Articles
CORPORATE SOCIAL RESPONSIBILITY PROGRAM OF PEPSICO INDIA: A UNIQUE AGRO-BASED CSR MODEL
Article number
895_5
Pages
45 – 49
Language
English
Abstract
PepsiCo is a world leader in convenience foods and beverages working in 210 countries.
PepsiCo in India directly employs more than 5,000 people and indirectly employs another 75,000 for its production and marketing of products across the country.
Under the mandates of the Government of India Market Entry Clause, PepsiCo links more than 25,000 farmers to markets through its innovative partnership.
It has pioneered the concept of contract farming with both backward and forward linkages for agricultural products.
It has developed a Partners in Progress model with seed companies, banks, insurance agencies, government departments and other agri-input companies and farmers organizations.
The model is based on the principles of pay for performance, the provision of technical and extension support and locally evolving farmers organization.
Social responsibility focuses on consumer rights, market links, an integrated supply chain, education to facilitate technology adaptation, micro-credit and insurance to de-risk input costs.
Pepsico extends world-class agro-technology to practicing farmers, supplies disease free seed and quality inputs, an assured fixed buy-back rate for produce and crop monitoring on regular basis.
The company will even provide need-based technology for crops not under the buy-back system.
It has added value to the social responsibility program by offering free medical checkups for farmers and farm families including AIDS awareness and organizing women self-help groups (SHGs) for capacity building and empowerment by promoting small-scale entrepreneurship at the village level.
Furthermore, the company has initiated water conservation projects in different parts of India.
The strengths and weaknesses of the Pepsico CSR program are studied in-depth to explore future pathways.
PepsiCo in India directly employs more than 5,000 people and indirectly employs another 75,000 for its production and marketing of products across the country.
Under the mandates of the Government of India Market Entry Clause, PepsiCo links more than 25,000 farmers to markets through its innovative partnership.
It has pioneered the concept of contract farming with both backward and forward linkages for agricultural products.
It has developed a Partners in Progress model with seed companies, banks, insurance agencies, government departments and other agri-input companies and farmers organizations.
The model is based on the principles of pay for performance, the provision of technical and extension support and locally evolving farmers organization.
Social responsibility focuses on consumer rights, market links, an integrated supply chain, education to facilitate technology adaptation, micro-credit and insurance to de-risk input costs.
Pepsico extends world-class agro-technology to practicing farmers, supplies disease free seed and quality inputs, an assured fixed buy-back rate for produce and crop monitoring on regular basis.
The company will even provide need-based technology for crops not under the buy-back system.
It has added value to the social responsibility program by offering free medical checkups for farmers and farm families including AIDS awareness and organizing women self-help groups (SHGs) for capacity building and empowerment by promoting small-scale entrepreneurship at the village level.
Furthermore, the company has initiated water conservation projects in different parts of India.
The strengths and weaknesses of the Pepsico CSR program are studied in-depth to explore future pathways.
Publication
Authors
D. Basu, G. Basu
Keywords
contract farming, social responsibility
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