PepsiCo: the Corporate Citizen
“The real voyage of discovery consists not in seeking new lands, but in seeing with new
eyes.” - Marcel Proust, French novelist
C
ynics and critics of business have a field day in these ever-changing times, readily
pointing fingers at businesses (see Exhibit 1). All along, the positive-minded
corporates march forward, like baseball batters who face the fury of pitchers in real
time. Pleasantly, the spectators come to watch the batters and the pitchers, not the vain
critics. In the bedrock of this truism, corporates have been steadily growing beyond the
profitability concerns of their firms, integrating in their processes interests of the
environment, of the workforce, and of the mankind in general (see Concerns of people
in Exhibits 2a, 2b, 2c). Welcome to the world of corporate citizens: aware of their rights,
pushing realization of their potentialities, while being conscientious of their duties (Exhibit
3 delineates a framework for Corporate Social Responsibility [CSR] trends while Exhibits 412 explore opinion shaping and business effects of CSR related themes). This is a world
where the scrupulous corporate is stretched into thinking innovative and progressive
initiatives to carve newer sustainable competitive advantages in a world where the
media scrutiny is heightened, the consumer is exercising choice in favor of
environmentally-tuned products, and the regulatory pressures are mounting day by day.
This is an evolving world with ever new challenges emerging at a rapid pace.
Amongst the responsible corporate brands of our ever changing world, PepsiCo has
always held a position of pride. Immense foresight and endeavor over decades on part
of PepsiCo’s leadership and staff has brought this position in being. To grow further, this
company has to constantly evolve to newer dimensions, for this pursuit is essentially
characterized by dynamic responsiveness. This ambition to set higher benchmarks has
created new dialogues within the company – between the corporate communicators
and the brands, and between the various stakeholders like employees, suppliers,
customers and communities. As these key groups have opened up their lines of
communication, new ideas and products have sprung forth, foremost being the
reckoning of the triple bottom-line: economic-social-environmental.
Consequently, the PepsiCo senior executives have today a heightened comprehension
of how to proactively address “corporate responsibility” related concerns of the
corporation and the community at large. The focus is to ultimately address and create
enhanced connect and trust through various relationships between the company and its
multiple stakeholders. The sustainability of customer value is emerging as a priority,
resulting in scrutiny of the internal processes that deliver the brand promise, and of the
behavior of staff that naturally embodies brand values. Thereby the role of employees in
building and maintaining customer relationships is being seen as one of paramount
importance. The firm’s network of suppliers and partners is becoming an explicit part of
the add-value proposition. Finally, the company is reaching out to all external
stakeholders including investors, media, and local communities to understand their
Professor Amit Kapoor of Management Development Institute, Gurgaon prepared this case for the
campus engagement program of PepsiCo International in India. You can contact Professor Amit
Kapoor at amit@amitkapoor.com. No part of this publication may be reproduced without the
permission of PepsiCo International. For copyright permissions and publications related queries
kindly write to pepsicoindia.beveragestaffing@intl.pepsico.com.
needs, concerns and work to address them better and this is turning out to be an exciting
and interesting forward movement.
In these times of flux and chaos, a reasonable self-introspection and periodic review is a
trigger towards excellence especially focusing on modalities of how to raise the bar in
setting higher standards towards duties towards environment; what short term and long
term strategic initiatives would exceed expectations of customers and public at large;
what renewed priorities to focus on; doing more of what activities; doing away with which
ones and innovating on what fronts.
The World of Corporate Social Responsibility
Jack Welch said in 1999 after extolling the virtues of legitimate profit-making, "these times
will not allow companies to remain aloof and prosperous while the surrounding
communities and society decline.” Proctor and Gamble in their advertising campaigns
for selling diapers also bring attention to the salient role mothers play in our social fabric.
Were a narrow focus guiding them, they could have focused only on the product
features; instead the company endows the necessary dignity society must attribute to
the sacrificial and caring role of mothers, allowing that exalted and self-esteem replete
status this role demands. This endeavor in turn sets a deeper bond with the mothers who
are customers too.
Microsoft funds social well-being through major activities in
education, health improvements, HIV/AIDS eradication programs etc. world wide. Long
known for its adherence to business ethics, Tata’s, the largest private sector employer in
India has community initiatives: a feeling of healing funded by Tata Trusts, the
Foundation for the Revitalization of local health; involved in developing tribal
communities around Jamshedpur in India; having started the path-breaking Social Audit
Report. Apollo tyres in India provide general and sexual health services for truckers,
besides promoting an NGO Umeed through funds and gifting tyres for its vehicles. Wipro
has been promoting the “applying thoughts” crusade in schools. Cisco supports overall
networking talent capacity building through its academies. Using CSR strategically,
beyond the “feel good” factor is what is exemplified by Toyota. To address public
concern about auto emissions, the company used its technical prowess to develop the
hybrid-engine Prius. This car significantly reduces pollutants and has given Toyota an
enviable lead over rivals in hybrid technology. In all these focused drives, the driver is
suitably integrating business sense with concern for extra-organizational space. When
conceived ingeniously, such drives that show care for environment and people, have
the potential of increasing profitability to higher planes. For these drives provide better
linkage with the current and potential customers, creating touchpoints hitherto not fully
tapped.
In these “happening times” for environmental management related issues in India, the
benchmark brands are across most sectors: FMCG, IT, Chemicals, even Banking. Studying
these, one can see how best to integrate social good with their business goals: targeting
key business components, choosing focused causes with linked messaging planks,
sustained efforts over time, with sound investment patterns. Triple Bottom-line Focus
(economic-social-environmental) is a highlight of board meeting discussions, not a mere
living room deliberation. Strategies born out of an organic wedlock of the three facets of
economic objectives, social effects and environmental-ecological impacts are not only
more potent than purely economic-ends-isolationist ones, they alone are the need of
times. This is the next evolution stage, just like marketing has traditionally been seen to
come through stages of the industrial age era production-focus, followed by product
focus, selling focus, marketing focus, with the last leg having been societal marketing.
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Brand-imprint movement at HUL seeks adding vitality to life, meeting everyday needs for
nutrition, hygiene ad personal care with brands that help people feel good, look good
and get more out of life. Nestle focuses on “Good Food, Good Life”, entwining Taste and
Health, driving programs of technical assistance and education for farmers. It is also into
energy conservation. Infosys has come to signify huge trust from stakeholders, boosting
employee visibility and satisfaction through multiple programs, most noticeable being
advertising campaigns on identifying the company with a specific employee randomly
chosen. It is deep into grooming youngsters for future careers, besides driving general
healthcare, rural upliftment, social rehabilitation and nurturing art & culture.
