Legal And Ethical Environment Of Business

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Pepsi-Cola Company has a strong commitment based on delivering sustainable growth by empowering people acting responsibly and building trust. The company aspirations are to be environmentally and socially responsible company that upholds their commitment using six steering codes (PepsiCo Inc. 2010). . They are, taking care of their customers, constantly speaking the truth, selling high-quality products, balancing both short-term and long-term goals equally, respecting other companies, and thriving as a team and lastly win with both enclosure and assortment.

The company has a compliance program, which is managed by the compliance committee using subject decree strategies and creating proposals to support them. The chief compliance official and vice-president of Pepsi-Cola is W. Scott Nehs. He leads the compliance program and chair's Pepsi-Cola compliance committee. The compliance program comprises of four subcommittees namely: (PepsiCo Inc. 2010). 

"Safety and Environment" responsible for operations, fleets, plants and the personnel that staffs them

"Finance" that includes all financial integrity following the recent superimposed Sarbanes-Oxley requirements placed in the company.

"Human Resource"- which relates to labor issues and employments.

"Anti-Trust" -whose focus is on the company's sales.

Pepsi-Cola Procedures of Ensuring Ethical Behavior

According to PepsiCo Inc., in order to ensure accountability for the company actions, Pepsi-Co dedicate itself to stern corporate principles. The governance standards applied are Amended and Reaffirmed Articles of Incorporation, Audit Committee Charter, By-Laws, Compensation Committee License, Corporate Governance Strategies, Disclosure Committee Charter, Nominating and Corporate Governance Committee Charter, and the Policy for Audit, Audit-Related, and Non-Audit Services (2010)

Pepsi-Cola Legal and regulatory Compliance

The company's conduct of businesses, production, sale, distribution, labeling, advertising, transportation, safety and application of various products are subject to the various laws and regulations directed by the state, federal, and local government agencies in the United States and also the foreign laws and regulations administered by the government unit and bureau in markets which the company operates.

Political Influences

Production and distribution of PepsiCo products are subject to several national laws, like the Food, Drugs and Cosmetic Act, Occupational Health Act for people with disabilities. The Company is also subject to foreign laws and government stability in countries they are beginning to venture like the underdeveloped markets. The company must comply with the taxation policy in each country they are carrying out their operations.

Social Influences

Pepsi-Cola is subject to lifestyle changes, because when advertising its products, it bases them on specific kind of people with a special lifestyle (PepsiCo Inc. 2010). This means that while making their decisions Pepsi-Cola has to pay attention to changes in lifestyles. Specifically in US, some people are drinkers of Pepsi while others take Coca-Cola. That makes the company to be keen on the social mobility to avoid losing a possible market. Since Pepsi-Cola wants to introduce itself to underdeveloped countries, they have to take care of the problems they might encounter with their governments (PepsiCo Inc. 2010). 

Microsoft

Microsoft is an international company that manufactures, licenses, and supports a mass of software products for several of computing devices. According to McCracken & Harry, the company's software includes operating systems for "intelligent devices, personal computers and servers; server applications for client/server environments; and software improvement equipments (2000). They also license consumer software programs; sell PC input devices; tutor and endorse system integrators; and make inquiries and build up sophisticated technologies for potential software products (McCracken & Harry2000).

Microsoft's Procedures of Ensuring Ethical Behavior

Microsoft company aspirations are to be the best company in the world. This also depends with the people who innovate and commits themselves to the growth of the company (Bick & Julie, 2005). The values of the company's business conduct are a reflection of the set values and the foundation of the business principles. This reflects Microsoft's collective commitments to ethical business practices and regulatory compliance, providing complete information of its Business Conduct and Compliance Program. At a high rank, they recapitulate, and the principles and policies that govern Microsoft's global business in several important areas support them. For example trust and esteem for consumers, partners, and shareholders; creation of a supportive and prolific work environment; asset security and stewardship; and dedication to the international community (Bick & Julie, 2005).

The reasons why Microsoft has standards of business conduct is because, being a business leader, it must perform its activities appropriately. These means business decisions are made and appropriate actions taken that are ethical and in compliance with the applicable legal requirements. As the managers make decisions, they must ensure that the company's values shine through all its interaction. Microsoft has a summary of regulatory requirements and business practices that guides the company in its decision-making and business activities. Due to it being a global company, Microsoft must comply with applicable laws and regulation and uphold the Business Conduct Standards at all times.

Political Influences

Microsoft products are subject to several national laws. The Company is also subject to foreign laws and government stability in countries they are beginning to venture like the underdeveloped markets. The company must comply with the taxation policy in each country they are carrying out their operations.

Legal Influences

According to Bick & Julie Microsoft, interact with many people in a respective, ethical manner and in compliance with applicable laws and regulatory requirements (2005).

Microsoft manages its business in compliance with laws and regulatory requirements by

Political Activities and Contributions: The company employees are encouraged to participate in political activities. It is entirely personal and voluntary if any employee makes the decision to become involved in politics but at his or her own time and using personal resources.

Bribery and anticorruption: Microsoft forbids corruption of government officials or offering bribes to any public official or individuals in the private sector.

Fair Competition and Anti-trust: Microsoft being an international company encounter laws and regulations put in place to encourage ethical and legal behavior among competitors. Antitrust and fair competition laws disallow activities that restrain free trade and limits competition.

Equal Employment Opportunities: The Company endorses a mutual and productive working environment through the support of ethnic and cultural diversity of its work force. The company also commits itself in giving equal employment opportunities to qualified applicants and employees

Social Influences

The company focuses on the income distribution such as in the allotment of disposable income. They also center their attention on demographics such as the structure of the population, changing nature of occupation to the population where they sell their products. Lifestyle changes also help in making decisions about how distribution and sales of their products will be carried out. The company offer training programs or its employee to increase its yield and ensure their health and safety.

In conclusion, if both companies want to succeed while introducing their products in underdeveloped countries, they must be careful with the governments running those countries. In situations where a product is recognized by a specific group of people, they should pay attention to the social mobility to avoid losing potential customers. A company like Pepsi-Cola focuses its advertisements on specific kind of people, so it must be keen on the lifestyle changes. The companies must comply with the federal, state, local, and political laws and regulations.

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