As one of the world’s leading food and beverage companies, public policy affects PepsiCo’s ability to operate a successful business, and continue to provide shareholder value. For this reason, we believe that active participation in public policy is essential and appropriate for companies in open societies. To demonstrate transparency, PepsiCo has adopted a variety of statements and policies that are publicly available on our website below.
The safety of our products is PepsiCo’s top priority, and we abide by the regulatory guidelines everywhere we do business. Our products and the ingredients that go into them, including the caramel coloring we use in some of our beverages, are and always will be safe for consumption. The FDA and other regulatory agencies around the world, including the European Food Safety Authority and Health Canada, consider our caramel coloring safe for use in foods and beverages. We have asked our caramel coloring suppliers to modify their manufacturing process to reduce the amount of 4-MEI in the caramel. This process is already underway in California and will be applied by PepsiCo suppliers globally. There will be no change to our product formula or to the great Pepsi taste consumers know and love.
August 22, 2012
The health of democratic societies depends on citizens being responsibly engaged in the political process.
The PepsiCo Concerned Citizens Fund (CCF) receives voluntary employee contributions to make political campaign contributions to U.S. federal and state political parties, committees and candidates. The CCF and the company's corporate contributions provide an important opportunity for PepsiCo, and its employees, to participate in the democratic process.
We believe that providing financial support to responsible pro-business candidates is an important means by which we help improve the business climate, our quality of life and the society in which we live, enabling us to succeed as a company committed to integrity, innovation and value.
The following criteria will be used in connection with all contributions:
The public policy issues we face as a company and our engagement in the public policy process, including contributions as part of the political process, are discussed with and reviewed by the Nominating and Corporate Governance Committee of the company's Board of Directors.
Details on PepsiCo's political contributions will be posted on its website on an annual basis.
All contributions and support of U.S. or state political parties, committees or candidates from the CCF or corporate funds must be made in accordance with applicable campaign finance and disclosure laws.
Coercion of any employee to contribute to the CCF or to make any political contribution of any kind is unacceptable.
Our employees have the right to be engaged in the political process in their individual capacity as they see fit, and make political contributions of their own time and money to the candidates or parties of their choice. Of course, those efforts must not in any way suggest PepsiCo's support.
Management and supervisory employees who are citizens of the United States may voluntarily contribute to the CCF.
PepsiCo employees must obtain approval of the Corporate Vice President Public Policy & Government Affairs before making political contributions of corporate funds.
All contributions must be reviewed by the corporate law department and external expert counsel to ensure legal compliance.
All payments from the CCF to support U.S. or state political parties, committees or candidates must be approved by the CCF Executive Committee.
PepsiCo generally does not provide contributions from corporate funds to candidates outside the United States. Any exception to this would require a written recommendation by PepsiCo’s regional government affairs representative and approval by (1) the Corporate Vice President of Public Policy & Government Affairs and (2) the corporate and regional law departments to ensure strict legal compliance. PepsiCo will appropriately post any such contribution along with other political contributions on its website.
PepsiCo’s Board of Directors recognizes that the use of Company resources in the political process is an important issue for shareholders. PepsiCo’s Concerned Citizens Fund (CCF) and corporate funds, where allowed, are distributed in a non-partisan manner to candidates, committees, parties and ballot measures. Except for administrative expenses, PepsiCo’s CCF is completely funded with voluntary contributions from eligible PepsiCo employees.
PepsiCo has developed processes designed to promote corporate accountability. In addition to the formal approval process described in PepsiCo’s Political Contributions Policy, PepsiCo employs other practices regarding political contributions, including the following: all contributions shall reflect PepsiCo’s business or strategic interest in these areas and not those of its individual officers or directors; employees will not be reimbursed directly or through compensation increases for personal political contributions or expenses; no contribution will be given in anticipation of, in recognition of, or in return for an official act; and all CCF and corporate contributions are disclosed annually on our website. In addition, the Nominating and Corporate Governance Committee of PepsiCo Board of Directors periodically reviews policies and practices regarding political contributions and expenditures by PepsiCo and the CCF.
PepsiCo monitors changing laws and regulations regarding disclosure and follows applicable rules regarding both political giving and reporting on lobbying activities. PepsiCo associates who lobby at the US federal and state level undergo annual ethics training by external counsel. PepsiCo discloses all lobbying activities at the federal, state and local level, as required by law. PepsiCo’s quarterly federal lobbying reports can be found at http://disclosures.house.gov/ld/ldxmlrelease/2012/Q4/300541780.xml. In 2012, PepsiCo spent approximately $3,030,000.00 on federal lobbying-related activities in the United States. In order to be transparent PepsiCo uses a broad definition of lobbying-related activities, in line with the Lobbying Disclosure Act*. Any consultants PepsiCo utilizes also file public disclosure as required by law.
