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Case Study #2

Case Study #2
Kevyn Roberto Valdez Garca
City University of Seattle

Case Study #2

Kevyn Roberto Valdez Garca, BC306: Ethics and Leadership July 18th, 2016,
PepsiCos Journey Toward an Ethical and Socially Responsible Culture. These following
questions based on the PepsiCo Case Study from the book Business Ethics: Ethical
Decision Making and Cases, explain the different concepts and application from various
businesses situations, backing them up with citations and quotes to prove our point from
our research and reading from the previous book.

How does PepsiCo balance those stakeholders such as consumers and shareholders
interested in good tasting products and financial performance with special-interest
groups and regulators that are more concerned about nutrition?
R. According to PepsiCo Guiding Principles, Health, and Social Responsibility,
this company focuses on health conscious products that are way more
attractive for consumers than the competition products. PepsiCo marketing was
narrowed to low calorie and regulatory products and sell only products were
they could be proud of, speaking with truth and candor, having a short and long
term balancing, winning with diversity and inclusion and of course, respecting
the others and succeed together. (Ferrel, Fraedrich, & Ferrel, 2015, p.
553;556;557)
This world-renowned organization has clearly understood what consumers
needs and wants with easy access. What their stakeholders like to, knowing their
expectations, the product quality, integrity and honesty are some of the essential
goals wants to preserve and always being practicing to keep their particular
interest.

Case Study #2

How effective do you think PepsiCo has been in responding to stakeholder concerns
about nutrition and sustainability?
R. In my opinion, they have managed the nutrition and sustainability pretty well
because they do not want that their stakeholders back down with the
commitment that the company has been working for too many years and
because of an insignificant affair, their stakeholders do not support them.
They have to show them the loyalty, respect, and honesty that the company
respect to just attend what the consumer needs and want to gain a piece of heart

and a significant remembrance in a stakeholders life.

Do you think it is logical for PepsiCo to partner with nutrition and water
conservation nonprofit groups since it received heavy criticism for unhealthy
products and wasteful water practices?
R. Yes, because it means that PepsiCo wants to do things right to prove to the
community and claim back their professional image. That the heavy criticism
about the company was totally wrong and PepsiCo is trying to show off the
community that they want to be different now.
Pepsi wants correctly to apply their go green, low calorie and not healthy
risk program, so the consumers can trust them even more, without remembering
all the complaints and struggles that PepsiCo has been through.

References
Ferrel, O., Fraedrich, J., & Ferrel, L. (2015). Business Ethics: Ethical Decision
Making and Cases (Vol. 10). Stamford, CT: Cengage Learning.