Pepsi 2008 Annual Report Download - page 93

91PepsiCo, Inc. 2008 Annual Report
To Our Shareholders:
At PepsiCo, our actions – the actions of all our associates – are
governed by our Worldwide Code of Conduct. This Code is clearly
aligned with our stated values – a commitment to sustained
growth, through empowered people, operating with responsibility
and building trust. Both the Code and our core values enable
us to operate with integrity – both within the letter and the spirit
of the law. Our Code of Conduct is reinforced consistently at all
levels and in all countries. We have maintained strong governance
policies and practices for many years.
The management of PepsiCo is responsible for the objectivity
and integrity of our consolidated nancial statements. The Audit
Committee of the Board of Directors has engaged independent
registered public accounting rm, KPMG LLP, to audit our
consolidated nancial statements and they have expressed an
unqualied opinion.
We are committed to providing timely, accurate and under-
standable information to investors. Our commitment encom-
passes the following:
 Our sys-
tem of internal control is based on the control criteria framework
of the Committee of Sponsoring Organizations of the Treadway
Commission published in their report titled Internal Control –
Integrated Framework. The system is designed to provide reason-
able assurance that transactions are executed as authorized
and accurately recorded; that assets are safeguarded; and that
accounting records are sufciently reliable to permit the prepara-
tion of nancial statements that conform in all material respects
with accounting principles generally accepted in the U.S. We
maintain disclosure controls and procedures designed to ensure
that information required to be disclosed in reports under the
Securities Exchange Act of 1934 is recorded, processed, summa-
rized and reported within the specied time periods. We monitor
these internal controls through self-assessments and an ongoing
program of internal audits. Our internal controls are reinforced
through our Worldwide Code of Conduct, which sets forth our
commitment to conduct business with integrity, and within both
the letter and the spirit of the law.
 We continuously
review our business results and strategies. This encompasses
nancial discipline in our strategic and daily business decisions.
Our Executive Committee is actively involved – from understand-
ing strategies and alternatives to reviewing key initiatives and

nancial performance. The intent is to ensure we remain objective
in our assessments, constructively challenge our approach to
potential business opportunities and issues, and monitor results
and controls.

 We have an active, capable and diligent
Board that meets the required standards for independence, and
we welcome the Board’s oversight as a representative of our
shareholders. Our Audit Committee is comprised of independent
directors with the nancial literacy, knowledge and experience to
provide appropriate oversight. We review our critical accounting
policies, nancial reporting and internal control matters with
them and encourage their direct communication with KPMG LLP,
with our General Auditor, and with our General Counsel. We also
have a compliance team to coordinate our compliance policies
and practices.

 The consolidated nancial
statements and nancial information included in this report are
the responsibility of management. This includes preparing the
nancial statements in accordance with accounting principles
generally accepted in the U.S., which require estimates based
on management’s best judgment.
 We realize
that great companies are built on trust, strong ethical standards
and principles. Our nancial results are delivered from that culture
of accountability, and we take responsibility for the quality and
accuracy of our nancial reporting.
Peter A. Bridgman
Senior Vice President and Controller
Richard Goodman
Chief Financial Ofcer
Indra K. Nooyi
Chairman of the Board of Directors and Chief Executive Ofcer