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Freedom of association
To PepsiCo:
We believe that an open and continuous dialogue with our stakeholders (e.g., workers, NGOs, trade unions, investors and customers) is important. Fostering this engagement helps us gain global and local perspectives on how to integrate rights holders' feedback into our priorities.
To the World:
Freedom of association refers to the right of all workers to join or form a legally recognized trade union or any other organization. While freedom of association is a fundamental right enshrined in the Universal Declaration of Human Rights and the International Labor Organization Declaration on Fundamental Principles and Rights at Work, there are still a variety of challenges in ensuring that it is consistently respected around the world – from interference with the rights of workers to legal restrictions on the right of association.
Approach
As an employer of approximately 318,000 employees in 2023, we recognize the importance and value of having a direct dialogue with our workforce. We also respect employees’ right to join or form an organization such as a trade union, and we strictly prohibit any form of retaliation, intimidation, harassment or violence against union members, trade union representatives and employees seeking to exercise these rights. These principles are embedded in our Global Code of Conduct, Global Human Rights Policy and our Global Supplier Code of Conduct, where they serve as core standards and expectations of our employees and suppliers.
We recognize that our responsibility to respect human rights exists regardless of whether governments fulfill their duty to protect human rights under the UN Guiding Principles on Business and Human Rights. At times, this responsibility can present a challenge, as instances may arise where national law and international human rights standards do not align or even directly conflict. Where the right to freedom of association is restricted by national law, we aim to explore the development of alternative mechanisms of engagement with our employees (e.g., employee roundtables) while remaining in compliance with local law.
In 2023, 57% of the employees worldwide who were eligible to be covered under collective bargaining agreements were represented. Where our employees are represented by a legally recognized union, we strive to establish a constructive dialogue with their freely chosen representatives and bargain with those representatives in good faith and in compliance with local law. We believe that an open and continuous dialogue with our stakeholders is critical to informing our human rights program, and we work to engage with rights holders, including our employees and their representatives, to strengthen our approach and address concerns.
What's next?
We will continue to:
- Strengthen our policies and guidance materials for our operations and supply chain;
- Enhance our due diligence process to ensure it captures rights holders' feedback;
- Inform our approach through ongoing stakeholder engagement; and
- Use our leverage to help address issues and concerns when they are raised.
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Last updated
June 13, 2024