At PepsiCo, "Performance with Purpose" means delivering sustainable growth by investing in a healthier future for people and our planet.
As a global food and beverage company with brands that stand for quality and are respected household names—Pepsi-Cola, Lay's, Quaker Oats, Tropicana and Gatorade, to name a few—we will continue to build a portfolio of enjoyable and wholesome foods and beverages; find innovative ways to reduce the use of energy, water and packaging; and provide a great workplace for our associates. Additionally, we will respect, support and invest in the local communities where we operate by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. Because a healthier future for all people and our planet means a more successful future for PepsiCo. This is our Promise.
We aspire to make PepsiCo the world's premier consumer products company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our associates, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity.
Our commitment is to deliver sustained growth through empowered people acting with responsibility and building trust. We define these values as follows:
Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results and helps us understand whether actions today will contribute to our future. This value is about the growth of our associates and the company's performance. It prioritizes making a difference and getting things done.
Empowered People means we have the freedom to act and think in ways we feel will get the job done, while being consistent with the processes that ensure proper governance and being mindful of the rest of the company's needs.
Responsibility and Trust form the foundation for healthy growth. It's about earning the confidence other people place in us as individuals and as a company. Our responsibility means we take personal and corporate ownership of all we do, to be good stewards of the resources entrusted to us. We build trust between ourselves and others by being committed to succeeding together.
We must always strive to:
We market hundreds of brands in more than 200 countries and territories around the world that have an economic impact on people around the world, especially in the communities in which we operate, where we employ people, pay taxes and engage in community activities. Sales of our products also impact the livelihoods of retailers, distributors and suppliers through which we make and market our products.
In addition to benefiting our own associates, this powerful performance helps support our bottler network and distribution operations, and contributes to the sales of retailers throughout the world. Our economic reach is broad, deep and sustainable.
Shareholders—We provide shareholders with a strong return on their investments. In 2010, we returned $8 billion in dividends and share repurchases, and increased our annual dividend in 2010 for the 38th consecutive year, from $1.80 to $1.92, or 7 percent.
Associates—In 2010, we directly employed approximately 294,000 associates. Our customers and business partners, such as franchised bottlers and licensees, employ tens of thousands of additional people as they manufacture and distribute our brands.
Retailers—We create income and profit for our retail customers, which means jobs and opportunities in millions of retail establishments around the world. Our brands are among the most profitable brands that retailers carry.
Suppliers—We purchase billions of dollars of supplies, services and raw materials that help to support hundreds of thousands of additional jobs in communities around the world.
Governments—Our businesses have a positive impact on the economies of the countries and localities in which we operate by generating billions of dollars of revenue for governments through taxes paid directly by PepsiCo and indirectly by PepsiCo associates, investors, commercial partners and suppliers.
Technology—We share expertise and technologies that provide important benefits to communities and countries. In developing countries, such as India and China, our agricultural development programs have significantly improved crop yields for local farmers.
Communities—As a corporate citizen, PepsiCo and its companies have a long and proud history of supporting the communities in which we do business. We give to nonprofit community groups and initiatives through PepsiCo Foundation, Corporate Contributions, PepsiCo Community Affairs and our various operating divisions. We encourage our associates to volunteer. Additionally, we provide gifts-in-kind; support community and nonprofit events, conventions and journals and sponsor meetings.
We create local jobs by expanding operations in developing countries. When we open new plants, we create new jobs while strengthening PepsiCo globally. In 2010, we announced numerous investments that will lead to job creation, including $2.5 billion in China over the next three years (in addition to the company's $1 billion investment announced in 2008), $250 million in Vietnam and $3 million in Peru over the next three years. We also signed a memorandum outlining plans to invest $140 million to build our 10th plant in Russia—part of a $1 billion investment program announced in 2009. The number of jobs created by these investments will be determined in the next few years.
PepsiCo believes that, both as a company and as individuals, it is important to be engaged in the public policy and political arena. PepsiCo has consistently disclosed information on how we are spending resources for political purposes as required by law and regulation. In 2011, PepsiCo updated its Political Contributions Policy (originally issued in 2005) that provides shareholders with details on the policies, procedures and criteria used in connection with all political contributions. In addition, we are now providing details of PepsiCo political contributions on our website at Purpose/PepsiCo-Contributions. Political contributions made by PepsiCo are reviewed by PepsiCo's Board of Directors annually.
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