ITC, stigmatized by dealing in tobacco products, is seeking to bring in the spirit of putting
India first, ahead of the interests of the corporation. It has led in rainwater harvesting,
afforestation, preserving national heritage, innovative e-chaupals and rural education
through cause marketing. Strategic import can be seen in the fact that ITC has diversified
into multi-products multi-domains, with no cross-over of its tobacco products perceptions
rubbing wrongly its other domains and brands. The climactic bombshell ITC is facing is
the ban on smoking in all public places effective October 2, 2008. ITC has tried to log its
protests, mostly surrogate or muted ones, trying to defend the right to choice of its
customers. Whereupon, public at large, at least the sect opposed to smoking, has begun
to see a dichotomy in ITC’s CSR initiatives. Public expects that if a company embarks on
CSR, it needs to ensure that its other actions are also aligned with the same (read CSR)
agenda. Any confusing signals on this count would amount to blurred and obfuscated
positioning of the company in people’s minds.
Asian Paints is working at creating progressive change across the communities within the
influence of its operations and beyond by initiating implementation of rain water
harvesting in several housing societies and corporates, by introducing mobile medical
units for the elderly, and bringing in health and infrastructure facilities in schools around its
plants in Tamil Nadu and Gujarat. ICICI Bank’s social initiatives groups have identified
three areas - child health, elementary education and micro-financial services. They have
also set up an ICICI Foundation where the focus is to make markets work for the rural and
the poor.
Besides, corporates have emerged as pillars of strength in times of national calamities.
DHL has offered its services as the official logistics partner in such disasters. Gati has
adopted families from tsunami hit villages for employment on its rolls. Relief in truckloads
has been conveyed by PepsiCo and many other corporates to flood-affected and
earthquake hit regions. Governments too have begun looking forward to active
collaboration of aid resources in such moments of crisis. All this not only proves that
corporates, like the good Samaritan concept in France, are keen to share their wealth
with regions in need; it also shows how corporates appropriately protect and nurture the
markets. The engagement with customers is enriched onto firmer emotional bonding.
Rising to occasion in such times of frail emotionalities and imperiled existence couples
very well with the steady peace-time initiatives. Pizza Hut has begun the practice of
having Rs. Ten per invoice to be billed to the customer for charity towards fighting
Hunger; this is an optional billing which allows the willing customer to feel good while she
and her group have food themselves.
All this CSR activity builds trust, which is under attack when the brands, in their life cycles,
sometime or other come under attack. A controversy can either be a marketer's worst
nightmare or her greatest blessing. Blessing because the controversy and subsequent
consumer curiosity may turn out to be an opportunity for an increase in sales. Nightmare
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because it threatens to damage the credibility of the brand. These include Cadbury's
having to fend off accusations of worms in its chocolates, McDonald's of beef tallow in its
fries, KFC of monosodium glutamate (MSG) in its products, and even Johnson & Johnson
for the alleged presence of harmful chemicals in its baby products. KFC entered India in
1995, but a controversy surrounding the levels of MSG in its preparations and subsequent
protests from farmers' groups and animal rights activists spelt trouble for the company.
Ultimately, the company had to shut all but one outlet in the country. Only recently it
made a quiet re-entry into the Indian market. Even in international markets, controversies
have been known to wipe out brands. Coca-Cola, for instance, had to withdraw its
newly launched bottled water brand, Dasani, in the UK in 2004 after it was found to
contain higher than permissible levels of the chemical bromate and the issue snowballed
in the UK press.
However, in a situation in which consumer-connect with a brand already exists, what is
the best way out for marketers when faced with a controversy threatening to go out of
control? "The best way to respond is to come upfront, meet the problem head on, be
transparent, recognize the problem and importantly, be seen to be taking utmost care
and corrective action," says Sam Balsara, Chairman and Managing Director, Madison
Communications. It has been observed that established brands do better with
controversies, and far more quickly, if they are perceived to be taking corrective
measures. This could be noticed in the case of the Cadbury's controversy three years
ago, in which some of the company's chocolates were reportedly found to be infested
with worms. Following this, Cadbury went into overdrive to inform consumers how
improper storage may result in such things happening. Further, the company improved
the packaging of its chocolates and also focused on altering the way they were stored
across the retail outlets. It also launched “Project Vishwas” to educate retailers about
improving storage conditions. Even the company's advertising at the time sought to
assure consumers that with the new packaging, its products are totally safe. This all
strengthened its CSR agenda by commitment to environment and enhancing
community value.
In fact, corrective measures are known to quickly help in rebuilding a brand's credibility
as the high incidence globally of product recall and subsequent replacements shows. In
such cases, the challenge for companies is to create the perception that they are taking
care of the consumer's interest first, rather than their own. This can be seen in the famous
case study of the Johnson & Johnson Tylenol controversy which hit headlines in the US in
1982. After it came to light that several people in Chicago died after taking cyanidelaced capsules of the pain reliever, Tylenol, the organization took the decision to recall
all Tylenol bottles and introduced a new tamper proof pack at a huge cost rather than
disown responsibility for the tampering with some of its medicine samples. They had also
proactively set up a communication link with consumers through the media educating
them about the entire issue. The company was lauded for its transparent and swift
reaction, and was able to regain market share in a short span of time.
In the global automotive industry also, for instance, product recalls are an increasingly
regular feature. However, they do not appear to affect the core credibility of the auto
brand in question. Millions of vehicles have been recalled by automakers such as Nissan,
Toyota and Ford. If anything, a recall can even work in a positive manner by showing
that the brand cares about the customer. Further, recalls can even save a brand from
potentially more harmful controversies. "The best way to handle controversies is to not
allow them to develop in the first place. And if, because of external factors, a
controversy does occur, the issue should be faced directly. Further, as a brand stands for
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trust, it makes sense for the company to focus on the credibility and not the celebrity
aspect. The celebrity should not be the base and credibility the icing, but the other way
round," says Jagdeep Kapoor, Chairman and Managing Director, Samsika Marketing
Consultants.
In other words, a brand can't hope to rid itself of a controversy by ignoring it or hoping
that its celebrity brand ambassador can pull it out of trouble. Kapoor adds that an
escalating controversy could hint at larger issues of brand trust and perhaps even a lack
of confidence building between the company and the consumer.
"Controversies come up when there is a difference between the actual and the
perceptual image of the brand. The attempt of the brand manager should be to reduce
the difference between the two to the minimum by engaging the consumer. When there
is a gap, then issues related to either credibility or even incredibility come up. Further,
treat the relationship between a brand and the consumer as that between two people.
