Analysis of Personal and Organizational Ethics and Values between For-Profit and Not-for-Profit Organizations
Monte Mutu
PHI 445 – Personal & Organizational Ethics J. R. Ewing
July 21, 2003

Our personal needs are meet by our human desires to generate a profit or seek assistance in managing profit. Even though both the Not-for-Profit and For-Profit organizations benefit our social economy by providing financial assistance to various social classes, both types of profit organizations must continue to uphold and maintain their values and standards at the highest level possible. Both profit organizations also have a responsibility to its customer base to live up to their actions simply by recognizing their purpose, owning up to their faults and conducting business in a professional and ethical manner. Lets take a look at the two types of profit organizations, the Navy and Marine Corps Relief Society and the Pepsi-Cola Company Inc.
The Navy and Marine Corps Relief society is a non-profit organization headquartered in Arlington, Virginia. The Navy and Marine Corps Relief Society has approximately eighty-five branch offices located throughout the United States and eleven countries worldwide with a staff of 169 personnel, over 3,700 volunteers and over 50 nurses combined working diligently to provide assistance at moments notice. The Navy and Marine Corps Relief Society provides financial assistance and education to service members of the United States Navy, the Marine Corps, and their family members to also include widows of fallen service members. These funds are received through charitable donations and fundraisers that are used primarily to finance the programs, services and staff members who work to keep the organization afloat for the purpose of our service members who seek this form of assistance.
The history of the organization has been a financial concern for the men and women of the United States Navy, the Marine Corps and their families long before its inception. Before benefit packages were provided to the families of deceased military service members, the Navy had no rock-solid financial or death gratuity plan in place to circumvent the financial difficulties that these families faced other than collection of funds and donations from colleagues which was normally done with the passing of the hat.
During the early 1900’s, several Naval officers and their spouses felt an urgent need to formalize an organization to manage this type of financial assistance. In 1903, the proceeds from the Annual Army-Navy football game were given to the widows and families of fallen service members. During World War One, there were often delays in pay that created hardships on the home front. To alleviate these financial difficulties with many service members, the relief society provided interest loan fees for funds borrowed dollar-for-dollar. During World War Two, President Franklin Delano Roosevelt felt an extreme need to provide financial assistance to service members by authorizing Congress to pass a law for a reserve to cover expenses not afforded at the time being. In 1922, the Society expanded it reputable services by providing medical services to family members in the form of at-home-doctor-visits and nurse care provisions. Throughout the years thereafter, the society has evolved into what it is known today as the Navy and Marine Corps Relief Society.
One of the most notable services provided by the Navy and Marine Corps Relief Society is the financial and education counseling for military families to help provide for a stable and well-planned future. There are times when families are faced with financial hardships and restraints due to unforeseen circumstances that lead many service members and their families to seek financial help in the form of loans. One type of loan that the Navy and Marine Corps Relief Society provides is a quick assist loan that covers immediate expenses such as rent, mortgage payments, rental deposits, utilities, car payments and funeral payments to name a few.
Another type of loan that is used for emergent situations provides the service member immediate funds for a death in the family or other situations that require immediate attention such as airfare or other funeral arrangements. To be qualified for assistance, service members and their family member are required to set up an appointment for counseling and to fill out necessary financial forms for repayment and necessary counseling. Within a matter of a few hours, the counselor will determine whether or not the requestor is qualified for the loan. If so, the requestor will leave with a check for the amount requested. Other services provided through the Navy and Marine Corps Relief Society is thrift shops, nurse care, emergency travel and educational assistance.
A majority of the funding for the Navy and Marine Corps Relief Society is collected through donations and fundraisers held by the United States Navy and Marine Corps charitable activities respectively. Each year, the United States Navy and the Marine Corps hold a fundraising event to help raise funds in support of the organizations cause. Funds are either collected through donations made by either check, cash, allotments, debit or credit card payments made online.
The mission of the Navy and Marine Corps Relief Society is to provide, in partnership with the United States Navy and the Marine Corps, financial, educational, and other assistance to members of the Naval Service of the United States, and their eligible family members and survivors, when in need; and to receive and manage funds to administer these programs.
The main goal of the Navy and Marine Corps Relief Society is to help each service member who seeks to get support for their immediate needs. The Navy and Marine Corps Relief Societies long-term mission is to help Sailors and Marines become financially self-sufficient by educating each service member on how to better manage their personal finances and prepare for unplanned expenses. The hope is to create awareness to Congress on the welfare of our military service members and their families and the need for financial support. If the need for financial support is delayed or ignored, our military manning overall could be widely affected as a result of it. Lewis is quick to point out that charitable organizations such as the Navy and Marine Corps Relief Society, “…view their role as filling gaps that the government and other support groups affiliated with the military, such as the relief societies that offer service member emergency financial aid, don’t cover.” (Lewis, 2005). So it is extremely important that these services and programs be looked at with the highest degree of urgency to address the concerns of our military service members.
The major obstacle that the Navy and Marine Corps Relief Society faces is that many times the demand for financial assistance for service members and their families are far greater than the amount of donations received to fund these services. Last year alone, the Navy and Marine Corps Relief Society received over $17 million in contributions. Financial assistance in the amount of $25 million was rendered for those seeking assistance. The general concern at this point is the shortage of $8 million in difference. In more ways than many, the Navy and Marine Corps Relief Society is relying more on tapping into federal reserves than the donations received to keep the organization afloat. The ultimate concern is the responsibility of federal funding on both spectrums with that of the Navy and Marine Corps Relief Society and the service member. Berkshire is quick to point out the flaws for most organizations by, “…exposing mismanagement or a lack of sophistication in their approach to fund raising.” (Berkshire, 2006).
The Pepsi-Cola Company Incorporated is a For-Profit organization headquartered in Purchase, New York. Pepsi-Cola Company Incorporated or PepsiCo for short was established through the merger of Pepsi-Cola and Frito Lay in 1965. Throughout the twenty-four years that the company has been in existence, PepsiCo has aggressively continued to acquire and purchase the rights of other establishments such as Taco Bell, Pizza Hut, Kentucky Fried Chicken, Tropicana and Mug Root Beer to name a few. In addition, PepsiCo has merged with the likes of Quaker Oats Company and partnered with the likes of Starbucks Coffee with ready-to-drink coffee beverages increasing their portfolio to twenty-two product brands. As noted by Lipton, PepsiCo is, “…the parent of a group of affiliated corporations…is a well known global beverage, snack and food company.” (Lipton, 2013). PepsiCo has also expanded its company outside of the United States in the countries of Europe, Asia, Middle East and Africa.
Along with increasing its market brands and products sold worldwide, PepsiCo has taken an active approach in producing healthier products as an alternative to healthier and sustainable living. Some of the products in development are set to reduce saturated fats, sugars and sodium while increasing usage of whole grains, fruits, vegetables and low fat dairy products as suitable ingredients. Along with it ongoing changes towards human health, PepsiCo has also committed its efforts towards a cleaner and greener emphasis on product usage and energy consumption.
Much of PepsiCo’s funding is made through market sales and shareholder profit investments. Many of PepsiCo’s profits are used to market and develop new additions and changes towards its product development and portfolio investments, which in turn has broadened it success through its merger, acquisitions and affiliations with other brand names. PepsiCo is also actively involved with funding global citizenship programs that encourages healthy lifestyles, clean water, sustainable agricultural capability, job readiness and female empowerment. As a result of its ethical stance towards change for the betterment of human and environmental development, PepsiCo has made it a top priority of theirs to become a global ambassador of goodwill and mankind in disaster relief, community service and humanitarian support activities.
The mission of PepsiCo is to be the world’s premier consumer Products Company focused on convenient foods and beverages. PepsiCo seeks to produce financial rewards to investors as they provide opportunities for growth and enrichment of their employees, business partners and the communities in which they operate. Everything that PepsiCo does they strive for honesty, fairness and integrity.
The vision of PepsiCo is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.
The major dilemma that PepsiCo faces is its declining sales in their beverage division, which is clearly second best to its snack division undermining its namesake for which it clearly stands for. In a sense, PepsiCo would be better off headlining its brand name as Frito Lay as its chief source of income. But then again, it would only benefit PepsiCo in the long run to further develop and improve in their beverage department rather than focusing their efforts on increasing their portfolio for which the brand name was founded on. As one article clearly points out, “PepsiCo is a Focus List Buy and a Long-Term Buy.” (Cover Story, 2005).
