PepsiCo has adopted strict corporate standards that govern our operations and ensure accountability for our actions. Such policies cover areas of Corporate Governance, Human Sustainability, Environmental Sustainability and Talent Sustainability. Selected policies are discussed in detail below.
PepsiCo is dedicated to producing the safest, highest-quality and best-tasting beverages and foods in every part of the world. Developing and maintaining robust food safety programs is how we assure safety for every package, every day in every market. PepsiCo has detailed internal programs and procedures for food safety. Below is a summary of our policies, programs and actions designed to keep our products safe and meeting high quality standards.
PepsiCo has an excellent track record in delivering safe products — this work is guided by the PepsiCo Food Safety Policy. Our efforts are focused on building a sustainable food safety program and providing the framework to develop and sustain food safety of existing brands and new innovation. The scope covers the design, manufacture and distribution of beverage and food products. Our programs and procedures apply to all current and future divisions in PepsiCo.
PepsiCo’s programs and procedures for food safety and quality address the following key areas:
PepsiCo Quality professionals assess product compliance to PepsiCo’s Quality Policy. This program is focused on processes and procedures supporting quality policies and prioritization of critical risk areas. Our Quality agenda is led by Quality professionals in various regions who oversee the following areas:
PepsiCo is dedicated to producing the highest-quality 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.
In North America, PepsiCo currently offers certified organic products from Quaker: two varieties of Quaker Instant Oatmeal. All PepsiCo organic products are certified by the USDA-accredited certifier Oregon Tilth.
Teaching children sensible eating habits at an early age is a critical part of their up-bringing. As a major advertiser, we need to do our part to help parents succeed in this task. Our approach has been to join a leading set of other food and beverage companies in agreeing to change what younger children are seeing advertised on TV and in other media, such as magazines and the Internet. Importantly, we are doing this in countries around the world where we do business today. Naturally, we cannot prevent children from seeing our advertising, but we can ensure that media channels that are most targeted at children carry advertisements only for certain products. From PepsiCo’s perspective, these are products that meet specific nutrition criteria intended to encourage the consumption of healthier foods and beverages. The policy covers our entire product portfolio and is subject to independent compliance monitoring by Accenture. Further details on our policy are outlined below.
PepsiCo has long been a promoter of responsible advertising to all consumers — shown, for example, through our adherence to the Consolidated ICC Code of Advertising and Marketing Communication Practice.
We further acknowledge that children, as a potentially vulnerable group of consumers, deserve greater attention. PepsiCo has therefore joined a group of top global food and beverage manufacturers1 in adopting a worldwide voluntary commitment2 to restrict our advertising and marketing to children3 to those products that meet PepsiCo’s Nutrition Criteria for Advertising to Children, which is intended to encourage the consumption of healthier food and beverage products.
This policy is currently being rolled out and will be fully implemented, at the latest, by the end of 2010. We will work with other industry players to ensure monitoring and reporting processes are put in place to ensure and demonstrate continued compliance with this policy.
1Including Coca-Cola, General Mills, Grupo Bimbo, Kellogg’s, Kraft, Mars, Nestle and Unilever.
2This commitment establishes a minimum standard for all PepsiCo product and brand advertising and marketing around the world. It is not intended to replace existing commitments and/or regulatory obligations.
3Any paid third-party advertising or marketing channels (print, TV, cinema, Internet site, etc.) that may be widely assumed to have an audience mainly younger than twelve years of age.
PepsiCo, Inc. is proud to be one of the first companies to commit as a participant in the Children’s Food and Beverage Advertising Initiative (CFBAI). As an industry leader in the discussions of children’s marketing, PepsiCo believes children are a special audience, and we take particular care developing advertisements and evaluating programming that carry messages to children.
Download The PepsiCo Pledge (PDF, 123KB)
PepsiCo is launching a new sales and distribution policy aimed at helping schools outside the U.S. offer a wider range of low-calorie and nutritious beverages to their students. This policy is generally consistent with Pepsi-Cola North America’s U.S. School Policy, which will remain unchanged. While it is the schools that must ultimately decide which beverages should be available to students, and where and when they should be sold, we hope we can play a role in shaping an environment in schools that facilitates the healthy choices of school-age children everywhere.
Through our bottling partners and third-party distributors in the U.S., PepsiCo Beverages North America is committed to offering schools a portfolio of low-calorie and nutritious beverage choices. This wide variety of products includes bottled waters, juices, sports drinks and no- or low-calorie carbonated soft drinks, juice-flavored drinks and iced teas. Schools decide which beverages are available, and where and when they are sold.
Learn more about PepsiCo’s school beverage guidelines.
