PepsiCo's Social and Ethical Culture

Question 1 

PepsiCo company develops a standard measure in ensuring healthy eating and a desirable taste for its consumers. Consumers need a good taste to enhance satisfaction because satisfied customers develop an economic base for the company. However, suppose the goods have components that may negatively affect consumer's healthiness. In that case, it affects consumers' long-term interests, and special interest parties and regulatory experts may begin to harass organizations like PepsiCo. Besides, most snack foods from PepsiCo underwent processing and deep-frying, comprising high levels of saturated sugar, sodium, and fats that negatively affected consumers' health (Snider et al., 2016). Therefore, PepsiCo company tried to address the issues by preparing baked chips and avoiding deep-fried chips. PepsiCo still manages to assess measures of how to prepare healthy snack foods. Most consumers feel that they have a right to affordable and healthy products; hence, it is the company's corporate responsibility to ensure their satisfaction. Preparing healthy products at the cost of taste will not offer consumers satisfaction and will not cater to the shareholder's interests. PepsiCo needs to create innovative means to handle the welfares of all shareholders. 

Question 2 

PepsiCo is striving to handle stakeholders' concerns regarding nutrition in various ways to avert health-related issues of their products. For instance, the adult population in nations like America faces obesity challenges as significant health concerns. Every two out three citizens in the United States suffer from obesity, and the consumption of soda per capita is among the highest globally. The sugar content in soda is the major obesity reason and PepsiCo, being one of the leading market producers in the industry, solved the problem by manufacturing sodas with low sugar content and calories. Reducing sugar levels in sodas lowers the risk of consumers encountering challenges of obesity (Snider et al., 2016). Also, sodas comprise ingredients that lead to dependence on caffeine, tooth decay, and weaker bones. PepsiCo tries to solve the problems because it is a well-oriented organization, sodas contain only 25 percent of its operations. PepsiCo succeeded in manufacturing sodas with an organic sweetener 'stevia' and natural zero calories on the brighter side. 

However, PepsiCo recruited territorial consultants from the Mayo Clinic and the World Health Organization to research healthier ingredients. The components may substitute for the sugar, sodium, saturated fats, and other dangerous ingredients currently used. Also, the company is determined to handle concerns of shareholders regarding sustainability by developing a 5R methodology to reduce the negative effects on the environment. The 5Rs are recycling, reducing, removing sensitive materials on the environment, using renewable resources, and encouraging packaging reuse in its entire operation (Moses & Vest, 2017). The company took various measures such as reducing the thickness and weight of plastic applied in bottles of soda, resulting in lower levels of plastic wastage occupying the environment. There was monitoring of energy and water consumption in plants to reduce the levels of consumption. However, recycled water other than packaging reuse assists in creating sustainability. PepsiCo also supports dream machine recycling, where consumers acquire acknowledgments for dumping used plastic containers and cans in kiosks installed with dream machines. Most of the company's factories rely on renewable energy like biomass, wind, and solar. 

Question 3 

It is logical and mandatory for PepsiCo to collaborate with water conservations and nutrition nonprofits, notwithstanding their high criticism for wasteful water practices and unhealthy products. The partnering of the company with other organizations is vital because of developed addiction to snack foods and sodas, and also the size of the industry is huge. The snack food manufacturers and the soda industry need to ensure that they meet consumers' needs healthily and sustainably. Therefore, it is practical to liaise with water conservation and nonprofit nutrition organizations. PepsiCo receives privileges from associating with nutrition experts, like the stevia sweetener, which has zero organic calories and normal sweetener regularly applied in its snack foods and sodas (Moses & Vest, 2017). Correspondingly, the company bakes snack foods instead of deep-frying which offers a healthy solution. Nonprofits nutrition associations can note challenges and forward them to research experts to identify viable solutions. Snack foods and sodas need a substantial water amount, particularly for cleaning. Also, nonprofits water conservation can come up with ways to reduce water usage and recycle the used water effectively. 

Case Related Questions 

Major soft drink companies in the Dominican Republic respond to shareholders' concerns regarding sustainability and nutrition by adhering to set guidelines. Companies like Coca-Cola and PepsiCo try to lower their sodium, fats, and sugar levels in their soft drinks and snack foods to avoid the challenges of obesity. To maintain a sustainable environment, the companies develop environmentally friendly brands such as recycled material and renewable sources of energy like solar and wind (Simon, 2018). Water usage plays a major role in developing a justifiable environment whereby the company lays down a procedure for water's essential usage. Stakeholders in the Dominican Republic developed research institutions that ensure the healthy production of soft drinks and food snacks. The consumers also try to check on their level of soft drink consumption to avoid health-related concerns. 

In conclusion, excessive consumption of soft drinks causes health issues like vitamin deficiency because most carbonated drinks comprise phosphoric acid, leading to the depletion of calcium. Soft drinks negatively impact the absorption of vitamin D leading to hypertension, osteoporosis, and weakening of the bones. Also, high consumption of soda may cause cavities due to high fructose syrup and sugar content and lead to enamel erosion as a result of high acidity. After consuming soda, sugar combines with bacteria in the mouth and develops an acid that attacks the teeth leading to erosion (Simon, 2018). Among the policies to assist in the control of excessive consumption of soft drinks is imposing levies or taxes on sugar-sweetened drinks so that the companies may focus on producing drinks with lower sugar levels. Also, the government may restrict the advertising and promotion of sugary drinks on televisions and other media platforms. 

References 

Moses, C. T., & Vest, D. (2017). Coca-Cola and PepsiCo in America: A landmark case in corporate social responsibility, ethical dilemmas, and the challenges of international business.  Journal of American Business ,  11 (2), 235-251. 

Simon, M. (2018). PepsiCo and Public Health: Is the Nation's Largest Food Company a Model of Corporate Responsibility or Master of Public Relations.  CUNY L. Rev. ,  15 , 9. 

Snider, J., Hill, R. P., & Martin, D. (2016). Corporate social responsibility in the 21st century: A view from the world's most successful firms.  Journal of Business ethics ,  48 (2), 175-187.