The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Monday, April 20, 2009

Strategic CSR - PepsiCo

The article in the url below details the results of an attempt by PepsiCo to calculate the carbon footprint of a carton of its Tropicana orange juice:

“PepsiCo finally came up with a number: the equivalent of 3.75 pounds of carbon dioxide are emitted to the atmosphere for each half-gallon carton of orange juice.”

PepsiCo is one of the first U.S. firms to calculate a specific number for the carbon footprint of a specific product (although my recollection is that Timberland has also been doing this with its shoes for a while now):

“The list of companies that have taken steps to reduce carbon emissions includes I.B.M., Nike, Coca-Cola and BP, the oil giant. Google, Yahoo and Dell are among the companies that have vowed to become ''carbon neutral.'' PepsiCo is among the first that will provide consumers with an absolute number for a product's carbon footprint, which many expect to be a trend.”

The article reports, however, that PepsiCo is unsure whether or not to use this information in its marketing or product packaging. There are two concerns: First, whether consumers care about this information or are able to understand what it means: and, second, there is still disagreement about the methods used to calculate a product’s carbon footprint and what the specific number actually represents:

“Nancy Hirshberg, vice president for natural resources at the yogurt maker Stonyfield Farm, said measuring a carbon footprint is a ''fabulous tool'' for pinpointing areas to reduce emissions. … But she said there were so many variables in determining a carbon footprint that an absolute number was meaningless as a marketing tool.”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006

How Green Is My Orange?
By ANDREW MARTIN
1074 words
22 January 2009
The New York Times
Late Edition - Final
http://www.nytimes.com/2009/01/22/business/22pepsi.html