Case Study 10 Indra Nooyi : A Transcultural Leader

To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate” (Straub,

Companies today are heavily influenced by the demands of customers and stakeholders. Corporate social responsibility (CSR) refers to the social and environmental responsibility policies and practices developed by an organization to increase its positive influence and reduce its negative activity towards society (Parks, 2008). The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. "Going green" or being eco-friendly is one such demand. Environmental and sustainability concerns originate most often from governments, consumer activists, and the general public (Schlosser, 2008). Thus, organizations must implement sustainability into daily practices. In addition, sustainability alters the nature of competition and drives companies to think differently about products, processes, and technologies (Parks, 2008).

Steve Reinemund was the first senior leader at PepsiCo to focus on diversity and inclusion from a perspective of changing the entire culture of PepsiCo. Under Reinemund’s leadership there led to a 38.8% increase of employees that felt the culture of PepsiCo was more inclusive from the impact of inclusion training. One CEO who has contributed to diversity culture is Indra Nooyi of PepsiCo. She is the chief executive officer and has been since 2006, leading this global food and beverage company into being one of the top 50 best companies to work for minorities (Ivancevich, 2011). Nooyi was an India-born woman with a degree from Yale University. As chief executive officer, Nooyi was inspired with the concept of teams of African- Americans professionals. She said in light of diversity that the “African-American established the economic value of diversity

For example, Indra K. Nooyi, an Indian American Woman, who graduated with not only a M.B.A. from Indian Institute of Management in Calcutta, India but also a M.B.A from Yale University in Connecticut, United States of America. According to the article, Knowledge Center: Women CEOs of The S&P 500, from Catalystic.org, Nooyi is one of the 23 women who accounts for CEOs list of Fortune 500 and Chairperson and Chief Executive Officer of the international chips and beverage company PepsiCo since 2006. Nooyi manages PepsiCo, which generates an annual net worth of 63 billion dollars and owns more than 200 brands and 22 popular international brands such as Pepsi, Mountain Dew, Seven Up, Green Machine Naked, Gatorade, Ready-to-drink Starbucks, Tropicana,

“Businesses are an integral part of the communities in which they operate. Good executives know that their long-term success is based on continued good relations with a wide range of individuals, groups and institutions. Smart firms know that business can’t succeed in societies that are failing—whether this is due to social or environmental challenges, or governance problems. Moreover, the general public has high expectations of the private sector in terms of responsible behavior. Consumers expect goods and services to reflect socially and environmentally responsible business behavior at competitive prices. Shareholders also are searching for enhanced financial performance that integrates social and environmental

“The four Ps can contribute to a company’s positioning as focused on sustainability. If a product or service is competitive in terms of price, then a sustainability focus on product attributes, place, or promotion can give that product or service an advantage, particularly among those consumers most interested in sustainability, such as super or middle green consumers. Sustainable marketing often requires creativity in marketing different than with traditional products, but at its core is truthful about the ecological and social impacts of products and services. The consumers that will be most attracted to sustainable products and services will also tend to be the most scrutinizing about ecological and social impacts and most interested in the truth and transparency.”( Marketing Focus on the Triple Bottom Line: People, Planet, and Profit. N.p., n.d. Web. 18 Apr.

Corporate social responsibility incorporates environmental, social, and economic dimensions that provide leadership and differentiation opportunities for perceptive organizations. However,

“I had the cognizance in that situation, but not the mindfulness,” he said. “And both are key.” (Carter, 2014) Cultural shock is becoming more relevant because of the globalization of business today. Most explanations define cultural shock as “the personal disorientation a person may feel when experiencing an unfamiliar way of life due to immigration or a visit to a new country”. (Annenberg, 2013) Culture affects every aspect of each human on the planet, so there is no doubt that culture shock can make or break management in global corporations. The styles and decisions used by managers are affected and defined by its culture and values. Mr. Geert Hofstede carried out a comprehensive study on how values in the work place are influenced by

In other words, these socially responsible companies will evaluate not only the short and long term economic outcomes of their present decisions but also the long-term environmental and societal outcomes of their current actions. This thus leads to the triple bottom line approach of reporting environmental, social, and economic performance. In addition, Wilson from the Ivey Business Journal argues about corporate social responsibility or the CSR. The CSR has been around longer than the term and implication of “sustainable development” but has similar guidelines. From about 1953 the on, the main debate was whether corporate managers had an ethical responsibility to consider the needs of society and by 1980, it was generally and consensually accepted that corporate managers should and did have this moral responsibility. So by incorporating sustainability plans or even creating a separate branch dedicated to doing so, the company’s reputation often is increased, which over the long term, will contribute to accentuate customer loyalty, market share, and brand value and awareness. (Wilson, 2003) This case study done on Johnson & Johnson published by the IMA Educational Case Journal analyzes the impact that implementations of these sustainability

As the CEO of a medium-sized business, my priorities are not just to help steer a profitable company but also to make it a positive and contributing member of its surrounding community. This is especially important for a company that specializes in the packaging and marketing of healthy, nutritious and convenient foods. Natural Gardens Food Products offers a wide range of pre-packaged healthy options for breakfast, lunch and dinner that are great for healthy eaters who are on-the-go. Though Natural Gardens is inherently involved in promoting various campaigns for making healthy lifestyle choices, there is a large area of opportunity for improvement in its service to the community. The discussion hereafter will consider these opportunities for better Corporate Social Performance (CSP) and the stakeholders that will be directly impacted.

“I know what it’s like to be an outsider. I’ve experienced it firsthand,” Indra Krishnamurthy Nooyi said in an interview with the Wall Street Journal.[1] Nooyi is the current Chairman and Chief Executive Officer of PepsiCo, which is one of the

In 2003, there has been increased pressure on many companies and managers to acknowledge their responsibility to society, and act in a way which benefits society overall (Lindgreen and Hingley, 2003). The major societal issue threatening food retailers has been environmental issues, a key area for companies to act in a socially responsible way. Hence, by recognizing this trend within the broad ethical stance, Tesco 's

According to Gordon Brown, Chancellor of the Exchequer, the modern day corporate social responsibility goes far beyond the old philanthropy of the past that is donating money to good causes at the end of the financial year and is instead an all year round responsibility that companies accept for the environment around them, for the best working practices, for their engagement in their local communities and for their recognition that brand names depend not only on quality, price and uniqueness but on how, cumulatively, they interact with companies’ workforce, community and environment. It is necessary to move towards a challenging measure of corporate responsibility, where judgment results are not just by the input

The long and commonly held belief was that the only responsibility of business was to maximize the wealth of its shareholders. Today, however, companies must be socially responsible and focus on what is now called the “Triple Bottom Line” that is compromised of: environment, economy and people. All of this ties into the sustainability goals that companies are now setting for themselves to show the public that the firm is socially responsible. Recently, Volkswagen has been the center of controversy, because their diesel engines had a device that could detect when they were being tested and change their performance to improve the results. Volkswagen’s recent debacle has highlighted how failing to be socially responsible can come back to haunt a company.

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue