Business Ethics, Responsibility, and Sustainability

This report presents the key challenges associated with corporate responsibility and ethical views adopted by companies in the food and beverages industry. It also illustrates the strategies for creating sustainable practices in comparison to their competitors. This report explains the importance of sustainable practices for firms. It also demonstrated the ethical consideration used by firms in the food and beverages industry.

Running head: BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY
Business ethics, responsibility, and sustainability

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 2
Table of Contents
Introduction.................................................................................................................................................3
Key challenges relating to corporate responsibility and the ethical views adopted by firms in the food and
beverages industry.......................................................................................................................................3
Strategies for creating sustainable practices in comparison to their competitors.........................................6
Importance of sustainable practices for firms............................................................................................10
Ethical consideration used by firms in the food and beverages industry....................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 3
Introduction
In current times, firms consider the different business, ethics, social responsibilities, and sustainability
practices in food and beverage industry. This report presents the key challenges associated with corporate
responsibility and ethical views adopted by companies in the food and beverages industry. It also
illustrates the strategies for creating sustainable practices in comparison to their competitors. This report
explains the importance of sustainable practices for firms. It also demonstrated the ethical consideration
used by firms in the food and beverages industry.
Key challenges relating to corporate responsibility and the ethical views adopted by firms in the
food and beverages industry
There are different challenges related to corporate responsibility and ethical views adopted by firms in the
food and beverage industry. It is described as given below:
Reduce waste in the supply chain and create efficiency
The food industry is one that creates a higher amount of waste from the bottom of the supply chain to top.
For example, grocers, farmers, manufacture as well as wholesalers every one of them creates product
waste in the food and beverage industry in spite of, implementation of recycling and technological
adoption process. Manufacturers should deal with these challenges in the food and beverage industry with
the advanced process (Crane and Matten, 2016).
It is becoming significant for companies to generate enhanced efficiency as well as decline waste for
eliminating the layoffs and office closure. For example, in Malaysia, Friesl and Campina Food Company
face different concerns related to product tracing, delivery, inventory accountability, and accounting.
These procedures are dealt with using pen and paper due to lack of technology. It is evaluated that
farmers manually measure the amount of product going to market (Quarshie, et. al., 2016).
Along with this, food distributors are responsible for the product in the warehouse by manual counting
and scrutiny. Invoices are manually modernized through the finance department as per prompt scribble
related to foodservice delivery drivers. The outcome errors from pen-based and manual paper procedures
are effective (Reinecke, et. al., 2016).

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Without a feasible inventory control system, theft or lost product may decline the revenue. Handwritten
alteration or accompaniment in driver invoices may create effective backend labor in terms of inventory
system and update accounting. Moreover, inappropriate invoices are sent to consumers that results in
disputes of invoices, and non-payable invoices (Setó-Pamies and Papaoikonomou, 2016).
Greener Business Practices
Environment friendliness is key practices that should be considered by the food and beverage industry in
Malaysia due to global warming concerns. A product that is eco-friendly has more probability to get more
sales as compared to the product that is assumed to be unsafe for the environment. For example, Nestle is
working with respect to developing whole manufacturing procedure more conducive to the atmosphere by
practicing renewable sources of energy as well as adopting the recycling strategies. Consideration of
green business practices is key challenges in the food and beverage industry (Strand, et. al., 2015).
The aspect related to green business practices was thought to be vogue. But, increasing demand for a
customer is environmentally sound business practices that indicate a higher amount of company is
looking for simple ways to depict their dedication with respect to enhancement in regular operation. For
instance, Friesl and Campina Food Company cannot afford for retooling their entire fleet related to truck
in terms of supporting the renewable energy materials. It also overlooked to greener practices and
business-friendly sustainable strategy (Wymer, and Rundle-Thiele, 2017).
No Added Preservatives
The increasing occurrences related to food-related disorder has encouraged the customers to bring
regarding the vital alteration in their lifestyle and diet as well as creating them more health-conscious as
compared to ever. Methodologically, the train of thought can be diverted with respect to purchasing the
foods in spite of added preservatives that may hamper the health of an individual (Zsolnai, 2015).
The demand for a product that does not hold a healthy label can be restricted to decline. Hence, the
company should avoid artificial ingredients from its products on top. Declining the intake related to sugar
is key regulation motivated by FDA, declining the demand related to products that involve the processed
sugars and natural. There are a higher amount of consumers that turn away from products involving

