PepsiCo is the classic business success story, starting with one man’s invention to becoming a multimillion dollar enterprise with operations across the globe. With success comes controversy, which ultimately the company could not avoid. PepsiCo is moving toward a more balanced stakeholder orientation by identifying stakeholders relevant to the firm and trying to understand and respond to their concerns and needs.

The current leadership at PepsiCo understands the importance of stakeholders and the need to develop effective dialogues and other communication to help PepsiCo resolve conflicts. Issues such as nutritional concerns over soft drinks and snack foods create a serious dilemma in balancing the concerns of special interest groups and the desires of consumers for good tasting food. While some of the company’s past challenges were likely inevitable, some were caused by misunderstanding stakeholder needs or ethical lapses on the part of the company. From a lack of cultural sensitivity to health concerns to environmental degradation, PepsiCo faced its share of ethical dilemmas.

However, it has also become a major leader in the sustainability and social responsibility movement. Although it has a long way to go before its snacks can be considered healthy or manufacturing processes truly sustainable, PepsiCo has demonstrated a willingness to invest in innovative solutions for these problems. If PepsiCo can continue to learn from its mistakes, it can make progress in solidifying a reputation as a socially responsible company. The future of PepsiCo depends on continuing to develop an ethical corporate culture built on values that help employees relate to the needs and desires of all stakeholders.

Questions:-

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?
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?