Sustainable Marketing - Leadership style of Indra Nooyi

Running head: SUSTAINABLE MARKETING
Sustainable Marketing
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Introduction
Sustainable marketing helps in promoting the environmental along
with the socially responsible products and the practices of a company. It
makes a company make the investment in the social along with the
environmental aspects that ensures the marketing of a company
(Goworek 2017). PepsiCo refers to the multinational food and the
beverage corporation of America which has headquarters in New York.
The company have interests in the arena of manufacturing, distribution
and the marketing of the snack foods and the beverages. This report
discusses about the leadership theories that are crucial to the leadership
of Indra Nooyi. This report elucidates on the sustainable positioning of the
FMCG companies that have helped them in leaving an impression in the
market. This report talks about environmental along with the social effect
of the green washing strategy of the FMCG companies. This report talks
about the management recommendations that can improve the
performance of companies.
Leadership style of Indra Nooyi
Indra Nooyi encountered certain personal experiences that made
her believe in the concept of “Performance with Purpose”. The support
that Indra Nooyi got from her family along with the former boss, Steve
Reinemund made her an ardent believer in the concept of “ Performance
with Purpose” (Youtube.com 2019). The company wants to expand the
portfolio of the nutritious products and shrink the environmental footprint
that can help in uplifting the conditions of the people living across the
world. “Performance with Purpose” can help a company in delivering the
financial performance and operating responsibly that can help in
empowering the people. It can help a company in creating enormous
influence within the world which can make the people the constructive
members of the society. The company should take recourse to the
portfolio transformation that can help a company in delivering the
effective results. It can help in providing the greater return for the
stakeholders of the company. It can help a company in working on the
basis of the ethical lines that can make a difference in the society. It helps
a company in the determination of the strategic priorities that is an
integral part of the business. Indra Nooyi have promoted and supported
the business practice which is socially responsible that have helped in
creating a positive effect on the society. The company have launched
Sustainable Farming Initiative (SFI) that have helped the company in
improving the crop yields along with the livelihood of the growers
(Forbes.com 2020). The revenue of Pepsico grew by 80 % under the able
leadership of Indra Nooyi that helped in the generation of $ 1 billion
revenue in the year 2017 (Pepsico.com 2020). The transformational
leadership style is exhibited by Indra Nooyi that have helped her in

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providing motivation to employees and in inspiring the followers. It have
instilled a sense of belonging among the employees hat have made them
identify with the leader. The leadership style of Indra Nooyi abided by the
transactional leadership theory that have helped the creation of the
positive relationship in between the employees of company.
Green-washing strategy of FMCG companies
Green- washing refers to unethical marketing technique that makes
the companies take recourse to the misleading and the unsubstantiated
claims pertaining to environmental “friendliness” of the product (Delmas
and Burbano 2011). The companies are involved in making the deceive
claims that have a damaging effect on the society. Unilever have made
tremendous progress in the reduction of the emissions from the transport
fleet along with the refrigeration technologies. The company have
revealed that the overall emissions in relation to each individual customer
have risen by 5 % since the year 2010 as it has been able to acquire the
other companies. The company had acquired the Alberto Culver that is
instrumental in producing various kinds of brands like the Tresemme, St
Ives and the Alberto VO 5. The company has been credited for starting
Roundtable for Sustainable palm Oil that helps in certifying sustainability
of the palm oil sources. The company did not deforest symbolic plots of
the jungle however it cleared surrounding land for getting the
“sustainable” palm oil (Unilever.com 2020). The products of Coca Cola
are sold within Australia by the Coca Cola Amatil and they are
instrumental in selling the high sugar products (Abc.net.au 2020). The
company claims that its product is not harmful and it can hardly be
harmful if consumed once within a week. It have been pointed out by
Dietitians of Australia that having one coke within the framework of a
week would prove to be unhealthy for the customers. Procter and Gamble
have been able to reduce the emission of the greenhouse gases however
the company makes use of the cosmetic ingredients that can prove to be
hazardous for the health of the customers (Forbes.com 2020). It makes
use of the ingredients like the phthalates that can have a detrimental
effect on the children. There are various kinds of products like the
shampoo along with the body wash that have high level of the 1, 4-
dioxane which have been banned from the personal-care products within
European Union.
Environmental and the social impacts
There are environmental along with the social effects that have
been created on account of the practice of the green washing of the
companies. Unilever is not abiding by the Sustainable Palm Oil Sourcing
policy that have endangered the lives of the people. The company have
been complicit in destroying the last tract of the rainforests that have
proved to be harmful for the ecosystem (Ryals 2017). It have created the