Pepsi Total Reward

commercial enterprise ethics Business ethics is a topic that is often on the forefront of media and journalism typographys in the get together States of America today. To someone that doesnt have a background in bloodline, or a general understanding of the business world, these reports jakes be cumbersome and hard to follow. One mustiness first understand what business ethics actually ar. Dictionary. com defines business ethics as the study and mental testing of moral and social responsibility in relation to business practices and determination-making in business (dictionary. com).Once one understands the centre of business ethics, they often peculiarity what major companies do to stay ahead of the curve, and excel in the field of view of business ethics. Sadly, it seems as if the general media is only interested in companies with little business ethics and practices. Media outfits ar able to sell more(prenominal) papers, and unclutter more viewers, and honest compan ies such as PepsiCo never get the plus publicity that they deserve. Ethics and compliance argon present in PepsiCos day to day ope dimensionns. PepsiCo overly has procedures in place to ensure honourable behavior for twain(prenominal) their employees, and the company as a whole.Next, one must take a look at processes within the organization PepsiCo employs to conform to with SEC regulations. Finally, the financial statements of PepsiCo will be analyzed with the intent of flavour for into the trend for different coincidencealitys and what it tells investors, and the public alike virtually the organizations financial health. In a world that is filled with un good companies that atomic number 18 lying to their investors, employees, and the public, it is encouraging to notwithstanding have companies like PepsiCo that are both honorable and manageable.PepsiCo goes to great lengths to attain economic success while still obeying to the unwritten laws of business ethics. Pe psiCo does this establish on three main elements of persuade environmental, talent, and human sustainability. PepsiCo produces consumers a wide array of products from health conscious foods, to encourage foods, to athletic drinks. PepsiCos financial stability is greatly influenced by the decision to draw out so many products. By doing so, PepsiCo gets to appeal to a sort of consumers, as opposed to just one type.When PepsiCo speaks of environmental sustainability, they are talking about their efforts to go green or lessen their environmental footprint. PepsiCo is grooming on taking the necessary steps toward reducing their electrical wasting disease by 20% and reducing fuel consumption by 25% by the family 2015. In 2007, PepsiCo saved nearly five meg liters of water, and nearly five-hundred million kilowatt hours of energy worldwide in 2007 when compared to their use in years past (PepsiCo, 2009). PepsiCo is flavour out for the best interests of the environment, an ethica l and admirable decision made by the company.PepsiCo is also an equal fortune employer and they are often praised for the diverse workforce that they develop. When PepsiCo speaks of talent, they are talking about their diverse workforce. PepsiCo also believes in equality, they show this by offering battle to item-by-items without worrying about gender, race, ethnicity, or sexual orientation. PepsiCo was named one of Business Ethics Magazines 100 best corporate citizens. PepsiCo shows loyalty to their employees by trying to promote from within. They also participate in various surveys to retain any issues, and to address any problem areas.The current CEO of PepsiCo is a woman by the name of Indra Nooyi since she took over in 2006 she has promoted workplace diversity. PepsiCos workplace policies are available in thirty different languages to mollify many ethnic groups. PepsiCo also does their best to try to spend as much as they could with minority owned businesses, while still l ooking out for the companys best interests. (PepsiCo, 2009). PepsiCo is extremely ethical and compliant when looking at their hiring practices. Human sustainability at PepsiCo is their vow to offer more healthy choices for consumers.PepsiCo is dedicated to their consumers, and is focused on creating and innovating new products that will offer less sugar and staying away from empty calories. PepsiCo has been partnering with the World Health composition to find new ways to improve the diets of consumers while promoting physical activities. When looking at PepsiCos promotion of human sustainability, it is evident that PepsiCo values their consumers, which is wanted and ethical. PepsiCo much like any other strong respected company, complies with the regulations that are determined by the SEC (Securities and Exchange Commission).PepsiCo demonstrates their SEC compliance done their hiring of an independent registered public accounting watertight. PepsiCo utilizes the well-known and r espected accounting firm Klynveld Peat Marwick Goerdeler which is more commonly referred to as KPMG. KPMG is one of the largest