Conflict Palm Oil and PepsiCo's Ethical Dilemma

Conflict Palm Oil and PepsiCo's Ethical Dilemma
Case Code: SUST022
Case Length: 19 pages
Period: 2014-2016
Pub Date: 2016
Teaching Note: Available
Price: Rs.600
Organization: PepsiCo.
Industry: Fast Moving Consumer Goods
Countries: US; Global
Themes: Corporate Sustainability, Business Ethics, Supply Chain Management
Conflict Palm Oil and PepsiCo's Ethical Dilemma
Abstract Case Intro 1 Case Intro 2 Excerpts


In September 2015, US-based consumer food giant, PepsiCo Inc. (PepsiCo), was dropped from the annual Dow Jones Sustainability Indices (DJSI) as, according to some reports, the company's sustainability performance had failed to make the grade. PepsiCo was singled out by a number of environmental groups for its continued use of large quantities of Conflict Palm Oil, the production of which was responsible for large-scale destruction of rainforests, human rights violations, and climate pollution in tropical countries like Indonesia where palm oil was produced. The groups criticized PepsiCo for not having a robust sustainable palm oil policy and for not acknowledging the damage its supply chain had caused in countries such as Indonesia and Malaysia. According to an international environmental and human rights organization, the Rainforest Action Network...

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