In a recent incident, PepsiCo’s India operations were met with stiff allegations that claimed their usage of pesticides exceeding proposed safety standards. PepsiCo denied the allegations that were later dismissed by India’s health ministry. PepsiCo took corrective measures by implementing changes and improvements as well as keeping up with its credentials regarding social responsibility acknowledging India’s safety practices and water conservation efforts.
The issue with the Navy and Marine Corps Relief Society is that although its social responsibility it to assist military service member and their families with financial assistance and guidance, many times the lack of funding, resources and tools to assist with service member needs tend to conflict with meeting its objective goal of attaining proper funding from charitable donations and fund drives to keep this organization well afloat. One article had pointed that, “While some groups plan to start devising sophisticated fund-raising approaches, other are not ready to expand…and do not want to take time away from providing services to the troops to focus on fund raising.” (Grass-roots fund raising produces millions for groups that help troops, 2005).
However, with the help of the federal reserves that make up for the difference in costs, the Navy and Marine Corps Relief Society is stable enough in maintaining its financial stance. The question that remains to be answered is how much longer can the organization can remain dependent on the usage of the federal reserves before it completely runs dry?
Still the Navy and Marine Corps Relief Society have an obligation and duty to help service members and family members when the need arises. As much as the military service member has an obligation in defense of its country, the Navy and Marine Corps Relief Society as an organization has an ethical obligation to fulfill in meeting the service members needs regardless of the situation whether good or bad. Our text defines ethics as, “…an organized analysis of values relating to human conduct, with respect to their rightness and wrongness.” (Fieser & Moseley, 2012).
The Navy and Marine Corps Relief Society have shown no history of irresponsibility with regard to financial management and its business practices. However, the major dilemma as mentioned before is the unforeseen financial overhead that has been the normality for the past several years. There is not much that the Navy and Marine Relief Society can do but to increase the awareness and the need for the services and assistance of all military commands and other organizations to continue to render support on behalf of its military service members and their families. The need for the Navy and Marine Corps Relief Society is a quality of life issues that begs attention and provision. Without incoming donations from charities, fund drive and allowable gifts there will be less of a dependency on the use of federal reserves to continue to fund the operation of program and services.
In my personal opinion, the problem is neither the fault of the organization nor the individual seeking financial assistance, guidance or education. Organizations are constantly scrutinized for their business practices and for that matter, it calls for a type of quality control in taking drastic measures to ensure that businesses are operating on the clear and direct path. Wills points out that scrutiny is a good attribute to have because, “…it exposes the worst offenses and can spark reform.” (Wills, 2008). Sometimes it takes a misstep to enact a correction. In the case of the Navy and Marine Corps Relief Society, there has been a track record of funding shortage for the past year that has yet been resolved and for the most part, the organization has been operating in the red while continuing to provide assistance to qualified service members and their families. Then there are some matters that also require immediate attention due to unforeseen circumstances that may come about. As a prior service member, it is every way our duty to be there when the call beckons at the drop of a dime for our Marines and Sailors, and the Navy and Marine Corps Relief Society provides that service to ensure that we get the help when the help is most needed especially when we lack the tools and experience to ensure that our service members receive the help needed.
I believe that what it mainly comes down to is the financial education and preparation of the Navy and Marine Corps Relief Society for its employees and customers. There is really no way to see into the future or determine the financial costs that may burden a service member or their family. However, what remains to be seen is the lack of volunteerism and donations as a means of keeping the program alive for the sake of our military service members. Lewis also states that, “Even small items…can make a big difference”. (Lewis, 2005). Services provided by the Navy and Marine Corps Relief Society is a not-for-profit organization consisted of willing and dedicated personnel able to answer the call when all means and resources have been exhausted and the only reliable means of financial stability is restoring the mission and purpose of the Navy and Marine Corps Relief Society through awareness and charitable donations.