Thereby if a controversy does break out, the company should directly interact with the
consumer," he says. The interaction should be done through on-ground activities rather
than through the media or advertising. Of course, certain brands tend to be more
susceptible to controversy than others, say marketers. "The bigger MNC brands are more
likely to court controversy, as anyone can point a finger at them," says Balsara. Further
health-related controversies, which affect FMCG and Pharma brands the most, are more
likely to balloon into major issues. While there is no ideal way to respond to such
situations, most marketers are in agreement that when the controversy is on a nationwide
scale, ignoring the issue and waiting for the controversy to blow over is not the best
strategy. But it’s a call the company in question will have to take.
At times the damage is too daunting, as in the case of Bhopal gas leak tragedy, where
thousands died due to Union Carbide’s plant gas leak. The subsequent legal wrangling
etc and delayed disbursement of compensation has caused tremendous irreparable
damage to the corporate brand, though the product brands are virtually unscathed.
In Allan Greenspan’s words, “the greatest asset of any corporate is its brand equity,
which is built over years and years of trustful dealings... it is irrational and impractical to
think a corporate would jeopardize its trust for mere temporary benefits.” Societal
responsibility by corporate strengthens its trust bond with customers and public.
Recognizing this dynamic, it is imperative corporates genuinely and intelligently craft
their CSR agenda, any non-challance in this pursuit would not only make such a
corporate a laggard, it might cripple its functionality as a profitable entity.
CSR also enables winning the war of extraordinary talent - talent which has finer
sensibilities and an evolved sense of responsibility towards world issues. A meaningful CSR
agenda strikes a chord in the hearts of talented people who can be the future workforce
with a corporate. There is a need however to surge beyond the defensive and the mere
compliant, onto sure-footed management and strategizing of CSR, further collaborating
collective action. Identifying with CSR initiatives of the employer provides selfactualization satisfaction to employees, active participation in such activities adds spice
to ennui of office-bound work, and gives a fillip to the employees’ identity in their
community at large. Additionally, vendors and suppliers too feel themselves contributing
to a larger sense of society. Vendors’ trust with a corporate, based on engagement in
serious CSR programs, lends higher credence to transparency perception of the
corporate.
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Fundamentals of PepsiCo
PepsiCo (NYSE: PEP) is one of the world's largest food and beverage companies, with
2007 annual revenues of more than $39 billion. The firm has strong market positions in its
soft-drink, sport-drink, and snack-food businesses. The company employs approximately
185,000 people worldwide, and its products are sold in approximately 200 countries. Its
principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports
drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 18 brands that
generate $1 billion or more each in annual retail sales. The company’s international
business generated around 40% of sales and 26% of operating profits in 2007.
PepsiCo: the Global Corporate Citizen
PepsiCo's commitment to sustainable growth, is focused on generating healthy financial
returns while giving back to communities the company serves. This includes meeting
consumer needs for a spectrum of convenient foods and beverages, with environmentfriendly initiatives on water, energy and packaging, and supporting its employees
through a diverse and inclusive culture that recruits and retains world-class talent. It exists
to accelerate top-line growth while transforming the portfolio to meet consumers'
ongoing snacking, thirst, refreshment and hydration needs.
This spirit has always characterized PepsiCo’s presence. Ms. Indra Nooyi’s appointment
as Chairman and Global CEO in 2007, has further charged up this spirit, CSR at PepsiCo
has acquired a whole new meaning, and a fresh vibrant face has been given to the CSR
agenda. Significantly, the 'Performance with Purpose' coinage and pursuit is shaped by
her, thus energizing PepsiCo into re-positioning itself as a corporate model to conduct
business worldwide. Naturally, this vision is being translated across ranks within PepsiCo
and to the world in general (Exhibit 13). PepsiCo has a three pillar approach (see Exhibits
14-16), which has been integrated in line with global benchmarks:
• Human Sustainability: Nourishing consumers with a range of fun and healthy products,
and making the healthier choice the easy choice. This has included drives to offer a wide
ranging portfolio of products to cater to various consumer choices, initiating nutrition
timelines, bringing forth the concept of health and wellness partnerships, transparent
well-informing and ethical product labeling, concern for food safety, developing
dynamic and responsive consumer and customer relations constantly seeking the
valuable feedback, working towards consumer privacy and enacting a sound and
ethical advertising code.
• Environmental Sustainability: Replenishing the environment, and working toward a netneutral impact on the environment in which PepsiCo operates. Fructification has been
seen of an overall commitment, environmental sustainability timelines, evolved industryspecific metrics to keep tab of progress, efficient management and monitoring
mechanisms, with installation of capital expenditure filters, framing a progressive
environmental policy, fostering education and awareness on this theme, striving on all
fronts of water, energy, packaging and waste, focusing on amelioration of agriculture
environment, and declaring and winning environmental honors.
• Talent Sustainability: Cherishing employees, and making PepsiCo the most desirable
place for people of all backgrounds to build a career. This has emanated out of an
overall commitment to talent, engendering diversity and inclusion across gender,
challenged groups and minorities, conceiving numerous benefits, working for health and
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safety, devoting resources towards training, vigilantly working for human rights,
developing synergistic relationships with suppliers and rolling out multiple formats of talent
honors.
In recognition of the company's economic, environmental and social performance,
PepsiCo has been nominated to the Dow Jones Sustainability World Index (DJSI World)
for the second time and the Dow Jones Sustainability North America Index (DJSI North
America) for the third time. DJSI World identifies companies that exemplify leadership in
sustainability among the leading 10 percent of the world's top 2,500 companies and DJSI
North America identifies those companies that exemplify leadership in sustainability
among the largest 600 North American companies. The World Index reported that
PepsiCo held the industry's leading score for corporate governance, code of conduct
(see Exhibit 17) and compliance, and brand management. PepsiCo was awarded A+ for
its corporate governance practices by Forbes. PepsiCo’s business strategy and affairs are
overseen by its Board of Directors.
The Board of Directors has three standing
Committees: Nominating and Corporate Governance, Audit and Compensation. The
Board of Directors has 12 independent outside directors and three inside directors.
Members of the Board are kept informed of the Company’s business through discussions
with the Chairman and Chief Executive Officer and with other key members of
management, by reviewing materials provided to them, by visiting the Company’s
facilities and customers, and by participating in Board and Committee meetings. The
board truly effects an earnest following of win and retain Trust paradigm. PepsiCo strives
to continuously improve its environmental programs and find solutions to its
environmental challenges. In 2007, for example, the company saved nearly 2 billion
gallons of water through conservation programs and made a landmark purchase of
Renewable Energy Certificates. Such water conservation efforts enrich the environment
significantly, adding to quality of living and comfort of the locality.
