5th Edition

ISBN: 9780134128528

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Textbook Question

Chapter 1, Problem 1.17AE

Identify sustainability efforts as impacting people, planet, or profit (Learning Objective 5)

SUSTAINABILITY

Sustainability involves more than just the impact of actions on the environment. The triple bottom line recognizes that a company has to measure its impact on its triple bottom line for its long-term viability. To follow are examples of green initiatives recently undertaken at PepsiCo., Inc. For each example, indicate whether this initiative would primarily impact environmental, social, or economic factors.

a. In 2015, PepsiCo increased its dividend to shareholders.
b. It created a new global ingredient standard in 2014 that helps to ensure ingredient safety and integrity.
c. In 2014, PepsiCo used 23% less water (considered to be a scarce resource) per unit of production than in 2006.
d. Almost 60% of beverage launches qualified as “Better-For-You” or “Good-For-You” products in 2014 (as opposed to PepsiCo’s “Fun-For-You” category).
e. From 2008 to 2014, PepsiCo held its greenhouse gas emissions stable despite increasing production.
f. PepsiCo strengthened its Responsible Advertising to Children policy.
g. The return on PepsiCo’s invested capital was above 13% for the fifth year in a row.
h. In 2014, PepsiCo increased its amount of recycled content in its packaging by 23%.
i. In 2014, 93% of PepsiCo’s waste was not sent to landfills.
j. In 2014, approximately 20% of PepsiCo’s net revenue came from its nutrition business since it has been making a concerted effort to promote more healthy food and beverage choices.
k. During 2014, 95% of PepsiCo’s manufacturing sites underwent an independent food safety audit by the American Institute of Baking.
l. Since 2006, PepsiCo has reached more than 1.92 million children in 477 schools in India through its programs promoting nutrition and physical activity.
m. PepsiCo provided access to safe water for 6 million people.
n. Forty of PepsiCo’s buildings have achieved LEED certification (LEED certification is a measure of energy efficiency).

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Chapter 1, Problem 1.16AE

Chapter 1, Problem 1.18BE

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Solution Summary: The author explains that sustainability refers to the ability of businesses to operate in an effective and efficient way to continue their operations indefinitely.

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