1. Submitted by- Angelina Naorem ETHICAL ANALYSIS OF
KELLOGGS
2. COMPANY PROFILE An American multinational food manufacturing
company. Headquartered in Battle Creek, Michigan, United States.
Founded on Feb 19, 1906 by Will Keith Kellogg. In 2012, Kellogg's
became the world's second-largest snack food company (after
Pepsico) by acquiring the Pringles Potato Crisps brand. Kellogg
Company named as one of the 2013 Worlds Most Ethical Companies by
the Ethisphere Institute- 5th time Kelloggs has been recognized
with this honour.
3. K-VALUES Kelloggs market leading position and reputation-
built on its commitment to ethical business practices and its
values-based culture. K-Values: values that guide decision-making
and shape the way an organisation behaves. Kelloggs K-Values guide
the way the company interacts with all of its stakeholders.
Kelloggs products manufactured in 18 countries and sold in more
than 180 countries. Kelloggs has to manage its relationships with a
variety of stakeholders around the world.
4. 1) Employees Kelloggs invests heavily in its employees and
future employees. Kelloggs global employer brand communicates the
K-Values and the wide range of benefits that Kelloggs employees
receive. Kelloggs refreshed company vision and purpose were a
direct result of feedback from employees. Like the company uses
market research to identify what its consumers want, it uses
employee research to find out the needs and opinions of its
employees through an employee survey. Employees requested to be
able to communicate more openly. So, Kelloggs created a feedback
training programme for all employees.
5. In keeping with Kelloggs K-Values, employees are encouraged
to listen to and learn from each other. There are a range of ways
that employees interact with each other, these include: a) Monthly
business huddles - the leadership team talks to the whole UK
business about performance against business goals, employee
development initiatives and new marketing campaigns. b) Kelloggs
global intranet - enables communication between employees across
the globe, as well as celebrating employee achievements. c)
Quarterly team talk webcasts - global and European leaders talk to
employees across Europe about the performance of the business via a
webcast.
6. 2) Customers Bacteria tests revealed that an open container
of peanut butter manufactured by one of its suppliers, Peanut Corp.
was a genetic match to the strain of salmonella that has sickened
over 400 people in 43 states and contributed to two deaths. Kellogg
voluntarily asked stores to stop selling its peanut butter
crackers. Kellogg willingly put safety first, choosing to withdraw
its crackers from the market and forego profits rather than put its
customers at risk. Kelloggs decision shows real concern for the
well-being of its consumers.
7. 3) Competitors Kellogg Company is in a constant battle for
the #1 spot in the US cereal market with its main rival, General
Mills. While the company works to fill the world's cereal bowls, it
supplements its bottom line with snacks and cookies along with
convenience foods such as Eggo waffles and Nutri-Grain and Bear
Naked cereal bars. The top competitors of Kelloggs Company are
General Mills Inc., Nestle S.A.,Ralcorp Holdings Inc.
8. 4) Community Kelloggs food bank initiatives across the world
help engage communities and communicate food poverty messages.
Kelloggs started working with the charity Seeds for Africa in 2010
to develop sustainable agriculture projects in Malawi and Kenya.
The charity provides community groups with the tools and training
they need to produce nutritious food that is secure and reliable.
Kelloggs is committed to working with farmers to achieve
sustainable agriculture where farmers grow crops year after year
without negatively affecting future generations. In 2012 Kelloggs
developed its breakfast clubs initiative with Seeds for Africa in
Uganda, Kenya and Zambia.Three breakfast clubs were set up.
9. 5) CSR Activities Kelloggs organized a campaign to promote
breakfast which will donate upto $200,000 to help feed children
from food-insecure households. Kelloggs donates its products and
annual cash donations to food banks around the world and
redistributes these items to charities, voluntary organisation and
breakfast clubs. Kelloggs started working with the charity Seeds
for Africa in 2010 to develop sustainable agriculture projects in
Malawi and Kenya and provides community groups with the tools and
training they need to produce nutritious food.
10. STAKEHOLDERS The companys decisions and actions are all
made with the best interest of its stakeholders. Kelloggs uses its
size as a force for good. Its stakeholder engagement focuses on
supporting its CSR activity. Stakeholder engagement: building
two-way relationships with its stakeholders, is a key aim for
Kelloggs.Two-way relationships help build trust between Kelloggs
and its stakeholders. , Kelloggs does not focus on pleasing
shareholders at the expense of other stakeholders.
11. Kelloggs uses a variety of strategies to maintain positive
relationships with its stakeholders through its CSR initiatives. 4
pillars to its CSR strategy: 1) Marketplace ambition - meeting the
needs of customers i.e., selling them safe, high quality products
whilst engaging in ethical and responsible marketing. 2)
Environment ambition - using scarce resources carefully whilst also
reducing environmental impacts and supporting sustainable
agriculture. 3) Community ambition - contributing to the
communities in which the company operates, concentrating on
nutrition and physical fitness. 4) Workplace ambition - supporting
a talented and diverse workforce which values diversity and
inclusion, abiding by best practice labour standards.
12. INTERNAL STAKEHOLDERS Stakeholders who have a key interest
in the organisations decisions. Kelloggs key internal stakeholders
include employees at all levels, all over the world, and
shareholders. Kelloggs seeks to make a profit to secure high
returns for its shareholders. Shareholders invest money into the
business in return for a stake in the company. If the company makes
a profit, its shareholders receive a share of these profits in the
form of dividends.
13. EXTERNAL STAKEHOLDERS External stakeholders are ones who
are outside of the organisation. Kelloggs key external stakeholders
include customers, suppliers, communities and charities. Kelloggs
supports, through donations of cereals and money, breakfast clubs
in schools across the UK to make sure that all children have a
healthy and nutritious breakfast. Kelloggs engages with customers
and potential customers through its advertising campaigns likeTV,
print ads, social media such as Facebook,Twitter, etc.
14. RECOMMENDATIONS Kelloggs can modify their strategy to suit
local consumers. For e.g., in US, there is a huge cereal consuming
population and hence, they can promote Kelloggs. In UK where people
prefer food on the go and skip meals, one can emphasize the
importance of breakfast. In India where there are other breakfast
substitutes, they can promote consumption of cereal as breakfast.
Invest more in suppliers and its employees to support and promote
international expansion. Employ better internal communication
mechanism to enhance strategy execution. Involve employees in
strategic decision-making. Recruit more Baby-Boomers because their
market is growing and they are the most health conscious and
wealthiest generation. Expand their snack catalogue so that it is
marketable to all age groups with all kinds of concerns and
preferences.