Ethics and Compliance in PepsiCo Ethics and Compliance in PepsiCo Ethics and compliance are essential ingredients in building asuccessful organization. They are crucial in building organizational trust and transparency. Adherence to the two values helps in minimizing risks and establishes a culture of transparency and commitment to the organization in all functions and structures. Pepsi-Cola is committed to enhancing sustained growth through training and maintenance of empowered personnel capable of acting responsibly and ensuring trust (PepsiCo Inc.,2010a). Compliance and ethics are ensured through focus on six guiding principles namely: prioritizing the welfare of the consumers. ensuring the quality of the products they sell. ensuring the integrity in all business dealings especially financial transactions. respecting other people and employing teamwork in all business dealings. including long-term short-term and goals. and embracing diversity as well as ensuring representation of all groups (Ferrell and Ferrell, 2010). Compliance is ensured through committees that formulate resolution strategies and establishes recommendations necessary to support them. The compliance committee is comprised of four subcommittees whereby finance sub-committee is one of them. The finance subcommittee is involved in maintaining financial accountability across all the company structures. PepsiCo commits to achievement of business and financial success that does not negatively affect the society and maintains a favorable reputation. The approach of the company is to ensure that the financial performance is characterized by integrity and enhances the shareholder value. According to PepsiCo Inc., (2010a), the company continues to promote impeccable financial performance through balancing both short-term and long-term goals and extending investments in the strategic global regions to compel sustainable growth. The management has also identified challenges that need to be overcome in attaining the company objectives. The management team of PepsiCo monitors the quality indicators in assessing the financial condition and the business results. According to Ferrell and Ferrell, (2010), the company is committed to maintaining strict corporate standards that ensure the integrity and accountability of all the company processes. This commitment is affirmed by the governance standards that the company applies. The policies applied by the company in achieving proper application of governance include Audit Committee Charter, Amended and Restated Articles of Incorporation, Corporate Governance Guidelines, Compensation Committee Charter, By-Laws, Nominating and Corporate Governance Committee Charter, Disclosure Committee Charter and Policy for Audit and Non-Audit Services (PepsiCo Inc.,(2010a. PepsiCo Inc.,2010b). The Audit committee charter presides over the financial integrity of the company. This committee is composed of financial experts who monitor the financial accountability within the company structures (PepsiCo Inc.,2010). The Amended and Restated Articles of Incorporation contains the full details of the company such as name, official existence and the product description in reference to the Carolina legal requirements (PepsiCo Inc.,2010). The company by-laws are the procedures and rules applied in running business activities. The compensation committee charter sets the rights and powers of the executive as well as the policies involved in compensation. According to PepsiCo Inc.,(2010a), the corporate governance guidelines assist the Board of directors and the committees with their duties and responsibilities. The Nominating and Corporate Governance Committee formulates policy recommendations regarding corporate governance (PepsiCo Inc.,2010b). The Policy for Audit and Non-Audit Services are provided by independent auditors who undertake auditing and preside over tax issues of the company (PepsiCo Inc., 2010)ConclusionIt is crucial for organizations to implement sufficient ethics and compliance guidelines. Ethics and compliance in PepsiCo is facilitated by the compliance committees that set high ethical standards that ensure optimal effectiveness of the business. This cultivates accountability and integrity within the company, especially regarding financial issues. ReferencesFerrell, O.C. amp. Ferrell, L. (2010). PepsiCo’s Journey toward an Ethical and Socially Responsible Culture (PDF). Daniels Fund Business Ethics Initiative, University of New Mexico.PepsiCo Inc. (2010a). PepsiCo. Retrieved from http://www.pepsico.com/Company/Corporate-Governance.html PepsiCo Inc…(2010b).Pepsico.Retrieved from http://www.pepsico.com/Investors/SEC-Filings.html

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