Environmental-social and governance

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Reference no: EM133503569

Question

Environmental, Social, and Governance (ESG) refers to a set of standards that assess a company's environmental impact, social relationships, and governance structure (The Investopedia Team, 2023). The environmental criterion evaluates a company's environmental stewardship. Social criteria inspect the company's relations with its stakeholders. Governance assesses the company's leadership, accountability, and transparency.

ESG should be a vital issue in strategic management as it represents a company's long-term sustainability and ethical behavior, factors of growing importance to investors, customers, and the broader society (The Investopedia Team, 2023).

In the strategic analysis of PepsiCo, Inc., ESG will be integrated by evaluating the company's efforts in sustainability practices for the environmental component. For social criteria, the focus will be on PepsiCo's labor practices, community engagement, and consumer relationships. Governance will be assessed by analyzing board diversity, executive compensation, and shareholder rights. This ESG-based evaluation will inform recommendations that enhance PepsiCo's ESG performance and appeal to socially conscious stakeholders. What do you think?

Reference no: EM133503569

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