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Motivation for PepsiCo Sustainability Performance Reporting Paper

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Sustainability Reporting 1

SUSTAINABILITY REPORTING IN THE UNITED STATES

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Sustainability Reporting 2

Sustainability Reporting In the United States

Motivation for PepsiCo Sustainability performance Reporting

According to PepsiCo, its sustainability report referred to as Performance-with-

Purpose main motivation is to demonstrate how its operations create remarkable financial

performances while generating sustainable worthiness for its stakeholders (Pepsico, 2013, p.

2). Thus, the main argument for Performance-with-Purpose is to offer a wide range of healthy

products that have been produced efficiently and in ways that reduce environmental impact

while maintaining a sense of social responsibility. However, a deep analysis of the report

demonstrates that the main motivation is the need to avoid reputational risks that can lead to

business risk. As observed by Kopnina & Blewitt, the crafting of Pepsico sustainability

report is part of the current greenwashing trend whereby companies have realized the

business importance of promoting green production (2014, p. 9). Thus, it is more of a public

relation hype of its social and environmental sustainablity processes in order to create an

image of a reosponsible organization to its customers. Furthermore, it is motivated by the

need to ddirectly address its capital providers concerns that environmental, health and social

mega forces can easily put the firm financial value at stake. Thus, the company wants to be

seen as transparent about these risks and their financial outcomes, and that it is on top

regarding the mitigating factors (Richard & ettal, 2009, p. 719).

Nonetheless, a representative of the company Sustainability-Task-Force argues that

the main motivating factor is the current trend whereby modern customers are increasingly

becoming complex and sophisticated, and are thus calling for more corporate accountability

and disclosure needs. The taskforce asserts that majority of its customers care more about the

environment and how a company treats its employees and the communities around them

particularly due to the rise and in influence of civil societies and stakeholder groups

advocating for adoption of environmental and socially friendly practices (Pepsico, 2013, p.

4). Secondly, the Taskforce asserts that the reports are considered as major risk management

tools since they contain comprehensive information on the firm operations, which can then be

used in managerial risk supervision purposes, especially in case of an environment or social

crisis that directly involves the firm. The major operational risks that PepsiCo seeks to

address and counter any negative coverage comprises its Product formulation concerns

particularly disclosures of its product lifecycle reviews, responsible marketing and

advertisement, nutrition content, and fair trade requirements ( Savitz, 2012, p. 73). In that

regard, PepsiCo is motivated by the fear of being labelled unethical and a human rights

violator together with the fear of Legal challenges and fines from regulators. More so, the

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Sustainability Reporting 1 SUSTAINABILITY REPORTING IN THE UNITED STATES By Subject Instructor University City, State Date Sustainability Reporting 2 Sustainability Reporting In the United States Motivation for PepsiCo Sustainability performance Reporting According to PepsiCo, its sustainability report referred to as Performance-withPurpose main motivation is to demonstrate how its operations create remarkable financial performances while generating sustainable worthiness for its stakeholders (Pepsico, 2013, p. 2). Thus, the main argument for Performance-with-Purpose is to offer a wide range of healthy products that have been produced efficiently and in ways that reduce environmental impact while maintaining a sense of social responsibility. However, a deep analysis of the report demonstrates that the main motivation is the need to avoid reputational risks that can lead to business risk. As observed by Kopnina & Blewitt, the crafting of Pepsico sustainability report is part of the current greenwashing trend whereby companies have realized the business importance of promoting green production (2014, p. 9). Thus, it is more of a public relation hype of its social and environmental sustainablity processes in order to create an image of a reosponsible organization to its customers. Furthermore, it is motivated by the need to ddirectly address its capital providers concerns that environmental, health and social mega forces can easily put the firm financial value at stake. Thu ...
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Tags: PepsiCo Motivation sustainability performance management financial performances