Pepsico-Legal and Regulatory Compliance

Identify processes the organization uses to comply with SEC regulations.

PepsiCo-Legal and regulatory compliance

Company conduct of businesses, and the production, distribution, sale, advertising, labeling, safety, transportation, and use of many of its products, are subject to various laws and regulations administered by federal, state and local governmental agencies in the United States as well as to foreign laws and regulations administered by government entities and agencies in markets in which the company operate (PepsiCo Inc. 2011). PepsiCo adapts to the several changes to laws and regulations in various factors including political, economic or social events. The regulatory environment of the company also changes and these changes in the regulatory environment include changes in food and drug laws, laws related to advertising and deceptive marketing practices, accounting standards, taxation requirements, including taxes specifically targeting the consumption of the company products, competition laws, and environmental laws, including laws relating to the regulation of water rights and treatment (PepsiCo Inc. 2011). With the change in laws and regulations, or governmental policy, the related interpretations generally alter the environment in which the company operates. The company has to change its policies in order to meet the compliances. For this reason, the company has set up a legal and regulatory department to be sure all the past, present, and future compliances have been properly meet.

Governmental entities, or agencies in jurisdictions in which PepsiCo operates, impose new labeling, product or production requirements, or other restrictions. PepsiCo has to completely change its operations, or modify its operations to meet the requirements. For example, we can find that studies are underway by various regulatory authorities and others to assess the effect on humans due to acrylamide in the diet. While keeping this in mind the company has...