professional services firms in the world and one of the Big Four auditors. The Big Four auditors are KPMG along with PricewaterhouseCoopers, Deloitte, and finally Ernst and Young. KPMGs global headquarters are locate in the Netherlands .By employing an outside source, PepsiCo allows the auditing firm KPMG to clearly analyze their numbers, eventually making independent judgments for the soft drink company. KPMG complies with the laws and guidelines that are set up by the Securities and Exchange Commission through a published report to the SEC that is created quarterly and yearlyly for PepsiCo. The reports that are then created by KPMG offer the Securities and Exchange Commission as well as shareholders, and anyone else interested comminuted information on what and where the company is spending money as well as on what and where the company is receiving mo ney.Near the end of PepsiCos annual report, there is a statement that speaks of the honesty and integrity of the report. This statement reads on a lower floor the supervision and with the participation of our management, including our Chief Executive Officer and our Chief mo finalary Officer, we conducted and evaluation of the effectiveness of our control over financial reporting based upon the framework in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.Based on that evaluation our management concluded that our natural control over financial reporting is effective as of declination 26, 2009 (PepsiCo, 2009). Based on that quote, one must believe that PepsiCo is both ethical and compliant with respect to the Securities and Exchange Commission. Despite the worldwide economic tumult that companies have been forced to deal with, PepsiCo has done their best to rise above the state of the economy, and still post good numbers. PepsiCos current ratio for 2008 came out to 1. 23 and the current ratio for 2009 was 1. 35. This means that PepsiCo can give birth back its short-term liabilities (debt and turn outables) with its short-term assets (cash, inventory, receivables) 1. 299 times in 2008 and 1. 435 times in 2009. To properly compute the current ratio for each year an individual would divide the current assets by the current liabilities. The 2008 current ratio for PepsiCo can be calculated by dividing 10,806 by 8,787. This comes out to 1. 23. The 2009 current ratio for Pepsi is calculated the same way dividing 12,571 by 8,756. This equates to 1. 435.PepsiCo improved their current ratio year over year. A debt ratio is a ratio that indicates what proportion of debt a company has relative to its assets. Thus having a lower dowry would be ideal. PepsiCos debt ratio for 2008 was 23%. This can be computed by taking the add up debt, which was $ 8,227 and dividing that by the total assets which were $ 35,994. In 2009 the total debt was $7,864 and the total assets were $ 39,848, giving PepsiCo a debt ratio of 19. 7%. Return on virtue is known as the amount of net income returned as a helping of shareholders equity.It can be calculated as the net income divided up by common equity, and a higher percentage is favorable. In 2008 the net income was $ 5,166, which is divided by the common equity $ 12,203, this comes out to 12%. In 2009 the net income was $ 5,979 and the common equity was $ 16,908, meaning that the return on equity was 35%. Again, PepsiCo shows improvement year over year. Finally, comes the days receivable. The days receivable are a measure of the average time a companys customers take to pay for purchases.The days receivable are equal to accounts receivable divided by annual sales on source times 365. In 2008 PepsiCos accounts receivable came out to $ 4,683, annual sales on credit were $ 20,351, meaning that the days receivable in 2008 equated to 83. 99, or simply 84 days. In 2009 PepsiCos accounts receivable came out to $ 4,624, annual sales on credit were $ 20,099, meaning that the days receivable in 2008 equated to 83. 97 or 84 days as well. Year over year, it seems as if PepsiCo remained constant in the area of days receivable.In closing, PepsiCo establishes itself on the forefront of ethics and compliance. PepsiCo also has procedures in place to ensure ethical behavior of employees and shareholders. Finally, PepsiCo has processes that they utilize to comply with SEC regulations. PepsiCo seems to have improved financially year over year between 2008 and 2009. In a world that is filled with unethical companies that are lying to their investors, employees, and the public, it is encouraging to still have companies like PepsiCo that are both ethical and compliant.References Business ethics. (n. d. ). Dictionary. coms 21st Century Lexicon. Retrieved September 27, 2010, from Dictionary. com website http//dictionary. reference. com/browse /Business ethics PepsiCo. 2008 yearly Report. Purchase, NY PepsiCo, 2008. Annual reports. September 27, 2010. http//www. pepsico. com/Investors/Annual-Reports. html PepsiCo. 2009 Annual Report. Purchase, NY PepsiCo, 2009. Annual reports. September 27, 2010. http//www. pepsico. com/Investors/Annual-Reports