IndexCompany ProfileCommitment to SustainabilityAccusationsConclusion and RecommendationsFood represents a substantial part in the culture of many countries and is an essential element of the life of any creature. Individuals depend on food, but they still pay more and more attention to what they eat. Food could not be produced without natural resources, such as raw materials, water or energy. Food production and agriculture involved; however, they contribute heavily to unwanted negative environmental impacts, including greenhouse gas emissions. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Multinational corporations seemingly involve complete global supply chains, but they continue to impact the environment in particular ways. Therefore, it is crucial for companies to monitor the environmental impacts of the entire supply chain and, therefore, redefine strategies to minimize the effects caused by the manufacturing of their products. Founded in 1906 in the United States of America, the Kellogg Company, a world leader in the production 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 manufacturing facilities in 18 regions. The company competes with its main American rival General Mills and Swiss food giant Nestlé for first place in the cereal market. Kellogg's promotes its products with a clear vision to "enrich and delight the world through foods and brands that matter" and demonstrates commitment to philanthropic practices through its Global Code of Ethics and corporate social responsibility strategy, offering the company a sustainable, long-term future. approach. Kellogg's makes all its decisions based on the interests of its stakeholders, which are anchored in its CSR activity. Despite the large size of the market and the fact that Kellogg's breakfast cereal products are considered an integral part of many people's diets, there have been several boycotts against Kellogg's, supported by scientific evidence, claiming that the products would cause damage to both health and the environment. .The main factors that contribute to global warming are the ingredients and the energy they use for the production process. The Department of Health has also advised the public not to consume specific Kellogg's cereal products for making unfounded promises about the nutritional value of its products and its unethical partnerships with suppliers. Considering these allegations, the purpose of this report is to examine the sustainability issues of Kellogg's strategy and to provide recommendations on how the Company could improve its position towards a truly strategically sustainable business by improving the Company's profits and engaging its stakeholders in sustainable agricultural initiatives. practices.Company Profile Kellogg's is the world's leading manufacturer of breakfast cereals. The company has outperformed its rivals General Mills and Nestlé with its exceptional performance in health and nutrition, providing consumers with a wide range of food products for over 100 years. This success story can be attributed to its values-based culture and its commitment to practices based on particular corporate values, which will be analyzed in the next section. For Kellogg's, these are attributed to the "K Values," including integrity, responsibility, passion, humility, simplicity and a focus on success. The Company's values ​​shape how it interacts with its ownstakeholders around the world, who are individuals or organizations who are interested in the products, and influence how the company operates. Kellogg's began establishing its operations in Michigan and later grew into a multinational organization with 30,000 employees, a leader in the breakfast cereal market. Kellogg's innovation and leadership have had a significant impact on its competitive market. Offering new items adapted to changing markets and people's tastes occasionally has allowed Kellogg's to win over its customers. The company offers its products at a lower price, so even an average family can afford it. Kellogg's sells its items directly instead of through any other retailer. Kellogg's intention and at the same time the strategic objective is to underline the importance of a healthy and balanced lifestyle. The tactical plans helped the company implement food labeling to help consumers understand the nutritional value of its products. Kellogg's long-term business strategy and goals focus on engaging with its stakeholders to ensure their needs are met. To achieve this goal, Kellogg's is committed 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 impacts to ensure the prosperity of future generations. The company's founder, WK Kellogg, once said, “Character will never be produced by money. I will invest my money in people” which describes what sets Kellogg Company apart: its attention to all of its stakeholders. Kellogg's mission is to emphasize both philanthropic approaches and strategic sustainability and incorporate them into its overall business strategy. Kellogg's vision of enriching and delighting the world through foods and brands that matter is supported by its humanitarian purpose of "Feeding Families in the World." so that they can flourish and prosper." This is how Kellogg's ensures that no stakeholders along the entire supply chain are lost and ensures that every Kellogg's employee around the world is working towards 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 business in each department. Through its integrated approach to reporting on its governmental, social, ethical and environmental efforts, Kellogg's has earned its position globally as one of the highest-rated companies for sustainable business practices. Therefore, Kellogg's has become an official member of the World Business Council on Sustainable Development, the United Nations Global Compact, and is incorporating the United Nations Sustainable Development Goals into every business and decision it makes. The Company was also named again to the prestigious Dow Jones Sustainability Index and was recognized for its corporate responsibility commitments, such as ensuring food security by feeding the poor and feeding the planet. Inclusion in the DJSI demonstrates the Company's commitment to improving the livelihoods of poor populations. its stakeholders and natural resources, including the sourcing of its 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 andpromoting ethical and responsible marketing, environmental ambition through the careful use of limited resources whilst simultaneously reducing environmental impacts and encouraging sustainable