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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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