Talent Sustainability

Our people are our greatest strength. Without a broad base of talented people, we won't continue to deliver exceptional results. Our goals are to attract, hire, train and retain the most talented people. By valuing our employees, supporting their ability to work effectively together and providing them with the tools they need to succeed, we are ensuring that PepsiCo is the kind of company where talented people of all backgrounds want to work.

We will continue to foster an inclusive environment, increase female and minority representation in management ranks, engage employees in health and wellness programs and create rewarding job opportunities for people with different abilities.

We will leverage the reach of our employee base and continue to encourage our employees around the world to participate in community service and inclusion activities, which are designed not only to positively impact the communities we serve, but to drive our employees to be leaders in social responsibility.

We take a holistic approach to sustaining our talent by initiating programs that include:

• A strong commitment to diversity
• Competitive compensation and benefits
• Strong health and safety programs, including HIV/AIDS programs View our HIV/AIDS policy
• Our SharePower program which provides stock options to eligible associates around the world and encourage them to act as owners of the Company
• Opportunities for career growth
• Lifestyle and personal development opportunities, including job training programs
• Robust programs to measure employee satisfaction and award achievement
• Inspiring supplier diversity

We approach diversity and inclusion as a strategic business priority. As an expanding multinational company, innovation and growth requires employees who understand the needs of international and diverse markets. We are continually evolving our culture, so that our associates are recognized for their contributions and valued for the unique differences and perspectives they bring to the workplace.

U.S. Diversity & Inclusion Statistics Year-End 2007

Increasing the skills of our employees is crucial for business success in a competitive global economy. With the launch of PepsiCo University, we are helping associates develop the job-related skills needed to drive innovation and growth for the future. PepsiCo University offers learning solutions focused on building people skills, managerial skills, and cultural awareness.

Here are a few notable examples of the advances we've made with our talent sustainability goals in 2007.

• Increasing female and minority representation in our management ranks
• Engaging employees in health and wellness programs
• Encouraging employees to participate in community service activities
• Creating rewarding job opportunities for people with different abilities

The safety, health and well-being of our employees around the world are of utmost importance.

PepsiCo serves as chief partner in the global program of the World Health Organization/World Economic Forum "Workplace Wellness Unit" and is working with both organizations to develop better workplace wellness solutions.

We also have internal programs such as HealthRoads, PepsiCo's employee wellness benefit plan. HealthRoads promotes healthier lifestyles through a combination of personalized coaching, fitness and nutrition programs, online tools, resources, and worksite wellness initiatives.

In 2007, we launched HealthRoads in Asia and the PepsiCo U.K. initiated "Fit for Life," a program designed to encourage healthier lifestyles as well as better work/life balance for all employees. Vive Saludable (Live Healthy) is a similar program in Mexico that promotes healthy lifestyles among employees and consumers.

PepsiCo's Human Rights Workplace Policy ensures a work environment that is free from all forms of discrimination where people feel comfortable and respected. In 2008, we translated this policy into 20 languages and broadly communicated it as part of our Code of Conduct Training, a leading edge process that ensures our businesses are operating in the most ethical way possible.

View our Human Rights Workplace Policy

View our HIV/AIDS Policy

View our Occupational Health Policy

We bring our commitment to social responsibility to all aspects of our business, including our suppliers. In 2007, we developed a Supplier Code of Conduct to establish our expectation in the areas of labor practices, employee health and safety, environmental management and business integrity.

View our Supplier Code of Conduct

PepsiCo also has teams dedicated to increasing the diversity of suppliers. In 2007, PepsiCo and its bottler community spent approximately $1.13 billion with U.S. minority-owned and women-owned suppliers, marking the fifth year of double digit growth in supplier diversity spending.