Comparing Sustainability Practices: Danone, Kraft Heinz, Nestle

This report provides a comparative analysis of the sustainable business practices of Danone, Kraft Heinz, and Nestle, focusing on their stakeholder engagement and environmental responsibility. The analysis evaluates the companies' responses to stakeholder interests, the scope and quality of information provided regarding their sustainable activities, and their approaches to sustainability using a systems perspective. The report examines how the companies address the needs of customers, governments, employees, and shareholders, highlighting both similarities and differences in their strategies. It discusses the companies' visions, missions, and the various initiatives undertaken to reduce waste, promote sustainable packaging, and adhere to ethical standards. The study also considers the influence of governmental regulations and the use of models like the circular economy. The report concludes with suggestions for enhancing the companies' accountability towards their stakeholders, providing a detailed overview of their efforts to balance business objectives with environmental and social considerations. The report also highlights the importance of transparency and the role of various stakeholders in fostering sustainable business practices, contributing to a deeper understanding of corporate social responsibility in the food industry.

Running head: SUSTAINABLE BUSINESS
SUSTAINABLE BUSINESS
Name of Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Evaluation of stakeholder’s interest.................................................................................................3
The Scope and quality of information about the sustainable activities...........................................5
The systems approach to sustainability...........................................................................................7
The extent to which the organization are responsible to the stakeholders......................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

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Introduction
Sustainable businesses refer to all those organizations that aim to carry out its activities
by reducing its impact on the environment and society and it tries to meet the triple bottom line.
Such organizations are providing value to the customers by reducing any waste, properly using
the unsustainable resources and by becoming environmental friendly (Dubey et al., 2016). The
world resource institute is a research organization that operates globally across different
countries and aims at working closely with big organizations to make support their ideas related
to making proper use of the natural resources that will ultimately provide them with economic
opportunity and also supports wellbeing of all the human beings. The organization is aimed at
looking after various issues and one such issue is sustainable food production practises.
According to the organisation food wastage is a major issue in todays’ world and it has some
huge impacts on the climate. Therefore organizations are required to carry out activities in such a
way to achieve sustainable development. The organisation also provides strategies to reduce the
food wastage by entering into different types of partnerships with the companies. The companies
chosen for the purpose of this study is Danone, Kraft Heinz and Nestle
(Kraftheinzcompany.com., 2019). The aim of the paper is to provide a comparison and contrast
of the three companies chosen for the purpose of this study to understand how responsible the
companies are toward their stakeholders. The paper will discuss about evaluation of the
stakeholders interest, will discuss about the quality and scope of the information, evaluate the
systems approach to sustainability for the companies. The paper will also discuss about how
responsible the companies are towards the stakeholders and suggestions will also be given for
improving the responsibility of the companies towards their stakeholders.

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Discussion
Evaluation of stakeholder’s interest
Danone Company is food Product Company that is operating across different countries
with its headquarters in Paris. The company is listed in the Paris stock exchange. It dies branding
od some of its products in United States. The company is engaged in majorly selling its
nutritional products, water products and also dairy products. The company has been engaged in a
few unethical practices related to the infant food sin countries of China, Indonesia and others.
According to the Foberra and the New Zealand government, the company was accused with
providing contaminated food because of the ingredients supplied by Fonterra and it was
identified with the presence of Clostridium botulinium bacteria’s. The company immediately
took various precautionary measures and therefore recalled its products from different market
and one of it was New Zealand (Girotto, Alibardi & Cossu, 2015). It was only after different
tests conducted by the Government of New Zealand after which they finally lifted the alert
against the company when they got ensured that there was no Clostridium botulinium. Kraft
Heinz is a food company from America and having its headquarters in Chicago. It is one of three
largest food companies of North America. The company provides its profile to many brands. It is
also one of the fortune 500 companies. Nestle is a drinks and food conglomerate with
headquarters in New Zealand. It is one of the largest food companies in the world. It is also one
of the fortune 500 companies. It provides a wide variety of products to its customers and
operates across many countries. Many acquisition has been done by the company and it has also
acquired companies in new Zealand that is engaged in providing solution to the gastrointestinal
problems of the people with the help of its kiwi fruit solutions.

