People make ethical decisions only after they recognize a particular issue or situation has an ethical component; therefore, the first step toward understanding business ethics is to develop ethical issue awareness. Ethical issues typically arise because of conflicts among individuals’ personal moral beliefs and values and the core values and culture of the organizations where they work. Institutions in society provide foundational principles and values that influence both individuals and organizations. The business environment presents many potential ethical conflicts. Organizational objectives can clash with its employees’ attempts to fulfill their own personal goals. Similarly, consumers’ need for safe and quality products may create a demand for consumer regulation.
Reference: FERRELL, FRAEDRICH, AND FERRELL (2013). BUSINESS ETHICS (10th ed.). Stamford, CT: Cengage Learning.
Read case study – Pepsico (company overview and ethical issues faced over past years) – group work.
Use the following resources, research more about the issues surrounding case study:
Create a presentation answering following questions:
1. How does PepsiCo balance those stakeholders such as consumers and shareholders interested in good tasting products and financial performance with special-interest groups and regulators that are more concerned about nutrition?
2. How effective do you think PepsiCo has been in responding to stakeholder concerns about nutrition and sustainability?
3. Do you think it is logical for PepsiCo to partner with nutrition and water conservation nonprofit groups since it received heavy criticism for unhealthy products and wasteful water practices?