Social Accounting System in the USA - Essay Example

Social Accounting System in the USA Introduction Social accounting can be defined as the process of communicating the environmental and social effects of economic actions of organizations to specific interest groups within a society. Social accounting is also known as social and environmental accounting, social accounting and auditing, corporate social responsibility reporting, corporate social reporting, and non financial accounting or reporting. Global business environment is becoming highly competitive as several organizations in this world are trying to develop and implement unique strategies in business operation process in order to gain potential competitive advantages. Each and every organization is trying to ensure transparent and ethical corporate accounting in order to avoid several kinds of ethical and legal issues. In addition to this, effective social accounting system can help an organization to maintain good relationship with both external and internal stakeholders. PepsiCo is one of the leading US based multinational food and beverage corporation. The organization manufactures and distributes high quality carbonated soft drinks across the globe. The essay will analyze the monitoring and evaluation of social accounting system used by PepsiCo. Moreover, the study will discuss how fair picture the organization provides through its social accounting system. Discussion Global food and beverage industry is becoming highly competitive as several leading multinational and domestic organizations are trying to grab each other’s market share by implementing unique strategies in business operation process. PepsiCo and The Coca Cola Company are the two market leaders within this industry. PepsiCo is popular due to its high quality and differentiated food and beverage products. The organization is trying to maintain sustainability in its business operation practices in order to maintain its high brand image and goodwill among the external and internal stakeholders. Corporate social responsibility has become an important term in the field of global business. Several leading organizations are trying to develop effective CSR policies in order to maintain their competitive market position. PepsiCo can be considered as an effective example of development and implementation of significant corporate social responsibility policies. In terms of corporate social responsibility policies and activities, the organization generally focuses on three major agendas, such as community based CSR, environment based CSR and workplace based CSR. PepsiCo is a popular brand name in global market place. The organization can be considered as one of the largest organizations within the global food and beverage industry in terms of the profitability and revenue generation. However, the management of PepsiCo has developed a charity committee. It is a cross functional team. This cross functional charity committee meets monthly in order to consider the sponsorship request for several funds or differentiated products to be arranged and allocated from a particular monthly budget. In addition to this, the management of PepsiCo has developed a diverse team to run Helping hand programme. Major aim of this programme to provide assistance to several selected non-governmental organizations in order to develop a strong relationship with them. The management of the organization always tries to take care of community sustainability. The organization always tries to invest a significant amount of business profit in several social welfare activities, such as child education, and food, shelter and employment for disable or other poor people. These activities help PepsiCo to gain huge respect from several valuable external and internal stakeholders. The management of PepsiCo committed to protect the natural resources that the organization uses. It is true that government of several developed and developing countries have developed different environmental policies in order to maintain environmental sustainability (PepsiCo, 2014, p.1). Day-by-day, the amount of carbon emission and pollution is increasing at rapid pace. Therefore, the governments of several countries have developed strict policies for the business organizations. The organization has adopted and implemented advanced technology in its manufacturing and distribution process in order to reduce the consumption of natural resources and carbon emission level. It is true that several organizations have implemented online business operation strategies ion supply chain management process in order to maintain environmental sustainability. Similar to other organizations, PepsiCo has effectively implemented advanced technological process to recycle its used water. Effective recycling of water helps PepsiCo to reduce the sourcing of natural water. Therefore, it helps to maintain appropriate ecological balance. In addition to this, the organization also tries to maintain zero solid waste in its manufacturing and supply chain management process (Christians, 2005, p.243). Therefore, it can be stated that the organization effectively recycles its used water and wastes to reduce the raw material sourcing activities. In distribution process, the organization motivates its suppliers and distributers to follow the developed environmental policies. Use of fuel efficient long headed trucks in logistics and distribution process helps the organization to reduce the percentage of carbon emission level. Maintaining low carbon emission during logistics and distribution process helps the organization to avoid several environmental and legal issues. Most importantly, these corporate social responsibility activities help the organizations to maintain its goodwill among the important external and internal stakeholders across the globe. According to the management of PepsiCo, employees are the real assets of an organization. It is true that skilled and experienced employees are the major business growth drivers for an organization. PepsiCo always tries to develop employee centric business operation strategies in order to motivate the employees to perform effectively. It helps the organization to retain its successful employees. In addition to this, it helps the organization to maintain a good relationship with employees and government (Conaway, 2014, p.77). First of all, the management of PepsiCo always tries to follow