The adverse impact of high-energy prices on its consumerswhose annual income is about $ 40,000 is not rocket science.  Earlier this year, Scott noted a decline insales was due to the fact that “many customers are running out of money at theend of the month.”

Indra K. Nooyi ofPepsiCo. Under Nooyi’s leadership, PepsiCo is leading the beverage industryin global warming political correctness. The company sponsored Al Gore’s LiveEarth concert to appear in sync with the “environmental generation.”

However, Nooyi is finding out that what makes good publicrelations can be bad for PepsiCo’s Aquafina – the leading brand of bottledwater. The latest trend for activists and politicians is to discourage bottledwater sales as a way to reduce carbon dioxide emissions.  According to its critics, bottled water posesa planetary risk because of the energy it takes to make and transport theproduct. 

In addition to banning the purchase of bottled water by somecity governments, Chicago willbecome the first major U.S.city to add a 5-cent tax per bottle. That will drive the cost of a 24-bottlecase of water up about 30 percent.

With the ever-growing thirst for tax revenue, Nooyi hasgraciously put PepsiCo products on the political firing line.

James Owens ofCaterpillar Inc.  The constructionand mining equipment company’s global warming strategy is jeopardizing its futureearnings by working against its customers in the coal industry.

A Congressional Budget Office (CBO) study on the economicimpact of cap-and-trade regulation to reduce greenhouse gas emissions wouldreduce coal production – a key customer for Caterpillar products – up to 40percent.

Amazingly, Owens’ decision was not based on an analyticalcost-benefit analysis estimating the impact of the regulations on hiscompany.  Rather, Owens’ decision wasbased on his need to have “a seat at the table” with environmental activists.

By his actions, Owens demonstrated he places more interestin working with environmental special interest groups than conducting hisfiduciary responsibility to shareholders.