Corporate Citizenship News for August 11, 2010

2009 CSR Reports

PepsiCo*: Investing in Sustainable Growth 

In its 2009 Corporate Citizenship report, PepsiCo highlighted a few of its ambitious 47 goals and commitments, which serve as guidelines for the company’s corporate citizenship program. These goals support the four main pillars of the company’s CSR strategy: Performance, and Human, Environmental, and Talent Sustainability.  Each pillar targets a different PepsiCo stakeholder: Shareholders, Consumers, the Planet, and Employees. To read more, you can download the report.

 
Here are a few aspects of the company’s program that interest us, and some more recent initiatives:

• Human Sustainability (nutrition): PepsiCo’s focus on R&D and innovation has lead to a $10 billion portfolio of nutritious products.  Over the past 3 years, PepsiCo has increased R&D by 40%. Of its 47 goals, 11 address the well-being of people in developing and developed countries. 

• Environmental Sustainability: PepsiCo is committed to the UN’s Millennium Development Goals to provide sustainable access to safe drinking water in developing countries.  They aim to provide clean water to three million people in developing countries by the end of 2015, and to create positive water balance across all of their businesses.  This means that for every liter they use, they return one to the Earth.

This year, PepsiCo announced a joint venture with Tata Global Beverages to launch bottled water in India for only $0.40 a gallon. By changing the packaging, PepsiCo can offer a significantly cheaper version than its $1.15 per gallon Aquafina brand.

• Talent Sustainability: In 2009, PepsiCo increased the percentage of women executives globally to 30%.  More recently, they participated in the BlogHer conference, a summit for online women community leaders. Their Sofa Summit breakfast at the event engaged several of PepsiCo’s female leaders in a dialogue on the potential of women to drive innovation and catalyze transformation

• On a more fun note, PepsiCo’s convenient foods business unit Frito-Lay launched the Lay's Mobile Farm campaign, featuring a 70-foot long traveling greenhouse.  People in each of the 6 cities that the farm will visit can touch the plants and meet a Lay’s potato farmer.  The campaign builds on Lay’s strategy to celebrate the people and communities that produce its products.  Lay’s will also donate plants to help grow community gardens. 

• This year, PepsiCo also launched the well-publicized $20 million Pepsi Refresh campaign, a philanthropic program using crowdsourcing to identify top societal innovators and entrepreneurs. The initiative was praised for committing an additional $1.3 million to BP oil-spill disaster efforts.  Corporate involvement in spurring social innovation may be the answer to this country’s lagging ability to create social enterprises, compared to the rest of the world.

• We also like Pepsi’s viral Yo Sumo campaign, which enables US Latinos to share their inspirational stories of how they are changing the landscape of this country.  Latinos who submit their material have a chance to be part of Pepsi’s Yo Sumo documentary with Eva Longoria, who is also involved with Pepsi Refresh.  Pepsi launched the initiative in support of the 2010 Census to encourage Latino participation.

PepsiCo is wise to incorporate diversity into its main strategy.  In 2009, the combined purchasing power for Hispanics, Blacks, Native Americans and Asians was $2.462 trillion, according to the University of Georgia’s Selig Center.  And this spending power will increase. Last year the US multicultural population accounted for 48% of U.S. children born, 47% children under age 5, and 40% of teenagers ages 15-19, according to the Population and Development Review, 2010.

*PepsiCo is an Edelman client

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