'Gentlefan' continues: 'Angels' greet Belgium football fans ahead of Sochi gameSport March 28, 21:12
Scottish parliament backs new referendum on independenceWorld March 28, 20:42
Russian strategic missile carriers to take part in military drills in TajikistanMilitary & Defense March 28, 20:10
Russia’s offshore energy projects in the ArcticBusiness & Economy March 28, 19:33
US chess chief: No plot to oust current FIDE head, but it ‘would be good for the game’Sport March 28, 18:27
Putin-Rouhani meeting round-upWorld March 28, 18:23
Request for referendum against iconic Petersburg cathedral's transfer to church approvedSociety & Culture March 28, 18:13
US diplomat says Washington is pleased with Arctic cooperation with MoscowWorld March 28, 18:11
Russia, Iran express support for Damascus’ efforts to combat terrorismWorld March 28, 17:46
DAVOS, January 22. /ITAR-TASS/. Minority shareholders of big companies, who are actively promoting their suggestions on business management, are often uninterested in the corporate responsibility of the company to the society and care only about reaping profits, said CEO of PepsiCo Indra Nooyi speaking at a plenary session at the Economic Forum in Davos.
“When someone talks about shareholders of a company, they mean active shareholders. They are a minority, but they are very active. Practice shows that active minority shareholders are often uninterested in the long-run business stability and implementation of corporate programs of social responsibility,” said Nooyi, mentioning her company’s social programs in Africa as an example. PepsiCo head added that active minority shareholders usually care only about fast profits. “We are familiar with such a position – we’ll sin, and then repent. But we should think not only about making money, but also about how we make money,” stressed Nooyi.
At a plenary discussion in Davos Nooyi proposed change to MBA programs. “MBA students are taught to make money by any means, but such a disposition no longer works,” she concluded.
Demonization of international business
CEO of PepsiCo urged not to demonize international business and overestimate its influence on government. During a plenary session in Davos, Nooyi asked people to be careful about demonizing business in response to a question about disrespect that big businesses show to regulations of governmental control over corporations, and also about the influence big companies have on politics.
“All businessmen also have mothers, fathers, uncles, and aunts. We are also members of the society, and we do not seek to become monsters,” explained Nooyi.
PepsiCo head added that business tries to influence the system of government regulation when authoritative decisions remain unclear for the industry. When describing a process of settling disputes with the authorities, Nooyi said that sometimes business does not understand some regulatory decisions that the government makes. In such cases, corporations raise a question about the decision’s adequacy and ask the authorities to halt its coming into force.