Best Practices for Corporate Responsibility and Sustainability in the Food Industry

This document discusses the key challenges related to corporate responsibility and sustainability in the food industry. It explores the best practices within the sector, with a focus on ethical and moral issues. The document also provides recommendations for businesses in the sector to improve sustainability.

Business Ethics, Responsibility and
Sustainability
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Table of Contents
INTRODUCTION...........................................................................................................................3
1 Key challenges related to corporate responsibility and sustainability to food industry sector.3
2 Analyses of the best practice within food sector, making references to ethical and moral
issues............................................................................................................................................6
3 Recommendations for business in the sector for improving sustainability..............................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Corporate responsibility and sustainability is an ability of an organization which helps it
to incorporate social, economic and environmental value into the main strategy and its operations
(Bhattacharya, 2018). The main aim of performing ethical and sustainable activities is to manage
business risks and attract wider range of customers. This study is based on food industry as there
are several food industry businesses like Unilever which is British Dutch transactional consumer
goods products whose headquarter is in the UK. It mainly operates in food and beverages. This
study is going to show some issues related to CSR in food industry such as reducing wastes,
changes in behaviours of employees and customers etc. It will also show the best practice within
food industry by which Unilever makes positive changes and satisfy needs of environment and
society. Lastly, it will show some effective ways and practices by which food industry can make
its operations more sustainable and expand business.
1Key challenges related to corporate responsibility and sustainability to food industry sector
Corporate responsibility refers a way by which an organization takes responsibility for its
all functions and activities and identify their impacts on employees, communities and
stakeholders. Sustainability is interrelated with corporate responsibility as it is an ability of an
organization and an individual to makes its business more sustainable for the long run or reduce
the depletion of natural resources with the main aim to save natural resources for the future
generation and protect the society and the environment by reducing wastes. There are several
industries in the UK which are taking into consideration this point seriously and are focusing on
performing activities which can make their business sustainable and become responsible for the
society. The main industry which is on the top in increasing wastes is food industry as it is one of
the industry whose activities require using natural resources to the great extent such as water and
other. But now food industry of the UK and several companies such as: Nestle, Unilever which
produces food products. In the context of Unilever it can be said that it is transnational consumer
goods company which produces many products and food and beverages is one of them which is
the main key product of the success of the company. There are some elements for which
sustainability is being developed (Torkkeli and et.al., 2017). So, it can be said that it begins with
the assessment of the some aspects of the business such as: suppliers, environment, communities,
employees and customers. There are several issues related to sustainability and corporate
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responsibility which creates several problems and barriers in the path of the success of Unilever
such as:
Supplier relations: Suppliers is one of the main element of sustainability and corporate
social responsibility which need to be considered and focused while performing activities.
Stakeholders are making an active part and interest in business affairs and for that there are
several companies in food industry who are taking initiative to make sure that their partners
conduct themselves in a socially responsible manner. For getting raw materials in an effective
price it is important to make strong relation with suppliers. It shows ethics and morality of the
company and also make suppliers feel respected and valued.
Increased customers interest: In the context of food industry it can be said that,
customers needs are changing as they are becoming more health conscious which put pressure on
this industry to produce organic food products ethically. By producing and performing activities
in a ethic manner, Unilever can exerts influence on the buying decision of customers.
Sustainability is one of the main factor which is being considered by customers at the time of
making buying decision as they see durability and reliability of products as well as their
processes (Lerro and et.al., 2018).
Changes in employees behaviour: It can be said that employees are looking pay checks
and benefits out employers whose operating practices match with their own principles.
Employees in food industry want to work in an effective and safe environment and with the
company who perform sustainable activities. So, it sometimes becomes difficult for food
industry companies to get skilled workforce and if they find effective workers then company
becomes bind to pay more to them. In the context of Unilever, it is stated that it was a failure of
CSR and filed against some moral issues and lawsuit. Since the year 2009 when Unilever was
leading in the business market, then there raised some issues that directly Impacts on the public
relation damage as well as financial damage it was happened all because of disastrous leadership.
