Business Ethics used in PepsiCo

1643 WordsJan 12, 20127 Pages
Business Ethics Business ethics is a topic that is often on the forefront of media and journalism reports in the United States of America today. To someone that doesn’t have a background in business, or a general understanding of the business world, these reports can be cumbersome and hard to follow. One must first understand what business ethics actually are. Dictionary.com defines business ethics as the study and examination of moral and social responsibility in relation to business practices and decision-making in business (dictionary.com). Once one understands the meaning of business ethics, they often wonder what major companies do to stay ahead of the curve, and excel in the area of business ethics. Sadly, it seems as if the…show more content…
PepsiCo has been partnering with the World Health Organization to find new ways to improve the diets of consumers while promoting physical activities. When looking at PepsiCo’s promotion of human sustainability, it is evident that PepsiCo values their consumers, which is valued and ethical. PepsiCo much like any other well respected company, complies with the regulations that are determined by the SEC (Securities and Exchange Commission). PepsiCo demonstrates their SEC compliance through their hiring of an independent registered public accounting firm. PepsiCo utilizes the well-known and respected accounting firm Klynveld Peat Marwick Goerdeler which is more commonly referred to as KPMG. KPMG is one of the largest professional services firms in the world and one of the Big Four auditors. The Big Four auditors are KPMG along with PricewaterhouseCoopers, Deloitte, and finally Ernst and Young. KPMG’s global headquarters are located in the Netherlands . By employing an outside source, PepsiCo allows the auditing firm KPMG to clearly analyze their numbers, ultimately making independent judgments for the soft drink company. KPMG complies with the laws and guidelines that are set up by the Securities and Exchange Commission through a published report to the SEC that is created quarterly and annually for PepsiCo. The reports that are
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