Corporate Responsibility and Ethics - Inghams Enterprises

The paper discusses about the significance of the corporate social responsibility and ethics. The CSR activities and corporate governance structure of Inghams enterprises have been explained in the task. The company provides chicken products to customers across the world. Carroll’s pyramid and Wartick and Cochranne’s typology also have been discussed in the task. This model plays a significant role in CSR and ethics. The company’s responses to stakeholder’s expectations also have been elaborated in the task.

Running head: Corporate responsibility and ethics
Corporate responsibility and ethics

Corporate responsibility and ethics
Executive summary
The paper discusses about the significance of the corporate social responsibility and ethics. The
CSR activities and corporate governance structure of Inghams enterprises have been explained in
the task. The company provides chicken products to customers across the world. Carroll’s
pyramid and Wartick and Cochranne’s typology also have been discussed in the task. This model
plays a significant role in CSR and ethics. The company’s responses to stakeholder’s
expectations also have been elaborated in the task. More detail of the task has been detailed
below.
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Corporate responsibility and ethics
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
CSR activities and governance structure.....................................................................................................4
Governance structure of Inghams................................................................................................................6
Carroll’s Pyramid.........................................................................................................................................8
Wartick and Cochran’s model....................................................................................................................10
Company’s response to stakeholder’s expectations...................................................................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
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Corporate responsibility and ethics
Introduction
The primary aim of this assignment is to outline the CSR activities, ethics and corporate
governance of Inghams enterprise. It is popular for the chicken and turnkey products in all over
the world. Here is the discussion about the Carroll’s pyramid and Wartick and Cochranne’s
typology. It also highlights the roles of the stakeholders and on the other hand, it explains the gap
between espoused and realized performance on CSR.
Inghams enterprises is known as Inghams is owned by a producer of poultry and fodder.It is one
of the biggest producers of chicken and turnkey products in Australia. It employs approx 9,000
employees in more than 100 countries in Nez Zealand and Australia. Inghams enterprises was
incorporated in 1918 and it is managed by the members of the Ingham family (Inghams, 2018).
CSR plays a significant role in each and every company. In today’s era, corporate social
responsibility is the biggest and foremost requirements of the business. It refers to the initiatives
that are taken by the company with aiming to look after the environment and social well being. It
is also known as corporate citizenship. CSR is a term that used to describe Ingham’s efforts to
improve society in an effective way. CSR helps in brand recognition as it also improves the
business reputation in the competitive market. No company can survive and grow its business
activities without exercising corporate social responsibilities.
CSR activities and governance structure
At Inghams, the top management aim to ensure that people respect and protect the environment
in which business operate and minimize its impact upon the natural resources. The company is
continuing working towards the greater sustainability. The main aim of the company is to carry
out the business in a responsible and effective manner (Cabrera, 2012). The firm is proud to
support the community through the sponsorship of several organizations. Inghams CSR activities
have been detailed below.
 Inghams customers and employees have contributed more than 3 million hours of
community service over the past years.
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Corporate responsibility and ethics
 The company is responsible for water management and conservation. It has been
identified that Inghams commitment to sustainability is being recognized by various
companies across the Australia (Lee, Park and Lee, 2013).
 The company opened an advanced water treatment plant at site in South east Queensland
and Murarrie. Furthermore, the firm is committed to reduce the adverse impact on the
environment. It helps in gaining competitive advantages in the global market.
 In 2017, the company developed and enhanced its first corporate social responsibility
strategy with a vision to be at the heart of the society. Apart from this several milestones
were attained by the company in this year including the formalization of a partnership
with Ingham institute for medical research which was incorporated by the Ingham’s
family (Kim and Lee, 2012).
 Moreover, the firm implemented a sustainable procurement program and started engaging
and cooperating with the employees in an effective and meaningful manner.
 The company launched various core values such as integrity, operational excellence,
customer service, high performing people, quality and safety (Martinuzzi et al, 2011).
 Inghams conducts an audit and compliance regime in order to focus contractor
compliance and to protect the environment of the country. The company ensures that all
the workers get home safety at the workplace.
 A risk program is initiated to asses’ quality, sustainability, and financial, commercial and
operational considerations across a broad range of procurement categories to analyze and
identify the ethical sourcing risks.
It has been identified that CSR activities are effectively carried out by the company to maintain
sustainability at the workplace (Inghams, 2018).
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Corporate responsibility and ethics
(Source: Inghams, 2018)
Governance structure of Inghams
Corporate governance is the mechanism, processes and relations by which corporations are
controlled in an effective way. Inghams corporate governance practices and policies framework
for the financial year ended on 1st July 2017 have been discussed below. The corporate
governance structure has been permitted by Ingham’s board in 22nd August 2017.
Principle 1-Lay solid foundations for management and oversight
Board responsibilities: The board is accountable for the overall governance of Inghams
including appraising Ingham’s policies, strategies, approaches and performance to the
shareholders. Evaluation is done by the board to analyze the performance in an effective way.
They monitor on the corporate performance and implement the strategy and policy.