At that time of leadership, Polman gave more impacts and focus on superficial good
policies rather focusing on effective and sound business decision. Lack of focus on ethics and
sound decision, Unilever was mired in several numbers of controversies that was related to
sexual harassment and some environmental issues (Failure of Corporate Social Responsibility,
2017). In that case, Unilever had to settle with over 600 workers over the exposure of mercury
from a thermometer plant which is now closed. It decreased brand image of Unilever and it
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found difficulties in getting workforce and attract customers due to unethical practices and lack
of sustainability. So, it can be said that sustainability plays an important role in the growth of the
company and it gets skilled workforce.
Growing investors pressure: Investors also play an important role as they are key
source of finance as nowadays investors consider several factors while making decision of
investment and the main factor or criteria which they consider is ethics of the company or ways
of the company of performing activities and solving problems. So, it can be said that investors
put pressure on food industry to put more emphasize on sustainability and corporate
responsibility. Overall, it can be said that corporate responsibility and sustainability plays an
integral part and role for the business expansion and succession.
Environmental challenges: It is the main challenge in food industry because several
activities of food production increases wastes and also uses natural resources to the great extent.
Food and service industry or Unilever, requires complying with the standards for occupations
health and safety as well as environmental care by reducing waste food materials and also using
water to the limit extent. By reducing energy, it can save money as well as reduce emission. It is
stated that many of companies of food industry including Unilever has some projects throughout
the world which helps it out in improving energy efficiency. By having skilled workforce and
team of experts, it can take guidance to manufacturing plant and solving issues related to boiler
emission to waste disposal (Lim, Kang and Kim, 2017).
Social challenges: There are several factors which need to be considered by the company
for providing better services and food products to customers. Health and safety is one of the
main point which sometimes put pressure on food industry and Unilever to change its practices
and also use organic food materials to make all products healthy by which it can fulfil social
responsibility. It is stated that Unilever has a long tradition of being a socially responsible
company and for that it has developed its approaches to manage this responsibility as
professionally.
So, from the above factors identified it can be said that CSR issues can create several
problems which need to be identified and solved by food industry by applying effective practices
and policies. It is also stated from the above that corporate social responsibility plays a vital role
and is the key of the success and expansion of the business.
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2Analyses of the best practice within food sector, making references to ethical and moral issues
Food industry is growing with the rapid speed, there are many restaurants, hotels etc.
those which are earning high revenues. There are several best practices that must be
implemented by Unilever and other food business in order to run operations in this sector for
longer duration (Costopoulou, Ntaliani and Ntalianis, 2018).
Food safety
This is considered as essential practice in the food business. Large number of food recalls
happened in the year 2018. It is essential for all the associated persons that to take care of supply
chain. Food retailers, manufacturers, distributors all have to ensure that distribution of raw
material is done in safer manner so that fresh food can be delivered to consumers. There is need
to maintain standards of food safety. For that food companies are using ERP system, block chain
system to enhance clarity of operations so that issues related to safety do not take place in
organization. Food companies must give training to their staff members so that food safety can
be maintained and also there is requirement to maintain schedules so that raw food can be used
on time and hygiene can be maintained. There are many food businesses those which are using
frozen food every time in the meal. This kind of material many time cause health issues among
consumers. Suppliers many time supply old food that is ethical issues hence through
implementing food safety practices such kind of issues can be resolved (Quality best practices
for food/beverage manufacturers, 2019).
Building a strong team
This is essential and best practice in the food sector, as companies are required to ensure
that all the employees are able to perform their duties in significant manner. Hence leaders must
build a team that is able to meet the organisational goal by working together. In order to build
such team, food companies such as Unilever have to work on recruitment process, they have to
hire talented people those who are responsible towards work. Apart from that, food companies
have to retain them by giving rewards and recognition for their efforts. By this way team
members will feel happy and they will work together to meet the organisational goal successfully
(KEY ISSUES, 2019). Food business are forcing their employees to work more than 12 hours in
season times which is a major moral and ethical issue. By building a strong team and distributing
the responsibilities in systematic manner companies can manage their workload and can give
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sufficient time to their workers as well. By this way issue of overtime among workers can be
resolved effectively.
