Question.4107 - comparative analysis of pepsico and coca-cola
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Module 7 Assignment Comparative Analysis of PepsiCo and Coca-Cola John TillarMBA 6500 01W: Strategic Management Dr. Shendorah Fisher Central State University 23 November, 2024 Step 1: Comparative Analysis Business Ethics PepsiCo: In every aspect of business, PepsiCos pep+ (PepsiCo Positive) strategy signifies a significant turn towards sustainability turn toward sustainability and moral behavior. This approach makes sure that moral decision-making is incorporated into long-term business planning by coordinating sustainability objectives with profit-generating tactics. Tools such as Sedex and EcoVadis are used to monitor PepsiCos supply chain and assess suppliers compliance with labor, anti-corruption, and human rights norms (PepsiCo, 2023). The business has also put in place a strict Supplier Code of Conduct, which is revised regularly to handle new ethical issues (Stuart, 2022). Their ESG Data Hubs transparency which enables stakeholders to track advancements on topics like social justice objectives and greenhouse gas emissions, further solidifies their ethical pledges. Coca-Cola: Coca-Cola places a strong emphasis on compliance, equity, and openness in its business operations and likewise upholds high ethical standards. Coca-Cola has put in place a whistleblower mechanism to guarantee accountability, and its Code of Business Conduct acts as a global ethical standard (Coca-Cola, 2023). The business makes sure that moral behavior permeates every aspect of its operations by routinely training staff members and suppliers to respect these standards. However, Coca-Colas ethical prominence has been somewhat diminished by critiques of its ethical findings, including claims of greenwashing and the effects of its water use on nearby communities (Green, 2021). Social Responsibility PepsiCo: PepsiCo prioritizes community resilience, equity, and empowerment in its social responsibility programs. More than 6 million people now have better access to food and economic possibilities because of the She Feeds the World initiative, which has empowered female farmers in Africa, Asia, and Latin America (PepsiCo, 2023). PepsiCo has pledged more than $570 million to support underprivileged communities in the United States, fostering small businesses and generating employment in neglected neighborhoods, in addition to equity-focused activities (Johnson, 2022). The companys Diversity, Equity, and Inclusion (DEI) objectives, which seek to develop a workforce that represents the communities it serves, are closely related to these initiatives. Coca-Cola: Through skill development, financial support, and mentorship, Coca-Colas social programs, such as the 5by20 project, have empowered 6 million women entrepreneurs worldwide and assisted them in creating sustainable lives (Coca-Cola, 2023). Millions of people throughout the world have benefitted from the companys investments in community well-being through clean water access programs, especially in water-stressed areas. Critics contend that Coca-Colas social responsibility initiatives might be more methodically incorporated into its main commercial activities and that they are occasionally perceived as reactive rather than proactive (Browne, 2020). Environmental Sustainability PepsiCo: A key component of PepsiCos operations is environmental sustainability, which is driven by lofty goals including reaching net-zero greenhouse gas emissions by 2024 and reducing the use of virgin plastic by 50% by 2030. To show its dedication to decarbonization, the corporation has increased its use of renewable energy to 100% in the US and other important markets. Another noteworthy aspect of PepsiCo is its emphasis on regenerative agriculture, which involves collaborating with farmers to enhance biodiversity and soil health across more than 7 million acres (Harris, 2022). It is a global leader in sustainable water use thanks to its extensive water stewardship program, which has saved billions of liters of water yearly. Coca-Cola: The World Without Waste campaign, the centerpiece of Coca-Cola's environmental strategy, is to collect and recycle one bottle or can for each unit sold by 2030. The company has made significant strides towards replacing all of the water used in production and utilizing 100% recycled PET in certain regions. But Coca-Cola has come under fire for being one of the biggest plastic polluters in the world, underscoring the need for quicker innovation and sustainable packaging substitutes (Green, 2021). Its commitment to sustainability is demonstrated by its investments in water conservation and renewable energy, despite these obstacles. Step 2: Grading Coca-Colas Efforts For its efforts in environmental sustainability, social responsibility, and