Description
Part 1(a) Should be between 400-600 words with in text citations. Also, should use at least 2 different websites for resources. Make sure that are websites and based in the United States.
Sustainability reports are increasingly becoming expected or even required by business organizations. This exercise will give you practice in comparing and evaluating sustainability reports.
Challenge
Step 1: Go to the Coca-Cola corporate website and click on Sustainability and review the company’s most recent Sustainability Report. Determine the six best aspects of the Coca-Cola report.
Step 2: Go to the PepsiCo corporate website and click on Sustainability and review the company’s most recent Sustainability Report. Determine the six best aspects of the PepsiCo report.
Step 3: Develop a report comparing and contrasting the two companies’ Sustainability Report with regard to business ethics, social responsibility, and environmental sustainability.
In your opinion, does Coca-Cola receive a grade of A on their business ethics, social responsibility, and sustainability efforts? Grade each company on the three dimensions and give each an overall grade. Justify your grades.
Part 1(a) Should be between 300-500 words. In text citations that are at least 2 different websites and based in the United States. This is a discussion response.
- ustainability Reports provide insight into how a company’s operations impact its business environment, including labor practices, energy efficiencies, and business ethics (Davis et al., 2019, p. 307). In reviewing the sustainability reports of corporate giants Coca-Cola and PepsiCo, it is evident that both understand the importance of such programs, as each has invested significant resources into creating sustainability policies. However, as with many corporate strategies, some areas still need improvement or further clarification.
Coke’s sustainability plan includes the following categories: 1. Water Leadership, 2. Portfolio Improvements, 3. Packaging, 4. Climate, 5. Sustainable Agriculture, 6. People & Communities. First, there are many things Coke has done correctly since its inception, which is why it continues to provide a roadmap that teaches other corporations how to be successful. Also, from a people and communities perspective, the Coca-Cola Foundation has launched several philanthropic programs supporting the communities in which it operates. However, in reviewing its entire sustainability plan, while on the surface, it appears to be quite thorough, many of its stated metrics are either unclear or based on undisclosed results. For example, the company notes a 10% water efficiency improvement across all system operations compared to its 2015 results without mentioning precisely what those results were. Also, when reporting the amount of sugar used in its products, Coke notes a reduction of 900,000 tons of added sugar. While that may seem significant, providing exact numbers (i.e., a decrease from 1,800,000 to 900,000 tons) would give a better picture of its progress. Lastly, Coke only references its most recent sustainability results (2022) without noting how its various processes have performed compared to previous years. In addition, despite its claims, Coke continues to struggle with negative press around its use of plastic materials (Greenpeace, 2023).
- Likewise, PepsiCo’s sustainability report lists seven categories: 1. Agriculture, 2. Value Chain, 3. Water, 4. Packaging, 5. People, 6. Expanded Portfolio Offerings, 7. Planet & People. Compared to Coke’s one-year snapshot, it also shows five-year results (2018 through 2022), providing a broader overall picture of its progress. For example, one of PepsiCo’s goals includes a management team comprised of at least 50% women. Listing annual results over time quickly provides a baseline and shows the company’s progress toward achieving its goal (i.e., the percentage of women in management roles has consistently increased from 40-44% from 2018-2022). Also, under its Positively Agriculture initiative, the company lists specific targets concerning its efforts to sustainably source 100% of its key ingredients (PepsiCo, 2022). It also notes that a third party will verify the initiative’s results, adding credibility to the sustainability report. However, there are several categories where the details of the company’s performance have been omitted. In listing its emissions of greenhouse gas results, Pepsi only provides numbers for 2022 with a caveat (like Coke) that states, “prior year results are being recalculated to be consistent with the (undisclosed) 2015 baseline” (PepsiCo, 2022). Also, like Coke and despite its efforts, Pepsi continues to struggle with using plastics, adversely affecting the environment (Pyzyk, 2023).
In summary, while Coke and PepsiCo have invested heavily in creating detailed sustainability strategies, there are still areas where both could improve by sharing more transparent, quantitative results. For the thoroughness of both sustainability programs, I would issue an overall score of B to Coke and B+ to PepsiCo (given its transparency in reporting results over time). In addition, based on the abovementioned issues, I believe Coke should receive B, B+, and D scores in business ethics, social responsibility, and environmental sustainability and Pepsi’s scores would be B, B+, and C-, respectively.
- References
Coca Cola. (2023). The Coca-Cola Company 2022 Business & Sustainability Report highlights. https://www.coca-colacompany.com/content/dam/journey/us/en/reports/coca-cola-business-and-sustainability-report-2022-highlights.pdf
David, F. R., David, F. R., & David, M. E. (2019). Strategic Management: A Competitive Advantage Approach, Concepts and Cases (17th ed.). Pearson Education (US). https://reader2.yuzu.com/books/9780135203699
Greenpeace. (2023, April 28). Coca-Cola greenwashes sustainability claims. Greenpeace USA. https://www.greenpeace.org/usa/news/coca-cola-greenwashes-sustainability-claims/
PepsiCo. (2022). 2022 ESG performance metrics – pepsico. 2022 ESG Performance Metrics. https://www.pepsico.com/docs/default-source/sustainability-and-esg-topics/2022-esg-summary/2022-esg-summary-performance-metrics.pdf?sfvrsn=72c2c782_10
Pyzyk, K. (2023, July 6). Pepsico struggles to advance its plastic sustainability goals. Food Dive. https://www.fooddive.com/news/pepsico-esg-report-p…
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Part 1(b) Should be between 300-500 words. In text citations that are at least 2 different websites and based in the United States. This is a discussion response.
