Sustainable Development at PepsiCo
»Business Ethics Case Studies
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
* This case was a Runner-up in the 2012 oikos Global Case Writing Competition (Corporate Sustainability track), organized by oikos International, Switzerland.
The new sustainable development program contained 47 commitments that PepsiCo made toward society and these were divided into four broad areas: Performance, Human Sustainability, Environmental Sustainability, and Talent Sustainability. Despite some progress made by the company in these fronts, since mid-2011, Nooyi had come under fire from key stakeholders such as shareholders and bottlers who contended that her focus on 'Performance with Purpose' had come at the cost of positioning of the company's products and had hurt sales. They felt that its archrival, the Coca Cola Company had gained the upper hand during Nooyi's tenure. This case is meant for MBA/MS-level students as part of the Business Ethics/Corporate Social Responsibility curriculum. It can also be used in a core strategy curriculum.
» Understand the main issues and challenges related to corporate social responsibility for a global company.
Sustainable Development; 'Performance with Purpose' strategy; Business Ethics; Corporate Social Responsibility; Operating performance; Human Sustainability
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