Corporate Governance and Social Responsibility

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It has been observed that most of the companies in the contemporary era have initiated extensive practices toward corporate governance and social responsibility practices. Despite the attempts made by organizations, there are some issues that companies have been facing drastically. This essay outlines the profile of PepsiCo and illustrates the issues the company has been facing with respect to the corporate governance system and corporate social responsibilities. PepsiCo is a multinational food and beverage company, headquartered in the United States of America. PepsiCo is majorly known for its wide variety of products in the food and beverage sector. The company supplies food and beverage products in almost every country in the world. PepsiCo has more than eighteen different brands and the brands produce and distribute a wide variety of products in the entire United States. According to statistical reports it has been recorded that PepsiCo comprises 37 percent of the total food and beverage supplies in the United States of America. The company has been in existence for more than 55 years and its products are very well known in the market and by the consumers. PepsiCo, being a multinational organization has maintained several philanthropic programs since 1962 (Aras, 2012, p.82). Some of the major charitable programs include efficient water usage, providing educational opportunities for women and children, resource management, etc. According to the annual report of 2009, it has been observed that PepsiCo has initiated several programs in order to deliver sustainable growth by making an investment for a healthier future (Mullerat, 2011, p.17). Despite the attempts made by PepsiCo to develop an ethical image in front of the consumers, some issues have encountered the company based on corporate governance and social responsibility. The issues following PepsiCo are discussed below.