PepsiCo Inc. CEO Indra Nooyi said recently that her company will account for its cost to society when calculating profits, and will also increase its focus on “good for you products.”
Nooyi told the UK’s Telegraph newspaper that PepsiCo aims to triple the company’s $10 billion in yearly revenue from healthier products over the next decade. Currently, she said, $30 billion of the company’s $43 billion in annual revenue comes from “fun for you” products.
That goal, she said, comes as the second stage in the company’s focus on health – the first was to make the company’s treats healthier – and will likely take the form of more Tropicana and Quaker Oats products. She also told the Telegraph that PepsiCo is looking into developing a children’s nutritional drink.
On the financial side of things, Nooyi told public radio’s Marketplace that her company will employ a new method of tracking profit and loss.
“We have to make sure our new P & L actually says revenue, less costs of good sold, less costs to society — and that’s your real profit,” Nooyi told the program.
She said she believed the new definition of “corporation” means an organization that thinks about stakeholders as well as shareholders. Focusing too much on shareholders, she said “will hit you up against the wall.”