as annual reports, mergers & acquisitions, quaterly and proxy filings. This organization will help potential investors find any information that could potential help them in buying or selling stock. The website has an entire section dedicated to the price of their stock at that exact time. Right now one share of Pepsi costs $65.69, with that price fluctuating throughout each day.
The investor section also provided contact information for IR workers at the organization in case people have confusion or questions that need immediate assistance. After any earnings statements are released Pepsi will issue press releases along with having conference calls to discuss the earnings and inform people of any financial changes that have taken place. Making these releases, calls and transcripts avaliable online is one of the many ways that PepsiCo practices transparency and increases the flow of information with investors. Pepsi, along with any other public company, holds annual meetings with people that hold shares within the company. Pepsi's annual meeting will be held on Wednesday May 4th at the Frito-Lay's headquarters. According to the website, shareholders will be able to conduct a vote on executive compensation, approve amendments to the Articles of Incorporation and review the progress of the company throughout the past year. As shareholders have invested money within Pepsi stocks, this meeting will give these shareholders a chance to express their opinions on this organization that they have invested in.
As we have discussed in class, each company is required to submit certain reports to the Securities and Exchange Commission. Pepsi has listed each of the reports in an SEC filings section with sections such as annual reports, mergers & acquisitions, quaterly and proxy filings. This organization will help potential investors find any information that could potential help them in buying or selling stock. The website has an entire section dedicated to the price of their stock at that exact time. Right now one share of Pepsi costs $65.69, with that price fluctuating throughout each day.
Tuesday, March 29, 2011
Community Relations
PepsiCo has taken a variety of different steps in the realm of community relations. Since the corporation realizes the important role that helping the community takes in the success of a business, they formed the PepsiCo Foundation in 1962. Today this foundation works with public, private and civil organizations in order to improve the fundamental problems and concerns throughout the community. While today the foundation is influential on a global level, that is not how the foundation started out. The primary purpose of this foundation was to promote health and wellness within Pepsi. As time continued, the company spread its focus to funding fitness education for youth. In 1998, the PepsiCo Foundation was the first corporation to become a sponsor of the YMCA of the USA. Since the program started, PepsiCo and their foundation have funded numerous programs on the importance of active lifestyles and making smart dietary choices. Promoting nutrition and physical activity throughout the community gives Pepsi a good name since it shows that the business is concerned about their customers and wants to give back.
While nutrition and physical activity was extremely important causes to support, in recent years PepsiCo Foundation has changed its community relations practices in order to reflect the needs of underprivileged populations. The foundation donates to areas in need of health, environmental and educational assistance. The health goals of the community relations department include protecting and providing nutritious foods, improving complete health and bettering nutrition. As there have been recent environmental crises, the PepsiCo Foundation looks to protect and improve existing water sources, along with sustaining agriculture. The third area which Pepsi uses in its community relations practicing is improving education and women’s empowerment.
PepsiCo now focuses on the global community instead of just the national level, with a total $27.9 million being contributed to charitable causes in 2009. Recent disasters have also encouraged the PepsiCo Foundation to donate to response assistance. Different disasters which PepsiCo has been able to assist during include the Haiti earthquake, Asia flooding and China earthquake. While donating to these different causes is extremely helpful for those in need, it also provides Pepsi with a better reputation since many people respect the contributions made by the organization.
While nutrition and physical activity was extremely important causes to support, in recent years PepsiCo Foundation has changed its community relations practices in order to reflect the needs of underprivileged populations. The foundation donates to areas in need of health, environmental and educational assistance. The health goals of the community relations department include protecting and providing nutritious foods, improving complete health and bettering nutrition. As there have been recent environmental crises, the PepsiCo Foundation looks to protect and improve existing water sources, along with sustaining agriculture. The third area which Pepsi uses in its community relations practicing is improving education and women’s empowerment.
PepsiCo now focuses on the global community instead of just the national level, with a total $27.9 million being contributed to charitable causes in 2009. Recent disasters have also encouraged the PepsiCo Foundation to donate to response assistance. Different disasters which PepsiCo has been able to assist during include the Haiti earthquake, Asia flooding and China earthquake. While donating to these different causes is extremely helpful for those in need, it also provides Pepsi with a better reputation since many people respect the contributions made by the organization.
Monday, March 7, 2011
Media Relations
PepsiCo is extremely focused on keeping in close contact with the media that publicizes and writes about different stories that Pepsi is part of. Pepsi has an entire section of their website dedicated to MEDIA where people utilizing the website can find all press releases distributed by Pepsi, different stories they have about what is going on in their company, along with many new stories that have been written about the company by other outlets. The fact sheet and media contact section of the website enables journalists to learn considerable amounts about the company by simply viewing their website.
Different press releases that Pepsi provided on their website for members of the media includes articles on their financial results, stories about product design and improvements, advertising news and articles about members of the personels and the conferences they partake in. The articles posted on the "In the News" section tend to be about the positive things the company has been doing such as supporting children in need, being ranked in the 50 most admired companies, and their interest in reviving sunflower production in order to help the environment. A variety of the articles had quotes from members of the Pepsi company. One example of a quotation was given from the public relations person Andrea Foote, where other quotations where given by members of upper management such as Shiv Singh, Head of Digital for PepsiCo.
