Aug
04

Which of these companies do you think has the higher integrity culture, Coca Cola or PepsiCo?

Let’s start by defining what we mean by a high integrity culture. A high integrity culture is…

  • NOT the credo written on the wall in the corporate headquarters
  • NOT a CSR program or how philanthropic a corporation chooses to be
  • NOT solely what employees think of their organization

A high integrity culture…

Has a high integrity VISION that defines its purpose, and that vision is practiced and reinforced daily.

Has high integrity VALUES that serve not only as a guideline but as a PRACTICE for all employees. HR supports these values at all times by hiring PEOPLE who share the corporate values. In fact all silos play a role in maintaining the high integrity values.

Starbucks offers an excellent example of high integrity values:

  • Creating a culture of warmth and belonging, where everyone is welcome.
  • Acting with courage, challenging the status quo.
  • Being present, connecting with transparency, dignity and respect.
  • Delivering our very best in all we do, holding ourselves accountable for results.
  • We are performance driven, through the lens of humanity.

Has high integrity LEADERSHIP who understands and meets the NEEDS of all its stakeholders, not just shareholders through its consistent practice and reinforcement of its high integrity vision and values.

So who has the higher integrity culture Coca Cola or PepsiCo?

Trust Across America has been measuring the corporate culture of public companies for over seven years through its FACTS Framework. Unlike other culture surveys that rely heavily on employee input, FACTS (an acronym) measures the quantitative indicators or dimensions of high integrity- Financial stability, Accounting conservativeness, Corporate governance, Transparency and Sustainability. And in our analysis Pepsi wins. Out of the five indicators, PepsiCo scores significantly higher in three.

While relying on employee surveys alone may be helpful in measuring culture, surveys don’t tell the full story and can be easily gamed. In fact, in the case of Coke and Pepsi, their Glassdoor reviews, for example, are almost identical.

Why should a high integrity culture matter?

In our ongoing research at Trust Across America, all signs point to high integrity cultures being more profitable. To all those companies whose leaders think culture is soft, intangible, immeasurable and/or doesn’t matter, you are ignoring the FACTS at your own risk. And perhaps that’s why Pepsi scores higher than Coke. It may boil down to Indra Nooyi’s leadership priorities.

You can read more about our Corporate Integrity Monitor findings at this link.

Barbara Brooks Kimmel is the CEO and Cofounder of Trust Across America-Trust Around the World whose mission is to help organizations build trust. She also runs the world’s largest global Trust Alliance and is the editor of the award- winning TRUST INC. book series. In 2017 she was named a Fellow of the Governance & Accountability Institute, and in 2012 she was recognized as one of “25 Women who are Changing the World” by Good Business International. She holds a BA in International Affairs from Lafayette College and an MBA from Baruch at the City University of NY.

For more information visit our website at www.trustacrossamerica.com or contact Barbara Brooks Kimmel, CEO and Cofounder

Barbara@trustacrossamerica.com

You may also join our Constant Contact mailing list for updates on our progress.

Purchase our books at this link

Copyright 2017, Next Decade, Inc.

 

 

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2 Responses to “Who Wins the Culture Audit, Coke or Pepsi?”

  1. August 4th, 2017 at 18:30 | #1

    Very interesting article. It would be informative to outline how you connect your 5 factors to culture. It is not obvious.
    Thank you.

  2. August 5th, 2017 at 08:54 | #2

    Thanks for commenting Bob. Our five FACTS indicators represent a unique holistic measurement of corporate trustworthiness. If a company is receiving high scores across the range of these five silos, it would stand to reason that leadership is focused on creating a trustworthy, high integrity organizational culture. It’s not an accident. Measurement tools like FACTS are available that don’t simply rely on employee surveys or customer perceptions to determine how far an individual company has evolved (or devolved).

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