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 5
artificial inducement. It is one of the key challenges in food and beverage that firms may face hence it
should focus on strategy to offer a sweet product to consumers that involve the sugar content with the
particular limit (Kourula, et. al., 2017).
Healthy and Organic Products
When processed as well as ready to eat foods were top of the supply chain, and then this trend was not
feasible at a longer time. Since, an individual focuses on foods that do not involve the artificial
ingredients. The radical reduction in demand for processed foods has transformed into the organic food
sector. Increasing the awareness level about natural foods and their favorable health impact can increase
the demand related to healthy and natural food products (Visser, and Tolhurst, 2017). In addition,
customers give preference to buying packaged foods rather than unpackaged products from the center of
the store. There are different key competitors of the Kerry Group in the food and beverage industry that
directly affect the demand of customers for organic products (Schaltegger, and Burritt, 2018).
Government Regulations
This sector is monitored through companies such as OSHA, FTC, EPA, and FDA. Along with this,
federal reforms, as well as regulations in the Coca-Cola Company, involve the areas related to food
quality, surplus production, raw material, and waste disposal as well as documentation. Continuously
transforming reforms are prospected to pose periodic issues in the food and beverage sector (Schuler, et.
al., 2017).
Animal Safety
The increasing issues with respect to the animal are helping in transforming the food patterns of
multitudes. Due to the high amount of consumers struggle for the vegan and vegetarian product, the
demand for other and meat products is declining. Social medium and online data portals have concreted
the manner for animal abuse awareness as well as people give preference to purchase the products with
labels like cage-free and humane-certified. Along with this, manufacturing products that promise for
animal safety has become key issues for the food and beverage industry. Hence, food and beverage

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 6
companies should keep their goodwill with respect to ethical treatment regarding animal issues (Ha-
Brookshire, 2017).
Strategies for creating sustainable practices in comparison to their competitors
Electronic proof of delivery together with route optimization can support food and beverage corporations
with small achievements in terms of demonstrating an environmentally conscious business approach in
two manners. EPOD can avoid the requirements for paper-based forms at the time of daily routes. In spite
of handheld service, ePoD indicates those drivers are not carrying a high quantity of paper with them
during the day. Along with this, routes that are optimized for time naturally decline the usage of fuel.
Declining usage of paper and fuel will have a favorable impact on customer loyalty and satisfaction. For
example, Mondelez International implements green techniques as it would aid to save the money by
declining paper and fuel overhead (Orts and Smith, 2017).
By using the ePoD system, food and beverage distributor can generate significant gains in waste
reduction as well as productivity. Moreover, inventory can be easily tracked by the whole supply chain.
The product can be scanned on as well as off trucks permitting corporations to understand exactly where a
product is situated. For example, Coca-cola uses this technology as a route driver can increase
productivity by driving routes, effective loading of trucks, and enhanced workflow (Branco, and Delgado,
2016). Moreover, ePoD makes competent to the company to effectively decline driver training and ramp
up period by process driven workflows. Along with this, savings could be illustrated in back office labor.
In Coca-Cola, the requirement of manual data entry related to the day’s route business should be
automatically updated to the accounting system and inventory (Alonso‐Almeida, et. al., 2015).
Sourcing
One of an effective method for a corporation to become more sustainable is to source their material
related to local sources. It may decline the amount related to fuel required for traveling in across terrains
but supports for inspiring the local economy. This strategy does not emphasize on local acquiring but
where and how a company gets food can enhance the lives of smallholders as well as women producers.
Along with this, practices that can adhere to this principle is sourcing from the local communities,

