Ethics and Compliance

Running head: ETHICS AND COMPLIANCE PAPER

Ethics and Compliance Paper

Team C

University of Phoenix

FIN 370

Steve Clark, Professor

July 27, 2010

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When individuals hear the name Pepsi, a soft drink company challenging Coca-Cola for the title of world’s number one selling soda comes to mind. However, over the years methods of conducting business have changed and the Pepsi Corporation is no longer considered a soft drink company, but rather a food company that sells beverages (Brooker, 2006). Pepsi recognized the company had to expand products and services outside the realm of selling soft drinks to retain business success. Consequently, PepsiCo Inc. was established.

To maintain financial wealth in today’s society, PepsiCo understands the company must develop methods to enforce and maintain organizational ethics. In addition, the company must implement procedures to ensure compliance with Securities Exchange Commission (SEC) regulations. Successful businesses understand the value of ethics and acknowledge money can be saved by adhering to SEC Regulations. PepsiCo is an example of organizational excellence that is proven by the company’s longevity in the consumer product business. This paper identifies Team C’s evaluation of how PepsiCo maintains compliance with SEC regulations and enforces ethical behavior. Furthermore, the team will examine PepsiCo’s financial performance over the past two years by calculating current, debt, return on equity, and day’s receivable ratios. The collected information will provide a better understanding of how PepsiCo has sustained financial prosperity and remained a pillar of ethical standard in the community.

In May 2010 PepsiCo was ranked among 100 most ethical companies by Ethisphere Institute (Ethics Newsline, 2010). The Ethisphere Institute recognizes companies that not only meet and exceed verbal expectations of conducting ethical business, but also transforms the verbal expectations...