"Acting as a force of good in the world is at the very core of our values," said Indra Nooyi.
"PepsiCo is committed to achieving business and financial success while leaving a
positive imprint on society -- delivering what we call Performance with Purpose. This
recognition is the direct result of the personal commitment of thousands of people across
PepsiCo working to operate in a responsible manner and address critical challenges
facing our world."
Values: PepsiCo’s commitment is to deliver sustained growth, through empowered
people, acting with responsibility and building trust.
Sustained Growth is fundamental to motivating and measuring its success. Its quest for
sustained growth stimulates innovation, places a value on results, and helps it understand
whether actions today will contribute to its future. It is about growth of people and
company performance. It prioritizes making a difference and getting things done.
Empowered People means the people have the freedom to act and think in ways that
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 that other people place in PepsiCo as individuals and as a company. This
responsibility means taking personal and corporate ownership for all it does, to be good
stewards of the resources entrusted to it. It builds trust between its own and others by
‘walking the talk’ and being committed to succeeding together.
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Background of PepsiCo India
PepsiCo looked at entering into the Indian market in the early 1980s. The entry was
against a backdrop wherein foreign participation was limited to 40% of the venture
equity. PepsiCo did face stiff resistance in India at that time from the opponents of
foreign firms entering the local markets. The opposition was led by Captains of the
industry who fanned patriotic sentiments against foreign investment. PepsiCo‘s task was
however made easier because of the balance of payment crisis India was facing at that
time. This time over the proposal was denied on the grounds that PepsiCo would be
detrimental to Indian Soft Drink manufacturers. In 1986 PepsiCo submitted a second
proposal. This time over, the permission was granted and PepsiCo started its journey
towards capturing one of the nascent beverage markets in the world. PepsiCo had an
exceptional start in the Indian market with a leading market share in its pocket by 1994. It
was post 1994 when the effects of liberalization and deregulation started having an
impact on the spending ability of the Indian consumer that the market started catching
the fizz. PepsiCo in 1994 moved into strategically capturing the Indian market and
increasing volumes in the growing Indian market. PepsiCo volumes grew at a double
digit CAGR for the period 1994 through 2006. The volume growth that was seen was a
result of distribution expansion, setting up of plants and adding talent. The ramping up of
infrastructure was one of the primary drivers of growth over the years.
Beyond the growth and challenges are some very interesting facts about PepsiCo in
India. In 18 years of their operations they have become one of the largest FMCG in India,
employing over 4000 people directly and over 1,50,000 indirectly. The brand Pepsi
exudes confidence with being ranked as the most trusted beverage brand in the 2008
survey conducted by Reader’s Digest. In addition Brand Equity's annual survey of
the Most Trusted Top 100 Brands has ranked Pepsi amongst the top 20 Most Trusted
Brands across categories in the country this year. Brand Pepsi is ranked 13th across panIndia brands and is the only beverage brand in the Top 20 bracket (Exhibit 22&23).
PepsiCo’s success in India could be attributed to the four pronged strategy i.e., building
a winning image, building blocks for market leadership, building high quality
management capabilities and controlling its destiny. This is to be accentuated by the
fact that PepsiCo has always invested strongly for the future with investments in R&D,
infrastructure and capabilities. Through all these, PepsiCo has been strengthening its
commitment towards current and future Corporate Social Responsibility.
Challenges for Industry and for PepsiCo India
It would be an understatement to say that the world is going through a period of
unprecedented uncertainty. Patently, this uncertainty isn’t limited to the economy alone,
it is hitting the very fundamentals of political, civil, and social landscape. In this context of
evolving landscapes, the cola industry and PepsiCo in particular, are beset with loadfuls
of long-term and ever new challenges. Combating these successfully requires strategic
thoughts and actions:
I.
Image of MNCs: India was under British colonial rule from early 17th century to August
15, 1947. The trading company East India Company, under Robert Clive, entered
under the garb of commerce but eventually fulfilled political acquisition. Naturally,
most population in India has been fed a general distrust towards an MNC. There was
a spree of building self-reliance post 1947, founding Public Sector Units, with
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nationalization waves of banking, and even asking MNCs to exit. In today’s world
however economic realities are the key primer of global activities. Appreciation of
this and other compulsions forced India to liberalize and globalize 1991 onwards.
Nevertheless, many NGOs and many anti-capitalist stance dominated political
parties have frustrated growth of MNCs in India. True, many a times big corporates
are unethical and obsessed with greed, but a few such fly-by-night-operators have
made populace defensive against all MNCs. Willy-nilly, PepsiCo being an MNC has
to necessarily combat this cynicism. Here, it has to confront not a comparative
identity with other organizations, it is an absolute fight of proving MNCs are value
adding and nation building.
II.
Pesticide Rattle: It was a rattling experience for Cola industry in India, when it was
accused of serving pesticide infected beverage to the masses. This was in 2003, and
then again in 2006. The pesticide controversy created a negative image of Cola
products in the mind of the consumer. Huge hue and cry on part of NGOs and
media resounded even in the Indian Parliament. Not surprisingly, cola sales declined
by 30 per cent the first time the cola controversy broke, and sales came down by
about 15 per cent the second time around. But the major worry is not the immediate
but potentially long-term damage that the controversy may have caused. The
challenge mitigated to the level wherein Cola giants launched a consumer
education campaign about the safety of the products. The Indian Soft Drink
Manufacturers Association condemned the false claims and said that 'soft drinks are
completely safe'.
There was eventual vindication by most scientific of tests as to the safety of and
quality standards of the products. Thus the public was eventually won by
communicating the true facts of the situation and via suitable consistent
communication. However, the corporate leadership began to wonder as to how it
could insulate the company from such brand damaging events. Risk management
began with taking stock of certain dimensions. Efforts were rolled out to align the
public at large and even the legislators onto faith in the quality processes behind the
products. It was realized that the company’s social and environmental impacts, as
well as the short and long term impact of its product fed directly into stakeholder
perceptions. It was seen essentially as a matter of trust and important to carve out a
long term strategy that positively impacts all the dimensions.
III. Health and Wellness: PepsiCo, significantly, had to contend with the controversy
being identified almost entirely with its cola brand Pepsi. This makes PepsiCo’s
challenge of creating positive goodwill tougher as PepsiCo products are seen as
one of the causes of obesity if not consumed in moderation. A mass-appeal yoga
guru has equated cola with “only fit for washing the toilet”. Email forwards talk of
high pH of cola drinks, so much so that, a hard human tooth too would dissolve in it.
