PepsiCo discloses that, in 2017, 100% of its "targeted key suppliers" completed training on the supplier code of conduct. It further discloses an example of a supplier capacity building in cooperation with AIM-PROGRESS in Malaysia that aimed at "strengthening internal and external grievance mechanisms and reducing forced labor-related risks." The company reports that over 215 suppliers participated in this event in 2017.
PepsiCo discloses that it is a signatory to the Consumer Goods Forum Priority Industry Principles on Forced Labor, and it recently included the Employer Pays Principle into its supplier code of conduct, which now states "workers must not be required to pay recruitment or other similar fees to obtain or retain their employment and suppliers shall ensure that any third-party recruitment agencies comply with these principles."
Process to Respond to Grievances
Regarding the grievance mechanism for its agricultural supply chains, PepsiCo discloses that, where a grievance refers to a lower-tier supplier, first-tier suppliers will be involved in contributing to the investigation and ensuring corrective actions are undertaken. The company notes that "where appropriate" it will communicate to the complainant the receipt of the grievance, as well as actions or remediation undertaken. The company notes that "an internal PepsiCo resource" will oversee the process, with advice provided by a grievance working group which includes representatives from its procurement, human rights, sustainable agriculture, and public policy teams. It further explains that a grievance committee, comprising senior management from the departments represented at the working group level will review the operation of the mechanism and individual cases on a quarterly basis.