Ranking
Stakeholder
Explanation
1
Environment
The environment in which the company is set impacts the business by providing the needed comfort for the business to be run effectively. In situations whereby the environment is harmonious, the company will be able to achieve its objectives.
Moreover, PepsiCo impacts the environment by coming up with different ways of conserving it to reduce possible pollution. Such as providing clean water, lower carbon and Chemical products and recycle packaging. As a result, the living organisms will be able to survive as the environment is conducive for them to live harmoniously (our goals).
2
Employees
The employees are of great importance to the company as they help in the provision of services to the consumers. Due to the services they offer, that determines the number of customers to be served at a given time.
On the other hand, PepsiCo has impacts on the employees as has helped to raise a high amount of unemployed and develop hands working with women and men as an equal level of power. The report of the company recorded that more than 260.000 employees in PepsiCo worldwide in 2017 (Sustainability Report).
3
Communities
The communities around the area in which the company is constructed are of great importance to the company in that they provide it with enough man power.
The company impacts the community by facilitating frequent supply of products to the members of the community. This helps in reducing the suffering amongst the members of the community. Moreover, it helps to reduce the poverty by creating a program called (food for good). They provide free meals and fun physical activities for children ( Community Service & Volunteering).
4
Consumers & Customers
The consumers have a significant role in the organization they help in facilitating the general performance of the company.
On the other side, PepsiCo impacts the consumers in that they provided with quality products which help in satisfying their needs. PepsiCo brings options for good food with nutrients to stay their consumers healthy. They called this program "Better for you." (Sustainability Report).
5
Supply chain
The supply chain roles in PepsiCo to ensure that the company is provided goods and services with efficiency preferences of raw materials.
PepsiCo also improved its digital supply chain by creating more tools and systems to provide goods for more than 300.000 retailers.(Brohan).
Materiality Assessment
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Ranking
SDG
Concerned Stakeholders
Explanation
1
6
Employees,
Communities, Consumers & Customers
These stakeholders are concerned about their water, more importantly if the water is clean and useable for others. They are also concerned about how much water is being wasted and use improperly. Water is important for everyone to survive, and we use water in our daily lives. It is important to figure out how everyone in this world is able to use clean water and not letting water be wasted either.
By 2025, PepsiCo plans to:
· Improve the water-use efficiency of its direct agricultural supply chain by 15%, in high-water-risk sourcing areas
· Improve water-use of direct manufacturing operations by 25%
· Replenish 100% of the water it consumes in its manufacturing operations, they promise to replenish all water they extracted (“PepsiCo Launches 2025 Sustainability Agenda Designed to Meet Changing Consumer and Societal Needs”)
2
13
Environment,
Communities, Ministry of Health
The environment is concerned about how much impact the company or the world, is damaging the environment itself. This is why there is a huge issue on climate change. Communities and the Ministry of Health are concerned whether the company presence is making it dangerous for others to live or not. It is concerning because the factories would be located near people, which means the pollution affects them as well.
PepsiCo takes climate action by:
· Reducing greenhouse gas across their global business
· Supporting sustainable agriculture by identifying and sharing best practices with their growers and suppliers
· Innovating their packaging to make it increasingly sustainable and working to eliminate solid waste to landfills (“Planet”)
3
3
Ministry of Health,
Consumers & Customers,
Employees
The Ministry of Health, consumers, customers and employees are all concerned about what they are eating/drinking on the daily basis. They all want to know what exactly what they are eating/drinking and what is inside their foods/drinks. Many people want to eat/drink healthier options. Since they want healthier options, they want to know what options do they actually have.
PepsiCo plans to promote good health and well-being by reformulating carbonated soft drinks and investing in new low- and no-calorie beverages, launching smaller packs of full sugar drinks. Also, they plan on using oils with lower saturated fat, such as high oleic sunflower and canola oils. Lastly, they plan to reduce salt by creating new recipes and ways to season food, and also explore different salt-reduction methods that will maintain great taste of their products ("Performance With Purpose: 2025 Agenda").
4
2
Employees,
Consumers & Customers, Ministry of Health, Communities
The main concern for stakeholders is how many people around the world do not have food to eat and help them survive each day. Just like water, food is also one of the most important things necessary for survival. World hunger is a big issue many people from different parts of the world are still facing today. Many people can not afford or have the right resources to be able to eat food whenever they like.
PepsiCo started a program called Food For Good (FFG), it is an award winning, purpose-driven business initiative that provides low-income families the accessibility to healthy food to help tackle child hunger in the United States with the help of local nonprofit organizations and government agencies ("Performance With Purpose: 2025 Agenda").
5
8
Employees
Partnerships
Supply chain
These stakeholders are concerned about quite a few things related to employment and the economy. They are concerned about the unemployment rate and if it will continue to increase as time goes by. Everyone wants a stable, well-paid job and it is not great if that doesn’t exists for others. Lastly, they are also concerned about how much labour productivity there is. The more productivity, the more work will be done and completed.
PepsiCo’s "Tostitos” brand engaged in supporting and promoting local economic development in Mexico, with the help of the FUNDES organization. It continues to train young entrepreneurs participating in the creation of microfranchises that promotes culinary innovations for their 100% Mexican corn Tostitos ("Performance With Purpose: 2025 Agenda").
References
Confino, Jo. “Best Practices In Sustainability: Ford, Starbucks And More.” The Guardian, 30 Apr 2014, https://www.theguardian.com/sustainable-business/blog/best-practices-sustainability-us-corporations-ceres , Accessed 16 Jul 2018.
“PepsiCo Launches 2025 Sustainability Agenda Designed to Meet Changing Consumer and Societal Needs.” PepsiCo, 17 Oct 2016, http://www.pepsico.com/live/pressrelease/pepsico-launches-2025-sustainability-agenda-designed-to-meet-changing-consumer-a10172016 , Accessed 16 Jul 2018.
“PepsiCo.” Sustainable Development Knowledge Platform, https://sustainabledevelopment.un.org/partnership/partners/?id=10912 , Accessed 15 Jul 2018.
Cooper, Ben. “Why Are Food Companies Aligning With UN Sustainable Development Goals?” Just-Food, 9 Nov 2017, https://www.just-food.com/analysis/why-are-food-companies-aligning-with-un-sustainable-development-goals_id138131.aspx , Accessed 15 Jul 2018.
“Planet.” PepsiCo, http://www.pepsico.com/sustainability/performance-with-purpose/planet , Accessed 14 Jul 2018.
“Our Goals.” PepsiCo, http://www.pepsico.com/sustainability/Performance-with-Purpose/Our-Goals , Accessed 14 Jul 2018.
Brohan, Mark. “PepsiCo Drives A More Digital Supply Chain.” Digital Commerce 360, 4 Apr 2018, https://www.digitalcommerce360.com/2018/04/04/pepsico-drives-a-more-digital-supply-chain/ , Accessed 15 Jul 2018.
"Performance With Purpose: 2025 Agenda." PepsiCo, 2015, https://www.pepsico.com/docs/album/sustainability-reporting/pepsico_sustainability_report_2015_and_-2025_agenda.pdf . Accessed 15 Jul 2018.
“Community Service & Volunteering”. Pepsi. Sep. 25, 2007. www.pepsico.com/sustainability/Philanthropy/Community-Service-and-Volunteering. Accessed 15 Jul. 2018.
“sustainability reporting”. sustainability Performance with purpose. Sep. 25, 2007 www.pepsico.com/docs/album/sustainability-reporting/pepsico_2017_csr.pdf. Accessed 15 Jul. 2018.