Pepsi 2005 Annual Report Download - page 7

inclusion that we will fully unleash innovation and
growth for our business.
To capture this potential, we made some
changes in 2005. For example, to put accounta-
bility for diversity and inclusion squarely in the
hands of our people, and into our divisions, we
formed the PepsiCo Diversity & Inclusion
Governance Council. Representatives from each
division and various functions comprise the coun-
cil, and its chair reports directly to me.
I also asked each of my direct reports to take
ownership for the development of specific employ-
ee groups. Whether it is African Americans,
Latinos, white males, women, or other groups of
PepsiCo employees, each has a voice at the most
senior decision-making entity at your company.
In the context of people issues, corporate
responsibility is a hot topic. How are you
ensuring PepsiCo associates are acting in
accordance with the law, and — beyond
the law — doing the right thing?
The need for trust between corporations and the
general public is as big as ever, and investors
rightly should ask this question of every company.
PepsiCo’s focus on values remains honed on a
commitment to every shareholder — to deliver
sustained growth, through empowered people,
operating with responsibility and building trust.
This commitment, along with six guiding
principles (found on page 7), is what we aspire to
each and every day. It complements our approach
to corporate governance, the strength of our
financial controls, and the company’s Worldwide
Code of Conduct.
Our Values and our
Worldwide Code of Conduct
are known to every PepsiCo
associate and are presented
in 38 languages on our web-
site (www.pepsico.com). But
the strength of any such
commitment is not in the
words themselves, but in how
they are lived every day.
We continuously remind
our associates of the rewards
that come with running the
company in a legal, ethical
and responsible way, along
with the consequences of
failing to do so. We want, and
intend to be, a sustainable
enterprise, and that demands
our people act in responsible
ways, and think about our
businesses for the long term.
As we have with previous reports, we’ve includ-
ed a section on corporate social responsibility to
highlight what we’ve accomplished in 2005, and I
invite you to visit our website as well to read our
report in detail.
More importantly, I hope the contents of this
annual report — along with even more details that
are published on our website — will help you
understand that your company is addressing the
challenges ahead with the strength of muscular
brands, a growing and powerful go-to-market sys-
tem, a commitment to innovation, and passionate,
diverse people committed to growing the business
in responsible ways.
This is the PepsiCo that is poised to deliver on
our commitment to responsible growth at any time,
and on any day.
Steve Reinemund
Chairman and Chief Executive Officer
A Word of Thanks to Sol Trujillo
Sol Trujillo retired from the board when he was named chief executive officer of Telstra Corporation, the
Australian telecommunications and information services company. Sol served for five years on our Board,
providing valuable insights and advice. He has an astute understanding of consumers and provided
excellent guidance during our merger with Quaker. His counsel and contributions will be greatly missed.
Welcome to New Board Members
Joining our Board of Directors in 2005 were Dina Dublon, Victor J. Dzau, M.D. and Alberto Ibargüen.
Dina Dublon was, until October 2004, executive vice president and chief financial officer for
JPMorgan Chase, the U.S.-based banking company with more than $1 trillion in assets. She brings a
deep expertise in financial management that significantly enhances PepsiCo’s capability in this important
area. She will serve on our Audit Committee.
Dr. Dzau is one of the world’s foremost authorities on health issues, chancellor for health affairs at
Duke University and president and chief executive officer of the Duke University Health System. His
medical insights and business acumen will be invaluable as we strive to achieve our commitment to health
and wellness.
Alberto Ibargüen previously was chairman of the Miami Herald Publishing Company, a Knight Ridder
subsidiary, and has served as publisher of the Miami Herald and El Nuevo Herald. In July 2005, he
became president and chief executive officer of the John S. and James L. Knight Foundation, a major
supporter of journalism programs and civic advancement. He brings both business and community
expertise and will serve on the Audit Committee.
— SSR
#1
Hot Cereal
#1
Rice Side
Dishes
#1
Pancake
Mix
#1
Grits
#1
Brand
Pancake
Syrup
5
U.S. Category Leaders