Kellogg’s Stakeholder Engagement Assignment
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Added on 2021-02-05
Kellogg’s Stakeholder Engagement Assignment
Added on 2021-02-05
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Kellogg’s Stakeholder EngagementIntroductionKellogg is a reputable name among the world’s best producers of cereals and other nutritiousfood products. Over the past 100 years, Kellogg has been able to maintain its position in foodand health market owing to its commitment to ethical practices in the business and valuesoriented culture. The business values and beliefs determine the path of decision making andshape up the overall behavior of a company. Kellogg name these values as K-values. Morespecifically, K-values define the way Kellogg interacts with its stakeholders. Owing to the largebusiness, being spread in about 180 countries, Kellogg has to maintain its relationship with adiverse range of stakeholders.This report briefly answers some of the important questions related to the strategies of Kellogg toengage with its stakeholders.1.Identify key internal and external stakeholders for Kellogg. Stakeholders are those individuals or groups which have direct or indirect interest in thedecisions or products made by a company. According to stakeholder salience concept,stakeholders are being categorized in eight classes, on the basis of power legitimacy andurgency. These include: dormant, discretionary, demanding, dominant, dangerous, dependentand definitive stakeholders (Mitchell et al, 1997, pp 853-854). However, they can be broadlyclassified as internal and external stakeholders.Internal stakeholders are those who exist within the company and have keen interest incompany’s decisions and actions. Kellogg’s internal stakeholders include all of their employees
working around the globe in any branch, and the shareholders of Kellogg. Both of the internalstakeholders hold a vital position for Kellogg.External stakeholders are outside elements for a company. For Kellogg, external stakeholdersinclude: suppliers, customers, community, charity organizations, health organizations andgovernment of a country. Kellogg realizes the importance of the external stakeholders and theirimpact of the sales and operations of the company.2.Explain why stakeholder engagement is important element to the success of Kellogg.In today’s business world stakeholder engagement plays a vital role in elevating or declining abusiness. The way a company engages with its stakeholders defines the responsible practices andethical leadership criteria for a company. Kellogg’s stake holders are categorized in differentgroups. Each group has its own needs and demands towards the company. Kellogg gives utmostimportance to all groups of stakeholders, unlike some companies which gives special status toshareholders on the expense of needs of other stakeholder groups. In the matter of stakeholderengagement, the aim of Kellogg is to maintain a two way relationship with its stakeholders.Kellogg considers it important to meet the needs of each stakeholder group hence the company’sCSR covers strategies to engage individually with each stakeholder group. For example, Kellogg invests heavily in its employees and as a reward it wins immensecooperation and participation from the employees. Kellogg tries to make a team of diverseemployees which helps the company to get unique ideas for new products and marketing. Thecompany conducts employee’s survey which results in making better reforms and bringingpositivity and enthusiasm in employees. The CSR (Corporate Social Responsibility) of Kelloggfocuses largely on improving the lives of people living in the community. The community
service is important to Kellogg as it attracts more and more consumers towards the brand. Thecommunities where company operates are targeted with multiple schemes initiated by Kellogg.These initiatives are positively creating good will for the company among masses and consumersare getting aware of ethical practices of the company. Moreover, a strong engagement with each stakeholder group may help Kellogg to anticipate anypossible conflict to be arising between any two groups. Thereof the conflict can be handledtimely and tactfully. For instance, there was a recent conflict between government’s foodrequirement about sugar content and consumer preference about the taste. Kellogg managed theconflict by making changes in the formula of Honey Loops so that the government requirementsare met. However there was an impact on consumer perception about Kellogg.3.Personal approaches that Kellogg uses to engage with external stakeholders.Identify strengths and weaknesses of approaches identified. Breakfast Club ApproachKellogg initiated the Breakfast Club scheme in order to highlight the importance of eating ahealthy breakfast for children (Defeyter et al, 2010). There are numerous researches whichdeduce the benefits of starting a school day with healthy and balanced breakfast. However, thereis a vast majority who do not eat healthy breakfast and there are also those who do not even haveany breakfast before starting their day. The breakfast club is a multiplatform scheme which has been devised to support the ‘Help give achild a breakfast’ campaign initiated by Kellogg in October 2011 (Defeyter, 2010). Kellogg hasbeen successful in setting up over 500 breakfast clubs in United Kingdom. The schools which areinterested in starting a breakfast club under this campaign receives a grant from Kellogg to
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