The heart of the problem lies in the fact that consumers and key opinion leaders
have little or no knowledge about the portfolio transformation agenda that is being
led in PepsiCo. In 2004, healthy products including packaged water contributed to
12% of volumes. Today in 2008, it stands at 25% of total volumes. Given that India
today has a rising incidence of diabetes, stress and heart related diseases, medical
fraternity, nutritionists and educationists are all concerned about inculcating sound
dietary and healthy lifestyle. In this context, PepsiCo is incorrectly perceived as luring
young consumers with high decibel of attractive advertising.
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IV. Environment: This is a multi-textured challenge, needing an addressing of Packaging
Waste and Water Table depletion. Water table is getting depleted around cola
plants is the accusation of many NGOs. Further, it is accused that this water is being
impregnated with harmful pesticides and chemicals. The allegations talk of large
water debits from the ground water table and due to lack of knowledge no water
credit is granted to PepsiCo. However the real status is far from these insinuations.
PepsiCo has replenished water in benchmarking quanta.
V. Welfare of Communities and Rural Population: Inclusive growth alone can be
sustainable growth. Corporates have to take cognizance of this facet in an active
sense. They cannot and must not allow widening of the divide between the haves
and have-nots and should strive towards bridging the gap between the two. India
has a large proportion of population residing in villages; this has to be woven into the
mainstream and cannot be left away from the upward mobility the urban sector is
experiencing. Similarly, various communities, of minorities, of physically challenged
and others have to be integrated in markets and workforce. This throws the
challenge of managing access, heterogeneity, logistics and diversity. This also
requires the need to surmount the bias public and some ulterior motive driven
bodies propagate that corporate is generally not bothered about these
communities, that considerations of profit-making deter corporate from reaching out
to “uneconomical” pockets.
Eventually, the composite effect of all these challenges is exacting an ever-rising
crescendo of demands off the corporate. The laggard amongst the corporate
fraternity are hardly being reactive enough, the forward looking need to be
proactive and set higher benchmarks in CSR activity. Besides demanding time and
capital resources, innovating apposite CSR solutions have to conform to business
needs of the corporate. PepsiCo has taken up the performance with purpose motif
as its guiding mantra; wherein necessarily there has to be performance (economic,
market share, innovation, customer satisfaction etc) to enable a sustained pursuit of
purposeful initiatives.
PepsiCo India: the Corporate Citizen
PepsiCo’s vision for the future is to make tomorrow better than today and PepsiCo India
believes that its businesses are intrinsically connected to the communities and the world
that surrounds it. To balance its superior financial performance with the ability to improve
the world that it operates in, PepsiCo focuses on 3 critical planks on a global scale :
I. Human Sustainability
II. Environmental Sustainability
III. Talent Sustainability
I.
Human Sustainability: This begins with valuing the customer. Today's consumers
increasingly view their spending decisions as a way to make a difference in the
world. They want to see their values reflected in the products they buy and their
communities strengthened by the businesses they support. PepsiCo sees itself in a
good position to take on this challenge by working on various initiatives such as:
♦
PepsiCo is continuing with the Health and wellness movement through its product
portfolio transformation by increasing more options in Tropicana juice, making
10
beverages more nutritious and also striving to reduce the impact of fat and sugar in
its products.
♦
The emphasis on healthy beverage is becoming visible. It has begun to give
momentum to anti-obesity drives globally and PepsiCo has been supporting athletic
activities of blind at Delhi, sponsoring National cricket games for blind, and improving
community infrastructure like roads and tanks.
♦
PepsiCo is also engaged in developing products to offer affordable nutrition to the
most needy sections of society in line with their Millennium Development Goals.
♦
The PepsiCo foundation is deeply engaged in new partnership models which lead to
healthier communities and new research insights. Last year it announced a new
PepsiCo grant of $ 5.2 million to the Oxford Health Alliance for implementation and
evaluation of community based health interventions in India, China, Mexico &
England impacting more than 2 million people.
♦
PepsiCo has specifically enunciated policies and measures that promote active
lifestyles and health consciousness amongst children through its ‘Get Active Program’.
This is attained through multiple programs of sponsoring sports activities, adventure
sports, and even scholastic accomplishments. Reengineering its product portfolio is
again promoting healthier consumption patterns in the children community. Thus
PepsiCo enshrines its faith in giving children a healthy growing-up experience.
♦
PepsiCo continues to work to ensure consistent and equitable trade practices across
its customers (retail chains and bottling partners), to deliver value-added product
innovation and differentiation, to achieve the most effective trade spend across
customers and channels through productivity programs.
II.
Environmental Sustainability: Smart management of environmental issues is about
being preventive, not merely hedging downside risks and working on this is not to be
seen as an obligatory compliance issue, it goes beyond that with potential of
becoming a competitive advantage. PepsiCo shares expertise and technologies
that provide important benefits to communities and countries. In India, this effort
spans the following major planks in this segment:
♦
Replenishing water: PepsiCo is in the process of attaining the zero-water balance
norm and an external auditor has been mandated to audit its positive water balance
process. Water sustainability is a subject close to PepsiCo global chairman and CEO
Indra Nooyi. It is a way of telling the consumers that not only is there care about
environment and communities, but also there is commitment to water sustainability to
make the tomorrow better than today.
In India, PepsiCo is using its knowledge to improve water supply in Kerala area. As
part of the work with the World Business Council on Sustainable Development
(WBCSD), it contributed technical knowledge to the creation of the Global Water
Tool, a water assessment tool that is being offered without charge.
The company has been working on water replenishment over the past five years by
conserving and recycling water usage within its manufacturing processes,
constructing rain and roof water harvesting structures, rolling out community water
11
projects, and hosting watershed management programs in partnership with TERI.
PepsiCo has reduced water usage in its manufacturing plants by over 60%, and that
has saved 2 billion liters of water in the process.
