Pepsi Co Essay

PepsiCo – Procedures Ensuring Ethical Behaviour PepsiCo is committed to ensure the corporate standards accountability for the company actions. This is evident by the many corporate governance standards in place. The processes and policies that are in place include the Amended and Restated Articles of Incorporation, By-Laws, Compensation Committee Charter, Corporate Governance Guidelines, Disclosure Committee Charter and the Policy for Audit, Audit-Related and Non-Audit Services.

The Amended and Restated Articles of Incorporation states the guidelines of the incorporation process regarding PepsiCo Inc. This includes the proper name of the company; that the company is to have perpetual existence; the official address; and the purpose of the organization being incorporated along with the product description as stated by North Carolina law (PepsiCo Inc. , 2010). The next area of governance is the company by-laws. The by-laws are the rules and procedures the company uses to run the company.

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These by-laws also document the expectations of the shareholders, officers, and directors of the company and the rights and power of each position (PepsiCo inc. , 2010). Along with setting the rights and powers of the executive branch of the company is the need for monitoring and setting policies on compensation; therefore, the compensation committee charter was put into place. This committee is made up of entirely independent directors (PepsiCo Inc. , 2010).

Another set of guidelines the company has in place are the Corporate Governance guidelines. These guidelines establish a common set of expectations to assist the Board of Directors and other committees with their duties and requirements (PepsiCo Inc. , 2010). Occasionally, the company will need to nominate a new board member to replace a current member, the Nominating and Corporate Governance Committee produces recommendations along with any new policy recommendations regarding corporate governance (PepsiCo Inc. 2010). The Disclosure Committee Charter is in place to oversee the timely accurate delivery of the financial condition of the company to the shareholders and investors (PepsiCo Inc. , 2010). The final governance is the Policy for Audit, Audit-Related, and Non-Audit Services. This service is provided by an independent auditor who performs audits and tax related services for the company (PepsiCo Inc. , 2010). All of these governance policies and committees help PepsiCo to be an ethical company.


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