the developed employment policies and legislations quite significantly in order to avoid the possibilities of several legal issues. The human resource management team of PepsiCo always tries to hire skilled and competent employees. In addition to this, the organization effectively provides valuable training and development programmes for the employees in order to increase the motivation and self-confidence level of the employees. Moreover, the organization has effectively developed and implemented supportive leadership style for the employees (Warren, 2006, p.53). According to this leadership style, the organizational leaders or team leaders always take care of the professional and personal needs of employees. The management of the organizations always involves the competent employees in the strategic decision making process to develop effective and valuable business operation strategies. In addition to this, the organization always ensures transparent performance evaluation and wage distribution aspect to motivate the employees to stick to the organization. Promotion based on the performance of employees and festival or yearly bonus for each and every employee helps the organization to retain its competent and skilled employees. It is true that the management of PepsiCo has significantly committed to meet each and every objective related to corporate social responsibility activities. Despite the activities, it is highly important for the management of the organization to disclose these facts to public or other important stakeholders. The organization significantly and transparently discloses each and every figure related to the corporate social responsibility. This particular aspect motivates several external and internal stakeholders to take interest about the developed policy or strategy by the organization. PepsiCo can be considered as one of the largest employers in this world. In addition to this, the organization can be considered as one of the market leaders within the global food and beverage industry in terms of profitability and revenue generation (Pride and Ferrell, 2008, p.94). Most importantly, the organization invests a significant amount of its business profit in the community and social welfare activities in order to maintain its competitive market position. The board management of PepsiCo always tries to maintain effective corporate governance in order to maintain a good relationship with the government. In addition to this, the organization always encloses the investment of appropriate amount behind these social and corporate welfare activities. Most importantly, this transparent disclosure in annual report of the company motivates the shareholders of the company to buy its shares (Ferrell and Fraedrich, 2014, p.556). Despite the several corporate social responsibility activities, the organization has succeeded to secure its leading market position due to ensuring appropriate business ethics in each and every business operation activity. It is clear from the above mentioned information and facts, that the organization always develops employee and customer centric business strategies to maintain sustainability in the business operation processes. Global business environment has become highly competitive. Government and customers always expects sustainable business practices from organizations as they always prefer high quality products and services from the organization. Taking care of the needs of employees and environmental sustainability in business operation process generally helps the management of PepsiCo to provide a fair picture about their made commitment. The management of the organization always tries to provide year-to-year expenses behind these corporate social responsibility activities in order to become clear in the eyes of government, shareholders and other stakeholders. Research and development team is one of the important departments of PepsiCo. Therefore, the organization always monitors and evaluates the performances of research and development team in order to minimize the possibilities of critical errors. Slowly and gradually, the organization has succeeded to develop a potential client base due to its sustainable business operation practices. Monitoring and evaluation of social accounting system helped PepsiCo to improve its business operation performances as the management of the organization always tries to overcome the existing issues by improving the current developed and adopted strategies. Large client base, employee base, legal governmental support and huge interest of stakeholders significantly prove that the organization has succeeded to provide a fair picture of its social accounting system. Conclusion It is clear from above discussion and mentioned facts that being one of the leading and profitable organizations, PepsiCo always tries to return something to the society against their high business profit and revenue generation. The management of PepsiCo always tries to ensure effective corporate governance and social accounting system by providing accurate information about CSR and other social or environmental welfare activities. It is true that the organization always takes part in charitable work in order to enhance community sustainability. Effective water recycling and maintaining zero solid waste helps the organization to maintain environmental sustainability. On the other hand, the management of the organization always tries to take care of the needs of employees to motivate them. It helps to increase the self-confidence level of employees to perform effectively. However, accurate and transparent publication about each and every social welfare activities and policies helps PepsiCo to provide a clear picture about its social accounting system. This strong business ethics and sustainability helped PepsiCo to become one of the leading organizations. References Christians, A., 2005. Media Ethics. London: Sage. Conaway, R., 2014. Principles of Responsible management. London: Routledge. Ferrell, O., and Fraedrich, J., 2014. Business Ethics. Stamford: Cengage Learning. PepsiCo., 2014. Corporate Social Responsibility. [Online]. Available at: http://www.pepsico.ie/about-us/corporate_social_responsibility.aspx. [Accessed on May 13, 2014]. Pride, W., and Ferrell, O., 2008. Marketing. Stamford: Cengage Learning. Warren, C., 2006. Politics, Ethics, and Social Responsibility of Business. London: Sage. Read More