♦
♦
o
PepsiCo India has relabeled all its products with a quality seal to put the pesticide
row behind it. It has replaced all existing packs of Aquafina, its packaged water
brand, with new labels announcing that by next year, PepsiCo India will be a
positive water balance company. In other words, the company claims it will save
and replenish more water in its plants and communities than the total water it
uses in the country. India is the first country in the PepsiCo universe where a
corporate sustainability initiative is being communicated to consumers through a
product pack. The Aquafina pack labeling is a public declaration of PepsiCo’s
commitment to positive water balance. The pack labels will also carry details of
the company’s ‘replenish and restore our water’ message With the objective of
involving the consumer, the pack also urges the consumer to partner with the
company to ‘use water wisely so it could be enjoyed by future generations’.
o
In India, the Development and Rehabilitation Outreach Program comprises two
pilot water – sanitation programs (in the north and south) funded by PepsiCo and
implemented by The Energy and Resources Institute (TERI). Common to each of
these holistic programs is the fundamental approach of engaging local
communities in developing affordable sustainable solutions to improve water
availability while simultaneously invigorating local economies. A wide array of
education, interventions and activities, tailored to individual communities are
advancing hygiene and sanitation in addition to bringing awareness of the need
to and methodologies of managing water resources as a non-renewable
resource.
o
State of the art effluent treatment plants also ensure efflux is non-polluting and
eco-friendly. Thermodynamic vigilance allows having a pure and clean air
around its plants.
Transforming waste to wealth: PepsiCo India continues to convert Waste to Wealth to
make cities cleaner. This award winning initiative has established Zero Solid Waste
centers that benefit more than 200,000 community members throughout the country.
This has also been recognized by UNICEF as a model international centre.
o
PepsiCo is pursuing recycling of PET bottles through informal system of rag pickers
enabling collection of PET bottles and recycling these into another form thereby
creating value for the rag picker community and decreasing solid waste.
o
The glass bottles at PepsiCo are 100% recycled, however the need to develop
newer recyclable packaging solutions is imminent. It is still a grey area as to how
to measure progress on this front. Criteria have to be transparency (public
disclosure of policies), stability (commitment through time and not on
opportunistic/ capricious basis), responsiveness (varied endeavors with changing
social-economic conditions), and involvement (of people within and outside),
besides others.
Partnership with farmers: PepsiCo India’s agri-partnerships with farmers help more
than 15,000 farmers across the country earn more. PepsiCo facilitate seed and
weather insurance for their farmers thereby reducing the risk due to unpredictable
12
weather affecting the farmer’s earnings. In emerging markets, such as India and
China, its agricultural development programs have significantly improved crop yields
for local farmers. For example, in China, it shares knowledge about potato farming
with the Chinese Ministry of Agriculture, and it has established an advanced potato
research laboratory. PepsiCo India also supports contract farming over large areas
giving guaranteed buy-back basis defined quality specifications.
III. Talent Sustainability: Staff at PepsiCo has been interviewed, far and wide, by
objective assessment parties. The entry level employees are characterized by thrill:
thrill of hands-on opportunities to make a difference to the company, thrill of
receiving steady learning, thrill of having laid a satisfying long-term career
foundation. The middle management perceives job rotation and multiple job
enrichment avenues as the most differentiating aspect of a career at PepsiCo. The
top management has always felt supported with complete reliance on its
strategizing abilities by global leadership.
♦
PepsiCo Foundation Volunteer Program: The foundation has a long history of
encouraging employee involvement in the community through nonprofit groups. The
Foundation’s commitment to encourage the personal contributions and volunteer
leadership of PepsiCo associates includes the Foundation’s Matching Gifts program,
support for United Way Campaigns, and Community Service Days. The PepsiCo
Foundation matches employee gifts to nonprofit organizations through a Matching
Gifts program and United Way. In 2006, Matching Gifts totaled $4,436,795 and United
Way $2,880,769. Grants are made to nonprofit groups where employees volunteer.
Many PepsiCo associates are active in local communities as volunteers. In addition to
the wide spectrum of individual volunteer work, teams of associates often represent
PepsiCo at events such as runs and walkathons to raise funds to fight cancer or
HIV/AIDS and community clean-up days.
♦
PepsiCo Foundation EXCEL Awards program promotes excellence, community,
education and leadership. The children of full-time employees are offered renewable
scholarships with stipend ranging from 500 USD – 10,000 USD. Overall, appreciation of
value of people is the underlying driver.
♦
Leadership for tomorrow initiative is providing mentoring and inculcating vision in next
generation talent. PepsiCo strives to create the environment of College of Leadership
that provides growth through differentiated experiences and a robust leadership
development model to nurture next generation leaders (see Exhibit 18). Run as an
Academy Company, it offers electives that are analogues of critical experiences that
provide breadth of experience which builds capability and that gives people stretch
roles. All this stimulates entrepreneurship within organization that advances it’s
business goals.
♦
Retention is induced by a continual focus on leveraging diversity and inclusion. The
breadth and depth of succession planning has been expanded. There is a
reinforcement of the focus on managing people through an increased emphasis on
people development as part of the performance management process. Processes
like Internal Job Posting and Career Development Action Plan Process encourage
employees to have more co-ownership in their development.
13
♦
While fostering an environment of excellence and performance, PepsiCo also strives
to provide an environment to ensure work life balance of their employees - be it the
flexi-time policy, sabbatical et al.
♦
Inclusion and Diversity are one of the Guiding Principle of employees, esp. gender
diversity, has been meaningfully and seriously pursued. Best practices are being
pursued, with inclusion in 40 best compliance companies. An effort to spread the
change in HR policies industry-wide, the Diversity Initiative is not only facilitating the
female workforce of India to join back and adjust better, but also create a platform
for them to search for flexi-time, part-time, home-office and freelance opportunities with a simple click of the mouse!. The main aim is to provide flexibility so that female
employees at various life stages could leverage these policies like working from a
different city, sabbatical from corporate life, extended maternity leave etc.
♦
Scholarships for the gifted have been instituted. For example PepsiCo has instituted
Harvey C. Russell Award. This is a global recognition by the Chairman of PepsiCo and
honors those who have distinguished themselves as truly extraordinary in their efforts
to help PepsiCo further its goal to build a diverse and inclusive culture. The award is
named after Harvey C. Russell, who broke America's color barrier when he became a
Vice President of PepsiCo in 1962 and went on to set the standard for corporate
social responsibility. Eight individuals and 14 teams from across all PepsiCo divisions,
along with two external partners, were honored as 2007 Harvey C. Russell Inclusion
Award winners.
