Pepsio's Ethical And Socially Responsibility Essay

Pepsio's Ethical And Socially Responsibility - Essay Example In today’s business environment, the practices adopted by PepsiCo provide an insight into how to involve key stakeholders in defining organizational priorities. The modern 21st century has the high focus on corporate social responsibility whereby commercial, profit oriented organizations are required to share their profits with the communities they serve. The concept is promoted as paying back to the society which is the major profit generating origin for commercial organizations. The contemporary response to corporate social responsibility obligations and initiatives has been quite negative when money spent on these activities was included in the cost budget with no identified revenue or profit contribution. Organizations like PepsiCo changed this perception and marked corporate social responsibility as an investment whose return is provided in terms of customer loyalty, employee loyalty, better corporate image and increased market penetration. The literature is rich in expla ining the benefits achieved through these factors and industry has uncountable evidence for them.Apart from conventional corporate social responsibility practices like spending on environmental cleanliness, waste reduction, recycling, donation for education, health and welfare of the deprived sector of society, PepsiCo included its business goal in its corporate social responsibility agenda. As mentioned in the case, it wants food and beverages to be available to consumers with convenience and affordability.