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 7
supporting the smallholders and women in agriculture, and integrating the diversity of sources into
procurement (Wiengarten, et. al., 2017).
Packaging
Packaging can significantly protest the food as well as supporting the atmosphere without waste
packaging and damage. It is arguably the most significant aspect while it comes to food. It is placed in
which customers are focused on the solution to enhancing sustainability. For example, in Malaysian food
and beverage industry, Heineken N.V. Brewing Company focuses on packaging in its life cycles with the
processing, material, and end of life concerns (Brusoni and Vaccaro, 2017). This principle defines that a
company should focus on both how packaging can be processed as well as its end of life handling. When
properly assessed then a corporation can actually have cost savings because of recycled content as well as
less material. Moreover, practices that can adhere to this approach are optimizing the functionality of
package, materials as well as the role of sourcing and end of life. It also supports recycling and uses the
material that is competent to compose (Kolk, 2016).
Food Waste
Food and ingredient waste, as well as losses, are prevented in across the supply chain as well as what
cannot be ignored is considered as a favorable use. Along with this, one-third of food can be lost or waste
at the global level. There is a need to gain food production in Friesl and Campina Food Company by 60%
that is big issues. Wastage of food can generate through the individual is throwing out the food and it is
still editable as well as food lost by processing (Galpin, Whitttington, and Bell, 2015). This approach
demonstrates that a company should find novel methods for utilizing the food waste and decline the
wastage in the food and beverage industry. Practices that would be adhering to these approaches are
prioritizing food wastage management for reducing, reusing and recycling the product in the food and
beverage industry (Lim, and Greenwood, 2017).
Distribution and Channels
Foods and ingredients are significantly delivered in across the supply chain and to customers. Moreover,
distribution, as well as marketing channels, cannot be a leading source related to sustainability issues and

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 8
it is essential to factor that should be considered. For example, Nestlé should understand how to deliver
the product to consumers but also, how their ingredients get to the company themselves. This approach
demonstrates that how products are transported will enhance the efficiency of the supply chain (Bansal,
and Song, 2017). Moreover, the company should consider a different method for efficiently transport
foods for food deserts. In the food and beverage industry, firms should use different principles are
distributing effectively as well as conserve fuel by lower GHG emitting methods, alternative fuels, and
route changes. Firms should reuse, conserve, and offer energy and water by maintenance and significant
technology. It can also buy environmentally preferable products with services (Slager, et. al., 2018).
Welfare and Environmental Considerations
In the food and beverage industry, firms should use the animals, seafood, and fish in the supply of food
and their well-being as well as improves environmental health. This principle can connect a list of factor
but there is distinguishes. With this approach, the food and beverage industry emphasizes the reliance on
ingredients as well as foods from animals, fish, and seafood. Moreover, livestock is a major contributor
related to greenhouse gas production at the global level (Visser, and Tolhurst, 2017).
Firms should emphasize on attention related to living circumstances of animals and how to create
favorable contribution regarding the food system. In the food and beverage industry, the company
reported that livestock should be treated at high welfare standards along with, savings the cost and offers
the secure supply. In addition, companies should treat the animals with respect as it would aid to
influence the bulk of customers (Piecyk, and Björklund, 2015). Moreover, different principles should be
considered by firms such as diverse breed production related to resilience, health as well as productivity,
execute well-organized grazing, land stewardship and productive training that respects the five freedom
related to responsible animal care (Bergman, et. al., 2017).
Importance of sustainable practices for firms
Improving the Company's Brand
The socially responsible organizations have a great opportunity to build their positive image in the
specified marketplace. Consumer perception is effective for increasing the confidence level of the firm.

