Management Ethics inPepsiCo - Essay Example

Management Ethics Table of Contents Introduction 2 Discussion 2 Conclusion 8 References 10 Introduction Codes of ethics are being adopted by many organizations in the world with an increasing trend. However, the effects of ethics on the behaviour and perception of employees have not been addressed thoroughly. The emergence of corporate codes of ethics occurred in organizations from the past few decades and its significance was associated with less perceived wrongdoings of employees in the organizations. In the modern world there has been a paradigm shift of the values of corporate codes of ethics. Ethical values are not only associated within the work culture of an organization, it also implies on external factors such as stakeholders and society. Professional code of ethics on the other hand is also an essential component that is required to be implemented in industries. Professional code of ethics is different from corporate code of ethics as it has no influence on distinguished wrongdoing in organizations. Since business organizations have to pass through different stages in terms of control systems, management systems and formal structures. There are some significant developments that are required to be emphasized for its smooth running. Implementation of corporate codes of business ethics play very important role in the management sector because it not only increases the values and workability in the organization, it also helps to gain the interest of the external stakeholders of the organizations. This paper focuses on the ethical cultures that are implemented by the PepsiCo along with the continuous support of the management that has helped to maintain the ethical values in the organization. Discussion There are several theories on ethics that can be implemented in the work culture of the organizations. First of all, Consequentialism states that the majority of action depends on the unmoral cost that the action brings in the organizations. According to the organizational policies each and every employee is expected to practice good and moral behaviour and action in the workplace. The ratio between right and wrong determines the moral and ethical values of organizations. According to the theory of morality every action must be accountable to someone in an organization. For any wrong action or wrong behaviour the person involved must take responsibility. Morality also suggests that every person in the world should have the potential and motive to perform only good practices and take up the responsibility of their wrong actions. This kind of behaviour in people can help in social engagement and reduce the tendency of conflicts. Organizations strongly implement such policies in their work culture in order to increase productivity. The theory of Virtue Ethics, which emphasizes on individual characteristics of employees, also plays a crucial role in the development of organizations (Ti-Israel, 2010, p.8). According to this theory every person should have the motive to change their course of action and work in the favour of the company without getting orders from the management. It simply states that every person should have their own consent to act by themselves for the betterment of their organization. This kind of nature would help them to grow and reach to higher positions. Virtue ethics also holds the goals of people and it suggests that people must have proper goals and good will to achieve their goals. According to Michael Slote, there are several traits by which an ideal employee can be judged in an organization. Employees can be judged on the basis of benevolence, compassion and kindness they posses. There are some employees who have the tendency to work for themselves and help their peers to achieve their goals. This kind of nature is very necessary among employees because it increases the efficiency of the organization and enhances team-work abilities among employees. Performance of employees is definitely a criterion for judgment but the theory of virtue suggests that ethical values among employees are equally necessary in order to achieve success. With respect to the PepsiCo it can be stated that there are some strong policies such as, Human Sustainability Policy, Environment Sustainability Policy etc. that has enabled the organization to enhance the workability. The PepsiCo has pioneered several initiatives to enhance the formal and informal ethical behaviour in their organization as well as towards their external stakeholders. Implementation of new technology and fairness of work has helped the organization to achieve sustainable growth in the past few years. The PepsiCo has not only participated in social events, it has also partnered with the farmers in order to provide help them and obtain healthy raw materials from them (PepsiCo, 2014, p.1). Implementation of business ethics is an important part that has to be embedded in the enterprise policies and in the workplace routines. There are mainly two types of approaches that have defined business ethics, i.e. formal and informal means of ethical behaviour. The informal measures business ethics is referred to the instructions and examples set by the social norms and the manager of an organization. It is therefore a personal method that encompasses controls set by an individual instead of the organization. The rules and guidelines deterred by a manager is an example of informal means of ethical behaviour. On the other hand formal means of ethical behaviour is referred to the training and courses provided by an organization for their employees. It also includes