PEPSICO Chief: Indra Nooyi
For a company whose items fill up your pantry, how would you see a crumpled bag of Lays blowing across your streets? Pepsico and its foundation support education, the environment and human sustainability. The company’s approach to deal with community enga
“Today, a company’s profits are inextricably tied to the prosperity of its consumers, customers, employees, communities and society writ large,” wrote CEO Indra K. Nooyi in her letter to shareholders. “More than ever before, profitability and sustainability are synonymous. Corporations should embrace this new way of doing business.”
There’s evidence that a strategic approach is necessary towards both, business and philanthropy. If your organization is going to do philanthropy, it’s better if you’re focusing on issues related to the business. It means you’re giving back to the society in more than one way.
Although, some consumers prefer hundred percent CSR. Take for example, Goldman Sach’s case; it contributed to the 2008 financial crisis, or Walmart, which played a huge role in undermining worker compensation across America. It’s easy to see the CSR efforts made by corporations, however, some of these are done to cover the wounds the business creates on its path to success. It would be better if large organizations had a more serious attitude put up towards paying taxes and conducting their business in a responsible way.
Philanthropic endeavors by an organization, can have a powerful effect on its competitiveness and overall performance. It can in fact be a cost-effective way, and even help improve competitive context. It enables companies, whether small or large, to not only use their resources, but also extent beyond by seeking efforts from nonprofits and other institutions. For example, by contributing to a university, the organization can create a local base of advanced skills in the company’s field. Moreover, philanthropy triggers collective corporate action. Due to philanthropic effort, companies are able to forge partnerships with governments and nonprofits that may someday solely benefit them.
Industries prone to controversies, such as pharmaceuticals and petrochemicals, can associate themselves with philanthropic foundations. In the process they can make a way to create value for the society and themselves. Sometimes, CSR efforts aren’t just about a company’s self-interest.