Ethical Issues a Business Needs to Consider in Its Operational Activities

1 January 2017

They are in the grain based snack foods and beverage and some other products. I have chosen this company because it an internationally recognized company that generated billions of pounds a year in revenue. Their headquarters is currently stationed in New York, the beverage drink product, Pepsi is originally developed in North Carolina in 1898 by a young business man and then sold to PepsiCo to 1961 where it was renamed Pepsi. Mission Statement: Our mission is to be the world’s premier consumer Products Company focused on convenient foods and beverages.

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We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. PepsiCo’s mission statement goes into how they provide world premier products which is focused on foods and beverages. They speak about how they seek to provide all their employees with opportunities and growth also with a competitive salary.

At the end they also proclaim that they are honest and fair, which is a good way for any company to be viewed by its customers. Aims and objective: PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today. Pepsi basically says that its aims and objectives are to improve all aspects of the world which they are involved in, creating a better future for us.

They want us to think they are interested in the future and committed to creating a better life for everyone. Ethical Issues Facing the Business – Pepsi has similar problems with its products to Coke; the plastic bottles need to be a percentage recycled and able to be recycled, the water they use for their drinks in some remote areas of the world is being taken from local people and as a result they are struggling to find a solution to the water problems and it is causing farmers to move away in seek of just water.

In India, where Pepsi has a few factories, they have been criticised by local farmers by the amount of pollution that their factories use and the amount of water they use in their beverages, meaning the farmers are unable to grow their crops efficiently. Also, Centre for Science and Environment (CSE) claimed that the water used for Pepsi that the toxins included pesticides that can contribute to cancer and the overall breakdown of the immune system.

In 1991, Pepsi paid Thein Tin to help with their entrance to Burma who was supporter of the Burmese military junta, which was accused of human rights violations in the world, most companies didn’t enter the country because of this reason, but it didn’t seem to affect Pepsi. Stakeholders and Ethical Concerns Describe the stakeholders your chosen business has: Pepsi has many stakeholders all over the world; firstly the customers who buy their products are one of the most important groups for they keep the company afloat, the share holders who invest money in the company keep it trading and able to expand and invest.

Workers and the communities which rely on the work Pepsi provide are also crucial share holders, without workers the product cannot be produced and then sold to the customers. On a larger scale the western world is important for their products are sold there and 3rd world countries are important because of cheap labour costs meaning they can produce in the mass and ship all over the world. Pepsi is a Public company, meaning it sells shares.

Describe how the business is attempting to show its stakeholders that it is aware of the ethical concerns that apply to its operational activities: On bottles during the last 10 year or so after all the controversial arguments about global warming and companies being slated about the amount of waste that they produce, most companies including Pepsi have put a small label on the packaging of their products saying “made from 99% recycled materials” or something similar.

This shows that the company is paying attention and listens to its consumers and has only good intentions when trying to sell their product, not destroying the earth with excess waste.

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