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PepsiCo to invest $170M to empower Hispanics, promote diversity

Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Ines Ferre discuss businesses’ latest initiatives to help promote diversity in the workplace.

Video Transcript

BRIAN SOZZI: PepsiCo is the latest big company aiming to promote and elevate minorities. The company announced a commitment of $170 million over five years to support Hispanic communities. Ines Ferre is back here with the details. Ines.

INES FERRE: And Brian, this commitment is over a five-year span, with initiatives for higher access for education for Hispanics, to also provide a program to increase Hispanics within all ranks of the company. Now this is in addition to PepsiCo's 2020 target to spend $275 million on Hispanic suppliers, and also an initiative which it had announced earlier of $400 million addressing issues of black inequality.

So what PepsiCo is planning to do is, it plans to increase, expand its Hispanic managerial representation to 10% of its workforce by 2025 by hiring 120 Hispanic managers. And as far as businesses is concerned, it's planning to work with more Hispanic-owned companies, businesses. And as far as communities, it's working to provide access, as I mentioned earlier, for education, higher education for Hispanics.

Something very interesting about PepsiCo, is that the company had recently published its demographics of its workforce, posting how many women, how many men work, and how many minorities work at the company. So as you can imagine, in the front lines, administrative, you've got a good mix of minorities. Mid-level management, 12% black, 12.3% Hispanic, and 67% white. And then when you're talking about executives, it's then 70% white, 6.3% black, and 8.4% Hispanic.

So the company's really trying to increase its Hispanic representation, its minority representation within the ranks. And it's also planning to update these figures on its website, being very transparent about it, two times a year. Of course, this also follows other companies that have been doing something similar. You had Starbucks recently announcing a new diversity initiative, and also linking executive compensation to hitting those goals.

BRIAN SOZZI: Transparency is key. Thanks so much, Ines.