Ethics and Compliance Paper

Ethics and Compliance Paper on Pepsi-Cola
May 14, 2012
Richard Jenkins

Ethics and Compliance Paper on Pepsi-Cola
Ethics and compliance plays a vital role in the success of Pepsi-Cola, Inc.   “Based on Pepsi-Cola’s mission statement, their vision and performance with purpose statement, it is evident that Pepsi-Cola believes in doing business the right way; operating responsibly with integrity and with high ethical standards” ("PepsiCo", 2011.)
    In this paper Team B will appraise the role of ethics and compliance in Pepsi-Cola’s financial environment as well as describe the procedures Pepsi-Cola has in place to ensure ethical behavior. The processes that the organization uses to adhere to the SEC regulations can be identified.   An evaluation of the organizations financial performance during the past two years will be given, using financial ratios. Finally, the trend for each ratio will be discussed, including what it tells about the organization’s financial health.

Role of Ethics and Compliance
Within the scope of business and organizational environment of PepsiCo, this entity has initiated major emphasis on the role of ethics and compliance throughout their financial context.   Two authors conclude (Majiluf & Navarrete, 2011) “the rise of ethical scandals in the business world urged corporations to allocate time and resources to emphasize the ethical behavior of their managers and employees” (p. 567).   A changing business environment has compelled PepsiCo to focus on the relationship between ethics and corporate character.   Not only will it emphasize on ethics and compliance catapult corporate capabilities and company performance, social, and environmental commitments are also potential components for innovative growth.   At PepsiCo, merit dictates business decisions.   Disbursement or receipt of gift giving, whether directly or indirectly, is a violation of ethical and compliance polices toward gaining any form of unfair advantage at...