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Essay / The Kellogg's Company's False Sustainability Issues . People are addicted to food but nevertheless pay more and more attention to what they eat. Food production cannot be produced without natural resources, such as raw materials, water or energy. Food manufacturing and agriculture involved; however, they contribute significantly to undesirable negative environmental impacts, which include GHG emissions. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Multinational corporations seemingly involve entire global supply chains, but they still affect the environment in particular ways. It is therefore fundamental for companies to take into account the environmental impacts of their entire supply chains and, therefore, to redefine strategies to minimize the effects caused by the manufacturing of their products. Established in 1906 in the United States of America, Kellogg Company, the world's leading manufacturer of breakfast cereals, supplies its products, such as Kellogg's Special K, Corn Flakes, Froot Loops, Frosted Flakes and Rice Krispies, to customers in 180 countries with production facilities in 18 regions. The Company competes with its main American adversary General Mills and Swiss food giant Nestlé for the top position in the cereal market. Kellogg's promotes its products with the clear vision "To enrich and delight the world through foods and brands that matter" and demonstrates its commitment to philanthropic practices through its global code of ethics and corporate social responsibility strategy, giving the company a sustainable and long-term future. approach. Kellogg's makes all its decisions based on the interests of its stakeholders, anchored in its CSR activity. Despite the size of the market and the fact that Kellogg's breakfast cereal products are considered an integral part of many people's diets, Kellogg's has been the subject of several boycotts, supported by scientific evidence , claiming that these products would be harmful to both health and the environment. The main contributors to global warming are the ingredients and the energy they use in the manufacturing process. Even the Ministry of Health has suggested the public not consume certain Kellogg's cereal products due to its unsubstantiated promises about the nutritional value of its products and its unethical partnerships with its suppliers. Given these accusations, the objective of this report is to examine the sustainability issues in Kellogg's strategy and provide recommendations on how the company could improve its position to become a truly strategically sustainable company by improving its financial results and by engaging its stakeholders in sustainable agricultural projects. practices.Company Profile Kellogg's is the world's leading manufacturer of breakfast cereals. The Company surpasses its competitors General Mills and Nestlé with its exceptional performance in health and nutrition, providing consumers with a wide range of food products for more than 100 years. This success can be attributed to its values-based culture and commitment to business values-based practicesspecific, which will be analyzed in the following section. For Kellogg's, these are called "K Values," including integrity, responsibility, passion, humility, simplicity and focus on success. The Company's values shape the way it engages with its stakeholders around the world, who are individuals or organizations interested in the products, and influence the way the business operates. Kellogg's began establishing a foothold in Michigan before eventually growing into a multinational organization with 30,000 employees, a leader in the breakfast cereal market. Kellogg's innovation and leadership have had a more notable impact on its competitive market. Offering new items adapted to changing markets and individual tastes has sometimes enabled Kellogg's to win over its customers. The company offers its products at a lower price, so even an average household can afford it. Kellogg's sells its items itself rather than through another retailer. Kellogg's intention and strategic objective is to emphasize the importance of a healthy and balanced lifestyle. Tactical plans helped the company implement food labeling to enable consumers to understand the nutritional value of its products. Kellogg's long-term business strategy and objectives focus on interacting with its stakeholders to ensure their needs are met. To achieve this, Kellogg's is required to adhere to high ethical standards and sustainable business approaches, based on its circular business model. These requirements are anchored in the Global Code of Ethics, which states that a truly sustainable business is one that focuses on minimizing any negative impact to ensure the prosperity of future generations. Company founder WK Kellogg once said, “The character will never be produced. by money. I will invest my money in people,” which describes what sets Kellogg apart: its focus on all its stakeholders. Kellogg's strategy is to emphasize both a philanthropic approach and strategic sustainability and integrate them into the overall company strategy. Kellogg's vision to enrich and delight the world with foods and brands that matter is supported by its humanitarian purpose of "Nourishing Families So They Can Thrive and Thrive." "This is how Kellogg's ensures that no party involved throughout its supply chain is left behind and ensures that every Kellogg's employee around the world works according to these principles. Commitment to Sustainability Kellogg's Vision reflects the company's long-term goal of integrating corporate responsibility, including sustainability as the essence of its activities in every department through its integrated approach to reporting its governmental, social, ethical and environmental efforts. , Kellogg's has earned its global position as one of the top-rated companies for its sustainable business practices. Thus, Kellogg's has become an official member of the World Business Council for Sustainable Development, the United Nations Global Compact, and incorporates the goals. of Sustainable Development in every activity and decision it makes. The Company has further been named to the prestigious Dow Jones Sustainability Index and has been recognized for its corporate responsibility commitments, such as triggering. food security by feeding poor people and taking care of the planet. Being included in the DJSI demonstrates the Company's commitment to improving the means oflivelihood of the populations. its stakeholders and its natural resources, notably