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Shareholders Interest table
Factors or basis of
comparison
Danone company Kraft Heinz
Company
Nestle Company
Similarities between the
company
Stakeholder 1:
Customers
Provide value
products by meeting
their nutritional and
dairy needs.
Provide value
products through
natural and organic
food production.
Provide value
products through
offering a wider
variety of product
range to its
customers.
Stakeholder 2:
Government
Following all
regulations of the
government
especially in
countries where there
had been some
ethical issues such as
in New Zealand it
provided
contaminated food
and later on broke
ties with its suppliers
to follow the
regulations of New
Zealand Government.
Following all
regulations of the
government- for
instance the US
commission on
securities exchange
took a probe on its
activities and it
adhered to the same.
Following all
regulations of the
government- On
account of
contamination found
in its baby products it
introduced its NFSI
or the Nestle food
safety institute to
meet the food
regulation in china.
Stakeholder 3:
Employees
Meeting the interests
of the employees by
working responsibly
and taking part in
different types of
movements and
activities.
Meeting the interests
of the employees by
working responsibly
by having policies to
guide sustainable
procurement of palm
oil
Meeting the interests
of the employees by
working responsibly
through sustainable
product labelling and
packaging
Stakeholder 4:
Shareholders
Meeting the wishes
of the shareholders
by adopting CSR
activities by taking
part in the national
B-Corp movement.
Meeting the wishes
of the shareholders
by adopting CSR
activities by carrying
out various
sustainable activities.
Meeting the wishes
of the shareholders
by adopting CSR
activities
Dissimilarities between
companies
Stakeholder 1:
Customers
Manifesto brand
model
Sustainable
packaging
NaturALL bottle
alliance
Stakeholder 2: Danones corporate Guiding principles Nestle corporate

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Government compliance and
Ethics board
business principles
Stakeholder 3:
Employees
B Corp movement Roundtable on
sustainable palm oil
Product labelling
Stakeholder 4:
Shareholders
B Corp movement Roundtable on
sustainable palm oil
Product labelling
The Scope and quality of information about the sustainable activities
Danone Company undertakes many sustainable activities in order to attract its customers.
for instance the company uses the model of Manifesto to meet the requirements of the customers
and also to reduce the impact on the society and environment and to become sustainable.
Through the manifesto model the company tries to justify its existence and looks after the
commitment of the company to look after the planet and peoples health. Moreover the company
has a vision of improving the company sustainability with the aim of improving the lath of the
environment because the health of the planet and that if the customers are interrelated with each
other. The company has the mission of bringing health to as many customers as possible through
their quality products (Nestlé Global., 2019). The company believes that everyone is living in
only one planet therefore it is the responsibility of everyone to work for the good of the planet
and therefore it asks its customers to join the one planet and one health movement. The company
uses the circular economy model to reduce the wastage of food and also use recyclable
packaging methods. They also provide high quality of food and beverage to the customers that
can easily enter and cone out of the economy. The customers were dissatisfied by the company
because of the Food contamination scandal and as a result started losing confidence on the
company. In order to overcome the same the company undertook many activities and one of the
major activities is using the circular economy model to reduce the food wastage. Therefore the
company has been able to gain the confidence of the people by providing all the information of

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its sustainable activities in its official website. Moreover the company publishes its CSR reports
regularly and the customers and the government also get the necessary information from the
same. The employees and shareholders support the company in its ethical activities by
poarticipay6ing in the same. Moreover the company also publishes information about its
activities on various social media platforms.
The Kraft Heinz Company has a vision of becoming the best food company by providing
a better world for everyone. They have the values of providing quality products, keeping the
customers first, maintaining integrity and various others. For this purpose they are engaging in
sustainable packaging for meeting the needs of the customers and at the same time having better
impact on the society. The company has committed to reducing food wastage along with various
other companies. They are therefore adopting the strategy of target, measuring and acting to
reduce the food wastage. They are also taking part in the initiative of food waste reduction
roadmap and the same strategy is aimed at reducing food wastage in order to achieve the
sustainable development goals. The customers feel that the company is working sustainably
because their activities of sustainable packaging and roundtable on sustainable procurement of
palm oil can clearly be seen from their official website and their Facebook page. Moreover the
company publishes its CSR reports and also has different guiding principles in order to show
compliance with the various governmental regulations. The employees and the shareholders
understand the company’s’ responsibility towards the society because of its sustainable activities.
Nestle company has the vision of providing products that can meet the nutritional
requirements of the customers and believes in providing high quality product to meet their
psychological needs. The company has the mission of providing better quality products to
improve the quality of life of the people (Scheer & Rubik, 2017). It has undertaken sustainable

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packaging and product labelling and also has taken part in the natural bottle alliance in order to
reduce wastage because it is made of recyclable material. Therefore the stakeholders can get all
the information from the office, website, from social networking sites and even word of mouth.
The systems approach to sustainability
The systems approach to sustainability addresses five main contexts such as culture,
environmental, economic, technical and individual aspects (Abreu, Alves & Moreira, 2017). It
helps in solving all wicked problems existing in the society and one of the most immediate
problems is sustainability that is the relationship of organization with the society and
environment. It includes evaluation of all the factors such as all the technical and the individual
factors and its impact on others. Sustainability through the systems approach is one that
comprises of various interdependent factors and therefore it is of the assumption that any change
in one factor may have an influence over other factors. For instance the major problem here is
sustainability such as wastage of food and food sustainability and it has an impact on the social
and cultural factors if individuals because ultimately these environmental problems are leading to
climate change. Technically this problem shows the lack of any modern technology to reduce
food wastage and control the same (van der Goot et al., 2016). The economic problem that the
sustainable problem is giving rise increased cost of organization due to wastage of resources and
it may further lead to various economic problems of the country. At the individual level, it
affects the public and others because it is leading to food and water shortage in many areas and it
is further creating other problems such as increased cost of food due to shortage of food in many
areas and therefore it will become unaffordable to many people.
There are different governmental policies that are adopted by different countries with the
aim of reducing the food waste and to control the same. The same has also been adopted by the