PepsiCo Food Service (PFS) is committed to helping schools offer nutritious and lower-calorie snack choices to their students. By doing so, we can help parents and educators teach children healthy habits — in the calories they consume and the calories they burn. Although we do not decide which snacks are available on school campuses — schools do — and we do not sell snack products directly to schools — food distributors, vending companies and other independent businesses do — we believe we can play an important role in helping students have access to nutritious and lower-calorie snack choices while at school. To this end, we have committed to the following:
Download the Frito-Lay School Policy (PDF, 49KB)
PepsiCo values the health and well-being of our associates, partners, customers and consumers. PepsiCo offers a wide range of benefits that encourages wellness, promotes healthy living and gives associates and their families tools and information to make educated healthcare decisions.
Our company-sponsored approach to health and wellness encompasses physical, emotional and financial well-being and includes prevention, screening, healthcare and healthcare savings accounts, dental care, retiree healthcare and life and disability insurance.
PepsiCo extends its commitment to health and wellness internally through programs such as HealthRoads™. HealthRoads promotes healthier lifestyles through a combination of health assessments, personalized coaching, tobacco cessation, fitness and nutrition programs, online tools and worksite wellness initiatives. The number of countries where we offer HealthRoads has been increasing annually. In 2005 it was offered in three countries, and in 2009 the program was offered in 20 countries. HealthRoads assists associates in navigating through the healthcare system and addresses increasing healthcare costs for associates and their families — as well as the company — by helping them maintain good health and improve their health status.
In addition, PepsiCo United Kingdom developed a “Fit for Life” program, and Vive Saludable (Live Healthy) was created within PepsiCo’s Mexico division as a way to meet particular local needs with local programs. Our associate wellness programs integrate well with our core business and commitment to Human Sustainability, with a range of enjoyable and wholesome products, and efforts to make healthy choices easier. In addition, PepsiCo maintains and enforces a strict global occupational health and safety policy.
Understanding healthcare is an issue that is complex and much larger than we can impact within PepsiCo, we are committed to the following guiding principles to engage with government, nongovernmental organizations and appropriate external stakeholders.
Guiding Principles on Healthcare Policies
To help assure comprehensive and affordable healthcare, PepsiCo collaborates on solutions with organizations such as the National Business Group on Health, The Conference Board and the World Economic Forum.
PepsiCo is committed to being an environmentally responsible corporate citizen. We express that commitment in our Environmental Policy and other policies related to Environmental Compliance and Sustainability, a few of which are described in more detail below.
PepsiCo’s Environmental Policy applies to all our operations. PepsiCo monitors company-owned operations and joint ventures where we hold a majority share. We encourage our suppliers, service providers, bottlers and other partners to adhere to the policy.
Download PepsiCo’s Environmental Policy (PDF, 16KB)
We have developed and published our Global Sustainable Agriculture Policy, which demonstrates our approach to sustainable development across our entire agriculture supply chain, including water savings, waste reuse, soil protection and chemical use.
Our policy addresses six broad objectives within the agriculture supply chain:
To support the implementation of the policy, we established a PepsiCo-wide governance structure called the Sustainable Agriculture Council (SAg Council). This council is staffed by agro-scientists, engineers and sustainability professionals from across all of our PepsiCo businesses.
Download PepsiCo’s Sustainable Agriculture Policy (PDF, 3.1MB)
We have launched a global sustainable packaging policy and formed a Sustainable Packaging Council (SPC). This multidisciplinary team includes leaders from our R&D, Innovation, Procurement, Sales & Marketing and Public Policy groups. The council’s objectives are to develop sustainable packaging strategies, goals, targets and alternative material technologies and to support responsible disposal practices. The SPC reports to the Environmental Sustainability Leadership Team (ESLT).
Download our Global Sustainable Packaging Policy (PDF, 182KB)
Along with our values, the PepsiCo Global Code of Conduct is at the center of everything we do. The Code applies to all associates, officers and directors, to all divisions and subsidiaries, and to every business transaction we make.
Since 1976, PepsiCo has had a Code of Conduct that is regularly updated and communicated to all our associates annually. The Code, last updated in October 2012, is available in over 30 languages and includes provisions relating to ethical business dealings, bribery, business gifts and entertainment, confidentiality of information, insider trading, protection of company assets, discrimination, harassment, equal opportunity, accounting and record-keeping, health and safety, environment, political activities and whistle-blowing.
PepsiCo’s Chief Compliance and Ethics Officer has overall responsibility for overseeing implementation of the Code of Conduct, supported by functional groups from each division, including the Law Department, Human Resources, Internal Audit, Security and Control.