Diversity: The Company follows diversity policy for achieving the goals and objectives. The
gender diversity strategy is followed by the company(Rani and Gautam, 2017).
Board appointments and reviews: A written agreement is done by the firm in terms of the
appointments.
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Corporate responsibility and ethics
Executive responsibility and reviews: An agreement is done by the company explain the roles
and responsibilities of senior executives such as CEO.
Principle 2-Structure the board to add value
Board structure, skill and experience: The board entails five non-executive directors, one of
them executive director and three are independent directors. The company focuses on the skills
and talents of the senior executives.
Principle 3: Act ethically and responsibly
Inghams is committed to and strives to work with honesty and integrity within the organization.
Along with this, code of conducts is adopted by the company to run the business successfully
and effectively.
Principle 4-Safeguard integrity in corporate reporting
This principle includes audit, risk committee, CEO, external audit and CFO certifications.
Inghams external audit is KPMG. The company ensures that its external auditors attend the
company’s and whether they are available to answer questions from the shareholders
(Doucouliagos, Haman and Stanley, 2012).
Principle 5-Make timely and balanced disclosure
It has been identified that Ingham’s has originated a continuous disclosure policy for the
purposes of complying with its constantly disclosure obligations. The disclosure policy explains
the processes that the firm initiates to ensure compliance and issues with its disclosure
obligations (Bhutta and Shah, 2014).
Principle 6-Respect the rights of security holders
Under this principle, the main aim of the company is to promote effective and unique two
communication with shareholders so that business activities carry out successfully. The
shareholder communications include market announcements, half yearly and annual reports and
media releases. Inghams also provides the full text of all notices of explanatory and meetings on
its website (Inghams, 2018).
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Corporate responsibility and ethics
Principle 7-Recognize and manage risk
This principle includes audit and risk committee, and evaluation and management of risk. It has
been identified that the company’s audit and risk committee is accountable for the overseeing the
company’s risk management system.
Principle 8-Remunerate fairly and responsibly
It includes remuneration committee, director, executive remuneration and securities trading
policy. The corporate governance helps the company to run the business activities and operations
effectively.
Carroll’s Pyramid
CSR activities are organized by the Carroll (1991) in four-layered pyramid model and this model
is known as the pyramid of responsibilities. The four layers of this pyramid are economical,
legal, ethical and philanthropic. All these layers are defined below in context of the Inghams
enterprises:
Economic aspect of this pyramid imposes responsibility on the business to be profitable because
this is the only way to provide long term benefits to the society. Inghams enterprises reflect
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Corporate responsibility and ethics
tremendous growth in the FY 2017 because in this year company shows solid progress in their
strategy and also provide $102.0 million net profit after tax. Sales volumes of the poultry were
also cross the expectations as it reflects 8.81% growth in Australia and 1.11% in NewZealand
(Guliyev, 2014).
Legal aspect of this pyramid states that company must follow all the laws and regulations
implied on the company. Corporate governance policies of the Inghams are framed in such
manner as it ensures compliance with all the legal requirements.
Ethical aspect of the pyramid imposes responsibility on the company to act morally and
ethically, and for this purpose business can go beyond the narrow requirements of the law.
Company ensures ethics and morals in its strategy and governance structure, and also develops
the code of conduct in this context.
Philanthropic responsibility states that company must give back to the society and it must be
noted that this responsibility is discretionary in nature. Inghams conduct number of programs and
activities through which they help the society such as number of animal welfare programs are
conducted by this company (Inghams, 2017).
(Source: https://pdfs.semanticscholar.org/7e34/9825b55bebc98ef813f86608a53824d6edbe.pdf)
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Corporate responsibility and ethics
Wartick and Cochran’s model
As per the wartick and Cochran’s CSR responsibilities are divided into three segments that are
principles, process, and policies, and all these segments are stated below:
Principles define the corporate social responsibilities which are divided into four segments that
are economic, legal, ethical, and philanthropy. This segment considers the business as the moral
agent. In this context, Inghams fulfill all these responsibilities and details of these responsibilities
are already defined in carroll’s pyramid model (Wartick& Cochran, 1985).
A process defines the corporate social responsiveness which is also divided into four parts that
are reactive, defensive, accommodative, and proactive. This segment defines the ability of the
business to respond to the changes occurred in the society, and it also focus on the approach of
the manager in developing the responses. In case of Inghams, there responsive approach is
proactive in nature because this company already leaves some gap in their strategies for the
purpose of responding the changes (Inghams, n.d.).
Policies define the social issues management and this segment includes three pillars that are
issues identification, issues analysis, and response development. this segment of the model
reduce the surprises which can be get by the company while conducting their operations, and it
also determine the policies related to CSR in effective manner. Inghams focus on the
identification of the issues and for this purpose company focuses on their strategy framings, and
after analyzing the issues this company focuses on developing the response.
