Understanding CSR of Pepsico India

By: Dhruv Malik, Indian Institute of Mass Communication

(Advertising & Public Relations)

An in-depth primary and secondary research on Pepsico revealed the CSR activities and the

guidelines followed by the company:

1. Care for customers, consumers are the world we live in

2. Sell only products we can be proud of

3. Speak with truth and candor

4. Balance the short term and long term

5. Win with diversity and inclusion

6. Respect and succeed together

The various CSR activities undertaken by Pepsico are as follows:

1. Water Conservation- replenish the world’s most precious asset - Water

a). Zero Water Discharge: It has adopted processes to treat process water before returning it to non-potable water uses. Water is thus being reused reducing  any discharge

b). Community Watershed Management Programs: Pepsi Co India partnered with The Energy and Resources Institute (TERI) to rejuvenate local water bodies. Villages in Neelamangala,Karnataka and around Dehradun and Mukteswar in Uttaranchal and currently recharges 300 million liters of water every year.

c). Rain Water Harvesting: Common in all Indian Pepsi Co plants, this enables maintaining and strengthening water reserves in the surrounding areas like Jainpur, Bazpur, Bharuch, Palakkad, Panipat and Neelamangala .

2. Solid Waste Management- A separate program to treat the solid waste in the most suitable and eco-friendly way through the  Exnora Waste to Wealth program.The company’s partnership with the NGO, Exnora continues to provide clean environment to more than than 450000 people across Pammal, Chennai, Nagapattinam, Tenkasi and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and Panipat, Haryana

3. Agricultural Development- Working for the farmers with the farmers, Pepsi Co’s partnership with farmers, the high seed quality program and the citrus project were undertaken by Pepsico to:

a). Help farmers improve yield and income

b). Introduce new high yielding varieties of Potato, Oats, Citrus and others

c). Introduce sustainable farming methods and contract farming

d). Work closely with farmers and state governments to improve agricultural sustainability, crop diversification and enhance farmer incomes.

e). Facilitate FINANCIAL and insurance services so as to de-risk farming.

4. Health and Lifestyle- It contributes towards teaching the young children about the sensible eating habits by launching the Get Active & a Good Nutrition and Active Lifestyle Program for Children. The objectives of which were as follows:

a). To raise awareness on the importance of balanced nutrition and regular physical activity for a HEALTHY lifestyle among school children

b). Starting with a Breakfast Makes Me Smart module in 2008 emphasized the importance of HEALTHY breakfast and the My Pyramid module of 2009 laid stress on learning nutrition through active engagement

c). This initiative made many young children opt for healthier breakfast options, PepsiCo through this also promoted their Quaker Oats

5. Other initiatives include the collaboration with the Indian Labour organisation to fight against Aids. The Akshay Parta partnership to support the mid-day meal and the employee volunteer programme run by the Saalam Balak trust

6. Pepsico also organised the 6th Business Responsibility Summit 2014 Themed: “Business as Partners in India's Development”

7. Pepsico is also known to run Human and environment sustainability programs such as:

a). Quality of Food- The company is dedicated towards making the best quality food which obeys the ISO regulations laid down by the Government.

b). Genetically Modified Foods- The company’s Food Safety and Regulatory Affairs Department along with other suppliers ensure that proper Government seal has been applied to the GMOs

c).  Packaging- The foods are packaged in the most appropriate manner keeping in mind all the dos and don’ts laid down by the Government

d). Marketing- Pepsi-co is helping the Government in creating awareness about some basic issues like sensible eating habits while promoting its foods and beverages, trying to keep the young children aloof from them

e). Sustainable Agricultural Policy- Pepsi-co has developed and published Global Sustainable Agricultural Policy which entails regulations on water savings, waste reuse, soil protection and chemical use.

f). Sustainable Packaging Council- It is a multidisciplinary team team, comprising of members from R&D, Innovation, Procurement, Sales & Marketing and Public Policy groups.  They develop strategies for proper and responsible disposal

In conclusion CSR analysis of the competition of Pepsico was also conducted and it was concluded that today Companies practicing Corporate Social Responsibility need not be altruistic to be effective. The companies like PepsiCo and Coca-Cola invest in projects like water treatment facilities and a zero waste footprint for their products because it helps them reduce their resource use, which in turn helps them become sustainable and achieve higher profits The firm of the future is expected to have undergone significant transformation such that CSR no longer becomes managed as a separate deliverable, but is part of the experience of being an employee in an organization that lives its values.