conferences and hurdles that include every member of the organization. Adherence of organizational policies is also a form of formal means of ethical behaviour (ACM, 2015, p.1). With respect to the PepsiCo it can be stated that both formal and informal means of the ethical values are implemented in a perfect ratio. The employees of PepsiCo are given great importance and there are several precautions taken by the company to maintain the work culture. The PepsiCo is located in multiple countries and there are many people working in the organization, belonging from different race and ethnicities. The most important ethical stand of Pepsi has been to disregard discrimination between people and maintain equality in the workplaces. The company is greatly valued by people because PepsiCo has been able to do many Corporate Social Responsibility activities in the world. In order to develop successfully PepsiCo has been able to manage formal and informal means of ethical behaviour towards external stakeholders by maintaining transparency and participating in social activities. The work culture of PepsiCo and its quality of products have been discussed by the company with government officials. PepsiCo has not only made the work culture transparent for the people it has also allowed the participation of government officials in important board meetings, which has increased the efficiency of the company and also increased the sales of the products. PepsiCo has been able to recycle products and limit the use of natural resources in order to save the power and resources of the world. The organization has also made efforts to reduce pollution and implement safety mechanisms in the workplace in order to reduce the chances of accidents and disasters. These implementations have increased the ethical values of the company and enhanced the workability of the organization. It has not only enhanced its ethical values by incorporating strict code of conduct in workplaces, but also it has also encouraged several CSR policies in order to develop social causes. First of all, the organization has encouraged many charity committees in almost all the countries where it is located. The company has invested huge capital behind the development perspectives of several countries. Has high employability which has resulted in the increase of per-capita income of many societies. The employees are given special benefits after they are recruited and they are also groomed in order to be promoted to other job roles within the company. The HR management of organization aims at hiring new employees and also retaining the former employees in order to increase the growth of the company. The tax that PepsiCo pays every year helps the government of several countries to develop the social life of people (Marr, 2011, p.1). The human society expects companies like to involve in social causes such as development of roads or building schools and colleges. PepsiCo has been able to keep the trust of people and also enhanced the transportation and educational sectors in many countries. In Ireland PepsiCo has invested huge capital in the educational sector and charity functions. Investment from PepsiCo has also encouraged other companies to invest some amount of their profit in social causes and enhance the life of people. PepsiCo has operated a Helping Hand Programme in order to provide assistance to a number of Non Governmental Organizations. This kind of help and support has increased the ethical behaviour of Pepsi towards its external stakeholders, such as the Government and the society. Apart from development of the society and improving transportation PepsiCo has also taken up many initiatives to protect the environment and the natural resources. PepsiCo has emphasized on reducing the consumption level of water and electricity by introducing efficient recycling methods during the production (OECD, 2008, p.14). After installation of the recycling methods the organization has been able to reduce the consumption level of the fresh water and increased the flow of fresh water for people. This initiative has reduced the chances of deficit of water in many countries. The government and people of several countries have appreciated this kind of innovation of PepsiCo because it is not only proved to be beneficial for the company but also helped in the development of the society. PepsiCo has also taken initiatives to reduce the amount of solid wastes by installing technologically advanced decomposition techniques in the work culture (GRRN, 2002, p.1). Previously, most of the companies used to dissolve solid wastes in the rivers and the emission of smoke was also high. However, PepsiCo has incorporated some technologies to reduce the emission of smoke by 35 percent, which has reduced the level of pollution. There are some areas where the company still needs to improve such as production of health drinks instead to aerated drinks. The advertisements related of aerated drinks are required to be reduced and the company should emphasize on the diversification of products, such as health drinks and health food. One of the most important reasons behind the success of PepsiCo is its policy that is completely against discrimination. According to the team-managers of PepsiCo, each and every person should have the opportunity to obtain a complete potential and contribute towards the company’s success. This statement itself is a very strong stand and it illustrates the company’s ethical values. The employees are the building blocks of an organization and they must be valued because they can increase the efficiency of the work and