PepsiCo is a member of numerous industry and trade groups and partners with various non-profit organizations and non-governmental organizations. We list many of those key memberships and partnerships on the PepsiCo website at http://www.pepsico.com/Purpose/Overview/Stakeholder-Engagement.html.We work with these groups because they represent the food and beverage industry and the business community on issues that are critical to PepsiCo’s business and its stakeholders. Importantly, such organizations help develop consensus among varied interests. At times we do not share or agree with all of the views of each of our peers or associations. PepsiCo representatives on the boards and committees of such groups ensure that we voice PepsiCo’s position about policy or related activities. As such, there may be times when we will not fund certain initiatives sponsored by such organizations. In addition, we require our trade associations to obtain specific consent from PepsiCo to use PepsiCo’s dues or similar funds for the funding of exceptional political expenditures beyond regular dues and business matters. We annually review the benefits and challenges from membership in our major trade associations. Though PepsiCo’s trade associations utilize our dues for general operating purposes, PepsiCo specifically directs in writing each of its material trade associations to use PepsiCo dues payments for general approved operating expenses of the organization, and not to apply PepsiCo dues to any political event, organization or election activity without a specific approval from PepsiCo. PepsiCo currently does not belong to any organizations which have as a major focus the creation and promotion of model legislation. In addition, PepsiCo is not currently providing funding to independent organizations for grassroots lobbying.
PepsiCo’s Public Policy/Government Affairs team works with senior management to develop annual and long term public policy priorities. Such priorities include efforts to protect and advance our business and strategic goals, which are embodied as part PepsiCo’s Performance with Purpose mission. Key issues include discriminatory taxation, trade, commodities, restrictions in the marketplace and environmental regulation. PepsiCo’s Board of Directors oversees the Company’s public policy processes and activities with the assistance of its Nominating and Corporate Governance Committee.
Updated: April 2013
*Expenses related to federal lobbying activities as reported by PepsiCo per the Lobbying Disclosure Act include such expenses as: the cost of all employee time spent on meetings and other direct contacts with covered federal legislative and executive branch officials and time spent on activities that support these contacts, including meeting preparation time and the time spent developing materials used in lobbying meetings; time spent by employees who are not “lobbyists,” but who support the lobbying activities of others; a proportionate amount of each engaged employee’s direct compensation, benefits and an allocable part of overhead costs; payments by PepsiCo to retained lobbying firms and other consultants who support PepsiCo’s lobbying activities; costs incurred by PepsiCo to support lobbying activities, such as travel, meals, duplicating, etc.; and the portion of dues paid by PepsiCo to trade associations and other membership organizations attributable to the lobbying activities of those entities.
PepsiCo's Human Rights Workplace Policy
PepsiCo respects the dignity of our workers in the workplace and we work to ensure our associates' rights to personal security, a safe, clean and healthful workplace, and freedom from harassment or abuse of any kind.
We deal fairly and honestly with our associates regarding wages, benefits and other conditions of employment, and recognize our associates' right to freedom of association. We do not use compulsory or child labor.
We do not tolerate discrimination and work to ensure equal opportunity for all associates.
We comply with all applicable laws, regulations, and other employment standards, wherever we operate or work.
We encourage our partners, suppliers, contractors and vendors to support these policies and we place substantial value on working with others who share our commitment to human rights.
Download Human Rights Workplace Policy
PepsiCo’s Responsible Research Statement
PepsiCo's research processes and those of our partners are confidential for competitive reasons. However, PepsiCo does not conduct or fund research – including research funded by PepsiCo but performed by third parties - that utilizes any human tissue or cell lines derived from embryos or fetuses.
PepsiCo's Statement on Animal Testing
PepsiCo does not conduct any animal tests and does not directly fund any animal tests on its beverages and foods. Where governmental agencies require animal tests to demonstrate ingredient safety, companies using those ingredients rely on third party testing.
PepsiCo has shared our concern regarding the ethical and humane treatment of animals with our suppliers and others in the industry. We encourage the use of alternative testing methods whenever and wherever possible and have financially supported research to develop these alternative methods.
Global Genetically-Modified Food And Ingredient Policy
PepsiCo is dedicated to producing the highest quality, greatest tasting food and beverage products in every part of the world. PepsiCo ensures all products meet or exceed stringent safety and quality standards and uses only ingredients that are safe and approved by applicable government and regulatory authorities.
Approval of genetically-modified foods differs from country to country regarding both use and labeling. For this reason, PepsiCo adheres to all relevant regulatory requirements regarding the use of genetically-modified food crops and food ingredients within the countries it operates.
Where legally approved, individual business units may choose to use or not use genetically-modified ingredients based on regional preferences.
Sep. 25, 2007
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