♦
Helpline: PepsiCo has instituted Speak Up Initiative (Exhibit 19) which is a telephone
hotline. It aims to promote high ethical standards and open communication across a
global organization, and ensures that employees have clear lines of communication
to report potential issues. It is accessible from around the world at no charge to
employees. To further ensure an environment that fosters open communications,
employees may remain anonymous. The availability of the Speak Up line is
communicated across PepsiCo. Types of incidents that may be reported through the
Speak Up line include, but are not limited to:
• Employee mistreatment
• Discrimination, including sexual harassment
• Product tampering
• Substance abuse
• Falsifying Company records
• Accounting irregularities
• Questionable business practices
• Fraud or theft
• Criminal conduct
• Impermissible gifts
• Safety hazards
♦
PepCare: PepsiCo has introduced PepCare’ – A Work Life Coaching Program which
helps employees and their families in leading a joyful, healthy and productive life. It
has partnered with Human Dynamic Asia Pacific for this key initiative. Human
Dynamic Asia is a world leader in counseling and coaching and comprises a team of
trained professionals from the counseling, psychology, human resources, legal and
financial fields who interact with employees and respective families and offer
consultation.
14
Surpassing the Competition
PepsiCo vigilantly outcompetes the competition. It competes against global, regional
and private label manufacturers on the basis of price, quality, product variety and
effective distribution. It steadily takes proactive and reactive action to be more
competitive. It is believed that the strength of its brands, innovation and marketing,
coupled with the quality of products and flexibility of distribution network, allows it to
compete effectively. Market risks emerge from adverse changes in Commodity prices,
affecting the cost of its raw materials and energy; Foreign exchange rates; Interest rates;
Stock prices and discount rates affecting the measurement of its pension and retiree
medical liabilities.
In the normal course of business, these risks are managed through a variety of strategies,
including productivity initiatives, global purchasing programs and hedging strategies.
Strategic Dynamics Ahead
Over the past few years PepsiCo has increasingly won more trust, trust which is critical to
market performance and shareholder value. PepsiCo’s commitment to sustainability is
now long-standing and much evolved than the formative romanticizing of many other
corporates beginning to get serious on this front. CSR forms the foundation of its
operating strategy, bringing together what is good for business and good for the world.
This makes the goal simple but the journey long. The demographics are shifting with
many more youngsters forming the ranks. The media activism is reaching new highs (or
shall it be called its lows). Communication technologies make it impossible to contain
bad news. Public and regulatory agencies are becoming more demanding with
tectonic shifting in societal expectations. A brand-centric corporate strategy has to
carefully manage the brand loyalties, any switching can be devastating, and a
purposeful CSR framework not only allows holding onto current customers, but fosters
winning new ones.
The scars of the pesticide rattle are not completely forgotten. Cynics continue to see
PepsiCo products and wellness as oxymoron concepts. A journalist recently outrightly
quizzed Indra Nooyi as to how PepsiCo reconciled insincerity and hypocrisy while talking
of tackling obesity, flaunting fattening products like Lay’s and sugar-concentrated
carbonated beverages. The rejoinder was, “Why do you think I am being insincere or
hypocritical?... There is place for Pepsi, because it tastes great. Chips are an integral part
of diet – American and Indian... I am extremely proud of our track record. Name me one
other company that took out Trans fats from all its products without increasing the price
of products – four or five years before anyone else... We’re doing everything possible to
shift our portfolio to “better for you” or ”good for you” products...And we’re doing this all
over the world.”
The priorities under the Performance with Purpose strategy have been consistent. The
focus is on driving sustainability against three priorities: human sustainability, environment
sustainability and talent sustainability. These priorities reflect the many challenges
PepsiCo faces: rising obesity and the need for more balance between energy intake
and physical activity; food safety; water quality and scarcity; energy efficiency, emissions
and climate change; increasing amounts of waste and the need for more recycling;
hiring and retaining the best people and helping them achieve work-life balance; to
name a few. No one person, and no one company, can solve them all. But each one
15
can make a difference, and every associate at PepsiCo firmly wants to make that
crucial genuine difference.
Relatedly, Indra has been quoted to say, “When I was a child in India, my mother would
ask my sister and me a simple but compelling question: “What would you do to change
the world?” Today, I know my answer would be that I want to lead a company that is a
force for good in the world. A company that delivers good financial performance while
embracing “purpose” in everything it does.” It is this sense of purpose the entire
corporate group is being imbued with and it remains focused on Performance with
Purpose – delivering strong business results as usual, but equally importantly giving back
to its communities and its environment, more than it takes from them… to make tomorrow
better than today.
In this dynamic scenario PepsiCo has set specific goals to be achieved by 2010 in areas
as mentioned earlier and hopes to achieve these while building stronger trust and
connect with consumers, customers and larger communities in which it operates.
Eventually it can be said, though PepsiCo has made considerable progress, yet it is
realistic that it is a long journey and there is much more to be done. The sentiment within
is that though immense strides are being taken, the business environment is much more
demanding, which can be seen as an opportunity. Within the constraints of business
realities, the key issue is how to accelerate the CSR activities. Now what further newer,
even experimental methods can be introduced in PepsiCo’s satisfying and worthwhile
endeavor of sculpting a dynamic & robust Corporate Responsibility Agenda.
Answering these question paths shall take PepsiCo to be a much more trusted brand, an
organization most loved and known for its products.
16
Exhibit 1. Issue of company’s credibility
“A company is the least credible source of information.”
Financial Times Reporter
Exhibit 2a. Environmental Concerns are rising
17
Exhibit 2b. Environmental Concerns are rising
18
Exhibit 2c. Environmental Concerns are rising
19
Exhibit 3. Relevance of CSR in today’s world
20
Exhibit 4. Health perception on food elements
21
Exhibit 5. Key health concerns
22
Exhibit 6. The whiplash consequence of distrust.
Exhibit 7. Keeping tabs on CSR activities.
23
Exhibit 8. Is there “real” value addition?
Exhibit 9. Winning employees through CSR
24
Exhibit 10. Returns of CSR
25
Exhibit 11. Asset building via CSR
26
Exhibit 12. Drivers behind CSR
27
Exhibit 13. Tomorrow more important than today.
Exhibit 14. Guiding Principles
28
Exhibit 15. Significant achievement of PepsiCo
29
30
Exhibit 16. PepsiCo’s social responsibility award
PepsiCo China Wins Golden Bee award – Leading Enterprises
2007 had PepsiCo China winning the Golden Bee Award – Leading Enterprises, for active fulfillment of
social responsibility over the years. This honor roll recognizes outstanding enterprises in social
responsibility, it is believed competitive bee enterprises will lead sustainable development of global
economy, and exert a profound impact on mankind. Cathy Tai, VP Corporate Affairs of PepsiCo
Investment (China) Limited said, “...the harmony and symbiosis between bees and nature and human
beings is symbolized, which is in line with the ecological chain in which enterprises are in symbiotic
harmony with the surrounding world, human beings and the environment.”