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Government of France because it implemented the waste management enforcement act 2012,
with the aim of reducing the food wastage happening in whole of France and it regulates the
organic waste that is sent to landfills. This policy makes it necessary for companies to recycle the
organic waste and there are laws regarding wastage of products that are of good quality. The
company Danone follow the same to reduce the wastage of food (World food company –
Danone., 2019). The company makes use of the manifesto brand model to reduce the
environmental carbon footprint and to provide better lives to people by providing better quality
of food products. It also takes part in the B-corp movement for the same purpose. In order to
look after the food wastage in Swiss confederation waste management policy looks after the
proper management of waste in Switzerland. Nestle makes use of various guidelines and policies
to look comply with different regulations of government and it also have separate committees for
the same purpose. Nestle company also makes use of NaturALL bottle alliance to make use of
recyclable plastic material for bottles to reduce the impact on the environment and furthermore it
also has corporate guiding principles in order to reduce food wastage. There is the federal food
waste policy to control the same in the U.S. Kraft Heinz gas its guidelines to ensure compliance
with the policies of government and adhere to the same such that the company does not engage
in food wastage. The company also makes use of sustainable packaging techniques to carry out
sustainable practices. It also adheres to the roundtable on sustainable palm oil to ensure that it is
not making wasteful use of palm oil that is an important demanded natural resource.
The extent to which the organization are responsible to the stakeholders
One of the most important models of CSR is Carrols pyramid model. This model aims at
showing the society’s expectation from business organizations and to categorise the same. There

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are basically four kinds of responsibilities that make the corporate social responsibility of an
organization.
These four categories of organizational responsibility towards the society is economic,
legal, ethical and philanthropic. Therefore the model explains that there are four main
components that together make the corporate social responsibility. The model shows that all the
activities of corporate social responsibilities is dependent upon the economic responsibility of the
company. Business also needs to adhere to various legal obligations and therefore the legal
aspects are kept in the next level. The next level comprises of carrying on activities in a manner
that is though not recommended or made mandatory by the law needs to be followed that is
organizations should operate in an ethical way. The last level comprises of the philanthropic
activity or all those acts that are done by the organizations in order to show their responsibility
towards the society. Therefore all organizations are required to follow the same.
Figure1: Corporate social responsibility model of Carrol
Source: ( )

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Therefore all the three organizations will be judged on the same criteria’s. Furthermore
there needs to be a committee to ensure adherence to the same. These criteria’s are considered
important because it has been laid down by the most popular model of CSR given by Carrol.
Danone Company meets their economic responsibility towards the society by providing them
with goods that are nutritious and meets the needs of dairy products. The company fulfils its
legal responsibilities by adhering to all the legal policies and regulations. The company believes
in operating in an ethical way because it decided to cut off all its ties with its supply chain
partner when it supplied the company with contaminated material and die to which the products
produced by the company was also contaminated. The company engages in various philanthropic
activities such as it uses a manifesto brand model and engages in B-corp movement. The Kraft
Hienz Company fulfils their economic responsibility towards the company by providing organic
and good quality material to the customers. It fulfils it responsibility towards the legal
requirement by adhering to various governmental policies and acts. It operates in an ethical way
such that it avoids any harm towards the society and it carries out philanthropic activities such as
sustainable packaging and various other activities. Nestle company fulfils its economic
responsibility by providing a variety of food and beverage range to its customers. The company
fulfils its legal responsibility by adhering to all laws. The company fulfils its ethical
responsibility by working in an ethical way and its philanthropic activities includes various
sustainable activities carried out by the company.
Conclusion
From the above discussion it can be concluded that, it is becoming for all the
organizations to become sustainable for achieving the sustainable development goals by the year
2023. The companies dealing with food products are required to reduce the wastage of food and

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also to make use of all the natural resources sustainably and reduce the impact on the society and
also to meet the stakeholder’s interest and provide value to the customers. The WRI or the world
resources institute enters into partnership with different organizations to improve their
sustainable activities and to reduce their impact on the society. It also provides for ways to
reduce the food and resources wastage by the organizations such as the target, measure and act
approach used and others. Food wastage has become a major problems because it is larding to
climate change and other environmental impacts. The information derived from the paper is the
ways in which these companies are meeting the stakeholder’s interest responsibly and
sustainably. The quality and scope of information regarding the sustainability of the
organizations have also been discussed in the paper to the extent they are true or not by analysing
the company websites and different sources. The systems approach used by the organizations,
the various activities undertaken by the organizations and recommendations to make the
organizations more responsible towards its stakeholders has also been shown in the paper.
Therefore by analysing the paper information can be got about the sustainable activities adopted
by the companies such as their sustainable packaging practices, their guiding policies and various
others.