Stakeholder Analysis and CSR Importance for Pepsi

This report discusses the stakeholder analysis of Pepsi using the Mendelow Matrix and how the company relates to its stakeholders. It also explains the importance of Corporate Social Responsibility (CSR) for Pepsi and its impact on employee retention, brand perception, and accountability to investors. The report includes references from various books and journals.

project 1
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Table of Contents
Introduction ..........................................................................................................................................3
Discussion .............................................................................................................................................3
Put the stakeholders of the selected company into the Mendelow Matrix......................................3
Analyse how the selected company relates to stakeholders (Choose about 4 or 5 stakeholders).. .4
Explain the CSR and its importance to the selected Company.........................................................5
Conclusion ............................................................................................................................................6
References ............................................................................................................................................7

Introduction
Stakeholder is referred to the party that tends to hold interest in an organisation that
can affect the business and also get affected by the decision. The primary stakeholders
comply of the investors, employees, suppliers or the customers. The stakeholders of an
organisation can be internal as well as external (Eskerod and Larsen, 2018).
Pepsi is an America based multinational food corporation that deals in snacks as well
as beverages. The headquarters of Pepsi are established at Harrison, New York. The
organisation was founded in the year 1965. The report comprises of stakeholder analysis of
Pepsi.
Discussion
Put the stakeholders of the selected company into the Mendelow Matrix.
The stakeholder analysis of Pepsi can be performed with the help of Mendelow matrix
wherein the matrix shows categorization of several stakeholders of the organisation. The
stakeholders of Pepsi have been categorised in the following manner.
 High power High interest stakeholders- The first quadrant of the matrix shows the
stakeholders that possess high power and high interest at Pepsi. These are basically
the key players, customers as well as the investors.
 High power Low Interest stakeholders- The second quadrant of the stakeholder matrix
of Pepsi comprises of the stakeholders that possess high power and low interest in the
organisation. These are basically the government authorities.
 Low power High interest stakeholders- The third quadrant comprises of the
stakeholders of Pepsi that have low power and high interest in the organisation. These
stakeholders comprise of employees, business partners, suppliers as well as local
community (Serravalle and et.al., 2019).

 Low power Low interest stakeholders- The fourth quadrant of the matrix emphasises
upon the stakeholders that have low power and low interest in the organisation of
Pepsi. These stakeholders tend to require minimal effort within organisation.
Analyse how the selected company relates to stakeholders (Choose about 4 or 5
stakeholders).
The stakeholders of Pepsi have been discussed below in context of their relationship
at Pepsi. The several stakeholders are-
 Consumers and customers- The consumers and customers tend to have the highest
priority at the organisation. The group of stakeholders tend to determine the financial
position of Pepsi in terms of revenue of the organisation. The consumers are basically
interested in the high quality products that are required to be offered at reasonable
price. The customers in the business partnership tend to have an influence upon
improving and stabilising the business performance of Pepsi.
 Communities- The communities of Pepsi tend to have an influence upon the creation
of a positive impact of the organisation upon the society as a whole. Pepsi tends to
consider communities as their second priority in the stakeholder group. The
communities tend to have a significant influence as a stakeholder upon the
perspectives of the employees and the customers.
 Employees- The employees as the stakeholder are considered as the significant
determinants of the long term growth of the organisation at Pepsi. The focus of the
stakeholder is upon the development opportunities of the career along with the fair
compensation. In order to address several concerns of the stakeholders, the focus of

Pepsi is upon talent sustainability that focuses upon providing a safe workplace to the
employees globally (Schlund, Schulte and Sprenger, 2022).
 Investors- Investors, as the stakeholders are interested upon the higher financial
performance of the organisation i.e. Pepsi. The investors tend to have an influence
upon the availability of the cost of capital of the organisation. Pepsi tends to have a
belief that the focus of the organisation upon the customers, employees and
communities influence upon the contribution towards the optimum financial
performance of the organisation. Pepsi lays emphasis upon addressing the several
concerns of the investors with the help of sound financial strategies of Pepsi.
 Government- Government acts as the stakeholder of Pepsi and tends to have influence
upon the regulations of the organisation that is necessary for Pepsi to comply with the
obligations. The global legal team along with the public relations team of Pepsi focus
upon the issues in context of the government. In order to accomplish the corporate
social responsibility of Pepsi, the organisation focuses upon the compliance with
government interests.
Explain the CSR and its importance to the selected Company
Corporate social responsibility is referred to the act wherein the organisation tends to
enumerate a self regulating model that aids the organisation to be accountable in social terms.
The accountability focuses upon the accountability to the organisation itself, accountability to
the stakeholders as well as accountability to the public. The concept of CSR is followed by
several organisations such as Pepsi and it is also termed as corporate citizenship. The
organisations are quite conscious in context of the impact that the organisation might have
upon the several aspects of the society. The focus of the CSR concept of Pepsi is to have a
positive contribution towards the society and the environment (Hur, Moon and Kim, 2020).
The CSR concept tends to have a huge importance upon Pepsi. The several
importance of CSR in context of Pepsi have been discussed below.
 Attraction and retention of employees- The CSR activities help in attracting and
retaining the employees of the organisation due to their specific strategies in aspect of
Pepsi. The reason behind retention and attraction of employees at Pepsi is that CSR
activities tend to show the equal and compassionate behaviour of Pepsi towards its
employees.

 Improving perception of brand- There is a quite stiff competition in the food industry
and thus investment of Pepsi in the CSR funds can help in improving the perception
of the organisation within the market or the industry. The CSR activities of Pepsi will
help in winning customers for the brand of Pepsi.
 Accountability to investors- Pepsi can seem quite attractive to the several investors
due to the social responsible nature. The investors are quite attracted towards the
organisations that have a good management of finances as the investment in CSR is
not viewed as the wastage of funds (Xia and et.al., 2018).
Conclusion
It can be concluded from the report that stakeholders play a significant role in the
organisation. There are basically two types of stakeholders namely internal and external.
Further, the corporate social responsibility activities also play an important role for the
organisation in several aspects such retention of employees, building perception and
accountability of the organisation.

References
Books and Journals
Eskerod, P. and Larsen, T., 2018. Advancing project stakeholder analysis by the concept
‘shadows of the context’. International Journal of Project Management, 36(1),
pp.161-169.
Hur, W.M., Moon, T.W. and Kim, H., 2020. When and how does customer engagement in
CSR initiatives lead to greater CSR participation? The role of CSR credibility and
customer–company identification. Corporate Social Responsibility and
Environmental Management, 27(4), pp.1878-1891.
Schlund, D., Schulte, S. and Sprenger, T., 2022. The who’s who of a hydrogen market ramp-
up: A stakeholder analysis for Germany. Renewable and Sustainable Energy
Reviews, 154, p.111810.
Serravalle, F. and et.al., 2019. Augmented reality in the tourism industry: A multi-stakeholder
analysis of museums. Tourism Management Perspectives, 32, p.100549.
Xia, B. and et.al., 2018. Conceptualising the state of the art of corporate social responsibility
(CSR) in the construction industry and its nexus to sustainable development. Journal
of Cleaner Production, 195, pp.340-353.