PepsiCo on the other hand has been consistent in their approach of expanding the company name with the acquisition of brand names to add to their ever-growing portfolio. I personally believe that the company has been consumed with the idea of expanding its profits worldwide by investing in up-and-coming products rather than focusing clearly on development and improvement of individual brands such as the Pepsi beverage, which has not been able to compete with the likes of its main competitor Coca-Cola. Both Moses and Vest clearly point out the competitiveness by stating that “Coke and Pepsi, the two best known soft drink brands in the world, have slugged it out in 100 countries over the last 100 years,” (Moses & Vest, 2010). The problem may lie with communicating the efforts to help revamp and improve lackluster sales in the beverage department.
At one point in PepsiCo’s merger with Quaker Oats, they were able to dispel many rumors that were floating around concerning the merger by simply maintaining their poise, discipline and fairness in the face of adversity. One article had pointed out that, “PepsiCo had to overcome significant communications problems before that deal could be consummated.” (Getting it right: PepsiCo’s acquisition of quaker oats, 2003). I think that by sticking to their guns, there were able to complete a deal that would prove to be financially beneficial in gaining a foothold in to the snack business. In the same token, the addition also added another difficulty factor in balancing the scales between profits and acquisitions. The problem that lies with PepsiCo’s future is taking on more than what they can chew. In other words, they may just acquire too many assets that could be more than what they can possibly take on. As Kish, Riskey and Kerin is quick to point out, “The impact of effective equity investments over time can be observed in the resilience of strong equity brands.” (Kish, Riskey & Kerin, 2001). The key to equally invest in the product without having to continually invest in acquiring more products. In short, every organization has a commitment and duty to uphold the values and standards for which they stand for. They must not allow themselves to take any unethical missteps as a means of financial gain because profit will come and go but history will last the test of time. Both not-for-profit and for-profit organizations have much to gain and lose with how they conduct themselves. Whether or not they chose to adopt changes or maintain their current lifestyle of business will determine their overall success and legacy well into the future.

References
Berkshire, J. C. (2006). Heroic Choices: A High-Profile Group Charts a Less-Glamorous Course. Chronicle Of Philanthropy, (22) http://search.ebscohost.com/login.aspx?direct=true&db=edsgao&AN=edsgcl.153195337&site=eds-live
Beverages drive PepsiCo’s growth. (cover story). (2005). Current Issues in Economics & Finance, 11(10), 1. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=crh&AN=18680386&site=eds-live
Fieser, J. & Moseley, A. (2012). Introduction to business ethics. San Diego, CA: Brigepoint Education, Inc.
Getting It Right: PepsiCo’s Acquisition Of Quaker Oats. (2003). Financial Executive, 19(1), 28-29. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bsh&AN=8875246&site=eds-live
Grass-roots fund raising produces millions for groups that help troops. (2005). Chronicle of Philanthropy, (22) Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=edsgao&AN=edsgcl.146949439&site=eds-live
Kish, P., Riskey, D. R., & Kerin, R. A. (2001). Measurement and tracking of brand equity in the global marketplace - the PepsiCo experience. International Marketing Review, 18(1), 91-96. Retrieved from http://search.proquest.com.proxy-library.ashford.edu/docview/224320196?accountid=32521
Lewis, N. (2005). Charity’s Homefront Operations. Chronicle Of Philanthropy, (22) Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=edsgao&AN=edsgcl.146949435&site=eds-live
Lipton, R.M. (2013). IRS, Continuing to Seek Debt Treatment, Fails in PepsiCo Puerto Rico. Journal Of Taxation, 118(2), 61-68+. Retrieved from http://search.proquest.com.proxy-library.ashford.edu/docview/1315949612?accountid=32521
Moses, C., & Vest, D. (2010). Coca-Cola and PepsiCo in South Africa: A Landmark Case in Corporate Social Responsibility, Ethical Dilemmas, and the Challenges of International Business. Journal Of African Business, 11(2), 235-251. Doi: http://www.tandfonline.com/loi/wjab20#.UdxhoKyE7xU
Willis, D. K. (2008). A High-Profile Watchdog Report Draws Fire From Veterans Charities, Chronicle Of Philanthropy, (11) Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=edsgao&AN=edsgcl.176838092&site=eds-live