The PepsiCo Global Compliance and Ethics Department works to educate associates on business ethics and Code of Conduct compliance to better ensure associates know the principles embodied in the Code as the first fundamental step toward operating ethically.
In our 2012 training cycle approximately 64,000 employees trained online to the Code of Conduct in 26 languages. The 45-minute online course was written to specifically address the PepsiCo Code of Conduct in the context of PepsiCo’s business environment. At the conclusion of the Code course, employees electronically certified their compliance to the Code. Our frontline employees trained manually to the code in local training workshops.
Actions that uphold the principles of our Code of Conduct and Values are recognized by various associate awards, including the Chairman’s Award, the global Steve Reinemund Diversity and Inclusion Leadership Legacy Award, the global Harvey C. Russell Inclusion Award, and a “Performance with Purpose” (PwP) Award recognizing initiatives and achievements that help internalize our values and Code of Conduct and/or protect human rights in the workplace.
All associates are required to comply with the Code of Conduct. Failure to comply may result in a variety of disciplinary and corrective actions depending on the type and seriousness of the matter, including counseling, written warnings, reduction in annual compensation or annual bonus, failure to receive long-term compensation, cancellation of stock options and termination.
PepsiCo’s compliance programs are reviewed periodically and independently by a third party to determine key compliance risks. Over the past five to seven years, the program has undergone two independent reviews. External audits of specific compliance areas (i.e., environmental and health and safety) are conducted periodically.
The effectiveness of the compliance and ethics program is also measured internally; our Internal Audit methodology assesses the company’s control capabilities related to business ethics and compliance, including Speak Up, a toll-free, web-based anonymous ethics hotline for reporting potential violations of the Code, our policies and the law. The hotline is operated by an independent vendor and is available to all associates, suppliers and customers in over 60 countries and in multiple languages or via the web.
PepsiCo respects the dignity of our associates in the workplace, and we are accountable 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 Our Human Rights Workplace Policy:
At PepsiCo, we recognize HIV/AIDS as a uniquely challenging global health issue that poses a significant threat to the sustainability of our business operations worldwide. We are committed to making a significant contribution to the fight against this devastating pandemic and to assisting associates and their family members affected by it. PepsiCo has established an internal task force on HIV/AIDS to guide our actions in addressing the issue in our businesses.
Our policy outlines an approach that will be applied across the diverse array of markets in which we operate. In South Africa, for example, we have made important strides, including establishment of a comprehensive HIV/AIDS testing and treatment program. Based on our experience there, we believe any sustainable program to combat HIV/AIDS must focus first on building awareness, encouraging prevention and reducing the stigma associated with the disease. However, to succeed in the long term, an HIV/AIDS program must include a testing and treatment component.
We are currently working toward our goal of ensuring all of our associates and their families have access to affordable treatment for HIV/AIDS, including such services as anti-retroviral drugs, treatment for relief of HIV-related symptoms, nutrition counseling and supplements, stress reduction and treatment for the more common opportunistic infections, including STDs and tuberculosis.The way we address HIV/AIDS in any individual country will reflect that country’s particular needs and circumstances. Approaches may include review of existing benefit mechanisms to provide for the needs of workers living with HIV/AIDS and consultation with government and other partners to explore the sustainability of new health benefits, specifically addressing the retroviral and opportunistic elements of HIV/AIDS.
All of our HIV/AIDS programs will embody the following principles:
Inclusion — PepsiCo’s policy applies to all associates of PepsiCo and its wholly owned subsidiaries. We will make available our policies, practices and experience to business partners according to their need and interest so they may be more effective in fighting this pandemic.
Sustainability — Our approach starts with basics and progresses as prerequisite elements are well-established. Testing and treatment programs require a solid foundation in awareness and education.
Commensurate Response — Our country-level programs should be commensurate with the severity of the local HIV/AIDS public health threat. Our goal is to meet or exceed local HIV/AIDS benchmark practices.
Local Relevance — Our local programs will be shaped by those responsible for implementing them. We will actively engage our associates and their representatives in developing and implementing our local approaches to HIV/AIDS.
Quality — We will encourage sharing of best practices, inside PepsiCo and with outside companies and organizations. We will facilitate access to information on HIV/AIDS prevention and care. Such information may come from external or internal sources and may include the insights of people living with HIV/AIDS. We will review our progress annually and continuously seek ways to improve.
Outreach — We will actively seek partnerships to increase the reach and impact of our efforts in the communities in which we operate. We will reach out to governments, nongovernmental organizations, other companies and community-based groups to leverage their capabilities in fighting HIV/AIDS.
Compliance — In the event our policy or programs conflict with local laws or regulations, we will respect those local laws and regulations.
Learn more about the process and policies guiding our business.
Download Report »