Serve better
Customer satisfaction is the major concern in the food and beverage industry. There are
many food businesses those which are not giving respect to their guests and do not take care
about their requirements as well. Food firms such as Unilever have to behave nice with their
guests so that they like to come to such place again in the future. Poor services are the ethical
issue in this sector hence food sector has to ensure to serve to buyers well. Leaders of food
companies have to develop habitual consistency among all their workers. They have to train
them so that they treat consumers well and always welcome their views. Higher authorities
always have to discuss HACCP (Hazard analysis and critical control point) procedure that must
be maintained with employees, and they have to ensure that staff members follow these
guidelines in proper manner without failure. Otherwise, issue of poor customer satisfaction will
not be resolved on time. In order to improve services food companies should conduct audit
system in the organization. They have to take feedback from consumers so that their issues can
be identified and right action can be taken to resolve this problem.
Strategic alignment
This is another best practice that helps in dealing with food trust issues among
consumers. Companies have to ensure that their resources are used in proper manner. If resource
utilization is not correct then it may cause difficulty to the business. This is considered as threat
to organization (Packer and et.al., 2019). Risk analyses can be done as best practice; it would be
better in analysing the type of risk and their impact on firm. By this way proper mitigation tactics
can be prepared by the top management through which such issue of food trust can be resolved.
Performance improvement is another best practice that may aid in measuring the level of
performance of employees and make plan to improve their performance. This would develop
trust of workers as well, and they will make more efforts to achieve the strategic objective of
company.
Strong supply chain management system
One of the major moral and ethical issue in food sector is that distributors, retailers are
unable to manage supply system. There is no control over quality and even there is lack of
transparency. Strong supply chain management (SCM) can help food companies in managing
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operations and controlling over input and output. Manufactures are required to prepare and
implement such kind of proactive programs that may help in managing supply chain issues in the
organisation. By preparing records of each material, maintaining warehouse firm would be able
to control over SCM. By implementing this practice food firm such as Unilever can minimize
critical incidents in business unit to great extent.
Sustainability
Food production and distribution practices somehow affecting environment badly.
Here companies are making food but wastage of raw material is quite high. In order to deal with
this problem there is need to work on sustainability aspect. Food business such as Unilever has to
ensure fulfilling is CSR responsibilities. They have to maintain biodiversity and have to make
changes in production system. This practice may help the food companies in handling each issue
in proper manner and dealing with such moral and ethical issues effectively. Firms should use
recycling process and also animal welfare practices must be considered. Food wastage must be
minimize that can be done by implementing recycling process and to monitor business activities
in effective manner. Waste food is dangerous for the planet as it increases pollution and also
increase chances of green house gas emission. To resolve that problem food business have to
start turning their activities towards sustainability (Boccia and Covino, 2018). Resources must be
used properly and recycling must be done.
So, from the above discussed practices it can be said that strategic alignment is the best
practices in which making link between different strategies, company can make its self
sustainable. Building an effective team and sustainability is other main practices which shows
importance of workers in managing corporate responsibilities.
3Recommendations for business in the sector for improving sustainability
In the context of sustainability and corporate responsibility, it can be said that it is
significant which is rising continuously with the time. It is regarded as the key strategy behind
the success of an organization. There are number of reasons which put pressure on companies to
use this such as it helps them in improving relation with customers, suppliers, motivate
employees etc. for accomplishing all these goals it is recommended to food industry of the UK
and Unilever is it should imply the manner in which it can create a strong balance among social,
economic and environmental objectives by addressing needs of shareholders and then increase
the value for shareholders (Aschemann-Witzel and et.al., 2019). In today's world employees,
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investors and shareholders want to commit and connect with the company who are not showing
decent and socially responsible ways of making money. From the above study, it is also
identified that leadership and business practices plays an important role in improving
sustainability as wrong leadership of Unilever created several ethical and corporate responsibility
issues so, it can also be suggested to food industry that it should measure the effectiveness of its
leadership style by taking feedbacks from employees and customers as what they feel and think
about the company and its leadership. There are several other ways and practices by which food
industry as well as Unilever can solve all CSR related issues and make its position in the market
for the long run. It is recommended to food industry that it should focus on creating a safe and
healthy working environment and promoting diversity to make employees feel respected and
improving its brand image. By investing in people by providing them competitive rewards,
training with the main aim of making ware to them about the increasing importance of
sustainable operations and ways of maintaining it.
