PepsiCo values “Performance with Purpose“. Measuring performance was what we talked about in class a few weeks ago, and companies need to implement measurable goals that can be tracked. This shows integrity of the company, and instills trust from consumers.
I was looking at how CPG companies are becoming more sustainable, and was pleased to find several reports made by PepsiCo regarding their water usage, responsible sourcing, packaging, and more. For example, PepsiCo implemented water conservation practices in day-to-day operations and has increased water-use efficiency by 20% per unit of production, resulting in cost savings of nearly $15 million! This is just one of the few initiatives set out by ONE consumer packaged goods company, signifying that large corporations are finally starting to look at innovating with the future in mind.
Indra Nooyi, Chairman and CEO said this statement in PepsiCo’s 2014 Sustainability Report: “Without question, profits are the engine that propels a corporation forward. But the blind pursuit of profit at all costs is untenable. It is essential that we make money the right way. After all, if communities suffer as a result of a company’s actions, those returns are not sustainable.”
I think as consumers we don’t necessarily see how Pepsi is being sustainable, especially by buying a bag of Doritos or bottle of Tropicana juice. But I believe consumers still carry a responsibility to research a little or find out what brands are doing, either via annual sustainability reports, or news articles of the sort. We are all privileged in the sense that most of us get a choice to be picky about the products we use, and the brands that we trust. It is up to consumers to put some pressure on companies (if necessary) to move beyond greenwashing.
What I believe will enhance PepsiCo’s brand promise is to initiate a tracking method or some form of update on their website regarding each initiative they set out to do. I think this builds credibility and prevents skepticism.
Here is PepsiCo’s 2014 Sustainability Report if you are interested!
Daniel Lau
April 14, 2016 — 4:47 pm
I totally agree with “performance with purpose” and that consumers do have the upper hand in driving companies away from greenwashing given a free market. Transparency is definitely the way to go, however, I do believe that it is crucial for companies to release not only all the good things that it is doing but also the harm that it is doing, as risky as it may seem. Although reporting and celebating the successes of a company is good, recognizing its weaknesses is just as important in order to grow. There is no perfect company with only positive impacts on the environment. On the other hand, one of the biggest issues that stands between deviating from the path of greenwashing is the conscious effort of consumers to actually take initiative – again, turning awareness into action. At the end of the day it will always point back to instigating action beyond awareness.