agriculture. Also, a community ambition, to contribute money to reduce hunger and focus on nutrition and fitness. Kellogg's introduced its "Breakfast for Better Days" initiative to help families in need and, thus, donate cereal products around the world. Finally, considering the premise of pleasing shareholders, but not at the expense of its stakeholders, to avoid social risks along the supply chain; a workplace ambition, supporting a talented and diverse workforce that emphasizes diversity and inclusion, and ensuring a safe working environment by adhering to best working practices. By encouraging such policies, Kellogg's has been able to reduce the number of its workplace injuries and, consequently, the time lost due to such injuries. The Company has also included its suppliers in its CSR policy by emphasizing regulatory compliance, product safety and record keeping through a Global Supplier Code of Conduct. By following this, Kellogg ensures that it maintains an ethical and transparent supply chain and purchases only from manufacturers whose practices protect the environment and respect human rights, including those of local and indigenous peoples. Kellogg's commitment to its Triple Bottom Line helped it join an honoree from the "World's Most Ethical Companies" group in 2015, a ranking that recognizes companies that put words into action and actually do business in a way ethical. A key 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 greenhouse gas emissions, the amount of waste and energy consumption, constantly analyzing how this impacts its triple bottom line. Aiming to increase its overall efficiency, Kellogg's introduced its "Project K" efficiency and effectiveness initiative while working on building a future global supply chain through responsible investments in emerging markets, such as India or Thailand . Kellogg's sources the ingredients for its cereals from all over the world. The Asia Pacific and Africa regions, for example, are the Company's sourcing priorities for rice and corn as they are essential raw materials for the production of Kellogg's most advertised brands. Maize use in total grain production in India accounts for 9% with a trend to increase, resulting in limited capacity to increase quality and quantity as available yields are about half of the global average. To overcome geographic and climate stress, Kellogg's implemented a pilot program growing its own seed variety. At COP21, the Paris Climate Change Convention, Kellogg officially announced its 2020 goals of reducing emissions by 60% compared to 2015. However, to successfully achieve this path, Kellogg's must first find a true base of reference for its previous objectives. recorded emissions.AccusationsDespite all the praise and nominations as one of the most ethical companies, Kellogg's may still have room for improvement when it comes to its overall sustainability. Kellogg's, taking its first steps toward higher levels of efficiency, initiated its "Project K" under the guise of developing growth for its business when in reality it scaled back its strengthWork. The layoffs began to lead to wildcat strikes and subsequent declines in sales, indicating Kellogg's social risks in its international supply chain. Legal institutions fought for fair wages of Kellogg employees, however, Kellogg did not agree to pay additional benefits and hired temporary workers, who charge substandard wages. The Company has also been charged twice in disputes relating to false promises about the nutritional value and environmental impact of its grain products. This protest was followed by subsequent product recalls and negatively impacted the Company's brand image. There have been several complaints and boycotts against Kellogg's encouraging harm to health and the environment. Even the Ministry of Health has advised the public not to consume specific Kellogg's cereal products because they are high in sugar and have little nutritional value. The amount of sugar in Kellogg's Honey Smacks accounts for a hefty 56%. The company is not only dishonest when it promotes its products as healthy, but it also exaggerates its nutritional values ​​when it claims that the cereal might also increase children's concentration. As there was no real scientific evidence behind these accusations, this deception cost Kellogg's a fine of four million dollars. On its website, Kellogg's also says it always seeks out the best grains, those that are sustainably grown and responsibly sourced. However, the ingredients processed by the company actually require extensive use of poisonous herbicides since they are grown under chemical agricultural procedures. Scientific evidence implies that long-term consumption of GMOs is harmful since GMO agriculture uses an intensified amount of toxic synthetic pesticides. These procedures not only jeopardize the health of any species, but at the same time negatively impact the environment. However, there are some countries, including the United States of America, one of Kellogg's largest markets for the sale of its cereal products, that do not have legal requirements to label genetically modified foods. Kellogg's has spent more than three million dollars to actively lobby federal governments to fight food transparency. The company's unethical business behavior, which makes false promises about the nutritional value of its products, could be of grave concern. Another accusation refers to the Company's dyadic relationship with its suppliers. Kellogg's disclosed that it does not contract directly with farmers regarding the agricultural practices and how the ingredients the Company uses in its products are grown. Ingredients are purchased directly from those suppliers, who process the raw materials into ready-to-use ingredients, including rice, corn or even palm oil. Despite its activities supporting deforestation and child labor in Asia, Kellogg's was caught working with Wilmar, the largest supplier of palm oil and supposedly the least sustainable company in the world, only to purchase low-cost palm oil. cost used for its products. Kellogg's seeks to absolve itself of any responsibility in this matter, but financially supporting Wilmar to commit this environmental violation also makes Kellogg's complicit. Kellogg's lack of transparency on disprovable activities appears to compromise its entire supply chain, resulting in uncontrollable impacts on climate change. According to ESG Censible, Kellogg's is performing poorly compared to its competitors considering its carbon footprint, which is an indicator of its failure.