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 9
The sustainable practices could be effective in increasing the financial condition of the firm along with
gaining social relation (Brusoni, and Vaccaro, 2017). For example, the Coca-Cola Company has practiced
sustainability for increasing employee engagement and make a higher profit.
Engaging Customers
An organization could also build consumer relation for operating the business activity. It could also be
effective for directly influencing consumer buying behavior. It can be stated that consumers are willing to
pay more for a particular product and services. It can be stated that profit could be effective in obtaining a
higher profit (Kolk, 2016). If the organization is operated at the regional level then they concentrate on
the lower income people due to getting higher benefits. The company could also be capable to get higher
competitive benefits. It can be stated that the organization could make a positive relationship with others
due to increasing their sales and profits (Wiengarten, Lo, and Lam, 2017).
Retaining Top Talent
A large number of workforces desire to feel like they are being an imperative part of the firm. It could
also lead to getting higher profit in less time. Social accountability empowers to the workforces for
leveraging the company resources in its disposal to perform well. In addition, it can be addressed that
many firms employed to workforces for completing their business activity in less time and cost.
Moreover, the business strategy could support to get higher benefits It could also increase the productivity
of the employee. It is also stated that products and services support the firm for creating a sense to make
the relationship with their consumers and fellow workforces (Alonso‐Almeida, et al., 2015).
Ethical consideration used by firms in the food and beverages industry
Respect tradition
An organization could use the ethical consideration norms for respecting tradition, which will be effective
in tackling sensitive ethical issues. For example, Japanese gives higher respect to the business person due
to making a positive relationship with their business partners. It can also be stated that western business
people could give their best efforts to sustain their business in the marketplace. It can be stated that
consumer could get higher benefits. Moreover, it can be summarized that organizations determined to

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 10
make competitive advantages. It can also be stated that regional tradition could lead to obtaining higher
benefits. It can be stated that the manager should not interrupt its own country’s laws to operate the
business activity (Branco and Delgado, 2016).
Strong, Ethical Leadership
The organization culture could be effective for influencing the business activity of the firm as it could
imperative for the attainment of the organizational task. Moreover, the business could be ethical in getting
reliable information towards research matter. It can be stated that ethical business could be effective in
improving the situation of the firm (Orts and Smith, 2017). It is also examined that leadership is effective
for making decision process effectively and get a reliable outcome. The true leadership test is imperative
for the procedure of decision making in which there is a selection between what is morally accountable
and what will outcome in loss and profit. In addition, it is examined that team leader could consciously
select the path which is ethically precise, as opposed to which is morally driven, have effectively created
ethical nosiness culture (Ha-Brookshire, 2017).
Integrity and Fairness
An ethical business could be fair, which could a positive impact on the overall business of the
organization. It can be stated that business could be effective in collecting the local and federal stage. It
can also be examined that if the workforces of the organization are treated fairly and openly
communicated on any concern they it could lead to getting higher competitive benefits. It shows that fair
dealing with consumers vendors considering competitive pricing, payments on time as well as the highest
quality norms of manufactures of their goods (Schuler, et al., 2017).
Respect for Employees and Customers
An ethical business could show respect with their workforces by giving the value to the opinion and
workforces. It is stated that the business demonstrates the respect for their consumers to listen to the
feedback of other employees and making a decision appropriately. In addition, it is examined that the
ethical business could offer an opportunity for vendors for business complaints to get higher benefits. It is

BUSINESS ETHICS, RESPONSIBILITY AND SUSTAINABILITY 11
also stated that ethical business could make the systematic business process for getting a reliable outcome
(Schaltegger and Burritt, 2018).
Conclusion
From the above interpretation, it can be concluded that there are different challenges associated with
corporate responsibility and ethical views adopted by companies in the food and beverage industry. These
are a reduced waste in the supply chain and create efficiency, Greener Business Practices, No Added
Preservatives, Healthy and Organic Products, Government Regulations, and Animal Safety. There are
different strategies related to creating sustainable practices in comparison to their competitors. These are
sourcing, packaging, food waste, distribution and channels, welfare and environmental considerations.
It can be summarized that sustainable practices are beneficial for companies such as enhancing the brand
of the company, engaging consumers, and retaining top talent. There are different ethical considerations
used by firms in the food and beverages industry. These are respected tradition, strong, ethical leadership,
integrity, and fairness, respect for employees and customers, and loyal relationships with employees and
customers.

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