Since its entry into China 27 years ago, PepsiCo China has actively carried out corporate social
responsibility in a number of areas such as participation in public interest causes of its operational
region, consumer rights protection, environmental protection, community services, the protection
of the rights and interests of employees and more. The well-known “Water Cellar for Mothers”
project initiated and implemented support to women and children in the dry and poverty-stricken
central and western regions, improving the living conditions of the people. RMB15.6 million have
been funded, ameliorating lives of 36000 people over 22 villages and 18 counties.
RMB200 million invested in growing potatoes in the desert has not only increased income for
local farmers and promoted economic development of the local rural economy, but also
contributed to checking desertification and improving the environment. RMB360,00 have gone
into setting PepsiCo libraries in Inner Mongolia and Hebei. his award was shared by 12
enterprises out of 205 candidate corporates.
31
Exhibit 17. Pepsi College of Leadership
32
Exhibit 18. Regulatory issues
To address risks relating to legal and regulatory issues PepsiCo has launched an
enhanced Code of Conduct training program in multiple languages (Exhibit 21 details
this). There is an improved functionality of the employee hotline. Periodically,
environmental and health & safety audits are being undertaken to help focus mitigation
efforts in these areas going forward.
PepsiCo has had a Code of Conduct since 1976. It is regularly updated and it applies to
all employees and to all divisions and subsidiaries. It is communicated to all the
employees annually. PepsiCo’s Code of Conduct is made available on-line and in 30
languages. It includes sections on:
• PepsiCo’s Mission
• Respect for Employees/Diversity
• Customers, Suppliers and Competitors
• Global Relations
• Business Gifts and Payments
• Health and Safety
• Environment
• Political and Community Activities and Contributions
• Conflicts of Interest
• Insider Trading and Proprietary Information
• Accounts and Record Keeping
• Protection and Use of Company Assets
• Reporting Code of Conduct and Other Ethics Issues
• Responsibility for Compliance
In addition, there are specific policies regarding key topics such as the International AntiBribery Compliance Policy, Anti-Harassment/Discrimination Policy, Customer Trade
Agreement Policy, Disclosure Policy, Equal Employment Opportunity Policy,
Environmental Policy, Human Rights Workplace Policy, Information Security Policies and
Travel and Entertainment Policy. These policies apply to all of the associates worldwide.
Specific employees, including management and any individual with access to sensitive
information or in a position to acquire goods and services, are required to complete
mandatory web-based training on the Code of Conduct and to certify their compliance
with the Code. Each year, there is distribution and communication of the Code to
employees. In addition, there is regular communication to reinforce the Code of
Conduct and Values through a variety of means, including in-person training, Town Hall
meetings, articles in daily in-house e-newsletters, information on intranet, management
presentations and awards for ethical behavior.
In 2005, PepsiCo established a compliance and ethics leadership structure, appointing a
Vice President, Deputy General Counsel, Business Practice and Compliance, who is
focused on business practices, ethics and compliance. In the event of a breach of the
Code of Conduct, appropriate disciplinary action is taken, ranging from counseling to
termination, depending on the type and seriousness of the matter. PepsiCo’s outside
auditor receives reports regarding potentially significant violations that relate to fraud,
accounting, auditing and internal control matters. The Audit Committee also receives
regular reports regarding compliance with the Code of Conduct. In order to maintain
33
the confidentiality and anonymity of PepsiCo’s hotline, PepsiCo does not publicly report
on breaches of its Code of Conduct or other policies.
Any reports of potential corruption are investigated immediately under the direction of
the Law Department. If employees are found to have engaged in questionable behavior
they will be disciplined accordingly. When appropriate law enforcement authorities are
notified, PepsiCo cooperates with law enforcement activity to the fullest extent possible.
Anti-corruption policies and procedures are included in the Code of Conduct. In
addition, PepsiCo’s International Anti-Bribery Policy was communicated to all Corporate
and PepsiCo International employees in 2006 and web-based training was provided to
approximately 15,000 employees on this Policy in 2007.
Exhibit 19. Exciting staff and customers to verbalize
34
Exhibit 20
Key Opinion Leader’s voice common themes on issues burning the nation
“The main cause or concern, I think, is the divide between rural India and urban India.
Disparity is there in any aspect of development; health treatment or education or may be drinking
water. Lots of villages do not have their own toilets; they do not have tap water to their houses;
there is no road, no sanitation…and we are a developed nation…this is not development.”
(Media)
Social
Economic
Lack of
empowerment
of the masses
Money in the
Hands of Few
Infrastructure
Degeneration of
the
Environment
Political
Rampant
Corruption &
failure of the
government
• Lack of education across the masses
• Lack of implementation of women & child welfare
schemes
• Poor tribal rehabilitation programmes
• Health of the nation – on the decline (differing
perspective)
• Disparity between the ‘haves’ & the ‘have-nots’
• Exponential growth of industries & corporates
• Breakdown of the agrarian economy – ‘farmer
suicides’
• Absence of local employment opportunities in rural
• Poor quality of life for the majority, particularly in
rural India
• Shelter
• Water supply
• Sanitation, health & hygiene
• Solid waste management
• Electricity
• Roads
• Information system
• Lack of governance in the democracy at the
lowest level.
• Lack of Transparency & accountability
Few Questions:
•
•
•
Can we allow nation to Burn?
Who will take the responsibility?
How will the Fire be doused?
35
Exhibit 21
There is universal agreement that multi-stakeholder partnerships will truly move
and shake the agenda.
“Every human being has a social responsibility; why do we want to divide it in segments; we
should not….it must be the collaborative effort of institutes, corporate world, the government
agencies, NGOs. All would need to come in ..it is everybody’s world, but the corporate world
could take it up in a bigger manner; that is of course if they want to take up a social
responsibility …” (Education)
Corporates
Individuals
NGOs
• Tremendous scope & potential –
not shown leadership
• Huge funds – not paid their dues
• Dabble with a few small issues
that impact their image
• Masses not empowered to take on
the mantle
• Classes have displayed apathy in
action to such issues
• Few visionaries who have risen to
the occasion – Tatas, Dr Kurien,
NRM.
• Limited scope – operate in small
pockets
• Geographical spread
• Scale of operations
• Have shown leadership &
initiative
• Not without corruption – huge
funding
• Non functional & seeks to work
largely on political issues
• get the vote bank (others)
Government
Lack of synergy across the four;
creation of linkages critical for
momentum & scale impact.
Contribution of
Corporate India
critical !
• Have taken up issues in their
respective constituencies (min)
36
Exhibit 22
37
Exhibit 23
38