Pepsico Ethics and Compliance

1533 Words Dec 22nd, 2011 7 Pages
PepsiCo Ethics and Compliance
FIN/370 – Finance for Business

PepsiCo Ethics and Compliance
PepsiCo Inc. is a world leader in the beverage and snack food industry. Founded in 1965, the company has grown to become a household name. PepsiCo employs more than 285,000 employees worldwide, and has revenues of more than $60 billion (Our History, 2011). PepsiCo prides itself on social and environmental responsibility, and maintains a commitment to ethical business practices.
Role of Ethics and Compliance in PepsiCo’s Financial Environment
The management at PepsiCo realizes that reputation hinges on adherence to ethical policies as seen in the public eye. Because of this, PepsiCo has interwoven ethics throughout the company’s policies and
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Through BELA, PepsiCo and approximately 50 other companies demonstrate the importance of integrity over a bigger bottom line. To be a member of BELA, a company must be able to prove its dedication to stringent policies to weed out corruption, waste, and demonstrate procedures to lead its employees effectively. BELA’s goals are to affirm a public commitment to certain ethical principles and compliance practices, and to provide public resources for BELA members to uphold their commitment and other companies to follow their lead (Ethisphere, 2011). PepsiCo is “strongly committed to delivering sustained growth through empowered people acting responsibly and building trust” (Worldwide Code of Conduct, 2011, para. 2). Pepsi seeks not only to be a dominant company in the food and beverage industry but also a leader in conducting ethical business behavior.
PepsiCo Financial Analysis
Financial statements provide management and investors information on the financial health of the organization, and how its assets are financed. They must be clear, unbiased, and conform to generally accepted accounting principles. Ratio analysis of financial data gives insight into the liquidity, asset utilization, profitability, and leverage of an organization. This analysis can be used to compare an organization with its competitors and industry leaders (Mayo, 2007).
Current ratio=Current assetsCurrent liabilities

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