CASE 15
PepsiCo’s Journey Toward an Ethical and
Socially Responsible Culture
CASE NOTES FOR INSTRUCTORS
This case describes the successes and the obstacles PepsiCo has experienced in its quest to become a
socially responsible company. Not only does it provide students with a better understanding of the
company, but it also encourages them to form their own opinions on whether PepsiCo is making a
genuine effort toward social responsibility or whether their efforts are mere window dressing. Instructors
may want to ask their students if they feel that a company whose primary product is unhealthy can really
become an ethical business.
QUESTIONS AND DISCUSSION
1. 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?
Balancing these various stakeholders is probably the biggest challenge PepsiCo is trying to overcome.
Students might have a variety of answers to this question. One way PepsiCo is working to placate
special-interest groups and regulators is by investing more in healthy products. The trick is to make
2. How effective do you think PepsiCo has been in responding to stakeholder concerns about nutrition
and sustainability?
3. 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?
Students’ answers may vary and should be supported by reasoning. Some may think that it is logical
because the partnerships allow the company to learn better practices from experts in areas where they
ADDITIONAL RESOURCES