Company’s response to stakeholder’s expectations
While conducting its operations, company ensures open dialogue with all its stakeholders, and
also considers the views and expectations of all the stakeholders and makes efforts to fulfill those
expectations in the best possible manner. The most important stakeholders of the company
include society, customers, shareholders, and employees. The main aim of this company is to
strengthen the company and its related people. In context of the society and customers, the
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Corporate responsibility and ethics
importance of the corporate responsibility and corporate security in the company were extended
further.
Ingham’s consider all the aspects for the purpose of fulfilling the expectations of the stakeholders
of the company and this is defined below:
Shareholders: financial year 2017 of the company is very profitable for the company because in
this period company ensure solid progress through their strategy and give $102.0 million net
profit after paying the tax, and also exceeds their prospectus forecast. Company also ensure
tremendous growth in the markets of Australia and New Zealand, and there sales volume related
to the poultry are also stronger in comparison of the expectations with 8.81% growth in Australia
and 1.11 percent in New Zealand.
Society: this company is the long and positive contributor to the number of local communities in
which company operates its business. Medical research is conducted by the Ingham Institute in
context of different health issues such as cancer and mental health. This institute is established in
2012 in context of the Bob Ingham’s vision and ensures commitment towards the community
(Inghams, 2017).
Customers: customer relationships of the company are highly collaborative and related with the
sales, marketing, technical services, new product development, planning and supply chain and
sustainability. This year important progress in context of formalizing the supply relationships
with the customers and this also includes the national agreement.
Employees: this company value’s the integrity and it is very important for the company to follow
the ethical labor practices on continuous basis and company makes this their tradition. This
company employed the staff on direct basis and more than 90% of the workforce is directly
employed. All the wage employees and contract employees of the company are regulated by the
enterprise agreement, employment agreements on individual basis, and individual contracts or an
award.
There is no gap in the company’s performance and stakeholders expectations, and this can be
seen through the above stated factors. However, company can do more in context of the
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Corporate responsibility and ethics
employees as they can initiate some programs through which employees of the company get the
benefit (Inghams, 2016).
Conclusion
After considering the above facts, it can be said that corporate social responsibility is the most
important aspect in modern business world as it is the only factor through which company can
serve the society. For ensuring long term growth and profitability, company must give back to
the society through this framework.
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Corporate responsibility and ethics
References
Bhutta, N.T. and Shah, S.Z.A., 2014. Investors’ Reaction to the Implementation of Corporate
Governance Mechanisms. Open Journal of Accounting, 3(01), p.3.
Cabrera, E.F., 2012. The six essentials of workplace positivity. People and Strategy, 35(1), p.50.
Doucouliagos, H., Haman, J. and Stanley, T.D., 2012. Pay for performance and corporate
governance reform. Industrial Relations: A Journal of Economy and Society, 51(3), pp.670-703.
Guliyev, S. (2014). Carroll’s Pyramid of Corporate Social Responsibility. Available at:
https://www.linkedin.com/pulse/20140905115337-70750023-carroll-s-pyramid-of-corporate-
social-responsibility. Accessed on 6th June 2018.
Ingham’s, (2016). Code of Conduct. Available at: http://investors.inghams.com.au/Investor-
Centre/?page=corporate-governance. Accessed on 6th June 2018.
Ingham’s, (2017). Annual report. Available at:
http://investors.inghams.com.au/FormBuilder/_Resource/_module/11sM2pu-
rkuf_aNBmyFnWw/file/ING-FY17-Annual-Report.pdf. Accessed on 6th June 2018.
Inghams. Sustainability commitment. available at:
https://inghams.com.au/corporate/sustainability/sustainability-commitment/. Accessed on 6th
June 2018.
Inghams.2018. Annual report 2017[Online], Available from
http://investors.inghams.com.au/FormBuilder/_Resource/_module/11sM2pu-
rkuf_aNBmyFnWw/file/ING-FY17-Annual-Report.pdf, [Accessed as on 6th June 2018].
Inghams.2018. Inghams group Ltd 2017 Corporate governance statement[Online], Available
from
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Corporate responsibility and ethics
file:///C:/Users/System%2304027/Downloads/Inghams_Group_Limited_Corporate_Governance
_Statement%20(2).pdf, [Accessed as on 6th June 2018].
Inghams.2018. Sustainability[Online], Available from
https://inghams.com.au/corporate/sustainability/, [Accessed as on 6th June 2018].
Kim, S. and Lee, Y.J., 2012. The complex attribution process of CSR motives. Public Relations
Review, 38(1), pp.168-170.
Lee, E.M., Park, S.Y. and Lee, H.J., 2013. Employee perception of CSR activities: Its
antecedents and consequences. Journal of business research, 66(10), pp.1716-1724.
Martinuzzi, A., Kudlak, R., Faber, C. and Wiman, A., 2011. CSR activities and impacts of the
retail sector. Research Institute for Managing Sustainability (RIMAS). Working Papers, (4).
Rani, A. and Gautam, V., 2017. Corporate governance: Need for changing
scenario. International Journal of Education and Management Studies, 7(3), pp.375-377.
Wartick, S. & Cochran, P. (1985). The Evolution of the Corporate Social Performance Model,
Academy of Management Review, vol. 10(4), 758-769.
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