The MBA oath (shown in Exhibit 12.4) says in part, “My decisions affect the well-being of individuals inside and outside my enterprise, today and tomorrow.” One example of a large firm reorienting toward this approach is PepsiCo. In the last few years, PepsiCo has been contracting directly with small farmers in impoverished areas (for example, in Mexico). What started as a pilot project in PepsiCo’s Sabritas snack food division has now spread to farmers in more than 15 countries providing potatoes, corn, sunflower oil, and other products to the firm. PepsiCo provides a price guarantee to farmers that is higher and much more consistent than the previous system of using intermediaries. The farmers report that since they have a firm market, they are planting more crops. Output is up about 160 percent, and farm incomes have tripled in recent years. The program has benefits for PepsiCo as well. A shift to sunflower oil for its Mexican products will replace the 80,000 tons of palm oil it imports to Mexico from Asia and Africa, thus slashing transportation and storagecosts. The firm is expanding the farmer sustainability program with plans to cover about 7 million acres, or 75 percent of its agricultural spending by 2025.

Exhibit 12.4

1. What are the benefits of this program for PepsiCo? What are its drawbacks?
2. What other societal benefits could such a program have in Mexico?
3. If you were a PepsiCo shareholder, would you support this program? Why or why not?

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As a business leader I recognize my role in society. • My purpose is to lead people and manage resources to create value that no single individual can create alone. . My decisions affect the well-being of individuals inside and outside my enterprise, today and tomorrow. Therefore, I promise that: • I will manage my enterprise with loyalty and care, and will not advance my personal interests at the expense of my enterprise or society. I will understand and uphold, in letter and spirit, the laws and contracts governing my conduct and that of my enterprise. • I will refrain from corruption, unfair competition, or business practices harmful to society. I will protect the human rights and dignity of all people affected by my enterprise, and I will oppose discrimination and exploitation. I will protect the right of future generations to advance their standard of living and enjoy a healthy planet. • I will report the performance and risks of my enterprise accurately and honestly. I will invest in developing myself and others, helping the management profession continue to advance and create sustainable and inclusive prosperity. In exercising my professional duties according to these principles, I recognize that my behavior must set an example of integrity, eliciting trust and esteem from those I serve. I will remain accountable to my peers and to society for my actions and for upholding these standards. This oath I make freely, and upon my honor.