COMM 4849-001
Blog 5
Vannessa Sutter-Smith
Dr. Ronald Strand
I believe the PepsiCo organization
did an exceptional job of reporting on their community investment and corporate
social responsibility (CSR) programs. After a simple google search and a browse
through the PepsiCo’s organizations website – it was easy to locate the company’s
2014 report discussing their impact and generous contributions made by the
PepsiCo organization to Water.org.
I think this example is an
exceptional instance of great reporting to stakeholders – the information regarding
the corporate social responsibility program between PepsiCo and Water.org was
easy to find and is extremely informative down to the last detail. Including
funding information, the reasoning for the funding and why the initiatives are moral
for the stakeholders of PepsiCo. They explain “PepsiCo
remains steadfastly dedicated to building a profitable and sustainable 21st
century corporation — one that is a good investment for our shareholders, a
good environment for our employees, a good citizen in our communities and a
good steward of our planets resources.”
PepsiCo reiterates several times
why their funding went towards the Water.org organization, explaining that “Water
is the fuel to allow our business, and the communities across the world of
which we are a part, to flourish. We owe it to ourselves and to future
generations to be responsible stewards of this limited resource.” This example
is great because it allows for the organization to encourage continuous support
from their stakeholders – the imagery, storytelling and detailed reporting in
regard to the initiatives associated with Water.org all appear to continuously encourage
the support of stakeholders to help sustain the environment and help those
around the world.
According
to Noam (2013) it is extremely important for companies to engage in CSR activities
and to effectively report on these instances to their shareholders. He explains
“Companies
today are being called upon by their shareholders and other stakeholders to not
only boost the bottom line, but also to help address some of the country’s most
challenging problems, including those concerning economic development and the
environment.”
PepsiCo
continues to go onto explain that the organization is dedicated to investing in
sustainable social change through various enterprises with numerous water
partners. However, they also take the opportunity to explain why Water.org is
different than that of other organizations and why PepsiCo has taken the
directive to dedicate resources to this particular organization. PepsiCo
explicates that,
“Water.org created WaterCredit. Expanded in India in 2008 with help from a $4.1
million grant from the PepsiCo Foundation, WaterCredit works with select
microlending organizations to provide families the opportunity to finance the
water or sanitation soloutions they need most.”
Another
important reason that this type of reporting to stakeholders should be done is
because “The
CSR report due to the typical breadth of information most relevant to stakeholders’
interests, can be a key component of a company’s stakeholder engagement
strategy. The
CSR report is also a medium for transparency (which often improves a
company’s reputation with certain stakeholders, particularly shareholders,
employees, suppliers and communities within which the company operates) and may
be used as an effective outreach tool as part of an ongoing shareholder
relations campaign.”