by sourcing ingredients with the aim of reducing negative environmental impacts such as greenhouse gas emissions. Kellogg's sustainable commitment is reflected in its CSR commitment, which is based on four pillars: a market ambition by providing high quality products and promoting ethical and responsible marketing, an environmental ambition by carefully using limited resources and simultaneously reducing environmental impacts and encouraging sustainable agriculture. Additionally, a community ambition, contributing financially to the fight against hunger and focusing on nutrition and fitness. Kellogg's launched its "Breakfast for Better Days" initiative to help families in need and donate cereal products around the world. Finally, considering the principle of pleasing shareholders, but not to the detriment of its stakeholders, in order to avoid social risks throughout the year. supply chain; a professional ambition, supporting a talented and diverse workforce that emphasizes diversity and inclusion, and ensuring a safe working environment whilst adhering to best practice working standards. By encouraging such policies, Kellogg's has successfully reduced the number of workplace accidents and, therefore, the time lost due to these injuries. The Company has further included its suppliers in its CSR policy with emphasis on regulatory compliance, product safety and record keeping through a global supplier code of conduct. Following this, Kellogg ensures that it maintains an ethical and transparent supply chain and sources only from producers whose practices protect the environment and respect human rights, including those of local populations and indigenous. Kellogg's commitment to its triple bottom line helped it join an Honored Group of "World's Most Ethical Companies" in 2015, a ranking that recognizes companies that put their words into action and actually conduct business in a responsible manner. ethics. A fundamental prerequisite is Kellogg's implementation of the Global Code of Ethics, which incorporates the "K Values" and is anchored in the company's philanthropic culture. As already stated in its CSR report, Kellogg's is committed to reducing its GHG emissions, the amount of waste and its energy consumption, while constantly analyzing the impact of this on its triple bottom line. Aiming to increase its overall efficiency, Kellogg's launched its "Project K" efficiency and effectiveness initiative while working to build a future global supply chain through responsible investments in emerging markets , like India or Thailand. Kellogg's sources its cereal ingredients from around the world. The Asia Pacific and Africa region, for example, represents the company's sourcing priority for rice and corn, as these are essential raw materials for the production of Kellogg's hottest brands. The use of maize in total cereal production in India accounts for 9 percent, with an increasing trend, resulting in limited capacity to improve quality and quantity, as available yields are about half of the average worldwide. To overcome geographic and climatic stress, Kellogg's implemented a pilot program growing its own variety of seeds. At COP21, the Climate Change Convention in Paris, Kellogg officially announced its 2020 goals to manageits emissions reductions of 60% compared to 2015. However, to successfully achieve this path, Kellogg's must first find an authentic benchmark for its previous efforts. recorded shows.AccusationsDespite all the praise and nominations as one of the most ethical companies, Kellogg's might still have room for improvement when it comes to its overall sustainability. Kellogg's, taking its first steps toward higher levels of efficiency, launched its "Project K" under the guise of expanding its business when in reality it was downsizing its workforce. Layoffs began leading to wildcat strikes and sales fell as a result, indicating Kellogg's social risks in its international supply chain. Legal institutions fought for fair wages for Kellogg's employees, however, Kellogg's did not agree to pay additional benefits and hired temporary workers, who charged substandard wages. The Company has also twice been accused of controversies making false promises about the nutritional value and environmental impacts of its cereal products. This outcry was followed by subsequent product recalls and had a negative impact on the company's brand image. There have been several complaints and boycotts against Kellogg's promotion of health and environmental harm. Even the Ministry of Health has suggested the public not to consume certain Kellogg's cereal products due to their high sugar content and low nutritional value. The amount of sugar in Kellogg's Honey Smacks is 56 percent. The company is not only dishonest when it presents its products as healthy, but it even exaggerates their nutritional values when it claims that the cereal could also boost children's concentration. As there, in the absence of real scientific evidence behind these allegations, this deception cost Kellogg's a fine of four million dollars. On its website, Kellogg's further states that it always seeks the best cereals, those that are sustainably grown and responsibly sourced. However, the ingredients processed by the company actually require extensive use of toxic herbicides because they are grown under chemical agricultural procedures. Scientific evidence suggests that long-term consumption of GMOs is harmful because GMO agriculture uses an increased amount of toxic synthetic pesticides. These procedures not only endanger the health of all species, but also have an adverse impact on the environment. However, some countries, including the United States of America, one of Kellogg's largest markets for selling its cereal products, do not have legal requirements for labeling genetically modified foods. Kellogg's has spent more than three million dollars actively lobbying federal governments to combat food transparency. The company's unethical corporate behavior, which makes false promises about the nutritional value of its products, could be a serious cause for concern. Another allegation refers to the Company's dyadic relationship with its suppliers. Kellogg's revealed that it does not contract directly with farmers regarding agricultural practices and how to grow the ingredients the company uses in its products. The ingredients are purchased directly from these suppliers, who transform the raw materials into ready-to-use ingredients, including rice, corn and palm oil. Despite its activities supporting the.
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