ESG
Topics A-Z
ESG Topics A-Z
Freedom of association
To PepsiCo:
We believe that an open and continuous dialogue with our stakeholders is critical to our business’ success. Our engagement approach focuses on an ongoing dialogue with a wide range of stakeholders (e.g., workers, NGOs, trade unions, investors, customers) to gain global and local perspectives on how to best integrate rights holders’ feedback into our business priorities. We value our workers’ rights to freedom of association and support alternative methods of engagement where collective bargaining is prohibited by law.
To the World:
Freedom of association refers to the right of all workers to join or form a legally recognized trade union or any other organization. While freedom of association is a fundamental right enshrined in the Universal Declaration of Human Rights and the International Labor Organization Declaration on Fundamental Principles and Rights at Work, there are still a variety of challenges in ensuring that it is consistently respected around the world – from interference with the rights of workers to legal restrictions on the right of association.
Approach
As an employer of approximately 315,000 employees, we recognize the importance and value of having a direct dialogue with our employees. We also respect our employees’ right to join or form an organization such as a trade union and we strictly prohibit any form of retaliation, intimidation, harassment or violence against union members, trade union representatives and employees seeking to exercise these rights. These principles are embedded in our Global Code of Conduct, Global Human Rights Policy and our Global Supplier Code of Conduct, where they serve as core expectations of our employees, suppliers and business partners.
We recognize that our responsibility to respect human rights exists regardless of whether governments fulfill their duty to protect human rights under the UN Guiding Principles on Business and Human Rights. At times, this responsibility can present a challenge, as instances may arise where national law and international human rights standards do not align or directly conflict. Where the right to freedom of association is restricted by national law, we are committed to supporting the development of alternative mechanisms of engagement with our employees (e.g., employee roundtables, worker voice initiatives, etc.) while remaining in compliance with local law.
Where our employees are represented by a legally recognized union, we are committed to establishing a constructive dialogue with their freely chosen representatives and bargaining with those representatives in good faith and in compliance with local law. We believe that an open and continuous dialogue with our stakeholders is critical to informing our human rights program and we are committed to engaging with rights holders, including our employees and their representatives, to strengthen our approach and address concerns.
Progress
We respect the right of freedom of association and this principle is embodied in our Global Code of Conduct, Global Human Rights Policy and Global Supplier Code of Conduct. This means that, consistent with local laws, associates have the right to assemble, communicate and join associations of their choice. PepsiCo fully complies with all laws regulating collective bargaining. In 2021, approximately 53% of employees worldwide who were eligible to be covered under collective bargaining agreements were represented. PepsiCo maintains positive working relationships with union representatives.
What's next?
- Continue to strengthen our policies and guidance materials, prioritizing engagement in high-risk operating and sourcing geographies in our value chain
- Enhance our due diligence process to ensure it effectively captures trade union rights and rights holder feedback, focusing on risks faced by vulnerable populations across our value chain (e.g., migrant workers, human rights defenders, etc.)
- Continue ongoing stakeholder engagement and advocacy efforts to inform our approach, address concerns and raise awareness
- Continue to strengthen our grievance process and more effectively use our leverage to enable remedy
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