Pepsi has used its media page to provide press releases about their corporation, along with posting internet and newspaper articles that will show their organization in a positive light. While there have been negative articles presented about the company, the media section of the website has been presented in a way so that media outlets will only be provided with the positive information about the Pepsi organizations.
Different press releases that Pepsi provided on their website for members of the media includes articles on their financial results, stories about product design and improvements, advertising news and articles about members of the personels and the conferences they partake in. The articles posted on the "In the News" section tend to be about the positive things the company has been doing such as supporting children in need, being ranked in the 50 most admired companies, and their interest in reviving sunflower production in order to help the environment. A variety of the articles had quotes from members of the Pepsi company. One example of a quotation was given from the public relations person Andrea Foote, where other quotations where given by members of upper management such as Shiv Singh, Head of Digital for PepsiCo.
Pepsi has used its media page to provide press releases about their corporation, along with posting internet and newspaper articles that will show their organization in a positive light. While there have been negative articles presented about the company, the media section of the website has been presented in a way so that media outlets will only be provided with the positive information about the Pepsi organizations.
Monday, February 28, 2011
Pepsi and Social Media
The Pepsi Company has been very successful and forward-looking in its use of social media in recent years. PepsiCo has used social media in two different campaigns which helped them to demonstrate how powerful the involvement of consumers is. Pepsi feels that utilizing different forms of social media is a fundamental part of effective marketing. Involving consumers in the innovation of Pepsi’s products and brands will encourage word-of-mouth communications about the modernization or changes. These types of consumer communications about the Pepsi brand will influence revenue and profit of the company.
The two campaigns during which Pepsi used this social media philosophy were Mountain Dew DEWmocracy and the Pepsi Refresh Project. The DEWmocracy campaign was based off of the question “What if we gave the power to our consumers to lead product innovation”? This campaign allowed customers to use an interactive video game to develop new MountainDew products, which resulted in the creations of MountainDew Voltage.
The second campaign through which Pepsi used social media was the Pepsi Refresh Project. This campaign didn’t focus on products, yet instead deal with adding value to the community. Consumers would offer and promote ideas which could move the world forward. PepsiCo designated $20 million to fund different ideas which had been created by ordinary customers. This interactive social media campaign has generated over three million visitors and 16 million votes on the project’s website. The generosity in this project has helped people to see the company as not only fun but also socially responsible. By creating these campaigns instead of using traditional advertising, Pepsi is showing the impact it can have on consumers through social media and empowering the customer.
The two campaigns during which Pepsi used this social media philosophy were Mountain Dew DEWmocracy and the Pepsi Refresh Project. The DEWmocracy campaign was based off of the question “What if we gave the power to our consumers to lead product innovation”? This campaign allowed customers to use an interactive video game to develop new MountainDew products, which resulted in the creations of MountainDew Voltage.
The second campaign through which Pepsi used social media was the Pepsi Refresh Project. This campaign didn’t focus on products, yet instead deal with adding value to the community. Consumers would offer and promote ideas which could move the world forward. PepsiCo designated $20 million to fund different ideas which had been created by ordinary customers. This interactive social media campaign has generated over three million visitors and 16 million votes on the project’s website. The generosity in this project has helped people to see the company as not only fun but also socially responsible. By creating these campaigns instead of using traditional advertising, Pepsi is showing the impact it can have on consumers through social media and empowering the customer.
Sunday, February 20, 2011
Introduction
My name is Nicole Paschal and I am a senior at Quinnipiac University. This blog will be used as part of my Corporate Public Relations class. In this blog I will be commenting on PepsiCo,which is #50 on the list of the Fortune 500 companies.
PepsiCo is the 2nd largest food and beverage company in the world. It includes 19 different product lines which each generally over $1 billion dolars in annual sales. The company's headquaters is located in Purchase, NY and the business employees a total of 285,000 people worldwide. Different product lines owned by Pepsi include Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade. There are more than 200 counties which sell these Pepsi brands in addition to the hundreds of others popular foods and drinks. 61% of sales are in the United States and Canada with 39% of their revenue coming from international. Pepsi's commitment to sustainable growth, known as Performance with Purpose, has helped the company to obtain revenues of nearly $60 billion each year. This company bases itself on having healthy, convient and nourshing products, reducing environmental impacting and providing a positive workplace atmosphere. (www.pepsi.com)
PepsiCo is the 2nd largest food and beverage company in the world. It includes 19 different product lines which each generally over $1 billion dolars in annual sales. The company's headquaters is located in Purchase, NY and the business employees a total of 285,000 people worldwide. Different product lines owned by Pepsi include Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade. There are more than 200 counties which sell these Pepsi brands in addition to the hundreds of others popular foods and drinks. 61% of sales are in the United States and Canada with 39% of their revenue coming from international. Pepsi's commitment to sustainable growth, known as Performance with Purpose, has helped the company to obtain revenues of nearly $60 billion each year. This company bases itself on having healthy, convient and nourshing products, reducing environmental impacting and providing a positive workplace atmosphere. (www.pepsi.com)
Subscribe to:
Comments (Atom)