Pepsi 2006 Annual Report Download - page 6

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similar agreement for snacks in U.S. schools. In fact, PepsiCo is
the only company to have participated in the development of
both policies.
We are introducing health and wellness programs in
markets around the world. And in countries such as Mexico,
the United Kingdom and Brazil, we’ve established advisory
boards to help guide our efforts.
No matter where we are, the safety and integrity of our
products is our single highest priority. It’s our duty as a
responsible company. People buy our brands because they
know they can count on consistent quality — every time. We
follow very rigorous standards of safety and quality. Our
standards are equally rigorous in New York, London and Beijing
as they are wherever else we operate. We stand behind each
and every product we sell.
Environmental Sustainability
The second way PepsiCo can give back to the global community
it serves is through its work with environmental sustainability.
By fully understanding our environmental impact, we can find
ways to conserve and replenish the planet’s natural resources.
In doing what’s right for the business, we can do what’s right
for the global community.
PepsiCo has focused its environmental sustainability efforts
on water, energy and packaging — areas where we can make
the biggest impact. Reducing waste water, establishing rainwater
collection capabilities, using more recyclable materials in our
packaging and using alternative energy sources are just a few
of the priorities we’ve set for ourselves. Success with each of
them translates into financial benefits for the business.
Our accountability as a global corporate citizen extends to
other social issues as well. We’ve established programs to help
our associates and communities combat HIV/AIDS. Our associates
are volunteering in our communities, and PepsiCo continually
responds to calls for humanitarian aid.
Talent Sustainability
The third area of sustainability that we’ve chosen to focus
on is talent sustainability — reflecting our belief that people
hold the key to PepsiCo’s success. Our company is known to
many as an academy company, a place where people grow
and business leaders develop. We are also committed to
building a work environment where all of our associates can
achieve a better quality of life and know that, as a business,
we cherish them.
The transitions we announced this year, starting with the
CEO and including several other senior executive roles, show
that we are not only committed to developing and retaining
deep bench strength, but that we’re equally passionate about
ensuring seamless transitions. And while we certainly weren’t
looking for external recognition, BusinessWeek bestowed its
2006 ”smoothest handover” honors to PepsiCo, saying, ”…the
transition in October from Steven S Reinemund to Indra K.
Nooyi at the $33 billion PepsiCo was noticeably angst-free.”
Whether it’s managing transitions or running the business
day-to-day, PepsiCo’s culture is renowned for its “can-do” spirit,
something we consider part of our DNA. Look no further than
the marketplace challenges of any year to see our level of
commitment to getting the job done. In 2006, whether it was
skyrocketing fruit costs, or ever-increasing competitive activity
in categories or markets across the globe, our people proved
they’re among the world’s best.
Our focus on people has never been more critical; the
global competition for talent intensifies each year, and the
companies that win will be those that provide the most
opportunity for personal and professional growth.
We firmly believe that PepsiCo’s commitment to diversity
and inclusion is creating that kind of environment. To attract
and retain the best and brightest, we’re working harder than
ever to ensure our culture grows in its inclusive nature — that
it becomes known as a premier place to work because every
associate can bring his or her whole self to work. When that
happens, we unleash the power of our people on innovative
solutions that will grow your company.
Looking ahead, our work plan is clear: we have a mandate
to deliver Performance with Purpose. We’re well positioned to
deliver financial performance, consistent with our guidance, and
to do it with the goals of nourishing consumers, replenishing
the environment in which we operate and cherishing our
people. Our capabilities and strategies to deliver on this priority
are highlighted in the pages that follow.
While we have much more to do, we’re making progress
on delivering on our commitment to Purpose and are proud
to share details with you in this publication. As a result of our
efforts, the Dow Jones Sustainability North American Index —
an investment fund comprised of North American companies
that excel in managing economic, environmental and social
results — added PepsiCo to its list in 2006.
Our True North — Our Values
Of course, guiding our people and our culture is a set of values
that helps ensure we achieve all results with integrity — the
right way. We want PepsiCo to continue to be viewed as a
high-integrity company, and we recognize and reward leaders
who deliver results in ways that are consistent with our True
North — our Values.
Since PepsiCo was formed in 1965, each of the company’s
leaders — beginning with Don Kendall, and including Wayne
Calloway and Roger Enrico — has been passionately committed
to operating a business with integrity, one that delivers
strong, sustainable financial returns.
As we have co-authored PepsiCo’s strategy over the last
several years, and conclude our own CEO transition, above all
we share an equally passionate commitment to our Values
and to running a business that does better by doing better,
achieving financial results while addressing environmental
and social needs.
It’s a legacy we both intend to leave. And we believe
there’s no better, more honorable, or more strategic way to
grow your company.
Steve Reinemund
Executive Chairman and
Chairman of the Board
Indra Nooyi
Chairman Elect and
Chief Executive Officer
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