In addition, it can also be suggested to the company and food industry that it should
promote transparency and respectful behaviour at its workplace. By increasing ability and
developing policies by which workers can make themselves engage with environmental concerns
by listening consumers and cooperate with government and communities to solve all
environmental issues like using natural resources in limit and reduce wastes (Rueda, Garrettand
Lambin, 2017). Recycling is called one of the best way of improving or developing
sustainability. By identifying products and wastes which can be recycled, company can reduce its
operational cost as by recycling some products it will not require buying raw materials in the
great quantity. Rather, all these activities some effective tools and ways can be suggested to food
manufacturing companies such as Total quality management and six sigma manufacturing
tools. Both these tools are effective as it helps an organization in reducing wastes in its
manufacturing process by maintaining quality or do not compromise with quality of food
products. Implementation of these tools can be expensive but it can give several advantages to
companies. Energy efficient appliance also help in reducing energy and cost and make
sustainable business.
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CONCLUSION
From the above study it has been summarized that sustainability and corporate
responsibility played a vital role in expanding business and making a good image of the
company. This study has shown several issues related to corporate responsibility and
sustainability which companies have to face such as changing demands of customers, employees,
relationship with investors, suppliers, environmental and other social issues. All these issues
impacts on the performance, operations, sales and the way of performing activities. Further, it
has discussed the best practice in a food industry which helps them in solving ethics and moral
related issues and accomplishing their pre-determined goals. Lastly, it has shown some ways and
recommendations by which food sector of the UK can improve its operations and make their
business more sustainable and attract wider range of customers towards buying their products
and services.
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REFERENCES
Books and journals
Aschemann-Witzel, J. and et.al., 2019. A sense of sustainability?–How sensory consumer
science can contribute to sustainable development of the food sector. Trends in Food
Science & Technology.
Bhattacharya, C.B., 2018. Leveraging Corporate Responsibility and Sustainability to Drive
Triple Bottom Line Value. ACR Asia-Pacific Advances.
Boccia, F. and Covino, D., 2018. Corporate and Consumer Social Responsibility in the Italian
Food Market System. In Social Responsibility. IntechOpen.
Costopoulou, C., Ntaliani, M. and Ntalianis, F., 2018, July. CSR in Food and Beverage Industry:
The Greek Case. In 2018 9th International Conference on Information, Intelligence,
Systems and Applications (IISA) (pp. 1-4). IEEE.
Lerro, M. and et.al., 2018. Consumers' heterogeneous preferences for corporate social
responsibility in the food industry. Corporate Social Responsibility and Environmental
Management. 25(6). pp.1050-1061.
Lim, M.H., Kang, Y. and Kim, Y., 2017. Effects of corporate social responsibility actions on
South Korean adolescents’ perceptions in the food industry. Sustainability. 9(2). p.176.
Packer, H. and et.al., 2019. Corporate Social Responsibility (CSR) Practices of the Largest
Seafood Suppliers in the Wild Capture Fisheries Sector: From Vision to Action.
Sustainability. 11(8). p.2254.
Rueda, X., Garrett, R.D. and Lambin, E.F., 2017. Corporate investments in supply chain
sustainability: Selecting instruments in the agri-food industry. Journal of cleaner
production. 142. pp.2480-2492.
Torkkeli, L. and et.al., 2017. Sustainability and corporate social responsibility in internationally
operating SMEs: implications for performance. In Value creation in international
business (pp. 359-373). Palgrave Macmillan, Cham.
Online
Failure of Corporate Social Responsibility. 2017. Online. Available through: <
https://www.forbes.com/sites/econostats/2017/03/15/unilever-and-the-failure-of-corporate-
social-responsibility/#5992059a498d>.
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KEY ISSUES. 2019. [Online]. Available through
<https://www.foodethicscouncil.org/keyissues/>
Quality best practices for food/beverage manufacturers. 2019. [Online]. Available through
<https://www.reliableplant.com/Read/17209/quality-best-practices-for-foodbeverage-
manufacturers>
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