business ethics, Coca-Cola merits an A-. Although the business has a strong dedication to community development and recycling, some areas fall short of industry practices: Strengths: With programs like 5by20 and its water stewardship initiatives, Coca-Cola is excellent at making a good social impact. Its supplier accountability procedures and well-organized Code of Business Conduct demonstrate its dedication to ethical governance. Weaknesses: Coca-Cola has difficulties reaching carbon neutrality and lowering its dependency on plastic packaging. Additionally, its sustainability programs frequently fall short of PepsiCos pep+ frameworks lofty timetables and comprehensive integration (Green, 2021). Step 3 PepsiCo: Business Ethics: A+ PepsiCo exhibits outstanding ethical leadership by integrating sustainability into its major business plan and upholding high standards of openness. Social Responsibility: PepsiCos DEI objectives, community funding, and programs such as She Feeds the World demonstrate the companys dedication to growth that is both inclusive and equitable. Sustainability of the Environment: A+ PepsiCo established a sector with its aggressive goals for plastic reduction, carbon neutrality, and regenerative agriculture. Total Score: A+ Coca-Cola: Business Ethics: A Although previous scandals have somewhat damaged Coca-Colas reputation, the companys global ethical framework and supplier monitoring procedures and praiseworthy. Social Accountability: A Although they may be more in line with its overarching plan, programs like 5by20 and clean water projects have a major societal impact. Environmental Sustainability: A+ Although Coca-Cola has improved its water and recycling practices, its grade is lowered by its delayed implementation of emissions objectives and sustainable packaging. Overall Grade: A Conclusion Though their strategies exhibit significant contrasts in ambition and integration, PepsiCo and Coca-Cola both have a strong commitment to sustainability, ethical governance, and social responsibility. PepsiCos pep+ strategy is notable for its thorough integration of sustainability into its core business activities. Its objectives include reaching net-zero emissions by 2040, cutting the use of virgin plastic by 50% by 2030, and promoting regenerative farming on 7 million acres. Furthermore, PepsiCos investments in empowering marginalized groups, advancing DEI, and upholding open ESG reporting show how business strategy and ethical and sustainability objectives are coherently aligned. In addition to helping the environment and society, this proactive strategy establishes the business as a pioneer in sustainable business practices. Despite having a significant influence through programs like the World Without Waste effort and its 5by20 project, which supports female entrepreneurs, Coca-Cola has come under fire for its environmental impact, especially its role in plastic waste. Although the companys efforts to employ renewable energy and restore all of the water used in manufacturing are admirable, there is still a need for improvement given its delayed adoption of creative packaging alternatives and less ambitious carbon neutrality goals. In terms of ethics, Coca-Cola has strong whistleblower and worldwide Code of Conduct procedures, although its reputation is somewhat damaged by previous scandals in contrast to PepsiCos continuous and creative strategy. These elements support PepsiCos A + rating for its ambitious and all-encompassing sustainability initiatives, whereas Coca-Cola receives a solid A for its impact but less thorough integration. Collectively, their advancements highlight how important corporate responsibility is in promoting long-lasting change in a variety of sectors. Through their respective strategies, these two multinational behemoths establish standards that other businesses should strive to meet, proving that sustainable and ethical business practices are not merely ideals but crucial elements of contemporary corporate strategy. References Browne, R. (2020). Coca-Cola's 5by20 Program Hits 6 Million Women Empowered. Coca-Cola Company. (2023). Sustainability Report. Green, J. (2021). A Circular Economy for Packaging: Coca-Colas Commitment. Journal of Environmental Policy. Harris, T. (2022). PepsiCos Race to Net Zero: An Industry Game Changer. Sustainability Journal. Johnson, M. (2022). Diversity in Action: PepsiCos Equity Initiatives. https://www.pepsico.com/ PepsiCo. (2023). PepsiCo Positive Sustainability Report. https://www.pepsico.com/sustainability Smith, A. (2021). Business Ethics in the Beverage Industry. Corporate Responsibility Quarterly. Stuart, L. (2022). PepsiCos Pep+ Strategy: A Blueprint for Sustainable Growth. Environmental Business Review.More Articles From Strategic Management
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