enhance the quality of production. The policies of PepsiCo protects the employees by providing them the required amount of breaks and encouraging them to speak and keep their views that can enhance the production. Furthermore, the company PepsiCo has very strong policies that protect the employees from being treated unfairly. The recruitment, training, compensation and promotion of employees are done in a fair manner. This implementation of PepsiCo has increased the efficiency of the employees. Discrimination on the basis of race, ethnicity, colour or origin is regarded as a punishable offence according to the organization policies. PepsiCo has a separate support division in their organizational pattern that accepts complaints from the employees and acts accordingly for the welfare of the employees. There are some organizations wherein disability, age and sexual orientation are criticized. However, PepsiCo does not entertain any kind of criticisms based on non-job related characteristics. The management division of the company supports the lower class workers highly and their requests are taken care seriously in order to reduce the chances of conflicts among the organization. This kind of ethical conduct has increased the values of the company and the employees have a great respect towards their organization. PepsiCo seeks to provide a work environment that is free from any kind of harassments (Sec, 2008, p.1). Offensive language or jokes on employees is forbidden in the company. An employee can enjoy the work environment and have fun unless it hurts the sentiments of other employees. Any complaints made are subject to immediate action and may lead to written or verbal warnings or even termination of employment against the offensive action. PepsiCo faced many difficulties while implementation of such strong policies because it is located in many countries and they had different rules and regulations. In order to obtain high ethical environment in the organization the management had to implement ideas from other companies and develop strong policies for every organization established in several countries. Health and safety of employees has been the primary concern for the PepsiCo (PepsiCo, 2014, p.1). In order to secure the health and provide safety for employees PepsiCo had to invest huge capital behind the purchase of safety equipments. Almost every company of Pepsi has their own safety team in order to assure safety and security for the life of the employees. There were some disputes that emerged against the products of PepsiCo, such as availability of high amount of pesticides in the beverages. The company has taken special measures to reduce the pesticide content in the products. The company has also invited health advisors who could suggest them the remedies to produce health drinks for the consumers. The products of PepsiCo are therefore regarded as safe and people prefer to purchase the products of the company due to the reputation that it has built over the past few years. Conclusion From the above discussion it is clear that the PepsiCo has emerged in the twentieth century and grown to become one of the largest selling food and Beverage Company in the world. The business of PepsiCo is intrinsically connected to the community and the society that connects it. The ethical code of conduct and the management of PepsiCo strongly emphasize on the human sustainability policies. PepsiCo has initiated many programs for enhancing the quality of food and beverages and also taken initiatives to perform responsible marketing. The PepsiCo values health and well-being of people thus it has made attempt to educate people regarding health and fitness. The company also provides health insurance to each and every member of the organization and their family member which shows that the company has incorporated high ethical values in the organization. PepsiCo has not only emphasized to improve the organization and the profitability, it has also made many attempt towards the external corporate social responsibility. The company’s aim and objectives are not only limited to social and organizational welfare; it also focused on waste management programs and conservation of renewable resources in many countries. This attempt inspired many other companies and the non-governmental organizations. The PepsiCo has also been rewarded by the UNICEF and NASSCOM in the year 2007 and 2008 respectively for encouraging environmental solutions. The ethical values of PepsiCo is not only limited to its employees and management but also diversified to consumers and society. Therefore, it can be stated that the ethical cultures of PepsiCo have been implemented appropriately in the organization and towards betterment of society and stakeholders. References ACM., 2015. ACM Code of Ethics and Professional Conduct. [Online]. Available at: < http://www.acm.org/about/code-of-ethics>. [Accessed on March 10, 2015]. GRRN., 2002. Green. [Online]. Available at: < http://archive.grrn.org/pepsi/letter2pepsi_01-29-01.html>. [Accessed on March 10, 2015]. Marr., 2011. Bloomberg Business. [Online]. Available at: < http://www.businessweek.com/debateroom/archives/2009/09/tax_sugary_soft_drinks.html>. [Accessed on March 10, 2015]. OECD., 2008. Promoting Sustainable Consumption. [PDF]. Available at: < http://www.oecd.org/greengrowth/40317373.pdf>. [Accessed on March 10, 2015]. PepsiCo., 2014. Human Sustainability Policies. [Online]. Available at: < http://www.pepsico.com/purpose/performance-with-purpose/policies>. [Accessed on March 10, 2015]. PepsiCo., 2014. Policies. 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