Coca-Cola and PepsiCo approach their sustainability goals with the aim of leaving a positive impact on the environment. The companies are focused on reducing their carbon footprint while ensuring that their business practices do not cause adverse effects on the environment. Both companies have sustainable approaches to their packaging solutions because this is one of the biggest factors that enhance pollution in the environment. They both observe sustainable approaches to the packaging of their products such as using recycled materials and ensuring that waste disposal is done in accordance with the law.
Companies are also focused on sustainable agricultural practices that ensure crops are not harmed by their business practices. They make efforts to support agricultural communities around the world because they source crops from different countries. Similarly, there is an effort made to ensure that their practices do not harm the general climate of the regions in which their factories operate (PepsiCo., 2022). This is achieved through the adoption of renewable energy sources and the reduction of emissions to guarantee as little waste as seeps into the natural environment.
However, one key difference in their sustainability approach is that Coca-Cola adopts measures to reduce sugar in their products to promote a healthier population. PepsiCo does not have a solid plan for sugar reduction, but Coca-Cola adopts an approach that ensures their products have the minimum level of sugar required to avert any adverse effects that is causes. PepsiCo adopts a positive value chain that is inclusive in their business practices for their customers, something that is not highlighted by Coca-Cola. The value chain observes the necessary ethical standards required to guarantee their products are safe and inclusive for their customers (The Coca-Cola Company, 2022).
Coca-Cola does receive a grade A for their business ethics, social responsibility, and sustainable efforts because they are committed to their customers as well as their employees. Their business practices are in accordance with existing laws, and they are focused on reducing harmful emissions that damage the natural environment. PepsiCo, too, receives a grade A because their business practices, particularly their approach to agricultural sustainability, have a positive impact on the environments in which they operate. Both companies place a big emphasis on keeping the environment clean while also ensuring that their business practices do not infringe on any existing laws. They place a big emphasis on ensuring that the natural environment remains clean for future generations.
References
PepsiCo. (2022). 2022 ESG Summary Performance Metrics. Harrison, New York.
The Coca-Cola Company. (2022). 2022 Business & Sustainability Report. Atlanta, Georgia.
Part 2. Use the attachment called “Capstone without”.
Develop alternative strategies for your company with the strengths and weaknesses of each.
Possible strategic alternatives
Evaluation of current organizational structure
Recommended changes (if needed) to the structure, culture (including values), processes, rewards, or technology
Include matrices as appendices
The length for this Phase is 12-16 cumulative pages.
The video will also help. This is the instructor feedback
*In assignment two, plan to begin outlining this document as your final Capstone submission will appear. Be sure to include assignment one as part of assignment two—and make any revisions you deem necessary to assignment one when submitting assignment two. In other words—each section should build onto the next to make it a seamless read. Include a placeholder for your Executive Summary, Table of Contents (in that order), and build onto your appendices (located at the end after your reference list) where your data charts should be located. Even if sections are empty for now, you will have your headers across the top for this “future” info to be placed. Be sure that your charts/tables/graphs are not broken between pages—and when inputting numbers, always use rows and columns (with lines) to keep your work better organized. Remember that “presentation” is perceived as equally important to content—so keep your data charts consistently formatted—and professional. Make sure that your charts/tables/graphics are closely aligned with verbiage describing them. Never assume that your reader knows what he/she is viewing in data charts. Make sure that your reader has no trouble locating your data charts in the appendices—so in the verbiage section provide a page number that directs your reader to that chart.
Begin thinking about the Power Point presentation that is due in Week Eight (with the finished written sections—all three seamed together)—particularly because you want the PPT to be an extension of the written document—but also creatively shown—being that PPT is a visual program and thereby maximize its features. As discussed in our last Zoom chat, I suggest that you use company “colors” and its logo on select slides. Also, the PPT is where your data charts show up well—and lastly, be reminded this slide show must be substantively narrated by you—so become familiar with how to do this—if you are not already. I will look for the little speaker icon on each slide where I can click and hear your voice. No presenter’s notes needed. Your narrated Power Point does not need to be lengthy—so as discussed prior, use it to point out anomalies or outliers that you feel needs to be brought to the attention of your viewer about your company.
**In your final written document, make sure that you include a section near your conclusion where you as a strategist make recommendations about what your company should do in the future to remain viable and to compete. Remember that your job is not only to perform research and show what “is”, but to interpret this data and turn it into useful information that company leaders can apply into the future to make decisions. This section may the most important one of your study—so be sure to take advantage of this “rare” opportunity to exercise your own analysis about what your company should do as a future strategy—from YOUR informed perspective. **
